Scientists say that every single cell in our body changes every 7 years. This explains why our hair and taste buds can change over time.
Is a business the same way? How long does it take to replace every part of a business?
Coming up to my 2 year mark has made me reflect on how my own business has evolved. I've gone through many stages:
1. Pro bono stage where I figured out where my niche was
2. Focus on a niche market and operationalizing what I did best
3. Growing the customer base
4. Expanding the product and service offering
5. Merging with another company
6. Focusing on a smaller niche market
7. Growing the customer base in this more focused niche market
8. Expanding the product and service offering for them (again!)
In fact, when looking back I realized that I had a phenomenal paradigm shift almost every 2 months. Focusing and then being able to re-invent myself was key to my company's growth.
Why?
- Being focused adds credibility. If a small business doesn't focus, the customers don't understand what they do or believe that they are capable.
- Being able to change is equally important. Flexibility is a small business' competitive advantage.
How often should this be happening in your first 2 years? That will depend upon the business. But keep in mind, if you are not learning and changing....your competition is.
Monday, November 8, 2010
Wednesday, June 16, 2010
Strategic Marketing Made Easy
What is marketing? How best to communicate to customers.
How do you do this?
1. Know your customer
2. Which helps you create a product or service that they will love
3. Which helps you have a lot of great benefits to talk about
4. And since you know your customer, you will already know where to communicate this great message
1. Know Your Customer
In order to do anything in business, you must start with your customer. You have to know who your customer is and what it is that they want. If you don't know this, you won't know how to design your product or service, what to talk about, and where to go to communicate it.
2. Create the Business Operations
Make sure that your product or service is so perfectly fitted to the customer that you could discuss 20 benefits with them if you had the time.
3. Messaging
Start with the parts of your product or service that the customer cares about the most. Whenever you are talking to someone, you should start with the information that is the most relevant to them. This is not like a movie or fireworks where people wait for the grand finale. In marketing, you start with the grand finale.
4. Where to Communicate
Finally, the most important thing is to make sure that you are actually speaking with them. The old adage, 'if a tree falls and no one is around to hear it, does it make a sound?', can be compared to 'if you talk about your company and no customer is around to hear it, will anybody buy?'. If you are going to networking events or participating in social media that your potential customers are NOT involved in, you are wasting your time and money. Make sure that you are in the right places with your messages.
This is strategic marketing and how to create a plan to generate word of mouth.
How do you do this?
1. Know your customer
2. Which helps you create a product or service that they will love
3. Which helps you have a lot of great benefits to talk about
4. And since you know your customer, you will already know where to communicate this great message
1. Know Your Customer
In order to do anything in business, you must start with your customer. You have to know who your customer is and what it is that they want. If you don't know this, you won't know how to design your product or service, what to talk about, and where to go to communicate it.
2. Create the Business Operations
Make sure that your product or service is so perfectly fitted to the customer that you could discuss 20 benefits with them if you had the time.
3. Messaging
Start with the parts of your product or service that the customer cares about the most. Whenever you are talking to someone, you should start with the information that is the most relevant to them. This is not like a movie or fireworks where people wait for the grand finale. In marketing, you start with the grand finale.
4. Where to Communicate
Finally, the most important thing is to make sure that you are actually speaking with them. The old adage, 'if a tree falls and no one is around to hear it, does it make a sound?', can be compared to 'if you talk about your company and no customer is around to hear it, will anybody buy?'. If you are going to networking events or participating in social media that your potential customers are NOT involved in, you are wasting your time and money. Make sure that you are in the right places with your messages.
This is strategic marketing and how to create a plan to generate word of mouth.
Tuesday, April 20, 2010
Get Your Business Plan To Do More
A business plan has many purposes. It can guide you, entice others to work for you, increase supplier confidence, intrigue customers, and help with financing.
But for each of these purposes there are some techniques to make the busienss plan more effective in helping with this end result.
For YOU
- use only 1-page
- make sure it is a big page, bristle board size is usually the best
- if possible, make it erasable by using a whiteboard or chalkboard, this is even better to help with ongoing changes
- hang it up on an open wall in your office
- spreadsheets for sales projections and financials are still necessary and helpful (sorry!)
For EMPLOYEES or PARTNERS
- use only 1 to 5 pages
- highlight the employees' and partners' roles and how they will contribute to the business' overall success
- include what their reward will (likely) be
For SUPPLIERS
- use only 5 to 10 pages
- explain the reason why your idea is so great and the potential for success is so high
- include the growth potential including pessimistic, realistic, and optimistic projections
- explain the action plan that will get you from where you are to where you are planning on getting to within the next year
- outline any additional benefit that they will receive as they are working with you early in the game
For CUSTOMERS
- use 1 to 5 pages
- speak about the benefits and focus on the customer throughout
- explain the future plans that will further benefit the customer and why they should start with you now
- think marketing
For BANKS
- find out in advance the probability of a successful application
- use their templates which are posted on their websites or that they provide to you
- try to keep the content to under 20 pages and under 30 pages with your appendices
- speak with your small business advisor or the primary contact before writing the business plan and keep them involved throughout the process
Business plans are important, but if you design it for a purpose it will be more effective.
But for each of these purposes there are some techniques to make the busienss plan more effective in helping with this end result.
For YOU
- use only 1-page
- make sure it is a big page, bristle board size is usually the best
- if possible, make it erasable by using a whiteboard or chalkboard, this is even better to help with ongoing changes
- hang it up on an open wall in your office
- spreadsheets for sales projections and financials are still necessary and helpful (sorry!)
For EMPLOYEES or PARTNERS
- use only 1 to 5 pages
- highlight the employees' and partners' roles and how they will contribute to the business' overall success
- include what their reward will (likely) be
For SUPPLIERS
- use only 5 to 10 pages
- explain the reason why your idea is so great and the potential for success is so high
- include the growth potential including pessimistic, realistic, and optimistic projections
- explain the action plan that will get you from where you are to where you are planning on getting to within the next year
- outline any additional benefit that they will receive as they are working with you early in the game
For CUSTOMERS
- use 1 to 5 pages
- speak about the benefits and focus on the customer throughout
- explain the future plans that will further benefit the customer and why they should start with you now
- think marketing
For BANKS
- find out in advance the probability of a successful application
- use their templates which are posted on their websites or that they provide to you
- try to keep the content to under 20 pages and under 30 pages with your appendices
- speak with your small business advisor or the primary contact before writing the business plan and keep them involved throughout the process
Business plans are important, but if you design it for a purpose it will be more effective.
Tuesday, April 13, 2010
Before Writing a Business Plan, Figure Out Why You Are Writing It
'Write a Business Plan' is a dreaded phrase by many entrepreneurs. It contains three words with awful implications:
1. 'write' means more work and time commitment. Things entrepreneurs really don't want more of.
2. 'business' for many entrepreneurs is something that is intimidating. They are great at what they do, but timid about business as many entrepreneurs have never taken a business course in their life.
3. 'plan' indicates that the entrepreneur should be able to understand what is coming down the line. How quickly these plans change!
There is no correct business plan for every situation, and the commonly sought after 50-page business plan is not always the right answer. You need a plan for many different reasons, below are just a few;
- Guide yourself. Having a plan will help you get where you want to go. But do you need a 50-page plan for this? Probably not, as you want to be able to change it as your idea evolves.
- Entice employees to work for you. As a new business you have to sell the concept, yourself, and the future for employees to work for you with profit sharing, without benefits, or at all. A 50-page business plan definitely doesn't work here.
- Have suppliers have confidence in working with you. A solid business plan can give you more negotiating leverage and help them understand your business so that they can help you. But a 50-page business plan wouldn't work here.
- Get customers intrigued. This makes them willing to help in testing and makes them want to be the first person to have your new innovation. But a 50-page business plan wouldn't work here.
- Finally financing. The banks, venture capitalists, angels, and government grants all require different business plans. A 50-page business plan doesn't even work here. In fact, each bank and government grants has its own template that they like entrepreneurs to follow.
That is why I suggest that you figure out why you are writing it prior to putting your pen to paper (or fingers to keyboard).
So what should you be doing in each case listed above? The next blog will explain.
1. 'write' means more work and time commitment. Things entrepreneurs really don't want more of.
2. 'business' for many entrepreneurs is something that is intimidating. They are great at what they do, but timid about business as many entrepreneurs have never taken a business course in their life.
3. 'plan' indicates that the entrepreneur should be able to understand what is coming down the line. How quickly these plans change!
There is no correct business plan for every situation, and the commonly sought after 50-page business plan is not always the right answer. You need a plan for many different reasons, below are just a few;
- Guide yourself. Having a plan will help you get where you want to go. But do you need a 50-page plan for this? Probably not, as you want to be able to change it as your idea evolves.
- Entice employees to work for you. As a new business you have to sell the concept, yourself, and the future for employees to work for you with profit sharing, without benefits, or at all. A 50-page business plan definitely doesn't work here.
- Have suppliers have confidence in working with you. A solid business plan can give you more negotiating leverage and help them understand your business so that they can help you. But a 50-page business plan wouldn't work here.
- Get customers intrigued. This makes them willing to help in testing and makes them want to be the first person to have your new innovation. But a 50-page business plan wouldn't work here.
- Finally financing. The banks, venture capitalists, angels, and government grants all require different business plans. A 50-page business plan doesn't even work here. In fact, each bank and government grants has its own template that they like entrepreneurs to follow.
That is why I suggest that you figure out why you are writing it prior to putting your pen to paper (or fingers to keyboard).
So what should you be doing in each case listed above? The next blog will explain.
Sunday, April 4, 2010
Getting Sales Is About Keeping The Funnel Full
How often do you hear about a new company and immediately decided to go out and buy their product or service? Not often or more likely never.
Keeping the sales funnel full means that you have to have customers in all stages of the sales process in order to have regular sales. You need customers who;
Just found out who you are
These customer will not buy from you today or tomorrow. But they might and it is possible that they will in the future. This the initial awareness, and customers will only do business with people they know. Maybe they'll even refer you!
Hear about your for the second time
Maybe they see your advertisement or their neighbour told them that your company was great. This increases interest and the chance that the potential customer will buy as they are thinking about you for a second or third time.
Want to learn more
They have heard enough about you that they are intrigued and wonder if you can actually do what you say you can. The customer is ready for more information regarding how their particular needs can be met. Here is where you have to make sure that there is little risk for them to buy.
Purchase
Only after all of these warm up steps are they finally ready to buy something from you.
Some sales processes take minutes, some hours, and others months. I've heard of sales processes taking years, but with persistence and getting in front of the customer, you are able to move them through the sales funnel.
If you only focus on one part of the funnel at a time, then you would have a lot of sales once in a while, but things would not be steady. This is tough on your cash flow (and your nerves!).
If you only focus on one part of the funnel at all, you may never close a sale as you have to keep customers moving towards the close.
But the biggest mistake is just not having enough in the funnel! The math is simple.
100 potential customers hear about you
10 potential customers want to learn more
1 potential customer buys
You have to go after at least 100 customers, to get to that 1 sale. So remember that to get your sales off the ground, it is going to take a lot of work!
Keeping the sales funnel full means that you have to have customers in all stages of the sales process in order to have regular sales. You need customers who;
Just found out who you are
These customer will not buy from you today or tomorrow. But they might and it is possible that they will in the future. This the initial awareness, and customers will only do business with people they know. Maybe they'll even refer you!
Hear about your for the second time
Maybe they see your advertisement or their neighbour told them that your company was great. This increases interest and the chance that the potential customer will buy as they are thinking about you for a second or third time.
Want to learn more
They have heard enough about you that they are intrigued and wonder if you can actually do what you say you can. The customer is ready for more information regarding how their particular needs can be met. Here is where you have to make sure that there is little risk for them to buy.
Purchase
Only after all of these warm up steps are they finally ready to buy something from you.
Some sales processes take minutes, some hours, and others months. I've heard of sales processes taking years, but with persistence and getting in front of the customer, you are able to move them through the sales funnel.
If you only focus on one part of the funnel at a time, then you would have a lot of sales once in a while, but things would not be steady. This is tough on your cash flow (and your nerves!).
If you only focus on one part of the funnel at all, you may never close a sale as you have to keep customers moving towards the close.
But the biggest mistake is just not having enough in the funnel! The math is simple.
100 potential customers hear about you
10 potential customers want to learn more
1 potential customer buys
You have to go after at least 100 customers, to get to that 1 sale. So remember that to get your sales off the ground, it is going to take a lot of work!
Saturday, January 30, 2010
Don't Be Fooled, You Are Networking
Everyone knows that networking is great to meet people.
But the reverse is also true, any place where you meet new people is a good networking place. The most common examples of this is school, volunteer work, sports or clubs, and line-ups.
Schools
People go to school for a course or an entire program because they are interested in a topic. This means that everyone in your class has something in common and you automatically have a connection. It is no surprise that a large component of an individual's business contacts come from school. In fact, the higher the education, the tighter the business connections normally are. I once heard a guest speaker say something I now try to live by: 'live like you'll die tomorrow, but learn like you'll live forever'.
Volunteering
Volunteer work has the advantage of making you feel wonderful about the work you're doing at the same time as meeting great people who feel the same way. It is a very positive environment to meet someone in. This is a huge opportunity and I've heard of many business deals starting due to someone's involvement in volunteer work.
Sports & Clubs
Playing sports and joining clubs shows your fun side . Meeting someone in this setting (especially during a social event after the game or club meeting) is all about building the relationship. If later you learn that you have complementary business offerings, all the better.
Line-ups
Canadians are great at this - lining up! We may as well take this wasted time and take advantage of it. There is no harm done in starting a conversation with you neighbour. What's the worst thing that could happen? You don't get new business. What's the best? You get your biggest client. Based on this logic, it only makes sense to use this time more wisely at coffee shops, airports, and wherever else you find yourself waiting.
So next time you do one of these untraditional networking activities, bring your business card!
But the reverse is also true, any place where you meet new people is a good networking place. The most common examples of this is school, volunteer work, sports or clubs, and line-ups.
Schools
People go to school for a course or an entire program because they are interested in a topic. This means that everyone in your class has something in common and you automatically have a connection. It is no surprise that a large component of an individual's business contacts come from school. In fact, the higher the education, the tighter the business connections normally are. I once heard a guest speaker say something I now try to live by: 'live like you'll die tomorrow, but learn like you'll live forever'.
Volunteering
Volunteer work has the advantage of making you feel wonderful about the work you're doing at the same time as meeting great people who feel the same way. It is a very positive environment to meet someone in. This is a huge opportunity and I've heard of many business deals starting due to someone's involvement in volunteer work.
Sports & Clubs
Playing sports and joining clubs shows your fun side . Meeting someone in this setting (especially during a social event after the game or club meeting) is all about building the relationship. If later you learn that you have complementary business offerings, all the better.
Line-ups
Canadians are great at this - lining up! We may as well take this wasted time and take advantage of it. There is no harm done in starting a conversation with you neighbour. What's the worst thing that could happen? You don't get new business. What's the best? You get your biggest client. Based on this logic, it only makes sense to use this time more wisely at coffee shops, airports, and wherever else you find yourself waiting.
So next time you do one of these untraditional networking activities, bring your business card!
Subscribe to:
Posts (Atom)
Posts
