How To Grow Your Business In A Slow Economy

Posted by admin on August 17, 2010 · Leave a Comment 

Every business experiences slowdowns at one time or another. Right now, there is not only a slowdown, their is downright malaise. I believe it is a collective emotional depression, fueled by the news media’s relaying every message of doom and gloom possible. If it’s not war, its the economy and now, sadly the grim reality of the Gulf oil spill. Not only does it paralyze us with fear, it creates a sadness that kills initiative. Seemingly hopeful messages that the economy is “about to pick up”, merely slow it down even more as investors wait for everything to finally hit bottom, dropping the other shoe, so to speak.

Customers are holding off on selling their homes, buying goods and services, starting home improvements. We’re cutting back, canceling subscriptions and memberships and forgoing travel. We seem to have pulled in our nets, waiting for better weather. Seems like the right thing to do.

Just remember that business is all about cycles. The wheel, albeit turning slowly, will turn upward once more. It simply has to and it will.

So what are small businesses supposed to do while at the wrong end of the cycle? Sitting around complaining and waiting for things to change is not the answer. My suggestion! Be like a farmer!

In many ways, growing a business is like growing a crop. You plant, water, weed, fertilize and wait. Crops don’t grow overnight. They need time. What does a farmer do while waiting? Lots!

During the growing season , a farmer keeps very busy. The growing season is the time to sharpen tools, plan for new crops, read farming catalogs and magazines, repair equipment and refurbish the barn. Here’s how you can do the same with your business:

Sharpen Tools: This is the time to teach yourself that new computer application that you know you need, but just haven’t had the time to do. Maybe it’s time to upgrade your system altogether. While you’re at it, update your client data base!

Plan For New Crops: What future trends in your industry can you translate into new goods and services? This is a great time to gain market research, conduct surveys and do a cost benefit analysis of previous marketing campaigns.

Read Farming Catalogs and Magazines: Are you up on the latest trends techniques and forecasts in your industry? When was your last attempt at continuing education? What are some new marketing and advertising techniques you could read about and apply? There are lots of free tele-seminars available. You only need one new idea.

Repair Equipment: This is a great opportunity to revamp your business systems, file paperwork, create that new bookkeeping system, archive old files, review policies and procedures.

Refurbish the Barn: While a farmer might fix a broken rafter, repair the roof or build a new holding pen, what can you do to improve the flow of your workspace? Professional Organizers will tell you that your productivity is often closely connected to furniture layout. Get your barn in order. And, if you’ve got something broken (computer, copier) fix it or get rid of it. Broken stuff is very bad business feng shui.

These strategies may not immediately appear to be business building activities. But they are – because they are pro active, not reactive. During this process you will be inspired and gain new insight into what makes your business work and what does not. Don’t be surprised if your creative juices start to flow in ways you never would have imagined.

The important concept here is called “Fake It Until You Make It”. Studies have shown that taking action in any circumstance improves the positive outcome exponentially. In other words: It works! Therapists use it to help patients overcoming depression. Alcoholic Anonymous encourages new members to use it. It’s all about stepping out and ACTING out in faith.

Believe that this downtime is a bonus to refocus on what you want for your business. Get moving and be a good farmer.

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Niche Craft: Finding Your Market Niche

Posted by admin on July 13, 2010 · Leave a Comment 

Common sense would tell us that casting a broad net when marketing our products or services would provide the most customers. And we would be dead wrong. That thinking will keep you struggling for years to find your market – perhaps never finding it at all. Just like with fishing, casting too broad a net is going to yield you a lot of fish you are going to have to throw back  which will ultimately waste time and money. The truth is that the narrower the niche, the more money you will make. This is the fine art of niche craft. Just like a song, it works magic for your business success.

A niche by definition, is a focused and targeted group that your products or services caters to. The mistake that many businesses make is mistaking a broad category for a niche. For example, “Women” is not a niche. “Children” is not a niche. “Women who need….” is a niche. “Children who need…” is a niche. With that in mind, can you see how much more effective it is to have a specific niche? You can speak directly to the market’s exact wants and needs. You can describe their pain. You know them. You get them. You go directly to what’s keeping them up at night. How irresistible is that?

Here’s another example. Let’s say you think your niche is athletes. That’s really not a niche, it’s a category! What kind of sports are you offering solutions for? You can’t use the same product to solve a bad golf swing and a poor batting average or a weak tennis backhand. So your niche is going to be, in this case, golfers, or baseball players or tennis enthusiasts – but not all of them! They have different pain points, needing different solutions. Speak to their specific pain,offer them specific solutions and you have their business.

Finding that niche is challenging. But once found, it is the gift that keeps on giving. Here’s why.

Business is all about providing solutions. In other words, all businesses are in the “business” of pain relief for their clients. We solve their problems – the things that keep them up at night – the issues, that without us, seem insoluble. We take away their pain, their worry and get them unstuck so they can move forward, perhaps even live happily ever after.

Sometimes your niche finds you and you aren’t paying attention. Go back over your list of clients and see what they have most in common. You might be surprised to find that you already have a niche. A client of mine who has an answering service business went back over his list and realized that a large percentage of his clients were dentists. When he began targeting dentists, specifically identifying their pain points (because he already knew what they were), he increased his business by 30%! Remember that marketing is all about the following:

1. Identify their need

2. Describe their pain

3. Offer a solution

4. Present a Call to Action

Don’t be afraid to narrow your niche. Remember, although it may seem counterintuitive, the truth is, the narrower your niche, the more money you will make. That’s “niche craft”, wicked niche craft, at its best.

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What Kind of Business are you?

Posted by admin on March 1, 2010 · Leave a Comment 

Knowing what type of business model works best for you is of the utmost importance. And yet, most small businesses and even some larger ones don’t understand how to market and sell their products and services. Even more importantly, they don’t know how to get beyond their first client and their first sale. Is that you?

There are basically two kinds of businesses – 1. Business to Consumer and 2. Business to Business.

Business to Consumer is the one we all have the most experience with and the one that also gives small businesses the most trouble and confusion. Business to Consumer is the Retail model and is based solely on product, pricing and convenience. Quality is not as important as a quick fix for a short term problem. You need a new suit, you are hungry, you need a new dishwasher. Choices are usually easy and quick. That’s great for large department and discount stores as well as fast food chains. Consumers want a quick in and out experience. One day, a certain store will be closer for that quick fix or having a special sale on their merchandise. The next day, another store may be more convenient and offer a better price. There is absolutely no consumer loyalty and not much of any repeat business. They profit on volume and short term sales.

Can you see how that approach is likely a dead-end street for you as a small business owner? First of all, it’s tough to compete with larger competitors who can offer low pricing and have deep pockets. You are out of your league and will always be scrambling for more business.

If you have been operating under the Business to Consumer model and are wondering why you aren’t getting any repeat business? – now have the answer. You are a little fish in a very big pond. With this model, that is all you will ever be.

The Business to Business model is the one you want. This model doesn’t focus on quick sales. It has a slower buying process because Business to Business is relationship based. Your “bigness” as a fish in this pond is your reputation for service and quality and even more importantly, your FOLLOW UP. Your goal is to build trust and to make the customer happy. You want your customer to feel loyalty toward you and what you sell or do. This will produce longevity in your business and repeat customers and referrals. It will take time. Business building is not a sprint – it is a marathon! When you build a trusting relationship with a client, price and convenience are no longer the main criteria for purchase. Did you just hear that? They know you, trust you and like you. Therefore, they don’t want to have to look any further for a solution to their problem. You solve their problem without worry. This is the basis for business development and growth – not hit and run, one trick pony selling! Now you truly have no competition. Once you get that concept, your efforts at building client relationships will grow quality referrals and lifelong business relationships. This must always be your goal.

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Five Steps To Better Listening Skills

Posted by admin on February 5, 2010 · Leave a Comment 

There are some wonderful skills that once learned, enrich our lives forever. Learning to play a musical instrument and knowing how to speak a foreign language both come to mind.

There is another skill, that once mastered is truly invaluable in every aspect of life and business – the important skill of Listening.

In case you haven’t noticed, when we want to sell, convince, negotiate or win, we do most of the talking. When the ratio in talking is 80% YOU and 20% them, you’ve already lost the battle. A true dialog means exactly that: Half is you and the other half is them = 50%/50%.

So why do we do most of the talking? First of all, talking is easier than listening. It makes us think that we are in control. Besides, if we ask questions, we might not like the answers! Lopsided discussions often end in frustration, anger and failure. Here are Five Steps to Better Listening

1. Attitude Adjustment: Be willing to change the way you think. Instead of considering a conversation to be a challenge to “persuade”, consider it a mutual journey. There are signs along the way and the postings will come naturally if you let them. Pay attention to the words that are used and don’t assume you understand their definition of a term. Words can be very personal and idiocentric and cultural and not mean what you think. Ask for clarity.

2. Noise Reduction: Quiet the noise in your head. Few of us actually listen with full participation. How many times have you already been calculating the answer in your head and are just waiting for the other person to stop talking so you can speak! Stop thinking and just listen, with full attention, no voices in your head. Notice the other person’s body language, voice inflection, facial expressions as well as their word choices.

3. Reflect Back: When the other person has finished speaking, your reply should first and foremost be a ‘reflection” – that’s coach talk for repeating back to them what you thought you heard them say. It can be very surprising and humbling when you find out that you didn’t get what they just said. On the other hand, when you reach mutual agreement on what was actually said, everything changes.

4. Ego Removal: Let go of the notion that you have to be right. There’s a business saying – “Do you want to fill your ego or your bank account?” The result is not that you are right, but that the problem for both parties is solved to mutual satisfaction. It might not be the solution you thought you wanted but it will be the solution you really need.

5. Make it a Win Win: Once the other person realizes that you actually heard what they said, they will most likely relax, share and trust you. That’s when the true dialog begins. That’s when the real conversations take place. That’s when problems get solutions and you have a chance to make your sale, prove your point and get what you want. It’s a win win situation with potential for a deeper and more worthwhile (and profitable) relationship with your conversation partner who may be a customer, a loved one or an employee.

Learning how to truly listen will be the best gift you ever give to yourself and those you love work with and serve.

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First it was Y2K and now it's the end of the world in 2012? Get over it!

Posted by admin on November 9, 2009 · Leave a Comment 

Welcome to the second decade of the 21st Century!  How did that happen so quickly?  It seems like we just got over worrying about our computer systems imploding on the eve of 2000, which proves my point:   Worrying about things that probably won’t happen, is a waste of time.  True futurists see possibilities as well as pitfalls and seek to prepare rather than scare.  The times, while certainly changing and challenging, are also very exciting indeed. 

Here are 5 major trends/possibilities to watch for and act upon in 2010 and beyond: 

1. Green Technology/Water Conservation  

The terms Green technology, carbon footprint, climate change, eco friendly, re usable, recyclable will be the words spoken, written, discussed and planned for in huge proportions from now on.   This will impact large industry as well as small businesses and households who will be compelled willingly or unwillingly to save the planet.   Business travel will become more limited as the “carbon footprint” is more top of mind.  It will be replaced with online and virtual meetings.  This will impact airlines, hotels and other travel related industries.  However, it will also greatly increase opportunities for online learning, webinars and teleseminars.  Hopefully, that will mean not only less carbon dioxide in the air but more quality time at home.  Water shortages will replace gas shortages.  Growing populations create agricultural and industrial growth. Everybody is going to need more water.  Every industry, from agriculture to manufacturing to landscaping and pool services will be impacted.   How can you participate in these growing trends? What service can you provide/create for this growing need to reduce the carbon footprint?  

2. Elder Care     

Life expectancy grows to age 100+.  This will affect every aspect of society – from jobs, housing, health care, retirement needs, mortality tables, insurance costs, elder care/assisted living needs, the definition of a nuclear family and caregiver roles.  Growth in a senior population will affect laws on inheritance, elder abuse, conservancy, real estate, investments, housing design and construction, medical care and medical support systems.  

This phenomenon is causing a shift in elder care models.  What worked for families with ailing seniors in the late 20th century may not be possible or practical now.  Adult children live more hectic and demanding lives and may not live nearby.  By the time senior parents need help; their kids are near retirement too!  Savings and retirement funds are running out as people are living longer.  What is to be done as the majority population of the western world continues to age? The need here is huge.  What kinds of services can you provide to this growing population and their concerned families?  

3. Internet:   

It’s getting bigger and more important by the minute.  The worldwide web offers everyone who is “connected” the opportunity to search for information, hire a professional, purchase homes as well as goods and services and even meet the person of their dreams.  LinkedIn, Facebook and a myriad of other social networks allow people and businesses to connect.  It’s not going away.  It’s only going to get bigger and more important. If you still see yourself as only “local”, you are in the minority and you are missing out on amazing internet marketing and sales opportunities.  Individuals and businesses are now connecting all over the globe.  If your website is 20th century brochure style – get moving and get interactive.  Videos and blogs are not a passing fancy and really promote your website presence.  What can you do to update your web presence right now? 

4. Personal Growth/Personal Health/Slowing Down the Aging Process:  

As baby boomers are seeing their parents reaping the rewards of unhealthy living (smoking, obesity, lack of exercise) requiring walkers, wheelchairs and oxygen tanks at the end of their lives,  they are beginning to rethink their own lifestyles so as not to suffer the same fate.  It’s not just about looking younger.  It’s about feeling younger…  Health and Fitness is the wave of the future. Low glycemic index diets, exercise, and a new awareness that diabetes 2 is purely lifestyle related and not to be expected in old age is the new trend.  This will affect restaurants and food manufacturing and packaging.  Think brown rice and whole grains.  Goodbye simple carbs, saturated fats and high fructose corn syrup.  It’s making us sick and we know it. It may be convenient up front but very costly at the end and we know it.  

As mainstream churches struggle to remain relevant in the 21st century, New Age thinking, aka, ‘The Secret’ is on the rise.  Meditation, Yoga, Retreats and Health Spas cater not only to individuals but companies looking for innovative ways to conduct business meetings and team building events.  Blend making more money with getting healthier and you have struck gold.   If you are in the health, wellness or hospitality industry, this is a major trend for you. 

5. Re-emergence of Entrepreneurship  

In 1776 more than 95% of all Americans were entrepreneurs.  By the middle of the 20th century, that number had dwindled to less than 30%.  The industrial revolution enticed people to leave their farms and shut down small businesses to seek employment in the cities. The Great Depression accelerated the process. This resulted in the breakup of families and a dependence on manufactured goods and credit. 

In 2010, it is back to basics.  Generation X & Y aren’t so willing to give their lives to the corporation.  Small business growth is seen as the savior of our downtrodden economy.  Are you a small business owner?  Rejoice.  While you can buy a house or a car online, there are many services that must be done in person.  If you are an electrician, plumber, medical care provider or other hands on professional, this is the decade for you.  The key to your success will be customer service and follow up.  In this ever increasing internet centered world, it will be the personal touch that you provide to your clients that will be the “secret sauce” that will grow your business. 

There are many other trends in science and industry that are truly exciting – from smart machines that anticipate our every need to a possible cure for cancer and the end of inherited disease.  While we you are enjoying the benefits of these future trends, what will you do to contribute to them? 

Kim Clausen is my teacher and good friend.  That is why I am sharing this with you.  These are such important mindsets to have as we all begin the second decade of the new millennium.  Happy New Year!

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