You have gone to all your friends, family and contacts and now you are searching for more people to reach out to and introduce to your business! The internet looms as a tremendous information source and it is. In fact there is so much information that it can be overwhelming.
Depending on your style, whether you reach out as soon as you get a name or prefer to develop a strategy, there are lots of sources. Your type of business and your target market should influence the area (s) of focus. Normally, local first then widen the geographic reach. However, it could be industry driven. Some sources could be Dun & Bradstreet and provide them with the criteria and they will provide a list of companies and their contacts within that criteria. You can look to associations within the target markets such as IADC if you are chasing drilling companies or companies servicing the drilling industry. What about the books handed out at conventions. Usually you can get a one day exhibition only visitors pass and get leads, cards and directories that way. Possibly the internet might have lists of companies in certain industries and you can build from there. If you business is more geographically oriented search for companies within zip codes. You can also go to the public library and make copies of the volumes of directories that are there. What about driving around an area, take a picture of their main sign or take voice notes and look up their website later.
There are no limits today on the various ways you can obtain prospects. The real issue is in defining what that really is for your business and how to qualify all the various company names you obtain. Then you have to determine who is the appropriate person to contact. That process of cleansing your list is not easy and in essence forces you to define your target market and to get in depth into what that entails and who. This cleansing process is unique for each business as it depends on the target market. Once the list is defined and possibly prioritized by potential or urgency of need, you need to have a strategy for each. It may be you walk in the front door and ask to see the purchasing manager or whomever functionally would make the buy decision for your product or service. It may be you use their web site or LinkedIn to develop specific people to reach out to or who you may know in the company to introduce you to the right person. The actual effective strategy for you may vary by company and by style, no one method is necessarily the right one.
How to approach them or what to provide is a topic unto itself and is one that is successful in many different ways, but one thing is consistent; it is only as good as the person bringing the message!
Wednesday, April 9, 2014
Tuesday, April 1, 2014
Work Environment and Culture
Do you think it is an important subject or just filling space? What does your staff thnk? Will they answer openly? Will you listen? Did you think about this when you started or took over? If not, why not? The short and long of it is that it all starts with you!
Many times the thought is, well they are getting paid and that should be good enough. It may be for some and in some situations. However, if you are building a business, it helps to have people around you who enjoy the work. Productivity is higher and drama and absenteeism are reduced. Customer can sense it as well. It is not just about pay (it is one aspect). Leadership, communication and equipping people all are factors in the dynamics of the workplace. Let us not forget the actual people as well.
Each individual should know that they have value to the organization and it should be communicated in a direct manner. This process begins at the initial interview stage. What do you expect of them? Tell them. What do they expect of the organization or you? Are they realistic? Do they show character? Are they genuine? How do they communicate? From the receptionist to the highest level under you, they represent your business and are a reflection of your values. Often managers will rush over the interview process to fill a position to rush to get work done. Each employee is an asset and your invest time and energy into them. Value them! Engage your staff, challenge them, laugh with them, get to know them! Simple principals! Right.... But too often many other things get in the way.
Successful organizations have environments that breed growth, encourage innovation and reward performance. This culture starts at the top. Visible leadership, open communication, fair evaluations, defined roles and clear accountability are all necessary aspects to any good work environment. So what is the difference between the environment and the culture. The environment is what it actually is while the culture is what it being professed. When they are reflections of each other, it is clearly evident. So is it good or bad or apathetic or energetic? Enthusiasm, excitement, upbeat positive problem solving all are contagious. The true test of great leaders (or managers) is measured by the people in their inner circle (direct reports) and are they being properly trained to replace them. We could write a book (many have) on what it takes to succeed or fail. There are many principles involved but funny, it is not really that complicated. Stay the course with character, compassion and credibility and you will find that culture and the environment will
mirror those principles. So what is in your heart?
Many times the thought is, well they are getting paid and that should be good enough. It may be for some and in some situations. However, if you are building a business, it helps to have people around you who enjoy the work. Productivity is higher and drama and absenteeism are reduced. Customer can sense it as well. It is not just about pay (it is one aspect). Leadership, communication and equipping people all are factors in the dynamics of the workplace. Let us not forget the actual people as well.
Each individual should know that they have value to the organization and it should be communicated in a direct manner. This process begins at the initial interview stage. What do you expect of them? Tell them. What do they expect of the organization or you? Are they realistic? Do they show character? Are they genuine? How do they communicate? From the receptionist to the highest level under you, they represent your business and are a reflection of your values. Often managers will rush over the interview process to fill a position to rush to get work done. Each employee is an asset and your invest time and energy into them. Value them! Engage your staff, challenge them, laugh with them, get to know them! Simple principals! Right.... But too often many other things get in the way.
Successful organizations have environments that breed growth, encourage innovation and reward performance. This culture starts at the top. Visible leadership, open communication, fair evaluations, defined roles and clear accountability are all necessary aspects to any good work environment. So what is the difference between the environment and the culture. The environment is what it actually is while the culture is what it being professed. When they are reflections of each other, it is clearly evident. So is it good or bad or apathetic or energetic? Enthusiasm, excitement, upbeat positive problem solving all are contagious. The true test of great leaders (or managers) is measured by the people in their inner circle (direct reports) and are they being properly trained to replace them. We could write a book (many have) on what it takes to succeed or fail. There are many principles involved but funny, it is not really that complicated. Stay the course with character, compassion and credibility and you will find that culture and the environment will
mirror those principles. So what is in your heart?
Wednesday, January 29, 2014
Change, it is a blessing!
How many of you hate change? Maybe hate is a strong word so let's just say resist or cringe a the thought of it. Why? Is what you are doing now working? Is it enough? Is it efficient? Hey, is it what your bosses (if you have one) looking for?
Shouldn't we embrace change? Change leads to growth both personally and in most business cases. However it requires us to be flexible which is hard and to welcome new ideas... Whoa! New ideas not that is a novel approach as well. It might not even be my idea!
So let's set aside the pride, ego and authorship issues that surround many of us and instead look at the change from 40,000 ft. Ask yourself is it good for me, my business, my time and my customers or employees (not necessarily in the right order but you get the point!!
Once you let go of the personal issues and look at it strategically or big picture wise you can objectively determine if this is something that needs to be pursued. Don't spend time struggling with all of it, just take the old Big Chief Tablet, put pluses on side and minuses on the other and the course of action will be clear!
Shouldn't we embrace change? Change leads to growth both personally and in most business cases. However it requires us to be flexible which is hard and to welcome new ideas... Whoa! New ideas not that is a novel approach as well. It might not even be my idea!
So let's set aside the pride, ego and authorship issues that surround many of us and instead look at the change from 40,000 ft. Ask yourself is it good for me, my business, my time and my customers or employees (not necessarily in the right order but you get the point!!
Once you let go of the personal issues and look at it strategically or big picture wise you can objectively determine if this is something that needs to be pursued. Don't spend time struggling with all of it, just take the old Big Chief Tablet, put pluses on side and minuses on the other and the course of action will be clear!
Friday, July 12, 2013
Growth Options, Am I Limiting Myself?
Your business is doing ok but you want more.... You feel there is more potential and you want to capitalize on your energy and drive while you can... Are you in that position? What are your options?
Each situation is unique as it varies by products or services, large or small products, your target market, maturity of the business, profitability, infrastructure and many more factors. Let's look at some potential options. The most obvious step is continue to do what you are doing as it works and just be more aggressive in defining your market, segment wise or geographically. Ramping up the marketing and sales effort is generally the one thing that is tried first as it can be done with least additional expense and is just an expansion of the existing strategy. In geographical expansion it may work with sales people working from their home until a customer base is established enough to justify some infrastructure. This can be applied to an international expansion as well. However, on the international side of things many more factors come into the equation and it is less comfortable and familiar combined with higher costs and additional paperwork associated with it. For example if you have need to maintain inventory in your target market, this leads to a relation with some form of storage facility either directly or most likely via a third party vendor and then you have to address all the control, documentation and paperwork issues for those products in that country. Again depending on the nature of your product, you may be able to drop ship to your customers.
There are also other options via independent sales representation companies or agents in various locales, especially internationally. However, caution needs to be exercised as they are generally very independent and performance oriented so agreements need to be constructed to provide the guidelines encouraging them to represent your company they way you envision.
Another area often overlooked is a merger or acquisition with a vertical or horizontal competitor or supplier. It gets written off early on because of the higher cost associated with these transactions. True, however, what is the return. Before it is ruled out, analyze it with an eye toward the addition of their margin and what economies of scale on the expense side and potential cross selling on the marketing side. Where does this position your company? Now consider how I might pay for it and when I am paying for it? How confident am I that it will work? What am I willing to risk? What if your business brings benefit the the other company as well, a synergy if you will, then it becomes a matter of finding the common ground where you both win. Maybe the owners are older and looking to slow down or semi-retire or retire. Then the focus becomes one of security and return to them. Mostly they will be looking to cash out on their efforts and will need assurances that you can deliver and what are you willing to risk to bring it to fruition? In the past, I have seen these transactions work through some cash and a note. The note was actually a convertible preferred debenture that was convertible into controlling ownership of the common stock with very clear performance provisions and rights to cure time frames. This can be established for a potential succession plan as well. In that there is a rate and payment plan structured in the debenture. As long as the performance criteria are met then everyone is happy. Yes, I know Murphy's Law always comes up. Thus the right to cure provisions allowing you time to fix issues that may be just temporary.
The point here is that you never know if you do not open the dialog. What if they have no family to succeed them and are looking for a strategy over say 5 years to cash out. Can you capitalize on their customers and/or expertise to exponentially grow the combined business? What if you are acquiring a supplier and you can not only absorb their margin but improve upon it through efficiencies through combinations or cheaper locations? The possibilities are endless. The question to ask yourself is have I explored all my options?
Each situation is unique as it varies by products or services, large or small products, your target market, maturity of the business, profitability, infrastructure and many more factors. Let's look at some potential options. The most obvious step is continue to do what you are doing as it works and just be more aggressive in defining your market, segment wise or geographically. Ramping up the marketing and sales effort is generally the one thing that is tried first as it can be done with least additional expense and is just an expansion of the existing strategy. In geographical expansion it may work with sales people working from their home until a customer base is established enough to justify some infrastructure. This can be applied to an international expansion as well. However, on the international side of things many more factors come into the equation and it is less comfortable and familiar combined with higher costs and additional paperwork associated with it. For example if you have need to maintain inventory in your target market, this leads to a relation with some form of storage facility either directly or most likely via a third party vendor and then you have to address all the control, documentation and paperwork issues for those products in that country. Again depending on the nature of your product, you may be able to drop ship to your customers.
There are also other options via independent sales representation companies or agents in various locales, especially internationally. However, caution needs to be exercised as they are generally very independent and performance oriented so agreements need to be constructed to provide the guidelines encouraging them to represent your company they way you envision.
Another area often overlooked is a merger or acquisition with a vertical or horizontal competitor or supplier. It gets written off early on because of the higher cost associated with these transactions. True, however, what is the return. Before it is ruled out, analyze it with an eye toward the addition of their margin and what economies of scale on the expense side and potential cross selling on the marketing side. Where does this position your company? Now consider how I might pay for it and when I am paying for it? How confident am I that it will work? What am I willing to risk? What if your business brings benefit the the other company as well, a synergy if you will, then it becomes a matter of finding the common ground where you both win. Maybe the owners are older and looking to slow down or semi-retire or retire. Then the focus becomes one of security and return to them. Mostly they will be looking to cash out on their efforts and will need assurances that you can deliver and what are you willing to risk to bring it to fruition? In the past, I have seen these transactions work through some cash and a note. The note was actually a convertible preferred debenture that was convertible into controlling ownership of the common stock with very clear performance provisions and rights to cure time frames. This can be established for a potential succession plan as well. In that there is a rate and payment plan structured in the debenture. As long as the performance criteria are met then everyone is happy. Yes, I know Murphy's Law always comes up. Thus the right to cure provisions allowing you time to fix issues that may be just temporary.
The point here is that you never know if you do not open the dialog. What if they have no family to succeed them and are looking for a strategy over say 5 years to cash out. Can you capitalize on their customers and/or expertise to exponentially grow the combined business? What if you are acquiring a supplier and you can not only absorb their margin but improve upon it through efficiencies through combinations or cheaper locations? The possibilities are endless. The question to ask yourself is have I explored all my options?
Tuesday, June 18, 2013
Seeing Positive in Complex World
Wow! It has been quite some time since I sat down and shared some thoughts! Has your world been that busy and seems out of your control or that you are just going through the motions? Probably the case for many of you who may work for or have your own small business. So many topics, so many different opinions and a very small amount of real facts. Everyone seems to be drawn to reality issues so the media saturates the airwaves and the market with any and all it can get its hands on. You in the meantime are trying to filter your way through it to find items relevant to your needs today or next week and to best utilize the limited time and resources you have.
Don't fall into the trap of being sucked in to the every widening search for "truth" or answers or more likely just "dump". It previous posts I have talked about planning and execution. Now it is even more important to have a plan (form is not as important as having a direction and steps to get there). What is needed from you to attain that plan, today, next week over the next month? Ask yourself does my product or service lend itself to social media participation? Will it spread my brand identity translating into new customers or opening opportunities? Or do I need a presence for feedback or for marketing? Your energy and resources need to prioritize the best and most cost effective method to reach your market. Social media can be cost effective but it consumes a lot of time ( a very valuable and scarce commodity). Do I need to enlist a third party group to handle that and what about the cost?
Add to this mix the cultural and demographic spread that may exist in your market and how they are reached. The younger generations seem to thrive on the social media avenue and while some of the older generation embrace it, there is still leeriness when using it. Let's also mention that if your market is more global, what are the idiosyncrasies of some of the cultures or countries. There can be many factors that weigh in and they are different of course, depending on product or service.
In each and every case and in today's fast paced instant information age, corrections/adjustments can be made often as long as they are seen as more of a course adjustment and not a complete redirecting. So we come back to the planning side of things and how well you analyzed your market, selected your marketing approach and how effectively you monitor and manage your marketing strategy, prospects and customers. This is not rocket science but it can be overwhelming. Solid planning reduces the areas of concern and allows you to focus on implementation which is what translates into market presence and ultimately success.
So what is the first step? I would say take deep breath, pull out a note pad and list what you feel needs to be done (irrespective of where the resources will come from at this point). When you have completed the list, then go back and place a priority number on it (i.e. what's most important or should I say what you believe is most important), make notes besides those that you can about resources (people who can do it, in your organization or that you know) and then when you feel it needs to be completed. You have a document that you can use to take the first step. Now in some cases you may feel that you are weakest in this area and will visit with some friends or possible hire a professional to visit with you about your ideas and possibly offer alternative ideas or resources. Whatever the case, many times action on even a rough plan will reduce the stress allow you to progress. This is not a yes/no type exercise and it is dynamic as it should be ongoing quarterly or at the least annually and it should cover more than just marketing. It does not need to consume days when it can be done in hours after the initial time when you have a better idea of how to work through it. One last note, there are many helpful hands out there who may have some valuable information for you, but you need to control the input, the cost and the time on your schedule. It is your business!
Don't fall into the trap of being sucked in to the every widening search for "truth" or answers or more likely just "dump". It previous posts I have talked about planning and execution. Now it is even more important to have a plan (form is not as important as having a direction and steps to get there). What is needed from you to attain that plan, today, next week over the next month? Ask yourself does my product or service lend itself to social media participation? Will it spread my brand identity translating into new customers or opening opportunities? Or do I need a presence for feedback or for marketing? Your energy and resources need to prioritize the best and most cost effective method to reach your market. Social media can be cost effective but it consumes a lot of time ( a very valuable and scarce commodity). Do I need to enlist a third party group to handle that and what about the cost?
Add to this mix the cultural and demographic spread that may exist in your market and how they are reached. The younger generations seem to thrive on the social media avenue and while some of the older generation embrace it, there is still leeriness when using it. Let's also mention that if your market is more global, what are the idiosyncrasies of some of the cultures or countries. There can be many factors that weigh in and they are different of course, depending on product or service.
In each and every case and in today's fast paced instant information age, corrections/adjustments can be made often as long as they are seen as more of a course adjustment and not a complete redirecting. So we come back to the planning side of things and how well you analyzed your market, selected your marketing approach and how effectively you monitor and manage your marketing strategy, prospects and customers. This is not rocket science but it can be overwhelming. Solid planning reduces the areas of concern and allows you to focus on implementation which is what translates into market presence and ultimately success.
So what is the first step? I would say take deep breath, pull out a note pad and list what you feel needs to be done (irrespective of where the resources will come from at this point). When you have completed the list, then go back and place a priority number on it (i.e. what's most important or should I say what you believe is most important), make notes besides those that you can about resources (people who can do it, in your organization or that you know) and then when you feel it needs to be completed. You have a document that you can use to take the first step. Now in some cases you may feel that you are weakest in this area and will visit with some friends or possible hire a professional to visit with you about your ideas and possibly offer alternative ideas or resources. Whatever the case, many times action on even a rough plan will reduce the stress allow you to progress. This is not a yes/no type exercise and it is dynamic as it should be ongoing quarterly or at the least annually and it should cover more than just marketing. It does not need to consume days when it can be done in hours after the initial time when you have a better idea of how to work through it. One last note, there are many helpful hands out there who may have some valuable information for you, but you need to control the input, the cost and the time on your schedule. It is your business!
Tuesday, August 23, 2011
Stress and the Small Business Owner
If you came to this article expecting a magical cure you came to the wrong place. Stress is a fact of life in small business where the intent is to grow the business. If you are satisfied with where your business is in terms of market, size and profitability then many of your decisions have already been made and you have developed a system of delegation and are not attempting to control every aspect of the business. Too many owners are under the misconception that micro-management is a must since it is there business. Now managing a business and micro-managing one are quite different. An owner should know the ins and outs of his (her) business and be very familiar with all aspects of the business. However, if you try to handle all the sales, customer service, production if there is any or purchasing plus personnel issues you will never have enough time to do it right or to do anything else.
What is the key? Just that! Determining what are the keys to success in your business. Maybe it is the number of customers each day or week and so you have to insure that you get the word out. Maybe it is done by demographics or by geography or by some other method of selection and thus you hit so many households or people and you get a certain percentage through the door. Maybe it is calls on business to sell your service and you know if you call on 100 you will get 10 to listen and 2-3 will buy. So now the sales or contact keys are establish and either an employee or maybe third parties can report their contacts to you and as long as it meets or exceeds your expectations, once less worry. But wait, numbers are dropping? Why? Is it a stale effort? Does it need re-energizing? Re-Vamping? More of it? Temporary? So clearly periodically you would need to re-visit the program and your expectations but not every day. So determine the regularity of the analysis and look to something else.
No one seems to treat my money carefully enough so I do all the buying and have to check everything. Stop! Are you hiring the right people? As I have said in previous posts are you going to cheap? Have you made your expectations clear enough and established policies and procedures that reinforce the methods? Take a look at levels of spending authority…. If you have established budgets that are consistent with the plan then it will lead you into what authority for whom….
Personnel issues, wow do you have to handle them all. Even if you have a shop or such, can you not have shift leaders or managers responsible for insuring they have coverage and listen to all the attempts to stay home? Remember it is back to hiring the right people and being clear about expectations and the policies and procedures which are applied equally.
Customer complaints are an area where you certainly want to be in the mix but not until others have had a chance to satisfy the customer. Think about the complaints, many times it is because they were not treated right in their mind (employee training resolves this issue as well as the way the leadership deals with each issue). Sometimes they just want to be heard or so many minor things that do not need to be a distraction.
Cycle back to the keys that is where you spend your time. Businesses grow because the employees (irrespective of their ownership position) connect with prospects or customers on an ongoing basis. It is a relationship that has to be nurtured and one where the seller (you) have to constantly be in front of your customer at the right time or at least they know you have what they need. Retail operations revolve around location, the right inventory and employees who can connect the customer with a need that brought them there originally. In wholesale or manufacturing it is more about finding who are target and the correct decision maker and again satisfying a need.
Stress is what we do to ourselves for many reasons! You probably have heard the expression, “They Can’t Eat You”. Many sales people and debt collectors will use all their extensive training to convince you to buy or pay. Guilt, intimidation, lying, misrepresenting procedures are all tools of the trade for them. However, what if you just ignore it or should I say them? But they keep on? Their job is to get you talking and to move you from defensive to cooperative. They take it one step at a time and they will get you to buy in at each step by asking you to agree. You can feel the stress just piling up! However, just say no or goodbye and what happens? Your shoulders relax and you breathe again. My point is you let them get to you. Don’t let someone bring the fight to you. No, you take the fight to them! You might find this funny but the most effective way to resolve any dispute is just like the Bible says in Matthew 18. No gossip. No stress. No Lies. Just direct honest talk face-to-face. You look whoever in the eye explains where you were coming from and the issues listen to his side and go from there.
Reduce your Stress!
Thursday, June 2, 2011
Sales as it should be!
Why aren’t people standing in line to buy from me? We have a good product or we provide a great service. These are comments I often here from people who start a business without some type of plan. Hey, I am not talking about a telephone book size plan. I am talking about taking the time to answer some simple questions
·
- Who can use my service or would benefit from my product? And why (what is their benefit!)
- How do I get me message to them? Personally, media, word of mouth, door-to-door, email, billboards?
- What is my message to them? What about my service or product distinguishes me from other choices?
- What order is the best method and most expeditious in getting my message out to the right people?
Simple questions that may lead to not so simple answers. How do I begin to define the market? You can hire someone to do the research for you or you can go to someone like D&B and buy so many leads based on some criteria you provide them. You may be able to find leads on the WEB by searching for free listings or join organizations that include people who are your market. You may have to just go to each business and/or house in certain areas to tell them about your service or product? There are many different ways to accomplish this aspect and no one way is the only way. In fact, you may decide to pursue it on many different levels. You may advertise on TV or a billboard. Maybe for you, a mail out campaign with some type of offer brings people in to you facility or store or makes them aware of what you have to offer. This definition and communication of your business is the most critical aspect to being successful. You may be able to go to your local business magazine and acquire a list of certain types of companies in your town with all the information you need. Now you have to develop the campaign to tell them your message and lead them to acquiring your product of service. In this process, many times people get so focusing on selling that they lose their identity. For example you promote your business as being higher quality than those currently in the market and yet you discount the price below that of your competitor because you are impatient or in a hurry. Another reason to develop a plan and understand it such that you maintain your corporate and product/service identity and integrity.
Having touched on your message, let’s remember that marketing materials can be of a wide range of quality and sources. You can pay to have them designed and used high quality materials or maybe you just do them yourself. Again they need to be clear and carry a message both about who the company is and what the product/service can do for them. In today’s marketplace, many business figure if I can call on enough people I will get sales. This can be true if you are not targeting a specific geographical area say like a restaurant or retain store. If you are incorporating the internet into your program and you can deliver the service or product to the end user then by all means proceed. Determination and effort can overcome a lot of things to drive a business to the success point. My point, define how and to whom you plan to sell. Determine how they make their decisions and utilize the appropriate method to deliver the appropriate message to them.
Finally, what are you expectations? How soon do you expect to close the first sale on best and worst case basis? Have a budgeted for the worst case basis and worked for the best case? Have I quantified the sales expectations into short and long term? Have I put together the resources to provide for the opportunity to succeed or have I pinched pennies and maybe need to stretch out my expectations. Many times we are blinded by our own brilliance or maybe it is naïveté or somewhere in between. However, this needs to be the most realistic conversation and plan you can have. You need to be clear on what the worst can be and am I willing to risk that? Or if it goes bad, what can I do? If it goes better than expected, what do you do? Increase production, hours, staff, raise prices or just turn down excess orders or business. Hopefully, you are beginning to see the importance of the sales or market analysis and planning. It is not about the format or how pretty it looks, it is about the meat.
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