Friday, May 06, 2005

Sales Skill: Listening for Key Words and Taper Questions to UncoverProblems

ARTICLE: – By Eric Slife

Any sales manager or sales trainer will tell you one of the most effectiveskills top sales professionals possess is the ability to obtain accurateand valuable information from their clients and prospects. Being able to extract quality information results in the following:

- Fewer objections

- A better closing percentage

- More referrals

- Fewer headaches after the sale

- Etc.

To effectively determine what your prospect or client needs, you need to learn two critical fact finding skills:

1. Listening for specific key words, and

2. Tapering you questions.

First, start by asking your prospect a non-threatening open-endedquestion. Why? You haven’t established enough trust or rapport to askpersonal questions. Asking a possibly threatening question right away willprobably result in a less than truthful answer from your prospect.

Once your prospect starts talking, start writing down your prospect’s keywords on your notepad. What are the key words? Look at the following 3 sentences:

1. Our copier is always broken. Do you have something more reliable?

2. Our computers are slow. We need something faster.

3. Our website is always down. I need better service.

In the first example, write down “always broken” and “more reliable.” Insentence number two, write down “slow” and “something faster.” Finally,the key words in sentence three are “always down” and “better service.”Before you move on, ask, “Is their anything else?” and write down thosekey words.

Next, start with your first key words and start to taper your questions. As you do this, keep listening for additional key words. For example:

Salesperson: “What do you mean by your copier is always broken?”

Prospect: “It continues to feed 2 pages at a time, and the quality is poor.” (Note: “poor quality” another key phrase that needs to beexplained, so write it down.)

Salesperson: “Are you doing a specific job that is causing it to feed 2 ata time?”

Prospect: “When we make our manuals, we use heavier paper that our currentvendor says is difficult on the feeder, and they can’t fix it.”

Salesperson: “Tell more about the heavier paper you are running, and theother jobs you do.”

Prospect: “Well we do…”

Salesperson: “When your feeder pulls in 2 pages, what happens to yourbusiness?”

Prospect: “We can’t do anything until they come and fix it.”

Salesperson: “How long does that take?”

Prospect: “3 days.”

Salesperson: “How much does this cost you?”

Prospect: “It costs us $500 to have an outside printer make our manuals.”

At this point, I may ask them more about the manuals or more about their outside costs. The point is, by tapering down the key words “always broken,” you have narrowed down specifically what they mean by always broken. In addition, you have uncovered the consequences and costs of being “always broken.”

In addition, tapering your questions has revealed potential problems with their current vendor, and given you more insight into the exact nature of how they use their product or service. All of this additional information is the result of listening for key words and continuing to narrow down your questioning until you have been given specific information.

To make your questioning even more effective, help your prospect quantify their problem. For example:

- Do they have to outsource their project?

- What about lost revenue?

- Finally, how much has the downtime cost them in lost labor?

Salesperson: When you present your proposal state: Mr. or Miss Customer you mentioned you are experiencing the following problems… Are there any other problems?

Customer: No that’s it.

Salesperson: You also stated it is costing you so many dollars. Is this correct?

Customer: That’s correct.

Salesperson: I want to show you how we can help you solve these problems by the following…

By tapering keywords you, you have uncovered how much their problems are costing their company. In addition, you have helped them justify the expense for your solution. Finally, your prospect will trust your proposal more, because you better understand their situation compared to yourcompetition.

About the Author: Eric Slife is the President of Slife Sales Training, Inc. and founder ofwww.salestrainingcamp.com. Sign up for our free sales newsletters and getover $240 in sales training products and services for absolutely freehttp://www.salestrainingcamp.com/overture_salestraining.htm!

Contact Information:

Eric Slife

Slife Sales Training, Inc.4320

West Eaglerock PlaceWenatchee, WA 98801

eric@salestrainingcamp.com

www.salestrainingcamp.com

Wednesday, May 04, 2005

Sales Skills: Why Silence Is Crucial to Sales Success

Remembering these eight simple words will help bring all your sales efforts to a successful end.
April 04, 2005
By Tom Hopkins


In the selling profession, closing is the winning score, the bottom line, the name of the game, the point of it all. If you can't close, you're like a football team that can't sustain a drive long enough to score. It does you no good to play your whole game in your own territory and never get across the other team's goal line.

Many salespeople are afraid to close. They're afraid of asking for the order. They're so fearful, you'd think they were having to personally reach into someone's pocket for their money. To have any kind of success in sales, you have to get over that fear of closing because this is where the money is.

True professionals are closing most of the time. They're constantly trying test closes--questions you ask to determine if they're ready to close--and they can kick into their final closing sequence anytime they smell success. One test close you can use is this, "John, how are you feeling about all of this so far?" If John likes it, move on to your close. If he expresses concern--also known as an objection--you'll have to address it before attempting another close. With the test close, you haven't lost anything by trying to close too soon. (If you close too soon, your prospects will often reject you and getting back on track toward the sale can be awkward.)

Besides not asking for the sale, too many salespeople get so wrapped up in their selling sequence that if the prospect decides to invest before they're through, they won't let them have it. Some people get sold quickly, and if you keep talking instead of getting the final agreement, you might just "un-sell" them. More talk triggers more objections. When the prospect is ready, you must stop talking and start filling out your paperwork.

How can you improve your closing skills.
Just remember the eight most important words in the art of closing a sale: Whenever you ask a closing question, shut up!

The important words here are "shut up." Ask your closing question, then keep quiet! It sounds simple, doesn't it? Believe me, it isn't. That pause between the asking and answering can seem like an eternity.

The first time I tried to ask a closing question and then keep quiet, I was prepared for the prospect's reaction. I expected them to keep silent. What I wasn't prepared for was the intensity of my own reaction: The silence felt like wet sand being piled on my chest. My insides were churning. I had to bite the inside of my lip, and I was acutely aware of every nerve ending in my body. Finally, the prospects did decide they would invest--and I never again dreaded that awful silence after asking a closing question. Learn from my example, and don't utter a peep after you ask for the sale!

Why is it so important to keep quiet?
Say your prospect hesitates for a few moments, wondering when they should take delivery. You become uncomfortable and assume they're questioning the investment so you blurt out that you'll give them another 20 percent off the total investment, when that wasn't even the issue.

The average salesperson can't wait more than ten seconds after asking a closing question. If Mrs. Jones hasn't answered by then, they'll say something like, "Well, we can talk about that later," and go on talking, unaware that they've just destroyed the closing situation. And it's probably not just the one close that's been destroyed. Mrs. Jones can certainly keep quiet for a few moments--almost all undecided buyers can. If you're true sale champion material, you can sit there quietly all afternoon if you have to. It takes concentration, but the silence rarely lasts more than 30 to 40 seconds in reality.

Having the skill, courage and concentration to sit still and be silent for at least half a minute is the single, most vital skill there is in selling. Practice this until you get a feel for how long 30 seconds is, and then it won't be so nerve-wracking when big money is riding on how calm and quiet you remain in a real closing situation.

http://www.entrepreneur.com/ext/article/0,4621,320646,00.html

Monday, May 02, 2005

Marketing: What Not to Do When Designing Marketing Pieces Yourself

Hallo All future entrepreneurs!!

Here are some marketing tactics which I have come across. Do you have any other new idea to share with us? Do you have any experience/comments to discuss? `o´

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Avoid these 10 design disasters when you're creating your own materials. March 07, 2005 By John Williams

Have you ever noticed how many articles there are on creating your own marketing materials? These articles concentrate on things you "should do," offering such sage advice as "Know your audience," "Say it with pictures" or "Write clearly and distinctly." Now I'm not saying any of that is bad advice. But you should also know what not to do. That's what this article is about. Or more specifically, it's about what most do-it-yourselfers are tempted to do--but shouldn't.
Nothing screams "Design Novice" like the following 10 mistakes:

1. Don't enlarge your logo so it's the main focus of the page.
Yes, your logo features the name of your company. But it's not the main point. People are interested in what you're selling, not who you are. In fact, the smaller your logo, the more established your company will appear. If you don't believe me, check out ads by pros like Nike or Hewlett-Packard.

2. Don't place your logo in the text of your piece.
Of course it's fine to use the name of your company in the text of any of your marketing materials, but inserting your actual logo into a headline or body copy is design suicide.

3. Don't use every font at your disposal.
Choose one or two fonts for all your materials to build brand equity. Your font choices should be consistent with your image and your industry. For example, a conservative industry = a conservative font.

4. Don't use color indiscriminately. More color doesn't necessarily make something more appealing. Often it just makes it loud and off-putting. When someone screams at you, do you want to listen or run away? Most, if not all, your text should be the same color, preferably black for readability. For a unique look, try duotone photographs or print in two colors.


5. Don't be redundant. Don't repeat the name of your industry or product in your company name and your tagline and your headline. I once had a client request that the word "pharmaceutical" appear in his logo, his tagline and in the headline of his marketing brochure. This was totally unnecessary and even harmful. Potential customers know your industry. Restating it implies you don't.


6. Don't choose low-quality or low-resolution photography. A photo may look great in an album, but unless it features balanced lighting and good composition, it's not print-worthy. Photos need to be at least 300 dpi. And yes, people can tell the difference.


7. Don't fill up every inch of white space on the page. White space, or negative space, brings focus to what's important and gives the eye a rest. You may have a lot to say, but cramming it all in creates chaos and minimizes impact. Your piece will end up visually overwhelming. Think less, not more.


8. Don't focus on the details of your product or service; instead, focus on how it benefits your audience. Unless your product is extremely technical, make your offering relevant to your audience by emphasizing its benefits, not its features. Otherwise it's like going to a party and talking about yourself all night. That's not exactly the best way to win friends or gain customers.

9. Don't do exactly what your competitors are doing. When you're positioning your product, it's good to know your competition. But don't copy them. Find out what your customers want and are attracted to. Stand out without sticking out.

10. Don't change design styles with every marketing piece you create. Strive for a consistent look and feel, keeping the same fonts and logo placement. If you use photos in one ad, don't use illustrations in another. If you place your logo in the middle of one brochure, don't place in at the top-right corner in another. You get the gist.

Finally, do be clear, clean, compelling and consistent. You'll end up looking--and selling--like a pro.


John Williams is president and founder of LogoYes.com, the world’s first do-it-yourself logo design website. In his 25 years in advertising, he has created brand standards for Fortune 100 companies like Mitsubishi and won numerous awards for his design work.

http://www.entrepreneur.com/ext/article/0,4621,320242,00.html

Friday, April 29, 2005

Marketing: 6 Steps to Winning Publicity

Follow these essential steps to create your own successful media relations campaign.
March 21, 2005
Kim T. Gordon


Winning positive publicity is the goal of most small businesses--and it can take your company from obscurity to national prominence. The key is to have an effective media relations program, one that enables you to build relationships with the right journalists and win publicity over time. Here are six essential steps that will help you create a PR campaign that will put your company in the limelight.

1. Make a contact list.
Most entrepreneurs have more than one type of story to tell. For example, a story about the development of a new product might be of interest to trade press in your industry or even consumer press in vertical categories, while a story about your company's affiliation with a local charity would be most interesting to your local business press. Decide what types of stories your company has to tell, then develop a media contact list with help from print publications and online sources including: Bacon's MediaSource and Gebbie Press, which both provide a free searchable database of media links.

2. Don't waste editors' time.
The media are only interested in stories that will help them sell more issues or increase ratings--in other words, they want stories that are compelling to their readers, viewers or listeners. If you don't have a story that fits the immediate needs of a particular media outlet, don't waste your energy sending extraneous materials. Either tailor a story specifically for that outlet, or wait until the right opportunity presents itself.

3. Establish relationships with key journalists.
Instead of taking the "blast" approach to media relations, it's often better to take the time to develop relationships with select members of the media and provide them with exclusive materials or story ideas. Making an exclusive pitch requires contacting an individual journalist to discuss your story concept, then supplying any follow-up data or materials that journalist might need to complete the story. For example, imagine you're a professional organizer and have a website visited by consumers. You might add a polling feature to the main page of your site that asks visitors to rank their families' most challenging organizational issues. The results of that poll could then be turned into a story that you could pitch to a key magazine editor. Get the idea?

4. Send great materials.
Sometimes it's smart to send your media relations list something other than the standard release or media alert. Members of the media are inundated with run-of-the-mill stuff--from minor announcements to ho-hum news. Some media outlets get thousands of releases every day. What will make your pitch stand out? One way to win publicity is to provide quality materials that take some of the work out of covering your story, such as by sending product photographs to magazines, e-mailing links to online high-tech product demos, or providing a page of tips that writers can use as story background or as a springboard to your interview.

5. Take the time to follow up.
Entrepreneurs new to publicity often overlook the fact that media relations is about building "relationships" with members of the media. It's not enough to blast materials to media outlets in the hope they'll gain attention. It's vital to tailor stories appropriately, send top-notch materials and then follow up by phone or e-mail. Don't be surprised if the editor or journalist you contact by phone asks you to resend your materials. After all, with the copious amounts of information sent to the media, much of it is discarded, plus stories are often assigned to freelancers. Be patient and respectful of the journalist's time. If your current story pitch doesn't meet his or her needs, find out what will so you can better tailor your next pitch.

6. Be ready with more.
The best thing that can happen in your follow-up call with a journalist is that you'll spark an interest in learning more about you, your company or its products and services. So be prepared to send a full media kit or any supporting materials the media outlet may require. After you've made your first few follow-up calls, you'll have a clear idea of what this kit should contain. Just be sure not to overfill it. Remember, journalists are overloaded with extraneous materials, so pare down your kit until it includes just the essentials.
As you'll discover, the most vital components of a successful media relations campaign are listening and providing the best information to meet individual journalist's needs. If you stay on top of your program and consistently work to place stories, you'll successfully build relationships and gain coverage over time.

http://www.entrepreneur.com/ext/article/0,4621,320576,00.html

Monday, April 25, 2005

Human Resource: The Importance of an HR Policies & Practices Strategy

Learn the keys to establishing procedures and guidelines necessary for your employees--and business--to thrive.
April 11, 2005
By Paul Sarvadi

Why," you may ask, "do I need a policies and practices strategy for my business?"
The simple answer is...because you have people working for you.

With human nature being what it is, employees will test limits and act "creatively" in workplace situations, so you need a strategy for developing, communicating and enforcing a set of policies and practices that reflect your standards of acceptable behavior.

But a successful policies and practices strategy does more than draw boundaries; it also recognizes and addresses people's needs.

There are many different types of people, and not surprisingly, they react differently to the need for policies and practices based on those differences. For example, some people prefer there be a written policy for everything, while others favor having no policies at all and would leave everything open to interpretation as situations arise. Neither of these extremes contributes to a work environment that's conducive to high productivity levels. The answer is found in between, with the right number and types of policies and practices that are focused on a primary goal--improving individual performance in the workplace.

When you get to the heart of the matter, performance improvement is really about the process of setting expectations and meeting them. The focus in business is not just about meeting specific goals, but also about how you achieve them. And the "how" affects the liabilities you create in the process.

So how can you make sure your employees have clear expectations and are treated fairly as they work to help build your company? The answer is found in the way you address four key elements related to the development and deployment of your policies and practices: roles, rules, consequences and tools.

Roles
People like to have a clear understanding of their role in a company as well as the roles of others. Every successful team has well-defined positions for its members: Everyone knows what he or she is to do, how to do it and how their performance can impact those around them. In business, this means you need to have clear reporting structures that spell out who's in charge and how tasks are to be accomplished in the organization.

This approach applies not only to intradepartmental structures, but also to company-wide or interdepartmental projects. In addition, role definition is a foundational part of establishing clear performance expectations for each employee.

Rules
Managers and employees need to share a clear understanding of what is and what is not acceptable behavior within the company. Unfortunately, in today's workplace, an employer can be held liable for the bad behavior of an employee, especially when that bad behavior affects other employees, clients or individuals. Having a clear set of behavioral expectations is critical to establishing that you're not contributing to that bad behavior as an employer.

Setting clear and specific behavioral standards in the form of rules establishes a framework for spotting and addressing violations of those standards. If you rely on loosely defined general standards that aren't properly documented, then violations become subjective and open to interpretation. The result of such ambiguousness is often litigation.

Consequences
It's important that you clearly state consequences for violations of your behavioral standards so that employees know what to expect and have fair warning of those expectations. In addition, clear consequences help to ensure that you aren't limited in your options for dealing with improper behaviors.

To establish these standards and violation consequences, sit down and think through the over-the-line behaviors that won't be permitted in your company. It's essential that you know ahead of time what employee actions require an immediate dismissal. Similarly, you want to know what performance issues may qualify for a more progressive disciplinary approach, and then define the steps involved in that approach.

By nature, people are complex beings who will confound you one minute and astound you the next. And except for violations that warrant immediate firings, it's usually a wise, compassionate and financially prudent course to help people strengthen their character by overcoming their weaknesses. Also, this approach provides you with a way to retain experienced employees and recover your investment in their training.

I've found that managers are often disappointed in an employee's performance even though the manager never clearly communicated his or her expectations to that employee. If you don't take steps to set clear expectations, the consequences you administer for failure to meet those expectations can seem unfair. This is extremely important because an employee who feels they've been treated unfairly can create a great deal of liability. In many cases, the key issue is not whether they were actually treated unfairly but whether the employee feels or perceives that they were treated unfairly.

And it doesn't stop with the affected employee. If you or your managers haven't clearly communicated your expectations to one employee, chances are you haven't done so with other employees as well and they can be quick to empathize with any affected workers. It's natural for employees to wonder, "What if that happened to me?" To avoid the negative effect such a chain-reaction can have on your workplace, be clear about your expectations with all employees at all times. Most employees will appreciate and respect your forthright clarity.

Building a great company has a lot to do with how people work together. Policies and practices can improve the way your employees interact, while minimizing the personnel obstacles that often arise in today's workplaces.

Tools
Tools address the question of how you support the people in your company who manage other employees. When faced with a specific personnel issue, what resources are available to them? Do they have an employee handbook or a policy guide? What about regular training in company policies and practices, coupled with simple, easy-to-use forms to guide them when dealing with particular issues? Are you giving them a clear directive on working with your human resources personnel or legal representatives? Are your resources available online?

Tools like these are vital not just to help avoid litigation, but also to minimize the time it takes for you to deal with productivity-draining people issues instead of core business matters. Because many small-business owners lack these resources and aren't sure where to turn for help, they may use attorneys and HR consultants on an a la carte basis to address such issues. Other businesses call on professional employer organizations like Administaff to provide the support of a full-service human resources department.

Whatever your approach, the key to success is to devote the time and resources it takes to develop a policies and practices strategy for your business before the need arises. It's an investment that can pay large dividends in increased productivity and minimized litigation. And it's an essential component of your comprehensive people strategy.

http://www.entrepreneur.com/ext/article/0,4621,320706,00.html

Thursday, April 21, 2005

Management: 9 Ways to Keep Employees Engaged


Follow these tips to power up the performance of your employees and your company.
April 12, 2005
By JoAnna Brandi


Are your employees giving your company their all? Do they believe that what they're doing is important? Do they feel appreciated? Do they show up for work each day filled with passion and purpose?

A red flag should go up if you answered "no" to any of these questions. Why? Business owners who aren't taking care of their employees are missing out on significant cost-savings and profits.
I've been spreading the word about this for 15 years, but only recently have I been able to rest my case on a growing body of research. For example:

-Gallup International recently reported that businesses in the top 24 percent of employee engagement had less turnover and remarkably higher percentages of customer loyalty, profitability and revenues.

-Extensive studies by organization and HR consulting firm HayGroup have revealed powerful links between employee engagement and productivity, which ultimately impacts a business's bottom line.

-Through real-life examples, workplace values expert John Izzo has abundant proof that this generation of employees is more conscious of their own needs and of their place in the world.

For business leaders in companies of all sizes, the writing's on the wall: You can make and save money by keeping employees engaged. Coupled with The Sarbanes-Oxley Act, requiring businesses to document internal controls relating to employee and customer satisfaction, it's never been more important for business leaders to stop dismissing internal customer care as "soft and unimportant."

Let's face it, employees aren't just humans doing; they're human beings. Today's entrepreneurs must make it a priority to get to know them so they can provide whatever's needed to keep their employees fully engaged in what they do. This creates wins for everyone.

With that in mind, here are nine management tips for creating and sustaining employee engagement:

1. Let go of any negative opinions you may have about your employees. Approach each of them as a source of unique knowledge with something valuable to contribute to your company. Remember that you're co-creating the achievement of a vision with them.

2. Make sure your employees have everything they need to do their jobs. Remember when you started a new school year and you'd prepare by getting all new school supplies? Why not build just such an opportunity into your department by simply asking each staff member, "Do you have everything you need to be as competent as you can be?" Remember, just as marketplace and customer needs can change daily, so can your employees' needs.

3. Clearly communicate what's expected of employees, what the company values and vision are, and how the company defines success. Employees can't perform well or be productive if they don't clearly know what it is they're there to do and the part they play in the overall success of the company. Be sure to communicate your expectations--and to do it often.

4. Get to know your employees, especially their goals, their stressors, what excites them and how they each define success. I'm not suggesting you pry too deeply or start counseling your staff. What I'm suggesting is that you show an interest in their well being and that, when appropriate, you do what it takes to enable them to feel more fulfilled and better balanced.

5. Make sure they're trained--and retrained--in problem solving and conflict resolution skills. These critical skills will help them interact better with you, their co-workers, customers and suppliers. It's common sense--better communication reduces stress and increases positive outcomes.

6. Constantly ask how you're doing in your employees' eyes. I know it can be difficult for managers to request employee feedback, and it can be equally if not more challenging for an employee to give the person who evaluates them an honest response. To develop this skill and model it for your employees, begin dialogs with employees using such conversation starters as, "It's one of my goals to constantly improve myself as a manager. What would you like to see me do differently? What could I be doing to make your job easier?" Be sure to accept feedback graciously and express appreciation.

7. Pay attention to company stories and rituals. Are people laughing at each other or with each other? Do they repeat stories of success or moments of shame? Stay away from participating in discussions that are destructive to people or the organization, and keep success stories alive.

8. Reward and recognize employees in ways that are meaningful to them. This is another reason why getting to know your employees is so important. Remember to celebrate both accomplishments and efforts to give employees working on long-term goals a boost.

9. Be consistent for the long haul. If you start an engagement initiative and then drop it, your efforts will backfire, creating employee estrangement. People are exhausted and exasperated from program du jour initiatives that engage their passion and then fizzle out when a business owner gets bored with it. There's a connection between an employee's commitment to an initiative and an owner's commitment to supporting it. An owner's ongoing commitment to keeping people engaged, involved in and excited about the work they do and the challenges they face must be a daily priority.

Ultimately, you must keep in mind that employees are a company's greatest assets. Their collective ideas, feedback and enthusiasm for what they do can help your business grow and succeed. Some people are naturally wired to give their all and do their best no matter where they work. But the majority of people require the guidance of skilled managers who welcome their ideas, ask for feedback and generate enthusiasm in order to have a sense of purpose and energy about what they do.


JoAnna Brandi, president of Boca Raton, Florida-based JoAnna Brandi & Company, teaches businesses how to successfully implement customer care, loyalty and retention initiatives. She is the author of three books, including Winning at Customer Retention: 101 Ways to Keep 'em Happy, Keep 'em Loyal, and Keep 'em Coming Back, and the publisher of the Customer Care Coach, an internet-based training program for managers who are committed to keeping employees engaged, customers loyal and the bottom line profitable.

http://www.entrepreneur.com/ext/article/0,4621,320810,00.html

Business: 10 Ways Small Businesses Are Putting Themselves Out of Business

Wanna kick your profitless days in the butt? This business consultant shows you what you're doing wrong and what you can easily do to put your company in the black.
April 01, 2005
By Michael S. Winicki


Sometimes when I have an afternoon to spare, I go out and "snoop" a little. I'll drive to a nearby town and stop in to see how the local small businesses are doing. More often than not, I'll open the door to a business, take a few steps inside, and have someone toss an unenthusiastic "hello" in my direction. If I'm really lucky, they'll also hit me with a less-than-enthusiastic "How may I help you" or the equally inspired "What are you looking for today?"

I stop in at these businesses to see how business is being done in small, independently owned storefronts and service businesses. And it's obvious that for the most part, it's not being done all that well! And while it may be in vogue to blame the woes of small business on the big box retailers or the chains or the giant conglomerates, the truth is, it's the small-business owners who are putting themselves out of business at an alarming rate.

During my career, I've had the privilege of working with more than 2,000 small businesses, and each one has been a unique and interesting experience. But in almost all cases, within minutes, I could tell from looking at the business and visiting with the owner and the staff that they were literally costing themselves hundreds of dollars on a daily basis.

Is there anything that can be done to save a small business that's wasting away? You bet! And smart business owners know their energy is best served concentrating on what they can control and forgetting about all the rest of the nonsense--like the growth of the big chains--going on around them.

From my point of view, here are the 10 most common ways small businesses are killing themselves:

1. No one seems to take a long view of business anymore. Many business owners often look no further ahead than their next payroll or their next rent payment. Why is that? Generally it's a lack of time--business owners get so caught up in the day-to-day nonsense of running a business that they forget to think ahead. But every small-business owners needs to steal away for a few hours each week to do nothing but "think." Try to spend at least two hours per week looking at your business from a point of view other than from behind your sales counter or office desk.

2. Everyone's forgotten about good manners? Not long ago, I visited a small insurance agency. I walked in and approached the counter. Facing me were five desks, two on the left and three on the right, each with someone sitting behind the desk, also facing me. But not one person got up to assist me. After an uncomfortable 30 seconds had gone by, someone gave me a gruff "Hello" from the seat of her desk chair. Now I don't want a person "attacking me" as soon as I come through the door, but someone should at least have gotten up and acknowledged that I was there. Please, just a smile and a friendly hello...and get your lazy butt out of the chair, for God's sake! We may all poke fun at the Wal-Mart "greeters" but it's a heck of a lot better than grunting a fake "hello" at someone from across the room.

3. Did everybody forget what a broom and dustpan are for? Clean up your stores and offices, people! Run a vacuum now and then, and while you're at it, get our your dust rags. There just isn't any excuse for having papers stacked everywhere, layers of dust on everything, and a general sense of mess greeting the public when they visit your business. And don't get me started on the shape of the bathroom I find in most small businesses.

4. They've put no thought into their ads. Small businesses seem to love business card-type ads. You know the ones with the business name on top, some brilliant statement like "In business since 1975" on line two with the address and phone number underneath. Pretty exciting, huh? Yep, that's what the people who read those types of ads think.

5. No one seems to train their employees. There's a huge gap between big businesses and small businesses when it comes to training. Most big businesses have standard operating procedures or even a training manual. I've yet to see a training manual--even though I'm sure they're out there--for an independently owned small business. But they sure could use one!

6. Can you say "joint venture"? So many small businesses could benefit from forming an alliance with another business that shares a similar type of customer. Let's say a florist and a caterer joined forces. The florist could do a direct mailer to their customers and promote the products and services of the caterer, and then the caterer could promote the florist on their website. In all my years of experience, I've found joint ventures to be unbelievably profitable to small businesses.

7. They neglect to separate themselves from the crowd. We marketers toss around the term "unique selling proposition" all the time. But I've found that only about one small business in 100 can tell me in 50 words or less why I or any other consumer should deal with them as opposed to all the other choices we have in the market. All this takes is some thought as to what your target market is and what the big benefit is that you give them as opposed to what your competitors can provide to the same market.

8. They have no regard for their customers. If more small businesses treated their customers like the family dog--yes, I said the family dog--they'd most likely find a lot fewer of them migrating to the new superstore or franchise food business in town. This isn't rocket science--people just want to be respected and acknowledged. But in the daily whirlwind of running a small business, entrepreneurs forget that.

When I was first starting out, I used to laugh when I heard small-business owners say, "This would be a great business if I didn't have to deal with the customers." But I don't see the humor in that anymore. There are simple things you can do to let your customers know they're important to you. One way is by simply staying in touch with your customer base. I don't know of any business that can't increase sales by using a quarterly newsletter mailed to their customer list--none!

9. Many businesses treat their employees worse than they treat their worst customers. But you should be treating them as well as you treat your best customers! And while some small-minded business owners don't believe that's the thing to do, I think many do get it. Finding and keeping good people has never been harder, and it's only going to get worse. And the cost of training a new employee can be astronomical, not just in terms of the time and money it takes, but because you may just lose customers that way. As consumers, we value consistency over everything else, so when you change employees, you risk losing your consistency, especially if you don't have a formal training program in place. And if your business isn't consistent in how it serves its customers then those customers will leave you at the first opportunity--guaranteed.

10. They have no real understanding of the numbers their bookkeeper or accountant spins off for them. Not long ago, I had the painful experience of meeting with the owner of a small restaurant who had severe cash flow problems. The first line item I looked at in his budget was the cost of goods, specifically the cost of the food it took to make the various dishes on the menu. Guess what? After spending a few hours breaking down costs, we quickly determined that his food costs were a good 10 percent higher than what was normal for the industry. Ten percent! Now this didn't occur overnight, so why didn't his accountant or bookkeeper raise a red flag over this? I know why. It's because most bookkeepers and accountants either don't understand the "rules of thumb" numbers for most businesses, or they don't communicate the problems they see. I'm guessing it's more often the second thing than the first, but it's deadly in either case.

Michael Winicki is the owner of Big Noise Marketing and has worked with more than 2,000 small businesses across 136 different industries. Visit his website for more information.

http://www.entrepreneur.com/ext/article/0,4621,320684,00.html

Monday, April 18, 2005

Marketing: Mona Lisa Your Branding

Mona Lisa Your Branding
By Sean D'Souza

Have you mistakenly trained your branding to fall over and play dead? Do you know how to use psychology to create branding that lights up with the voltage of a thousand neon bulbs? And can you play Scrooge with your budget, yet get huge branding mileage? And if so, how? Read on and find out how you can be a Leonardo Da Vinci with your brand!

It’s Raining 3000+ Messages a Day!
I have a friend. Let’s call him Eugene. Partly because that’s his real name. Eugene positions himself as a pitch manager. Very effectively, he shows CEOs and executives (who make pitches for new and existing business) how they can use simple steps to get a powerful presentation across.

Eugene had a problem that all of us do. His brand (or his company’s brand) was just one of three thousand new messages that bamboozle us every day through various media. To get his name welded in his customer’s brain was like being on a rocking chair. You feel the movement, but you go nowhere. Eugene’s brand was going places, but it was a slow tedious process.

He needed to get some prime real estate in his customer’s brain really quickly and without the benefit of Daddy Warbucks’ deep pockets. All he had to do was get their attention…

13 Boxes. Does That Get Your Attention?
Doesn’t your brain go nuts wanting to ask what is the significance of 13 boxes? That’s the new brand name of Eugene’s company. Can you see that immediately catching your attention? The brain is dying to know the significance of this strange sounding set of words. And it won’t let go till it gets an answer!

In this case the answer is simple. Eugene has a system of 13 boxes in his training process that takes you from the start of your presentation to the final crescendo. The 13 boxes form the structure and the route you must follow to get results.

His company brand could be something like XYZ Training or have his own name (like accountants and law firms do) but why on earth would that excite his customer’s brain?

Another Branding Example called KeyGhost...
Here’s another example of vivid psychological branding called KeyGhost. KeyGhost is a powerful but simplistic device that monitors every keystroke on your keyboard. This spy-like product evades the scrutiny of the unobservant eye. A name like KeyGhost immediately ruffles the brain forcing it to stop what it’s doing. Then it drives all its attention in the direction of this unusual sounding product.

This is exactly what you need. Once you’ve got a spotlight-hogging brand name, you start to own a tiny part of your customer’s brain that is yours to keep forever.

Forever Starts With a Trigger…
A trigger called Curiosity! Curiosity sounds a deafening red alert in every neuron of the brain. The brain is at its curious best when faced with something that seems irregular or uncommon in some way.

If your brand name doesn’t create a curiosity factor, you’re wasting gobs of money to just trying to cut through the communication clutter. The sooner you get psychological exclamation marks into your brand name, the sooner you get the attention you crave for.

But What If You Have a Boring Company Name That You’re Stuck With?
Hey it happens! You inherited the brand name and there’s not much you can do with it without the shareholders going for your jugular. Well don’t fret. First you’ve got to realise that branding is not restricted to just your company name. A process/product that your company has or follows could become bigger than the company itself.

Look For The Power Of Your Processes…
With Eugene, his process was sitting under his nose all along. In the case of 13 Boxes, it’s quite easy to draw up a dramatic scenario of how 13 boxes can get you out of your ‘box’ and give you immense confidence in your presentation skills. In his case, though, the process actually defined the company.

With KeyGhost, it’s a cinch to describe how the hardware works just like a ghost and yet link it back to your keyboard and computer.

You can be an accounting firm with a company name like “Boring, Dead and Co.” and still brand your prize-winning process and call it ‘Goodbye Extra Tax’ or ‘Corporate Loopholes.’
Do you think your clients will see you in a better light? You bet they will! So get going, get out and get working on your brand naming canvas right away!

Nonsensical Names Work Too…
One Red Dog, The Loaded Hog and other such names flout the basic principles of process and logic. Yet they seem to work powerful imagery on the brand name. It’s the story that goes with it that creates a sense of immortality and distinctiveness around the brand.

Even if you choose to have a name that means very little and can drum up a story to match it, you’ve got yourself a winner. Which place would you rather frequent? 'One Red Dog' or 'Joe’s Café?' With a vivid name you’ve got the opportunity to weave a story -- even a story that you made up all by yourself!

Shazaam! It’s Branding With Drama!
Don’t just Mona Lisa your brand. Put some Shakespeare in it as well. Push the limits of your brand name and make it an action tool. For example, 13 boxes could be presented as 13 different boxes placed on a CEO’s desk. Can you visualise the curiosity factor? What if the boxes were different shapes and different colours? Can you see the website name? The t-shirt design? The ad on TV? Can you see how extendable a picturesque brand name can be?

Go ahead; make the effort to Mona Lisa your brand name.
You’ll make Leonardo really proud of you!

http://www.psychotactics.com/artmonalisabranding.htm

©2001-2005 Psychotactics Ltd. All Rights Reserved.
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