Step by Step to Endless Growth

How To Thrive In A Difficult Economy

2012-01-22T07:53:00.003-05:00

An interview with Claude Blanc by Scott McKelvey

You stress the importance of achieving clarity. Why is clarity so important and how does a local business owner achieve it?
Clarity is extremely important because if you cannot see where you’re going, how in the world are you going to get there? One of the very first processes I go through with my clients is to figure out, what is their vision? What is their mission? The vision and mission, together with core values, will form the core of the branding message. It also becomes the rudder for the growth of the business. Every time you decide to start a new plan or a new program, you have to examine it at the light of that vision and mission. If your vision and mission are not clear, then you’ve got a real problem.

Over the course of your career, you’ve led multi-million dollar organizations. When you stepped away and started your own business, what was the biggest challenge you faced and how did you overcome it?
The biggest challenge was that, all of the sudden, everything was resting on my shoulders. I literally ate what I killed, which meant I had to go out there and get the business one piece at a time. It was also very much a growth experience, learning what makes people tick, understanding how to meet other people’s needs in an effective manner, understanding that it was no longer about me – that it was never about me – it was always about the needs of the client.
It’s an ongoing experience, something you have to start every morning. I tell my clients that when you start your day and brush your teeth or take a shower, do some mental hygiene as well. Clean your mind and take everything out of your head. Start fresh because you have a spotless future. That’s one thing I tell myself everyday – you have a spotless future. Every day is a new page.

From a marketing standpoint, what is the most common mistake made by local businesses?
The most common mistake is probably thinking that the world out there cares about them. The potential clients out there care only about themselves. It’s only in as much as your business meets the needs of the client that they will pay attention to you. It’s never about you. It’s always about them. That has, of course, a lot of implications. You’ve got to go out there and spend more time listening than talking. You’ve got to go out there and throw out the net, never knowing exactly what kind of catch you’ll reel back in.

Since you launched CHB Associates seven years ago, how has the business climate changed and how has this affected local businesses?
Well, we had a major recession and it has been quite a rollercoaster ride. Everybody has been trying to reduce costs right and left. Of course, you don’t conquer glory by simply reducing costs. You conquer glory by driving your top line. That has been one of the main challenges for small and large businesses alike. Therefore, it’s not only a matter of cutting costs, but it’s a matter of finding opportunity in an environment that’s truly challenging.
While many businesses were going belly up, a number of businesses were also thriving. The key to finding opportunities is focusing on what you can change. Can you have an impact on the overall economy? Well, no, you can’t so you shouldn’t worry about it. But within the parameters that have been given to you, there are always opportunities. The challenge is to focus on how you can impact the environment rather than how the environment can impact you.

Tell me about one of your favorite client success stories.
My very first coaching client is still with me. I had done consulting work before, but consulting and coaching are two very different animals, so I had very little experience. But that person trusted me.
His situation was dire. He was in the video production business and his revenues were woefully insufficient. We agreed to a barter arrangement for the first three months and cash after that. After those first three months, he said, “I can’t afford you but I guess I really can’t afford not to go with you.” So we kept on going.
First, we discovered what was the vision, the sense of mission, the big picture, the core values that this business wanted to embrace. Once we had gone through that, we took a look at his situation that day, both on a personal level and a business level, and designed a plan to get from here to there. After nine months, the client said, “I’m done with you. I think I’ve learned everything I need to learn and I’m going to go on my own.” After a long session that day, he changed his mind and we continued.
His business actually doubled the first year and has continued to grow by double digits in every year since. One of the main reasons for that success was the change in the business owner’s attitude from negative talk to positive visualization. Then, a marketing plan, obviously, was very much needed, sales training, and systems – as the business started growing, making sure all of the systems were in place so that he could hire people to help him get to the next level. At the end of last year, he said he will never do without a business coach for the rest of his career.

http://www.websearchsocial.com/5-questions-with-claude-blanc-president-business-coach-chb-associates

Do not allow your business to own you

2011-12-29T12:06:00.000-05:00

A new year is starting and now is the time to look at how far we have gone and how far we still have to go. Do you own a business and do you feel that your entire company rests squarely on your shoulders and the weight is crushing you?
You feel over-worked. You have built a trap for yourself: all the company’s problems ultimately land on you to fix. You are burned out and you have no personal life. Frustration is creeping in. You are tired, surrounded by people, but feel very alone.

If you feel this way, then you are not alone. In fact, the majority of small business owners feel that way. The good news is that it can be fixed: You can fix it!

You’re probably thinking, “Right. One more thing to do. I have no money, no time, and I do not think that this can change. I’m stuck and there’s nothing I can do about it.” Please, keep reading…

Think back to the day when you conceived your company in your mind. Do you remember the excitement? The expectations? The vision? You were going to own your market. You were going to create an environment where people wanted to come to work. Your customers would be so pleased with your products and services that they would shout your company’s name from the rooftops. Do you remember? You knew you were going to make a lot of money and spread it around with your collaborators and with the community around you. You could afford the lifestyle you had dreamed of, taking a couple of Caribbean vacations a year. You would work hard for a few years, then slow down and spend more time with the family, coaching soccer, watching your children grow. Ultimately you would build enough equity to sell the company for a few million dollars and take a well deserved rest.
You went to work and worked your tail off: nights, weekends, round the clock. Keeping the payroll down and maintaining tight control. You made the sales calls, served your customers, and even worked in production. You did the purchasing and paid the bills. You made the collection calls and did the hiring. Everything revolved around you and you did not mind it because you knew it would all pay off in the end.

But as the years passed, your energy ran out. You tried to hire some great people but people always let you down. You did not blame them; deep inside you knew you had not interviewed enough people to find the right fit. After the hire you had neither time nor system to train your new employees. It did not work and nothing was done correctly. If you wanted something done right, you just had to do it yourself. So you did…and you still do.

Does it sound familiar? If it does this is the problem in a nutshell: Your business is still operating as a start-up company even though it is several years old. Think about it. How deep is your leadership structure? What systems do you have in place to maximize efficiencies? How much of your time do you spend handling tasks that someone else could handle for you at a fraction of your pay? How much time do you personally spend developing your team? Are you working “on” the business, or are you still working “in” the business?
Does everyone have written job descriptions and a clear understanding of their roles and responsibilities? Who holds them accountable for results? Do you have a formal training program in place for new hires? What about developmental training for your existing employees? What are you doing for your own professional development?

How to get beyond Sales Objections

2011-12-06T11:49:00.000-05:00

Anyone who owns or operates a business is in sales. If you are in sales, then you have encountered sales objections at some point in time. In fact, regardless of our profession, we all deal with objections in life with co-workers, business partners, spouses, and family.
The good news is that there are ways to get around those objections. All it takes is a little preparation.
The first consideration is that when you sell, whatever you sell, you should not be surprised by objections. In fact, every objection is an opportunity. It is an indication of what your prospect has in mind. This approach to objections will take much of the negativity off.
When an objection is presented, listen carefully completely; pause, and make sure you understand the situation. When you respond, the most effective responses are generally framed as a question.
Some Examples:
Objection: Your Price is too high
Reply: “I understand your concern, what were you planning to spend?”
Objection: I want to think about it.
Reply: “That’s a fair statement, so what are the specific items you want to think about?
Dig deeper
You want your prospective buyer to open up and tell you more about what is keeping them from making a decision. During this exchange, be real, be sincere, be understanding and be positive. Honest, heartfelt questions will normally get prospects to open up. And, you must answer the objection to the satisfaction of your client, before moving forward in your process.
Never argue or debate with your prospective client: nothing stalls or even kills a negotiation faster. Never speak poorly of your competition. If an objection forces you to compare your product or service against a competitor, use factual information only. Hearsay and rumors do not lead to long-term success.
Is there a silver bullet to eliminate Objections?
Objections are part of the selling process and they will never totally be eliminated. However, they can be greatly reduced. How? By spending more time qualifying your prospect and finding out his or her needs and expectations are before you do your presentation. You need to ask a lot of questions. And then, listen to the answers. You can defuse many objections by clarifying the expectations before you start your presentation.
Example: At the end of a perfect presentation the potential buyer announces they need to consult with another person before they can make a decision. How could this objection be avoided? Ask up front if all decision makers are present and make sure that everyone who needed to be there would in fact be there for the presentation. If not, abort and reschedule. This issue could have been prevented completely by simply asking the right question up front.Do a short exercise to improve your handling of objections: write your top 5 most common objections on one side of a piece of paper. On the other side, for each objections list 2 to 4 clear responses (framed as questions) that will address the objection and keep you engaging with your prospect. Remember, your top priority in the discussion is to truly understand the needs of your prospect. His or her objections will help you figure those out. Review your list regularly and get comfortable with the concept that every objection is an opportunity.

Answering 8 critical questions

2011-10-18T19:22:00.001-04:00

1. What are your core values?

2. What is your core focus?

3. What is your 10-year target?

4. What is your marketing strategy?

5. What is your three year picture?

6. What is your one-year plan?

7. What are your quarterly short time goals?

8. What are your issues?

Do you have time? 10 Time Management Tips to Maximize your Effectiveness

2011-05-11T09:45:00.002-04:00

“You cannot manage what you cannot measure”.
It is hard to know how we are doing and even harder to know if we are improving if we do not establish some performance metrics. It is particularly true when speaking about time management improvement.
Time seems to escape us and there is never enough time to do everything there is to do. Yet we have no less time than Einstein, Mother Teresa or Steve Job. So, what is going on?
If you’re like a lot of people, the answer to the above questions is…”I don’t know…!”
Could you prioritize and increase productivity? How much time do you spend marketing, selling, producing, servicing your customers? Are you using your time productively?
The ten following tips, if applied systematically, could add a week to your life every year…
1. Log in all your activities for a week. This will help you understand how much you can get done during the course of a day and where time is going. You will see how much of your time is actually spent productively and how much time is wasted.
2. The 80/20 rule applies also to time management. You produce 80 percent of your results in 20 percent of your time. Once you have identified those most productive activities, focus on spending at least 50 percent of your time engaged in those activities.
3. All activities that are important to your success must have a time assigned to them. If, for instance, you need to make so many sales calls per day, assign a time and write it down in your schedule. Schedule and write down the time to meet with your staff. And do not forget to set up an agenda… Every important activity must be set up as an appointment and even if they are appointments with yourself, have the discipline to keep these appointments.
4. When something hits your in-box, decides on the spot if you need to do it, delegate it, defer it or drop it and act on it accordingly. Do not let things accumulate in your in-box.
5. Take the first 10 minutes of every day to huddle (standing) with yourself and/or your staff to plan your day. This is the most important time of your day.
6. Assess before every call and task what results you want to attain. Visualize success. Examine after each call and activity if your desired result was achieved. Every call and activity will result in being a success or a lesson.
7. Close your door and put up a "Do not disturb" sign when you absolutely have to get work done.
8. Do not answer the phone just because it's ringing or respond to e-mails just because they show up. Give your instant attention to people only if it is absolutely critical to your business (911 responder). Schedule a time to answer email and return phone calls.
9. Social media has become a key marketing tool for many businesses. When using social media, schedule blocks of time and do not let distractions take you adrift. Set up clear goals and objectives and monitor that you are achieving them.
10. Remember that it is impossible to get everything done. Work effectively, get the most important things done and be ok with it. “This constant, unproductive preoccupation with all the things we have to do is the single largest consumer of time and energy.” Kerry Gleeson
So, ultimately, it is not about managing time: time manages itself. It is a matter of managing our actions and making the right choice about what to do at any point in time.

Happy Birthday, Leonardo!

2011-04-14T21:49:00.001-04:00

Before he was famous, before he painted the Mona Lisa and the Last Supper, before he invented the helicopter, before he drew the most famous image of man, before he was all of these things, Leonardo da Vinci was an artificer, an armorer, a maker of things that go "boom".

And, like you, he had to market and sell himself to get his next client. So in 1482, at the age of 30, he wrote out a letter and a list of his capabilities and sent it off to Ludovico il Moro, Duke of Milan.

As this Friday will be da Vinci's birthday, let us celebrate the man who was not just a genial artist, inventor, architect, engineer but also one who had a sense of marketing that escapes many still today.

Here is the translation of his letter:

"Most Illustrious Lord, Having now sufficiently considered the specimens of all those who proclaim themselves skilled contrivers of instruments of war, and that the invention and operation of the said instruments are nothing different from those in common use: I shall endeavor, without prejudice to any one else, to explain myself to your Excellency, showing your Lordship my secret, and then offering them to your best pleasure and approbation to work with effect at opportune moments on all those things which, in part, shall be briefly noted below.
1. I have a sort of extremely light and strong bridges, adapted to be most easily carried, and with them you may pursue, and at any time flee from the enemy; and others, secure and indestructible by fire and battle, easy and convenient to lift and place. Also methods of burning and destroying those of the enemy.
2. I know how, when a place is besieged, to take the water out of the trenches, and make endless variety of bridges, and covered ways and ladders, and other machines pertaining to such expeditions.
3. If, by reason of the height of the banks, or the strength of the place and its position, it is impossible, when besieging a place, to avail oneself of the plan of bombardment, I have methods for destroying every rock or other fortress, even if it were founded on a rock, etc.
4. Again, I have kinds of mortars; most convenient and easy to carry; and with these I can fling small stones almost resembling a storm; and with the smoke of these cause great terror to the enemy, to his great detriment and confusion.
5. And if the fight should be at sea I have kinds of many machines most efficient for offense and defense; and vessels which will resist the attack of the largest guns and powder and fumes.
6. I have means by secret and tortuous mines and ways, made without noise, to reach a designated spot, even if it were needed to pass under a trench or a river.
7. I will make covered chariots, safe and unattackable, which, entering among the enemy with their artillery, there is no body of men so great but they would break them. And behind these, infantry could follow quite unhurt and without any hindrance.
8. In case of need I will make big guns, mortars, and light ordnance of fine and useful forms, out of the common type.
9. Where the operation of bombardment might fail, I would contrive catapults, mangonels, trabocchi, and other machines of marvelous efficacy and not in common use. And in short, according to the variety of cases, I can contrive various and endless means of offense and defense.
10. In times of peace I believe I can give perfect satisfaction and to the equal of any other in architecture and the composition of buildings public and private; and in guiding water from one place to another.
11. I can carry out sculpture in marble, bronze, or clay, and also I can do in painting whatever may be done, as well as any other, be he who he may.
Again, the bronze horse may be taken in hand, which is to be to the immortal glory and eternal honor of the prince your father of happy memory, and of the illustrious house of Sforza.
And if any of the above-named things seem to anyone to be impossible or not feasible, I am most ready to make the experiment in your park, or in whatever place may please your Excellency - to whom I comment myself with the utmost humility, etc."

You'll notice he doesn't recite past achievements. He doesn't mention the painting of the altarpiece for the Chapel of St Bernard; he doesn't provide a laundry list of past bombs he's built; he doesn't cite his prior employment in artist Andrea di Cione's studio.

No, he does none of these things, because those would be about his achievements, not the Duke's needs.

Instead, he sells his prospective client on what Leonardo can do for him. He is offering benefits…

Now imagine being the Duke of Milan and receiving this magnificent letter from the young Wunderkind of Florence. The specific descriptives paint a wonderful picture (that is, if you're a Renaissance Duke) of siege engines and bombardments and mortars and trench-draining and bridges to defeat the enemy. You can almost imagine the scenes that ran through the Duke's head as he held this letter in his hands and read through Leonardo da Vinci's bold statements of capabilities.

I mean, who wouldn't want "kinds of mortars; most convenient and easy to carry; [that] can fling small stones almost resembling a storm"? Sounds pretty enticing.

This is what marketing is about. It is not a laundry list that talks about you, but the marketing piece that talks about the benefits to your prospective client and how you fit into his or her needs and desires.

So it turns out that even on his 559th birthday, this remarkable fellow Leonardo da Vinci is still teaching us something about the future. What a genius...

Happy Birthday, Leonardo…

Aim High!

2011-02-17T07:37:00.000-05:00

Anthony Robbins is a famous life coach who has served as advisor to prominent leaders around the world. His work specifically focuses on the art of leadership, negotiation, and performing to the best of one's ability.

Robbins writes: “The only thing that's keeping you from getting what you want is the story you keep telling yourself. What we can or cannot do, what we consider possible or impossible, is rarely a function of our true capability. It is more likely a function of our beliefs about who we are.” It is this belief that creates change: “Any time you sincerely want to make a change, the first thing you must do is to raise your standards….“When people ask me what really changed my life eight years ago, I tell them that absolutely the most important thing was changing what I demanded of myself. I wrote down all the things I would no longer accept in my life, all the things I would no longer tolerate, and all the things that I aspired to becoming.”

Do not be afraid to believe in what you are capable to achieve. Aim at greatness. Nobody reaches high by aiming low…

New Year, New You!

2011-01-06T10:56:00.001-05:00

Are you ready for the recovery? The recovery will happen for YOU if YOU make it happen! In 2011 some will prosper, some will fail. Where will you be? Do you have a plan? Are you still reading the economic indicators? Forget the indicators… It is not about the economy; it is about YOUR economy.
What will you do in 2011 that you have not done in 2010?
Here are a few pointers:
• Get closer to your existing customers. Identify your top customers and visit them. Discover their pain and address it.
• Develop an on-line strategy. It is the most effective and most measurable use of your marketing dollars. This includes web site design or re-design, search engine optimization, on line social media, blogs, etc. If you do not know what to do, talk to someone that does.
• Network: networking is not a hunting job, it is a farming job. It takes time and patience but, if you persevere, the harvest comes.
• Serve your community. Business—like life—is all about relationships. The more you give, the more you receive.
• Think “How can I benefit my clients today?” Share relevant information, educate, offer help, offer value, under promise, over deliver.
• Keep the spirit up and create a workplace where people want to come to work. A positive attitude is contagious and improves morale and performance.
• Ask for testimonials and referrals. What they say about you is a lot more important than what you say about yourself.
• In each one of these categories, establish SMART goals: specific, measurable, achievable, relevant to your vision, time bound.
If you want to discuss any of these steps over a cup of coffee, email me at claude.blanc@chbassociates.com and let’s chat.

Do not Sell Yourself Short!

2010-12-27T11:59:00.002-05:00

As we enter a new year, this is the time to assess the profitability of your business. Many new (and existing) business owners price their services below market rates as a way to bring in business. As operating costs increase, however, you find yourself with a growing business but not growing profits. What should be done? Should you raise prices?
Your current clients who made your success possible have put a value on your services – the value that you initially set for them. So, if you raise your prices by 20 to 40 percent, at par with your competitor’s rates, your customers may think, “Wow, that’s expensive!” But, if you don’t raise prices, you may end up with losing money.

Low prices are a problem

When you price yourself considerably lower than your competitors, your services are viewed as being “cheap,” regardless of their true value. This leads to three significant problems:

1. Customers often equate a discounted service with low quality.

2. Your ability to invest money in your business to allow you to provide new services and more value to your customers is limited.

3. You are missing out on high profit clients.

Can low prices drive clients away? If you need surgery, would you look for the cheapest surgeon? Probably not. To get the best level of service, you pay the high-end of the range. In a professional service business, you are sought after because of your knowledge or talent in a certain area. Your prices should, and must, reflect that talent at the outset of every relationship with each client.

Here are some things to consider when setting your prices, be it now or from the beginning.

1. Do your research. Check out your competition, especially those who are most successful. What do they charge and why are you different? Be prepared to answer that question for your customers and potential customers.

2. Know your costs. You need to set prices in such a way that you make the profit you want and need. Proper pricing can help you ensure the long-term health of your business.

3. Do not discount. If the value of your services is $5,000, why would you offer it for $4,000? Is it less valuable to this client than it is to others? If so, let’s find more of those clients who find it more valuable. After all, you’re a professional, not a discount shop.

4. As a general rule do not bill by the hour. There are few professions in which hours provide a good measure of value. Additionally, with hourly billing the more experienced you become, the more efficient you are, the less money you make! The client doesn’t care if it took you 50 hours or 50 minutes to design their marketing piece. As long as they receive a terrific design, it holds the same value to them.

How to raise prices

At first, leave your current clients alone. Instead, resolve not to accept any new business below your newly established higher price. Publish new contracts, price sheets or rate cards and stick to them. Once you start receiving business at your new price level, you will feel your service is worth the higher value that these new clients have assigned to it.

Once you establish the new pricing with your new clients, then return to your old clients. Have a face-to-face meeting with them, preferably, and review with them the value of the services you deliver. Let them know that you have researched your competitors and found that you are offering more value for less money. Also, let them know you are billing new clients at the higher price level. Then, raise their prices with an effective date two to four months in the future. This gives you a chance to finish current projects or services at the present price while allowing them time to adjust their expectations and budgeting for future projects or services. If it’s worthwhile to you offer them the chance to pre-pay now for future projects or services at their current low rate. This gives you the certainty of their future business as well as cash in your pocket today!

Setting your services at market value will secure client loyalty and respect, allow you to invest in and grow your business, and improve your profit margins. If you, as the business owner, do not value your own products or services, you cannot expect your clients to value them either. Do not settle for less than you’re worth!

When our Biggest Weakness is our Greatest Strength

2010-12-10T08:03:00.001-05:00

Ralph Waldo Emerson, American poet, lecturer and essayist, wrote: “Our strength grows out of our weaknesses.” The following is the story of one 10-year-old boy who decided to study judo despite the fact that he had lost his left arm in a devastating car accident.

The boy began lessons with an old Japanese judo master. The boy was doing well, so he couldn't understand why, after three months of training, the master had taught him only one move.

"Sensei," the boy finally said, "Shouldn't I be learning more moves?" "This is the only move you know, but this is the only move you'll ever need to know," the sensei replied.

Not quite understanding, but believing in his teacher, the boy kept training. Several months later, the sensei took the boy to his first tournament. Surprising himself, the boy easily won his first two matches. The third match proved to be more difficult, but after some time, his opponent became impatient and charged; the boy deftly used his one move to win the match. Still amazed by his success, the boy was now in the finals. This time, his opponent was bigger, stronger, and more experienced. For a while, the boy appeared to be overmatched. Concerned that the boy might get hurt, the referee called a time-out. He was about to stop the match when the sensei intervened. "No," the sensei insisted, "Let him continue." Soon after the match resumed, his opponent made a critical mistake: He dropped his guard. Instantly, the boy used his move to pin him. The boy had won the match and the tournament. He was the
champion.

On the way home, the boy and the sensei reviewed every move in each and every match. Then the boy summoned the courage to ask what was really on his mind. "Sensei, how did I win the tournament with only one move?" "You won for two reasons," the sensei answered. "First, you've almost mastered one of the most difficult throws in all of judo. And second, the only known defense for that move is for your opponent to grab your left arm. The boy's biggest weakness had become his biggest strength.

The story has two messages. One that great leaders should always focus on their greatest strength to achieve their goals and objectives. The second important learning is that the leaders’ greatest strengths come not from their winning, but from their life’s experiences – the difficult and sometimes painful challenges that test their commitment to their goals and purpose. It is in these experiences that leaders uncover within themselves those beautiful gifts, talents and abilities that move them to a higher level in their understanding of their awesome potential. This week, seek out challenges that will create great growth opportunities in your development. As you do so, remember the words of former U.S. President Richard Nixon: “A man who has never lost himself in a cause bigger than himself has missed one of life’s mountaintop experiences. Only in losing himself does he find himself. Only then does he discover all the latent strengths he never knew he had and which otherwise would have remained dormant.”
Michael Reuter

What Are Your Marketing Options?

2010-11-09T15:12:00.001-05:00

On a limited budget you must prioritize.

Marketing today offers entrepreneurs an amazing spectrum of attractive tools. But can they be all tested within limited resources?

Answer: Only pursue the ones that align most closely with your strategic marketing plan. If you don't have a plan, you will blow a lot of valuable cash on awesome ideas that promise much and deliver little -- not because they are bad ideas, but because they are bad ideas for your company.
These are three rules to evaluate your marketing options.

Build on Your Existing Base

You should aim your marketing first of all at your typical customer. If that sounds obvious to you, plenty of small businesses run aground seeking any customers they can find while never establishing a reputation with one loyal group. Targeting is the difference between marketing as expense and marketing as investment.

This strategy applies also when marketing to other businesses. For example, do you define decision makers versus order-takers within each target company? Both are useful to cultivate, but they require different approaches if you want to get the highest return on each marketing dollar.

Do Not Over-reach and Stick to What You Can Manage

It is not necessary to embrace all the latest marketing fads. While the internet offers powerful marketing tools, they are such only in the measure in which you use them properly.

Let’s take blogging for example. Blogs are cheap to set up, but they take huge effort to update on a consistent basis. If you manage your blog poorly, you will disappoint your customers. If you are in the business of offering advice (say, on insurance, financial planning or accounting), a blog makes sense and could be your main marketing tool. If you are in manufacturing, more traditional forms of customer service may be enough to keep clients engaged and feeling valued.

Social networks are another increasingly popular tool. But these, too, require a fair amount of administration. Would those hours and dollars actually boost awareness and, ultimately, revenues? For many small companies, the answer is no.

In making these calculations, remember that you also have to allot enough resources to spruce up your outgoing electronic communication. All prospects expect to interact with sellers and advisers online these days.

Whatever Marketing Gurus are Selling, Buyers Beware

There are innumerable marketing agencies out there that will optimize your Web site so it can be found more easily and promise to bring you "better quality leads," among other services. Keep track of them all, but tune out their claims. Instead establish a rigorous marketing plan, complete with a set of firm priorities, targets and time frames. That way, by the time you invite marketing providers, you control the conversation and you concentrate on what you need, not what they are selling.

Your plan must be action driven and dictate the solution.

Biggest Mistake Business Owners Make

2010-10-29T17:14:00.001-04:00

A “company” is not just bricks and mortar. It’s not just a name. It’s not just a product or service. The biggest determinate in a business’ personality (and ultimately, its success or failure) is people.

Why, then, do business owners allow “people-problems” to go unaddressed?

Before we answer that, let’s explore some typical people-problems that surround us in our companies. Here’s a shortlist:

• A salesperson that doesn’t bring in new business
• The staff member that likes to bring personal drama to work every day
• Someone with a poor work ethic
• A person that lies, cheats or deceives
• The employee that makes a lot of mistakes; incompetence
• A selfish person that serves him or herself first; the team second (or worse)
• Someone that resists positive change
• The happy employee that is always extremely “busy,” but doesn’t accomplish much that’s worthwhile
• The once fabulous team member that has slipped into mediocrity

Feel free to take a minute here to add to this list…it’s endless! Now ask yourself candidly, “Do we have any of these people-problems at (your company)?” It’s likely you do! Now ask yourself, “What am I doing about it?” If you’re like most business owners, the true answer to that question is either “not much” or “absolutely nothing; you’ve just accepted it.”

There it is! The biggest mistake business owners make! If you’re guilty, read on!

Now, we’ll answer the question, “Why do business owners allow people-problems to go unaddressed?” How’s this for starters:

• No time
• No energy
• Too busy
• The person may quit, besides, nobody’s perfect
• I don’t like conflict
• He/she will only make excuses and be offended and it won’t work anyway
• I don’t want to make waves
• There are a lot of great traits the person has; I don’t want to be too critical
• I’m loyal to my people for better or for worse
• If I ask that person to improve, he/she will want me to improve on my weaknesses, too
The complete list of answers to why people don’t address people-problems is just as long as the list of problems people have…it’s endless! Now ask yourself, “Why aren’t you addressing the specific people problems you have at (your company)?”

If you answered the questions above candidly, you may be starting to squirm in your seat right now. You may be tempted here to make the conscious decision to stop reading this, stop thinking about this and bury your head back in the proverbial sand. Here’s a shortlist of why you shouldn’t do that:

• It’s costing your company money
• It’s killing the morale of the very best people on your team
• Your customers are either directly or indirectly suffering
• Your business is not as valuable as it could be
• You’re losing growth opportunities
• You’re personally suffering from stress and frustration caused by poor performers
• You’re robbing the poor-performer of a personal and/or professional growth opportunity

I encourage you to go ahead and take my next statement personally: If you aren’t addressing the people-problems in your company, then you are a people-problem. Please read that last sentence again; it’s very important.

If my candor has ticked you off, I’m sorry. The intention of my honest feedback isn’t to hurt your feelings; it’s meant to be constructive. I want to help you help yourself, which in turn will allow you to help (your company).

If you’re still reading this, you probably see the incredible benefits of addressing people-problems. Maybe you’re hoping for a suggestion to get you into action. If so, here it is:

Schedule a time to meet with your problem-person. When the time comes, start your meeting by telling the person that you’re going to have an honest, adult conversation with him or her. Let that person know that your intention isn’t to hurt his feelings; it’s meant to be constructive. You want to help that person help himself, which in turn will allow him to be more valuable to (your company). (Sound familiar? Go up two paragraphs and read it!)

Then, give it to him straight! As unemotionally as you can; let him know the real deal. Take your time. Be specific. Don’t allow things to get out of hand; remember the goal isn’t to prove someone guilty, it’s to help that person see what you see and then to agree on specific actions to start the road to improvement.

Don’t allow this meeting to end until you’re both on the same page relative to:

• The specific problem(s)
• The ramifications of those problems on that person’s career, your company, your customers, etc.
• The expectations moving ahead
• The precise action steps required of that person (and perhaps even of you) to alleviate the problems
• A written commitment from each of you to follow-through on your specific action steps

Sounds like an employee review, doesn’t it? That’s exactly what it is…sort of!

I’m not talking about the typical, useless dog and pony shows that many people call reviews. I’m talking about a true, meaningful, constructive conversation that will help everyone -and your company- become more successful. Unlike a generic employee review, this isn’t an “event.” This is the beginning of a process that will require constant follow-up.

Without follow-up and follow-through, nothing really changes. An annual performance review, even a great one, is transactional in nature; not transformational. Everyone knows that lasting change only happens when there’s transformation.

You have to invest time, effort and energy into this. I know that sounds draining, but when you do it right, you’ll see the results. When you see the positive results, you’ll find a renewed energy and happiness. I promise!

Your people are either making or breaking your company. The rewards from developing your team are just too great to ignore. The dangers associated with people-problems can be deadly to your business. So stop burying your head in the sand and stop worrying so much. Instead, just start talking candidly about it with the people that need the help.

One last offer of advice: Do your best to develop your individual team members, but at some point, you may simply need to cut your losses. In other words, if you can’t change your people; change your people. Think about that!

It’s not easy and it’s going to take time, but you can do it.

by Jon Denney

Four Principles Your Strategy Must Possess To Be Measurable

2010-10-09T17:47:00.000-04:00

Most strategies and goals are broad, vague, high-level motherhood statements. No wonder people don’t engage with them, struggle to measure them, and ultimately fail to execute and achieve them. But there are four things to turn this around:
Focus and specificity heads the list. It might seem practical to keep your goals broad and flexible, in case things change. But honestly, if you don’t pin down what difference you’re trying to create, nothing of significance will happen. Time and money will be spent (and very likely wasted). But that’s about all that will be different.
So if you’ve got a goal that reads something like “Enhance the quality of customer service” then you have to make a decision about which aspects of quality exactly need to be enhanced, such as helpdesk response times or service staff friendliness. And ignore the rest for now. Be ruthless!
Short term impact is second on the list. It means breaking down a long term outcome into “crunchy” stages or milestones you can act on and achieve soon. (Crunchy: something to get your teeth into!)
Saving an endangered species, like the Cassowary of northern Queensland, particularly after the vast rainforest damage of Cyclone Larry, is a long term outcome. The numbers of wild cassowaries is important to track, but doesn’t say much in the short term. Today’s strategies should arrest the outcome’s drivers, such as cassowaries forced into urban areas to find food, and diseases that threaten their already diminished numbers.
Clear, descriptive language, funnily enough, is the key to making a strategy or goal measurable. You can’t measure what you can’t observe. And you can’t act on what you can’t clearly envision, either. When people read a goal or strategy, they should easily see in their mind’s eye what that achieved end looks like.
Better than “Enhance the sustainability of farmland” is “The fragile soils of valuable farming land are protected from unnatural erosion and loss of topsoil.” Dare to be poetic!
Use hypotheses to link strategies to their goals. An hypothesis is an assumption that can be tested. Our strategies are assumptions about how to achieve our goals. And linking them together in a kind of hypothesis makes it very clear what to measure to test our hypotheses, to learn what works, and what doesn’t.
The formula is: [strategy] achieves [goal]. For example, “Our strategy to implement an online dog-owners discussion forum achieves our goal of reducing by half the number of abandoned and confiscated dogs.” Good measures can test this. It’s not very hard to be a little bit scientific!
An executable and testable strategy will achieve what matters, sooner and easier!
ABOUT THE AUTHOR
Stacey Barr is the Performance Measure Specialist, helping strategic planners, business analysts and performance measurement officers confidently facilitate their organisation to create and use meaningful performance measures with lots of buy-in.

Focusing on Customer Retention in a Slow Economy

2009-10-13T14:09:00.001-04:00

In today’s struggling economy, consumers aren’t the only ones tightening their belts. With shoppers spending less on non-essential items and socking more into savings, businesses across the country are feeling the effects of the widespread penny pinching. The good news? As a business owner, you can do more than just sit by and watch profits dwindle.
Although this may not be the ideal time to acquire new customers, you can help compensate for sagging sales by shifting your focus to customer retention. By catering to your loyal base of existing customers, you can help increase average order size and repeat business, eliminating the need to slash the prices of your product or serving offerings.
Below are some time-tested, cost-effective tips for retaining customers in a recessed economy:
Make strategic use of cross-sells. Offering related products at low to moderate price points is an excellent way to encourage impulse purchases and increase order totals. It also helps to educate the customer on the diversity of your inventory.
Offer a special promotion. In these tight economic times, customers are much more likely to complete the sale if they feel like they’re getting a great value. A VIP customer discount not only boosts revenue, it also makes your loyal patrons feel appreciated, a surefire strategy for ensuring repeat purchases.
Maintain “non-salesy” communications. Even if you’re not offering a discount or promo, staying in contact with customers via newsletters, product tips, and holiday well wishes goes a long way toward instilling a sense of camaraderie and loyalty. Businesses that function as service and solution providers as well as sellers gain more trust and credibility in the eyes of consumers.
Offer relevant tips. Within a few days of your customer’s purchase, send a follow-up email with care and maintenance suggestions for their product. You can also pepper the correspondence with suggestions for related accessories.
Request feedback. Give customers the opportunity to put in their two cents by sending a brief survey, offering a discount or gift certificate to compensate for their time. Not only will you reap the rewards of valuable market knowledge, you can include tasteful up-sells to encourage sales.
Create a community. Provide your loyal customers with an exclusive, members-only forum for sharing product feedback, questions, and suggestions. The interactive dialogue will foster repeat visits, increasing the chances of repeat orders.
Offer pre-packaged gift sets. By bundling best-selling items into collections, you can provide customers with an easier shopping experience while boosting average order value.While a struggling economy is never good for business, it does provide a unique opportunity to forge more profitable relationships with existing customers. By showing your appreciation for their loyalty, you could very well earn lifelong customers who will stick with you through thick, thin, and recession.
For great customer retention strategies visit: www.chbassociates.com