When is a $10 gym membership per month not worth it?
Each time the advertisement appears I try to understand the wisdom of the business model. Do they count on hundreds to sign up knowing that only dozens will appear consistently? Are they getting revenue by other means? Does it cost $10 each time you take a shower, or use one of their towels? Inquiring minds want to know.
Someone once said that no matter how much you lower your price, "someone else is willing to go out of business faster than you are." Sad, but true.
If you invested in a $10 monthly membership for anything...what would you expect? Do you lower your expectations due to the attractive offer, or expect the same services that a $80 per month gym charges?
The value/price comparison is in the eyes of each consumer. I chose to skip the cheap and expensive gyms and built one in my basement. Short commute, no lines and a much more satisfying workout.
Friday, September 30, 2011
Wednesday, September 28, 2011
Survey to find the pain
A speaker was about to conduct a seminar which she had done more than 100 times. I asked how many people typically attended her sessions, and what percentage connect with her afterward and hire her.
"Not enough...if I'm lucky one or two." I asked if she was happy with that ratio..."absolutely not."
The audience was typically in an attentive mode, taking notes and smiling. They were pleased with the presenter and the content. Overall they were quite comfortable with the setting and even connected with other attendees that had gathered. She soon learned that the audience's "comfort" level was the problem.
She decided to tweak the presentation. She began to survey the attendees about their current circumstances and how it was effecting them. The audience began interacting with the presenter because the survey was exposing their discomfort (pain). Some went so far as to plea for help. The dynamics of the presentation had changed, and more attendees wanted help to eliminate the pain.
Entrepreneurs often make presentations as part of their marketing plan. Presentations that lack true connection with the audience will yield minimal results. Resist doing all the speaking and the audience doing all the listening. That's called politics. Engage, survey, uncover pain and build trust. Customers will be attracted to you.
"Not enough...if I'm lucky one or two." I asked if she was happy with that ratio..."absolutely not."
The audience was typically in an attentive mode, taking notes and smiling. They were pleased with the presenter and the content. Overall they were quite comfortable with the setting and even connected with other attendees that had gathered. She soon learned that the audience's "comfort" level was the problem.
She decided to tweak the presentation. She began to survey the attendees about their current circumstances and how it was effecting them. The audience began interacting with the presenter because the survey was exposing their discomfort (pain). Some went so far as to plea for help. The dynamics of the presentation had changed, and more attendees wanted help to eliminate the pain.
Entrepreneurs often make presentations as part of their marketing plan. Presentations that lack true connection with the audience will yield minimal results. Resist doing all the speaking and the audience doing all the listening. That's called politics. Engage, survey, uncover pain and build trust. Customers will be attracted to you.
Monday, September 26, 2011
Ethics and Social Media
Businesses are using Facebook and other social media websites to gather information about prospective employees. As the saying goes..."character is defined by what you are doing when no one is looking."
In the case of social media the entire world is watching. There's nowhere to hide.
Advancing technology and instant "shipping" of information should make us pause before we hit send. Turn on the news tonight and you will see a child using their phone to capture a fist fight between two or more of their classmates. Not much thought goes into that behavior.
Social media is the ultimate marketing tool for businesses and individuals. Build a business or destroy your personal credibility. In either case you can do it in an instant.
In 2011 we all need a marketing strategy with social media. Push "send"....after you have counted to 10!
In the case of social media the entire world is watching. There's nowhere to hide.
Advancing technology and instant "shipping" of information should make us pause before we hit send. Turn on the news tonight and you will see a child using their phone to capture a fist fight between two or more of their classmates. Not much thought goes into that behavior.
Social media is the ultimate marketing tool for businesses and individuals. Build a business or destroy your personal credibility. In either case you can do it in an instant.
In 2011 we all need a marketing strategy with social media. Push "send"....after you have counted to 10!
Friday, September 23, 2011
Containing business expenses
There are few businesses left who do not accept credit cards as a form of payment. The benefits are many...
When you pick a partner in this business find out how long the business has been open. How long has the representative worked for the business? When you sign on with a new merchant processor schedule time in 90-120 days to have the rep come in and break down the fees. Make certain you are being charged the amounts that were quoted at the time you signed the contract.
If you have not reviewed your program in more than one year it is highly likely you are being over charged. When you figure that out, look for a better option. It will represent instant savings for your business.
- You don't need to handle cash.
- It's the preferred method by most purchasers.
- You don't need to chase money because someone is sending a check.
- Funds are typically available within 2 days.
- Retailers can develop loyalty and gift card programs with their frequent customers.
When you pick a partner in this business find out how long the business has been open. How long has the representative worked for the business? When you sign on with a new merchant processor schedule time in 90-120 days to have the rep come in and break down the fees. Make certain you are being charged the amounts that were quoted at the time you signed the contract.
If you have not reviewed your program in more than one year it is highly likely you are being over charged. When you figure that out, look for a better option. It will represent instant savings for your business.
Wednesday, September 21, 2011
Personal Branding
The challenge of leading the community known as Remarkable Personal Branding on LinkedIn has been rewarding and informative.
Here's what is known about our current and short-term future economy:
Here's the catch. Ask someone you know what it is that makes them special. Ask them what they want to be known for from a professional perspective. When the questions are first posed you see confusion. No one has ever asked these questions before.
Individuals working on their personal brand will have the best chance to succeed in their job search. They will be the ones looking for work that is aligned with their brand. Employers continue to tell me how embarrassed they are for candidates who blindly apply for jobs for the sake of saying they submitted a resume. That's known as personal brand destruction.
To my friends in the business community I ask this question: Are you speaking with job candidates who appear to have an effective personal brand that highlights how they can help you?
Here's what is known about our current and short-term future economy:
- High unemployment is the new normal. 9% + is the published number, it grows when you add the sad category known as "those that have given up looking."
- Incompetent politicians who either don't care to fix the problem or are intellectually unable to do so.
Here's the catch. Ask someone you know what it is that makes them special. Ask them what they want to be known for from a professional perspective. When the questions are first posed you see confusion. No one has ever asked these questions before.
Individuals working on their personal brand will have the best chance to succeed in their job search. They will be the ones looking for work that is aligned with their brand. Employers continue to tell me how embarrassed they are for candidates who blindly apply for jobs for the sake of saying they submitted a resume. That's known as personal brand destruction.
To my friends in the business community I ask this question: Are you speaking with job candidates who appear to have an effective personal brand that highlights how they can help you?
Monday, September 19, 2011
Company Culture
The sales team found it odd that after the first year of the Employee of the Month award they did not have a single winner. Unusual? Coincidence? During the second year our sales manager let some info slip that he couldn't keep inside. The general manager didn't think the sales department should be eligible for EOM because we were paid well for the work we did and we didn't need additional acknowledgement.
Thus my understanding of company culture began.
Decisions have consequences and the exclusion of a particular department generated lots of needless chatter about this cultural decision. The departments outside of sales had a big problem with the "policy" because they knew that the winners were not being judged against all of their peers. The motive of helping one subset of employees against another backfired and few were happy.
My mom always said the road to hell was paved with good intentions. The best intention of any business is to believe in all who have been hired to do the work.
The Generation Y era of young workers will further illuminate the culture issue. Generation Y wants to be recognized for who they are as individuals. The factory era that my mom and dad grew up in is over.
Setting the perfect company culture will not be easy. Here are some thoughts about how to address it:
Thus my understanding of company culture began.
Decisions have consequences and the exclusion of a particular department generated lots of needless chatter about this cultural decision. The departments outside of sales had a big problem with the "policy" because they knew that the winners were not being judged against all of their peers. The motive of helping one subset of employees against another backfired and few were happy.
My mom always said the road to hell was paved with good intentions. The best intention of any business is to believe in all who have been hired to do the work.
The Generation Y era of young workers will further illuminate the culture issue. Generation Y wants to be recognized for who they are as individuals. The factory era that my mom and dad grew up in is over.
Setting the perfect company culture will not be easy. Here are some thoughts about how to address it:
- Acknowledge that company culture is tied to productivity and satisfaction
- Get rid of managers/employees who aren't in alignment with company goals, and thus killing culture
- Order in lunch and use the time to discuss workplace issues
- Meet with the workforce quarterly to update them on company performance and new initiatives
- Pick a favorite charity and ask for community service to help others in need
Friday, September 16, 2011
Generosity and karma
It's never good to wish bad things for people you don't like. Karma has a way of enforcing the "what goes around comes around" phenomenon in our society. Look at the lives of O.J. Simpson and recently Tiger Woods. Karma is at work, though don't ask me to explain how and why it works.
Generosity creates good karma. What are examples of the ways to show generosity? The obvious ones are donating money and time to a non-profit, or helping remove debris from your neighbor's lawn after the recent tropical storm.
Are you able to be generous in your business?
There are many people that need help today due to the dire economic circumstances. If you are not in a position to hire at the moment, is there a way to show your generosity by helping the job seeker?
Entrepreneurs have an abundance of knowledge that can benefit someone who is unemployed. Many of the jobs that were eliminated in the past few years are not coming back. Starting a new business will be a consideration for this group of job seekers.
My friends at TEM Associates showed their generosity in 2009 by offering their conference room to host meetings for the Connecticut Re-Employment Group. More than 75 meetings have been held there in the past few years giving hope to those in transition. This is generosity and gift giving at a high level.
iPhones and Droids rule our lives. My hope is that the spirit of generosity will become as intrusive as our gadgets.
Generosity creates good karma. What are examples of the ways to show generosity? The obvious ones are donating money and time to a non-profit, or helping remove debris from your neighbor's lawn after the recent tropical storm.
Are you able to be generous in your business?
There are many people that need help today due to the dire economic circumstances. If you are not in a position to hire at the moment, is there a way to show your generosity by helping the job seeker?
Entrepreneurs have an abundance of knowledge that can benefit someone who is unemployed. Many of the jobs that were eliminated in the past few years are not coming back. Starting a new business will be a consideration for this group of job seekers.
My friends at TEM Associates showed their generosity in 2009 by offering their conference room to host meetings for the Connecticut Re-Employment Group. More than 75 meetings have been held there in the past few years giving hope to those in transition. This is generosity and gift giving at a high level.
iPhones and Droids rule our lives. My hope is that the spirit of generosity will become as intrusive as our gadgets.
Wednesday, September 14, 2011
Leaders vs. managers
As a follow up to Steve Ventura's leadership post I want to share a revelation that I didn't realize until the last few years...most managers are not leaders.
For most of my career I thought these words were one in the same. How could a manager not be a leader? In the context of my career weren't all sales managers leaders?
I owe much of my "awareness" to the writings of Seth Godin. His book "Tribes" included these memorable comments:
The best leader I ever worked for was a visionary. He saw the opportunities in the market and put them into focus. He highlighted my strengths in front of peers to build my confidence and expectations. He did the same for others. In retrospect I did my best work when working for (with) him. I was truly following his lead, and he set a great example.
Leaders initiate. They have skill and attitude. Generosity and bravery. They are in it for the good of all. Managers are great followers, amongst other things.
For most of my career I thought these words were one in the same. How could a manager not be a leader? In the context of my career weren't all sales managers leaders?
I owe much of my "awareness" to the writings of Seth Godin. His book "Tribes" included these memorable comments:
- Leadership is about creating change that you believe in.
- Leaders have followers, managers have employees.
- Leaders change the status quo.
The best leader I ever worked for was a visionary. He saw the opportunities in the market and put them into focus. He highlighted my strengths in front of peers to build my confidence and expectations. He did the same for others. In retrospect I did my best work when working for (with) him. I was truly following his lead, and he set a great example.
Leaders initiate. They have skill and attitude. Generosity and bravery. They are in it for the good of all. Managers are great followers, amongst other things.
Monday, September 12, 2011
A "Crash Course" on Leadership
This material came from Steve Ventura at the Leadership & Personal Development Center
The 10 most important words:
“What can I do to help you be more successful?”
“What can I do to help you be more successful?”
The 9 most important words:
“I need you to do this, and here’s why…”
“I need you to do this, and here’s why…”
The 8 most important words:
“That’s my mistake and I will fix it.”
“That’s my mistake and I will fix it.”
The 7 most important words:
“My door is always open to you.”
“My door is always open to you.”
The 6 most important words:
“Let’s focus on solving the problem.”
“Let’s focus on solving the problem.”
The 5 most important words:
“You did a great job!”
“You did a great job!”
The 4 most important words:
“What do YOU think?”
“What do YOU think?”
The 3 most important words:
“Follow my lead.”
“Follow my lead.”
The 2 most important words:
“Thank You.”
“Thank You.”
The MOST important word:
“YOU”
“YOU”
Friday, September 9, 2011
Referral Networking Groups
Are you building a business from the ground up? Do you need a sales team but don’t have it in the budget? How can you get people on the street to tell your story?
Join a business networking group!
The concept of relationship-based business development is cost effective and will bring “perfect customers” to your door. Research groups such as Business Network International (BNI) or something comparable in your area. Attend meetings on a trial basis to get a sense of the professionalism of the group.
Here are key elements to be successful in a networking group:
· Commit to the meetings and arrive early
· Take a leadership role
· Do not pitch your services
· Build relationships and trust
· Develop a “how can I help you” approach
· Prepare a “perfect customer” profile to share with your peers
· Give, and ask for warm introductions…not leads
· Follow up on every introduction. Update the person giving the referral on the status.
· Initiate quality, thoughtful introductions to peers that you trust
· Schedule one on one time with all other group members to build depth to your relationship.
Commit to this process and soon you will have a large network looking out for you, and vice versa.
Wednesday, September 7, 2011
When you win...who knows?
Bad news is on every street corner.
Good news sounds better than ever. I just spoke with an entrepreneur who is coming off of a rocking two week period for her business. It's time to strike up the band!
The power of positive thinking may not solve our economic malaise but it can't hurt.
When you win what do you do? Do you gather testimonials? Do you tell your story to the world? Do you tell prospects who have been holding off on making a decision? Do you share your good fortunes with others?
Your business will pull us out of the recession in spite of the obstacles you face. Get used to telling an inspiring, winning story. We are anxious to hear it.
Good news sounds better than ever. I just spoke with an entrepreneur who is coming off of a rocking two week period for her business. It's time to strike up the band!
The power of positive thinking may not solve our economic malaise but it can't hurt.
When you win what do you do? Do you gather testimonials? Do you tell your story to the world? Do you tell prospects who have been holding off on making a decision? Do you share your good fortunes with others?
Your business will pull us out of the recession in spite of the obstacles you face. Get used to telling an inspiring, winning story. We are anxious to hear it.
Tuesday, September 6, 2011
When do we raise our rates?
Here's how this issue is dealt with using the devil's advocate position:
"The economy is so bad we cannot raise our rates...if anything, we should lower them."
"We must raise our rates because revenues have been down and we must make up for the shortfall."
Are you contemplating this dilemma? There is no simple answer. One of the fascinating aspects of capitalism is that the "market" sets the rate.
A local recreation business raised their rates this year, and business has dropped 10-15%. Are they related? They aren't sure and will spend the next two months scrambling to adjust the rate to drive demand to try to make budget.
How do you determine what the market will bear in your business? One way to find out is to ask customers, former customers and prospects about the perceived value of your services. When I visit my favorite steak house with my wife, spend $120-$150 and come back 6-8 more times in a year we have said that the price is right. If the Fillet Mignon costs $5 more I will continue to go because the experience is exceptional. There is a tipping point based on price and my discretionary income.
Communicate with those who know your business well. Surveys, focus groups and interactive media will assist in the dialogue. They will help you price your product as well as anyone.
"The economy is so bad we cannot raise our rates...if anything, we should lower them."
"We must raise our rates because revenues have been down and we must make up for the shortfall."
Are you contemplating this dilemma? There is no simple answer. One of the fascinating aspects of capitalism is that the "market" sets the rate.
A local recreation business raised their rates this year, and business has dropped 10-15%. Are they related? They aren't sure and will spend the next two months scrambling to adjust the rate to drive demand to try to make budget.
How do you determine what the market will bear in your business? One way to find out is to ask customers, former customers and prospects about the perceived value of your services. When I visit my favorite steak house with my wife, spend $120-$150 and come back 6-8 more times in a year we have said that the price is right. If the Fillet Mignon costs $5 more I will continue to go because the experience is exceptional. There is a tipping point based on price and my discretionary income.
Communicate with those who know your business well. Surveys, focus groups and interactive media will assist in the dialogue. They will help you price your product as well as anyone.
Friday, September 2, 2011
Under promise - over deliver
The fastest way to lose a customer and a reputation is to over promise and under deliver. We must strive for the opposite.
This week in Connecticut has been a trying time for many, especially the utility companies trying to restore power in a timely, safe manner.
I watched the news last evening and saw that over promise and under deliver is a predominant theme relating to power restoration. One by one people were interviewed that were without power for five days. Some were told power would have been restored by now. Others had not seen a power truck in their town. The prevailing sentiment sounded like this..."if it will take til next Wednesday tell us so we can plan accordingly". Not only are these people literally in the dark, they feel that the lack of communication has made things even darker.
No sane person can blame the utility companies for the storm. It is fair for customers to have an expectation of communication, even if the news is not what they want to hear.
This week in Connecticut has been a trying time for many, especially the utility companies trying to restore power in a timely, safe manner.
I watched the news last evening and saw that over promise and under deliver is a predominant theme relating to power restoration. One by one people were interviewed that were without power for five days. Some were told power would have been restored by now. Others had not seen a power truck in their town. The prevailing sentiment sounded like this..."if it will take til next Wednesday tell us so we can plan accordingly". Not only are these people literally in the dark, they feel that the lack of communication has made things even darker.
No sane person can blame the utility companies for the storm. It is fair for customers to have an expectation of communication, even if the news is not what they want to hear.
Thursday, September 1, 2011
Expect the unexpected
If you live on the eastern seaboard including New England you will appreciate dealing with the unexpected. Although we were warned most of last week the devastation caused by a tropical storm is a wake up call.
Was your business effected? Are you still recovering? Did you have a plan in place that factored in loss of power for days and possibly weeks?
What will happen if a real hurricane hits this region?
Large companies usually have contingency plans for natural disasters. 9/11 necessitated a new level of preparedness based on the act of terrorism. All of this proves that there is no limit to the number of things a business owner has to account for in the day to day running of their business.
The next time a hurricane is headed this way I am packing my bags...driving west and settling into Sandusky Ohio for a few days.
Was your business effected? Are you still recovering? Did you have a plan in place that factored in loss of power for days and possibly weeks?
What will happen if a real hurricane hits this region?
Large companies usually have contingency plans for natural disasters. 9/11 necessitated a new level of preparedness based on the act of terrorism. All of this proves that there is no limit to the number of things a business owner has to account for in the day to day running of their business.
The next time a hurricane is headed this way I am packing my bags...driving west and settling into Sandusky Ohio for a few days.
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