Davinci Virtual

A common question that I receive from small business owners is “how can I market my business the most the effectively?” The answer to that question, is that unfortunately there is no standard answer.  Instead, you must learn what will work for your business & industry, and what your target audience responds to.  Although there is not set formula, here are a few tips to help you along your journey.

• Know your audience.  This may seem like a no-brainer, but you will be surprised home many of my clients think they know their customers, only to find out they were wrong.  Knowing your audience means more than knowing what target demographic you are going after.  It means understanding who your market is, how they work, why they purchase, etc. 

• Don’t underestimate the power of the barter.  Partnering with the small business bureau in your area could open up a whole range of opportunities for your business, including a barter system, where you exchange services with other members of the organization.  This is a great way to spread the word about your business.

• Don’t be afraid to try some unusual marketing techniques.  Trying to understand what marketing techniques will work for your business means that you should be open to new methods.  Don’t be afraid of expanding your business to the web, or turning to social media.  It’s using unconventional techniques that  will get you noticed by consumers.

As you begin to incorporate these tips into your strategy, think about some other lessons you have learned, and tell me what worked (or didn’t work) for you!

Last week I wrote about leadership book by David Cottrell, called “Monday Morning Mentoring,” a guide to developing leadership skills, and effectively managing teams/groups. I imparted several key leadership learnings in that blog post, with the promise to finish up the lesson this week, and reveal with the “real” secret to leadership truly is.  Today, along with the big secret, I want to share with you one more leadership lessons from Tony.

Lesson 3: “Tough Learning”

In this lesson, Jeff comes to Tony with some unsettling news.  The annual corporate surveys were distributed for his company last week, and the feedback he received from his team members was less than stellar - and even more importantly - came as a total surprise to Jeff.  After speaking with Tony for several hours, Jeff learned that along with the feedback holding some room for improvement with Jeff, there were also a lot of great points that showed Jeff’s strengths, that Jeff had overlooked because he was so upset about the negative points.  Tony showed Jeff that he had to look at feedback as an opportunity to learn and grow, and that getting defensive and not accepting what others felt about him only made the situation worse.  In the end, Jeff needed to understand that criticism should be used as a learning tool to better one’s self and their team.

The Big Secret

Along with the three I have shared with you, there are many more important lessons in Cottrell’s book that  should definitely be read and understood in order to grow into an effective leader.  At the end of the book, Tony finally imparts the secret of leadership to Jeff (actually there are two secrets).  1.) Until you learn to accept total responsibility, no matter what, you will not be able to set up a plan to achieve your goals.  2.) Success is the result of making better choices and recovering quickly from poor choices.

All in all - the key here is responsibility.  Take responsibility for your actions (good or bad) and when a bad decision occurs, take a deep breath, and then develop an action plan.  Don’t play the blame game, or pass along the mess to someone else.  It is only through experience (both positive & negative experiences) can you become a successful leader.  The process worked for Jeff…and when I implemented the lessons in the book, it worked for me as well.  Hopefully these little tidbits of information can help you!

Building business in challenging economic times is absolutely possible. The critical issue is a willingness to evaluate your products and services with absolute objectivity and a new knowledge of the marketplace.

Let’s start with evaluating your products and services. If you have been in your current position, or are the owner of your own company, it can be easy to slip into status quo mode. Making the same products and providing the same services is part of how a company maintains stability and focus on their mission. But difficult times require creative, out of the box thinking.

Now is a great time to reach out to your customers for product development and improvement ideas. Look for low hanging fruit, ideas that could be implemented with little effort for great results. Also, keep an eye open for patterns, which might indicate market changes or trends. While you’re asking for their feedback, take the time to let them know how valuable they are to your business.

Next, scan the marketplace, take a look at competitors and new, successful businesses. What direction are they taking? Evaluate their ideas and compare them to your customers’ suggestions. Create a list of minor and major changes that your company could make in response to market shifts. Gather your staff or supporters around for a brainstorming session and see what arises. Be open to new information and ideas.

Take the results of your market research and brainstorming and evaluate it with a critical eye. Be flexible and responsive in order to create opportunities for company growth. Think twice before making large changes with high risk. If, after thorough research and planning, that kind of change makes sense, embrace it and move forward. The key to your success is in flexible thinking and nimble responses…now is the time for objectivity and excellent market analysis.

Part II of this series will explore building your customer base in niche markets.

I went to the dentist yesterday, and let me say right now that I hate going to the dentist.  It all goes back to when I was a little girl.  I used to have this horrible dentist - a big mean man who had the worst breath ever - talk about poor advertising!  Anyway, I went to this new dentist today, and (big surprise) I actually had an enjoyable time. Not only was my dentist extremely gentle and friendly, but he went out of the way to actually educate me about what he was doing, and why things were happening in my mouth.  The entire staff was friendly and accommodating, and once I actually relaxed, I found myself enjoying their company.

The lesson to take away from this? The customer service this dental group provided in one visit, completely changed my outlook about their services.  Now I am actually looking forward to my next appointment, and I will be much more likely to recommend my friends and family to them.  To apply this lesson to your business, look at the services you provide to your customers, and ask yourself, how can I make their experience better?

All to often businesses focus on just getting the job done, instead of helping the customer become comfortable or enjoy their time spent with your brand.  Always remember, in times of hardship, great customer service is one of the best ways to maintain your current clients and grow your customer base.  So smile, and ask your customers “what can I do for you!”

We have all experienced it.  The worst customer you could imagine.  They are rude and almost uncontrollable, and make even the nicest business owner think that sometimes the customer is not always right.  Along my business’ growth, I have dealt with many “bad customers,” and hopefully you can learn something from my experiences.  Here are a few tips to help:

• Accept that the customer is not always right.  This is a hard concept for some to grasp, but you must be able to understand that some customers are not right for your business and you must let them go, especially if your business is suffering because of it.
• Pick out the “bad seeds” from your good customers.  Identify who your problem customers are.  This will help you understand who your customers are, and who truly appreciates your services.
• Once you understand who your bad customers are…Fire them.  Keeping bad customers just to maintain revenue is not beneficial to the company in the long run.  By getting rid of your “bad seeds,” you will be making room to plant the “good” ones.
• Target the right customers.  This may sound like a no-brainer, and I am sure no one intentionally targets the “wrong” customers, but it is important to fully understand who your ideal customer is, and then form a plan of action to specifically target them.
• Finally, Don’t be afraid to ask your customers what they want.  Today’s consumers are bursting at the seams to tell companies what they want.  All companies have to do is ask.

Like many businesses around the country, I have a hard time keeping everything organized around the holiday season.  Maybe it is the time of year, maybe it is the rush of the holidays, but this season is always hectic for me.  Last year, to help me stay on track, I employed an assistant to come in during the holiday months to help out.  Several of my colleagues have employed similar techniques, some even work with a virtual assistant to keep things lined up and organized while they are on the road.  Whether you decide to bring on some extra help or not, here are a few helpful hints to help you stay on track.

1. Set a list of priorities that you want to accomplish by the end of the year. Categorize each task as a level 1, 2, 0r 3 priority.  (1 = most important, 3 = least important)  This will help you understand where your need to spend your time.
2. Help your team stay motivated.  Productivity usually drops around the holiday season.  Help combat this problem by motivating your employees to stay focused.  Develop a holiday reward system to help keep your employees’ morale high.
3. Create a list of bills that have to be paid in December of 2008 and January of 2009.  This will help you remeber critical payment dates, that could be forgotten, and help forecast expenses for the begining of the new year.
4. Lastly, keep in touch with your customers.  Just like you, your customers are running a little crazy during this time of the year.  Now is the perfect time to reach out to them remind them how your products/services can help them through these crazy months, and make their life just a little bit easier.

As 2008 winds down, and businesses begin to prepare for the up-coming year, it is important that they understand the top consumer trends that are forcasted for 2009.  There are many new changes in the ways consumers are behaving, and it is critical that businesses understand these changes, and are able to adapt to accommodate them.  Here are my top consumer trends for 2009.

Community Development - As 2009 begins, look to see an increase in community development, both online, and in the real world. Traditional, hierarchical social groups are breaking down, a result of the wholesale fragmentation of America. Basic needs to connect are getting met in smaller communities more directly relevant to people’s interests and experience.

Consumer Control & Customization - Consumer desire for total control is raising the bar on what products and services are expected to deliver, and customization of these products and services is going to be critical.

Thrifty Shopping - This trend is about an evolution, maturation, and stabilization of the new economy.  As the country struggles to re-gain its economic stability, new measures of “success” are emerging, with status awarded for tenacity, creativity, and entrepreneurial smarts - survival skills of this new and challenging time.

Hyper-Activity - We live in a multi-sensory, multi-tasking world.  Consumers today use cellphones, PDAs, computers, videogames, and instant messaging – all at the same time. Managing the most info, and being the person “in the know” is seen as a badge of pride. Because of this trend, consumer messages are packed into every inch of time and space, vying for attention, so businesses must really find new, edgy ways to make their messaging stand out.

These macrotrends signal a major shift in consumer needs, wants, desires or passions in the upcoming year.  If you plan to successfully engage your consumers, you must understand these trends, and learn how to use them for your benefit. 

The goals you set for yourself and your business are critical for providing direction and focus to your long-term strategy.  All too often businesses will set what I like to call “fluffy” goals, thinking that they do not need to go into the details that large corporations do, because they think they understand their business. The problem with that way of thinking, is that small businesses need SMART goals MORE that large corporations, because the detail they provide helps drive accountabilty, and keep the company’s strategic plan on track.

SMART goals stand for:
Specific
Measurable
Attainable
Realistic
Timely

Here is an example of a goal written without using the SMART Goal Format would look like:

“I want in increase my sales next year.”

Now, here is the same goal written using the SMART format.

“In 2009, I want to sell four new accounts that will generate $200k in revenue each, to total $800k in total sales for the 12 month period.”

See the difference? Before I detailed this statement, I could have increased my sales by $100 and still reached my goal. Now I know that not only do I want to increase my sales, but I need to obtain 4 new accounts equal to $200k each, in order to hit my goal.

Give it a try, what are your SMART Goals for the upcoming year?

Customer Relationship Management (CRM) is a valuable tool that small businesses can use to maintain contact with their customers and build customer loyalty. Usually it is managed through a specific CRM software, and in order to be successful, employers must ensure that their employees are really motivated to learn the system and utilize the information.

One simple form of CRM is relationship building, a tool that allows business professionals to gain insight into their customer’s lives. The trick to this form of CRM is understanding that the data you collect on your customers is not directly associated with your business and services. Instead, you are attempting to gain personal information on your customers to help you manage your relationship with them. By learning who your customers are both in and out of the business environment, you develop a strong personal link to them, making them much more likely to engage your services, and much less likely to drop your business.

Try to obtain the following information from your customers over time:

• Family information – Is your customer married? When is their anniversary? Do they have children? Grandchildren? How old are they? When are their birthdays?

• Key Personal Information – When is their birthday? Where did they go to school? Do they have any pets? What kind of movies do they like? Do they have a favorite author? Do they travel often? Will they be taking any upcoming trips?

• Personal Preferences – Do they drink? If so, what drink do they prefer? Do they smoke cigars? What sports teams do they follow?

Once you have a good amount of information on your clients, you can begin to use it. For example, if you find out that one of your customers is a die-hard Duke University Alum, the next time the team plays and wins, send your client a little email about he game, or forward on a newspaper article highlighting the score. Taking time to do these little things shows your customers & clients that not only do you care about their business, but you also care about them. This is one simple form of Customer Relationship Management, but it can really pay off in the end.

One common business trap that small businesses can fall into is becoming comfortable relying on one or two major clients to support the majority of their business. The problem that arises in those situations is if one of the main players drops out of the game, you are suddenly thrust into a situation where you must scramble to catch back up from the loss. Because of this, it is extremely important for small businesses to diversify their client base.

It is acceptable for small businesses to run with one or two main clients, but the business must understand the impact that those accounts have on their business, and plan accordingly. For example, if you are a small business that has one major client that takes up a bulk of your business, make sure you leave room to bring in several smaller accounts that you could grow, if you have a need.

One way to understand each of your client’s individual impacts on your business is to create a spreadsheet where you break down exactly how much each client contributes to your business, potential growth opportunities, and a contingency plan, should the main money clients choose to leave. Businesses should review and revise this document every quarter, and every time a client or account either grows or shrinks. This is also a great tool for strategic planning for your accounts. By understanding that you have three or four small clients that have room to grow, you can allow your business to become more flexible to those clients, while still remembering your larger accounts.

Today’s small business leaders are always thinking ahead of their clients/customers. They are anticipating their next moves well before they occur, and they make business decisions off of these forecasted plans. By understanding how each client affects your business income, you too can develop client forecasts and pre-emptive strategies to keep your business (and your client’s business) running strong.