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ISSUE #49
March, 2003
Like many small business leaders, you're continuing to struggle with finding new ways to make sales, keep existing customers happy and meet monthly expenses.
Sometimes tweaking your approach, your product or your pitch will help you find new leads and get the sale. Repackaging or finding a different market may be enough to break a log jam. Or by listening to clients and prospects you may find another way to meet a market need. One thing that has helped me is to "follow the money", which is the subject of this month's feature article. Hopefully, it will generate some ideas for your business.
The web site to support SmallBizLeaders.com (our planned virtual community) is finally in the works. The process seems painfully slow, but we're on the way. Following release of last month's issue I received many positive comments. Your support is greatly appreciated. Here's a typical comment.
"Sounds like you've got some great plans in mind. I just want to make myself available for you if there's anything I can do to help you move this community forward."
Dan Miller, WebOnTheFly, http://webonthefly.com, dan@webonthefly.com
We're also continuing to offer the Lunchtime Telephone Roundtable and this month I'm both moderator and discussion leader. I've had several requests for a Roundtable on how to effectively use networking to get business, so here it is. The topic is "How to Generate Real Business from Networking". The details are below. Do plan to join us.
To your success,
Marian Banker
Publisher
Small Business Leader
mailto:marian@primestrategies.com
http://primestrategies.com
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FEATURE ARTICLE: Follow the Money!
If you're feeling frustrated with the results of your sales efforts, don't give up yet. Follow the money!
It may seem like nobody is spending money these days, but that's not true. Businesses of all sizes must spend money to continue operations. Individuals still minimally need the basics. What will it take to get them to spend money with you?
Ask the question: where are your prospects spending their money? Businesses and individuals alike are being much more careful in prioritizing their expenditures. Discretionary income is almost non-existent for some. Any expense that can be put off very likely will be. So if yours is a luxury or discretionary item, offering a "value package" that serves a need (even if emotional), might tip the scale in your favor.
Value is different for each prospect and your job is to determine how you can provide it. Barnes & Noble built its online business quickly by offering free shipping when Amazon.com did not.
Offering additional help from a trusted source can make a difference, too. What about including support service or free upgrades for your software? Maybe add a complimentary financial assessment for a new investment client. Or a free car wash with an oil change. Consider where you can add value at low or no cost to you. The objective is to get the commitment from the customer. Once a customer they are a prime candidate to buy more if you have provided value.
To add sales from existing clients consider what additional services they might find valuable. Adding the service of setting up and training on QuickBooks allowed one accountant to make client operations easier and more efficient and at the same time provide information needed for taxes and reporting. It was a win-win and many clients saw the value.
Your marketing message may need to be updated to be more in line with your prospect's hot buttons. Business owners are looking to cut costs, increase sales, optimize staff performance, retain good employees, get expert help from trusted resources and experience painless maintenance where required. Which of these can you provide?
Speaking with your front line staff - those who are in regular contact with customers and prospects - is always a good idea. Listen for patterns.
A colleague who sells training in how to generate leads kept being asked if her service included performing the work for which she was training. She had said no to three inquiries when she realized there was a real need and demand for someone to effectively provide the services, not just the training. By listening to what her market really wanted, she was able to open a new division of her business and have three clients immediately. Yes, she had to hire someone to help her, but she built that into her price structure.
Maybe redefining or renaming what you offer will make a difference in how a prospect perceives its value. They may not be buying a "weekend retreat", but will be interested in an "intensive three-day training" on a critical or timely topic.
Packaging can make a difference, too. Some people are afraid to buy services by the hour, so find out if a flat fee would be more attractive. Maybe your service can be broken into segments with specific benefits achievable by segment. If your basic product is high cost or requires a long lead time, consider offering a smaller version or breaking your service into logical segments and selling them sequentially. A smaller financial commitment might be enough to get the sale.
Sometimes what's needed is a target market shift. Many companies have cut back on training, considering it as non-essential to operations. Others view it as a means to retain valued employees and maximize benefit of existing resources. If you're selling training services, you'll be looking for those who seek the latter. It's always good to ask the question: who else might benefit from what I offer, even if I have to repackage it?
John, Friess, of Wired MD, found making a market shift was the trigger for his growth into stage two of his business. You can read his story at http://entreworld.org/Content/EntreByline.cfm?ColumnID=461&PID=3125&EID=48&JID=18
You may want to give up many times. Instead, consider what can be changed to find a better fit. This is where creativity, tenacity and blind faith all come into play. A clue for you is to make note of things people have asked you for that you don't currently provide. If you see a pattern of inquiries you may have an untapped market, just waiting to be filled.
Keep your ear to the ground for where the potential action and the money are likely to be. As a small business you have much more flexibility and ease of change. This gives you the opportunity to make adjustments that can accelerate your progress and your profitability.
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NOTEWORTHY QUOTE:
Be sure you establish a disciplined plan for acquiring current and accurate financial information about the operation of your business. Long-term success without current and accurate financial information is virtually impossible.
Jim Blasingame, "The Seven Vital Resources and the Big Twins", feature article in the February 17, 2003, issue of Small Business Advocate, http:// www.smallbusinessadvocate.com.
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ACTIVITIES:
March Lunchtime Telephone Roundtable
This Month's Topic: "How to Generate Real Business from Networking"
Date: Thursday, March 20, 2002, 1 to 2 p.m. EST
Moderator and Discussion Leader: Marian Banker, MBA, Business Leadership Coach, with 25+ years' business leadership experience.
If you think networking means attending special events designed to meet new prospects, you're missing most of the benefit of networking.
In this Roundtable we'll cover the real value and potential of networking: how to turn networking into sales, steps to get the most from your networking activities, unique and painless ways to network and keeping your network alive and serving you. You'll be encouraged to share your networking experiences, tips and success stories.
We'll learn from each other. Don't miss this chance to "network" around the subject of networking.
To register and receive the call-in number, send an e-mail to
marian@primestrategies.com with the Subject as Roundtable.
Here's just one of the many positive comments from a previous Roundtable...
"The Roundtable was great. It was good to hear that other people are having the same challenges I have." Tony Addesso, Architect, New Jersey
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IN MEMORIUM:
This past month, the professional coaching community lost one of its most important leaders, Thomas J. Leonard. Thomas was considered the father of coaching. He founded Coach U, one of the first coach training programs, and subsequently, Coachville, a virtual resource and community for coaches.
Even though I never had occasion to meet Thomas personally, I feel I knew him well through his works. He was a leadership role model for me and instrumental in shaping the perspective I bring to my own business leadership practice.
I celebrate his life, his works and the legacy he has left to the professional coaching community --and all of humanity.
God Speed!
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ARTICLES:
FOLLOWING THE MONEY
Dallas based architectural firm, Good, Fulton & Farrell, incorporated complementary services into their business as a hedge against market and economic changes. See how they did it and consider how you can apply the same concept to your business.
http://dallas.bizjournals.com/dallas/stories/2003/02/10/smallb1.html
KEEP ON KEEPIN' ON
Tenacity, passion, blind faith and the willingness to meet challenges one at a time are requirements for the entrepreneur who wants to be in business today - and tomorrow. Norm Brodsky, Inc's veteran business advisor and author, shares a story that is case in point.
http://www.inc.com/magazine/20010901/23344.html
ONE STEP AT A TIME
Thinking about the stage of your business and understanding which you're in can be helpful to your decision-making process. Read Gabriel P. Goncalves' article in Entrepreneur's Byline on the EntreWorld.org site and learn the specifics for each step as well as how he has navigated them.
http://entreworld.org/Content/EntreByline.cfm?ColumnID=460&PID=3125&EID=48&JID=16
MORE TREND TRACKING
Last month's issue featured an article on trend watching. Adam Hanft, in the current issue of Inc.com, suggests there's a wealth of information for savvy trend trackers in more than just the business section of the newspaper.
http://www.inc.com/magazine/20030301/25212.html
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ABOUT THE PUBLISHER:
Marian Banker has been publishing Small Business Leader since January, 1999. Her focus is on bringing to the busy entrepreneur a quick look into the current world of small business from the
perspective she's gained from coaching, consulting and training entrepreneurs in both service and product based businesses.
Marian offers individual coaching, business support groups, seminars and workshops on topics of critical interest to small business owners. Her monthly Lunchtime Telephone Roundtable has proven to be a popular way for business owners to come together around a specific business topic without leaving their office. See notice about this month's topic in the content above.
To learn more about her services, visit http://primestrategies.com.
FEEDBACK:
Your feedback is always appreciated. Please write to marian@primestrategies.com.
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COPYRIGHT 2003 SMALL BUSINESS LEADER
A publication of Prime Strategies
http://primestrategies.com
MNMBZ, Inc.
Notice and Disclaimer:
Of course, I'm open to your including my content in your publication with proper credit. You must, however, obtain my written permission first. Thanks!
Content in the SBL is for information purposes only and should not be construed as specific advice.
