Understanding the Business You're In!

I was on a course last year on marketing and one of the sections it covered was company tag lines, slogans and advertising slogans, but rather than considering the usual brand values and what the brand values meant and how the customers related to the brand we considered what the slogan actually meant to the business they are really in.

MacDonald’s is much revered amongst its customers and many business admirers.  Clearly the success of MacDonald’s is not down to the Michelin equivalent dining experience but rather one of almost fanatical consistency bourn out of world-class marketing, logistics and training.  Over the years MacDonald’s have had a number of advertising slogans at various stages of their development, suffice as to say in modern times the site of the golden arches symbol is enough for most people to understand what they can expect as far as the customer experience goes.

My late father used to visit his local his local supermarket on a Wednesday morning and more often than not his visits featured a total lack of bread on the bakery counter, now it can be hardly be the mark of a world class retailer if it can’t get a basic food product to the shelf for a customer to purchase it at a time when it suits the customer.  As my father said at the time, “this is nothing more than bad logistics” and he should know it was his business for more than 30 years!

So the questions is?  Is a modern supermarket in the food business or the logistics business?  Since 1982 and up to recently Fed Ex used the slogan “When it absolutely, positively, has to be there overnight”, now we all know they’re in the parcel business but this worked really well as a customer guarantee and spoke to the point of their exceptional customer focus, the parcel bit was almost a bi product.  An expectation is set in the customers mind and the business is focused around the customer and closely aligned to it.

Mind you, focus and slogans must move with the business I think its highly unlikely that “We’ll take more care of you” or “Worlds favourite airline” really represent the British Airways of 2010 in the eyes of their customers!!

So in the context of your own business are you fanatically focused on, what is it your business delivers to your customers?  Is your ideal customer at the very centre of your business?  Are you currently aligned to the ideal customer that you need to attract?  What is it that a customer really wants from you? Is it a product, is it the service or are you providing part of the delivery of a service to one of their clients?

You might want to think of the following that might help you really understand your offering;

• What sort and or type of customers do you really want to sell to? 
• What does my product really delivers to our customers or what pain does it take away from them?
• How does my customer feel once they have experienced or used my product or service?
• What do I really need to focus on to ensure I deliver my product on time and expectation?

Just as a footnote Carlsberg have been using  “Probably the best lager in the world” since 1973 and it has become synonymous with a slightly comedic lifestyle and lighthearted approach and is now very little to do with lager, who knows, a similar tagline could become synonymous with your business!

That’s it for now back soon with a look at adapting to change.

As Nike say, Just Do It!  To your success!

Simply Consulting provides business growth expertise to privately owned businesses, see our website at www.simply-consultancy.co.uk for details of our services and to arrange a free no obligation business development assessment.

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From Taking on the World to a Niche in one easy Journey!

It takes time to realise what your business offers and where you are aiming to sell your products or services and I think it struck me some months ago that this in one of the major challenges that faces new business owners when they start there new business.  For me it was a realisation when I was out networking, one of the common features of networking is the “elevator pitch” which gives you 30-60 seconds to tell other in a concise way what your business does and what your product or service offering is.

I saw in myself and others a confused pitch that lacked clarity and tended to lack clarity and for me it was brought home when someone said to me “Clive I’ve known you for some time but I’m still not clear on what it is that you do”.  Well that kind of feedback really does help focus the mind and get you thinking about what it is that you do?  That being said I have become quite adept with my experience to providing other help and support but when it comes to your own business why is it then so much more difficult?  Anyone would think that the person who knows your business best is you?

In the analysis most new start businesses try and sell to as wide an audience as possible so therefore maxmimising the sales opportunity.  So you would think?  The reality is that the “pitch” comes across as vague, unfocussed and generalist, rather than, concise, specific and aimed at a niche.  If I had my time again the first thing I would have written down about my own business is a 60 second elevator pitch before I wrote anything else!

One of the great connections I have made networking was meeting Dee Clayton of Dee Clayton.com.  Dee specialises is speaking and networking workshops and has some great ideas on how to structure a pitch to make it focused and precise, its well worth a trip to her website and look at the short video she has on networking pitches.

Every business will have a core product offering that has been carefully thought through and is the profitable engine room of the business.  You may also have a number of other products or services or adaption’s of your core product that you can also offer.  Well I’ve got news for you, no business can be “all things to all men” and the most difficult thing to do in your first year of business is to say “I’m sorry but I don’t’ have a suitable service or product for you” to a prospective customer or source of income!  Kind of understandable, when your sources of income are now much more unpredictable and unsure.  The fact is businesses that provide services to specific niches where you can clearly show your expertise, will in the long run proves to be much more lucrative, the main issue is being brave enough to restrict yourself to your proven niche.

That being said your experience will tell you whether or not there is the opportunity to develop your product or service offering to other markets, could you develop a “Lite” version of your service?  Could you tailor your offering to a specific niche where you can illustrate your specific skills and abilities?  If this is the case then you need to carefully assess the market potential and what customers in that market expectation area. 

A good source for this research is Google or Facebook ads as you can look at specific searches by type and demographic and in response you will be told how many potential people you have in your audience.  If the result is 3 then possibly you’ve been too specific, if the answer is 236,000 then its too broad but a market with 1-5,000 potential might mean a new market opportunity for you.  Make sure you also check out what competition you have and if your offering fills a “need gap” in the market.

Write an elevator pitch for your business, be concise, specific and if you can name the prospect clients you would like to meet.

Be very specific about the services you offer and the niches that you serve

Do your research into your chosen market and sasses if your offering is “me to” or is filling a need?

Continue to refine your offering to make it more specific focused and concise.

That’s it for now, next week we look at how to the business you are really in!

To your success! Have a good week.

Simply Consulting provides business growth expertise to privately owned businesses, see our website at www.simply-consultancy.co.uk for details of our services and to arrange a free no obligation business development assessment.

Follow us on twitter   http://twitter.com/SimplyConsultin

LinkedIn Profile   http://uk.linkedin.com/in/clivemulligan

Making the Change – The LEAP from Employment to Self-Employment

Having left “Corporate Land” some time ago, I found myself reflecting on the journey you travel from employee to business owner and CEO of your own destiny. My own journey started after taking redundancy from an employer for whom I had worked for seven years and an industry I had worked in for over 20. Reflecting back I have found the whole experience somewhat of a liberation at the same time as being quite daunting and exciting.

Working in a large business tends to stifle the entrepreneurial spirit and tends to have a corporate culture and behaviour that creates the basis for the operation of the business but does require a degree of “conformity” from the employee. Now being able to think how I need to think and act, as I need to act and change as I need to change has been one of the most liberating aspects of working for myself.

The one thing that struck me room at an early stage is the help and support you get from other small business owners, even those in a similar business area and as you move on your own journey it is very rewarding to mentor others in your experience and short cuts and support them as their business develops. Networking has been a great source of this support, you meet other small business owners and you soon realise in your early stages that the most important aspect of networking is gaining experience from others, before you even think of selling your product or service to the gathered ensemble. I have made some great connections, great supporters and even some great new friendships, engaging folk with a great diversity of skill sets far in excess of what you would find in any large business. The benefit is based on the personal “connection” you make with others and not the immediate business need.

There is a whole heap of practical stuff to get to grips with but after the basics of setting up (Bank account, accountant to VAT or not to VAT) the rest tends to fall into place on an as needs basis. You might wish to get some help on key support areas such as IT as this can be a great time saver in the long run.

The one thing that has surprised me is the disproportionate high cost of marketing a new business but in the final analysis it is vital and necessary part of “getting started”. It is however critical not to pontificate, but rather get going and start on the process of finding new customers and new business. You will have no end of businesses selling services to you, it is important to try some different approaches but remember to test and measure every spend so you start to recognize what works for you.

My top tips for those moving from employment to self-employment!

✰ Enjoy being able to think, change and act in your own way, be prepared top experiment
✰ Take the business one step at a time but make time in your diary to work on “Your Business”

✰ Test & measure everything you do when it comes to marketing your business and have a clear view of the “risk capital” or amount your are prepared to spend on any one experiment for your new business.
✰ Meet as many other small business owners as you can, listen and learn and in time be prepared to offer your own experience back, its helps build rapport and build the deeper connections that will be really important to you business in the long-term
✰ Have a plan and stick to it, don’t be afraid to change it or review it but stick to the course and objectives you set.
✰ Look at the plan by asking yourself, where am I going to be next month, next quarter and by the end of the year?
✰ Get out networking and in front of customers both will bear fruit in the medium term but there is a time investment for you to put in first.
✰ Most of all have fun and enjoy your new lifestyle!

That’s it for now, next week we look at how to define your product offering, customer base and niches. To your success! Have a good week.

Simply Consulting provides business growth expertise to privately owned businesses, see our website at www.simply-consultancy.co.uk for details of our services and to arrange a free no obligation business development assessment.

Follow us on twitter http://twitter.com/SimplyConsultin

LinkedIn Profile http://uk.linkedin.com/in/clivemulligan

Making a contribution!

“The circumstances of your life have uniquely qualified you to make a contribution. And if you don't make that contribution, nobody else can make it”. --Rabbi Harold S. Kushner

I saw this quote recently and it made me think about the much-vexed subject of “contribution” for a lot of folk its something we do into a charity tin, but is that really making a contribution or making a small gesture? In modern business “the need for speed” and “making a contribution” are the very perceived cornerstones of operational efficiency where contribution is measured as achieving the “end game”. But real contribution is so much more.

Its long been said that our lives are made up of series of experiences of all sorts and that they contribute to the people we become or strive to become. Few of us pause long enough to conduct the “joined up thinking” and to connect the circumstances and experiences to see the pattern that is being woven into our lives or career. Sometimes, to take a minute, an hour or a weekend, to think about where we have come from and more importantly where we are going might just help us all realize that small and seemingly insignificant experiences, choices and challenges have perfectly positioned us for the opportunities today and tomorrow. The issue is that most of the time we only notice it is when the event is one of significance.

My own experience of life in larger businesses manifested itself as a struggle to really fulfill my own potential and ultimately the decision to move away from a well paid, but career limiting job led initially to a world of risk and uncertainly but also a real world full of chance and opportunity. I now meet more fascinating, engaging and passionate people in one week then I had met in the last five years of my employed career. I have also discovered that the journey I’m now on continues to provide new learning and insights that are so much more rewarding. Networking with like-minded souls has the ultimate reward of opportunity of partnerships, collaborations and shared experience and most importantly shared experiences.

Larger Businesses and the business world in general tend to be solely focused on the end result, where nothing really counts until you arrive at the finish line, ably serving the purposes of the shareholder but somehow ignoring the other stakeholders in the process. So what’s the antidote?

✰ Think about how you can contribute to others success, a helping hand, some well placed advice at the right time or simply be there to listen
✰ With customers focus on value delivery that makes a return many times more than the cost of your product or service
✰ Be a student as well as a teacher, share what you know and surely other will share with you
✰ Put time aside to think about the progress you’ve made and what you still need to know and most importantly how you can coach and teach others
✰ Work to help others without reward, refer a network contact, or give some free time to a good cause
✰ Believe you can be the best you can be!

Making a contribution happens when you realise that all of your circumstances and all of your experiences are what enable you to make a difference and contribute to people, businesses or causes. It is dependant on you realising the value of your journey and all you learn from it. Oh and your willingness to share what you have learned with others.

To your success in whatever you do!

Simply Consulting provides business development expertise to Small and Medium sized businesses, see our website at www.simply-consultancy.co.uk for details of our services and to arrange a free no obligation business development assessment.

Follow us on twitter http://twitter.com/SimplyConsultin
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Hearing Customers? Is That the same as listening?

An experience before Christmas made me think about how businesses communicate with their customers. In the usual mad rush to get all the present shopping done, I picked up a present for my son from one of the major electrical chains, one I had visited many times before and one I guess I had developed a degree of loyalty to. I had reason to raise a query via email with the head office, not to complain but to make, what I thought was a query worthy of their consideration.

Two "standard emails" later I had my answer, but I was left feeling that they had heard or listened to me as a customer. The net result being "I got the hump" and have moved my recent custom to a rival chain where I had a particularly good buying experience during the post Christmas sales. The whole process had been owned by them and my message seemed to get lost in it!

With modern methods of communication being so extensive and frequent there is a real challenge in delivering the important messages to prospective and current customers in a method They can digest and at a time when They have time to digest them in. Do we also consider or Ask them how they would like us communicate with them? Can we tailor the communication? Can we Personalise the offering and can we most importantly Deliver the offering in a way that is Right for the customer?

When I work with clients and prospects I am very conscious in being very clear on how I communicate with them, its frequency, timing and when I am most likely to get their attention and quite possibly a hearing! With social media gaining some pace and with self made video and audio communication becoming the new ways of making Impact statements with prospects and customers who knows what we might be offering five years from now! Anyone like to offer a guess? Is anyone going to Ask what customers want?

That being said, selling is a people business and we must all be aware of how our customers want to interact with us, for many "corporates" this is not something that they can easily assimilate. The pressures on achievement of volumes and profit targets mean they have to select one delivery route and "one sized fits all" product delivery and to some extent "blow the consequences"! Or at least thats how it feels as a customer! Losing sight of the customer can be a high risk strategy.

The moral of this piece? The retailer I have "walked away" from has already lost some £1000 of my custom is some three weeks. In the time I have been shopping at the chain, some 12 years, my best estimate is that I have spent around £10,000 on a complete menagerie of electrical goods, but more than that I have related this story to probably 25 people since and with the power of networking including this blog who knows how many people may hear of my "bad experience"? It's not me as a lost customer that is consequential, it is the loss of my network that might just be some much more significant!

In your business, make sure you develop raving fans, a small low cost high perception trade, can, not only keep a customer, increase their lifetime spend, but in time make them a raving fan of your business. This will do so much more than any advertising can ever do.

The lifetime Value of a customer is the amount they spend multiplied by the number of purchases over one year and then again, by the number of years you keep them as a customer. Work those numbers on your business and your key customers relatiosnhsips, it will prove to be a sobering thought! In a recent example with a restaurant client this amount to £1,000 per customer, better kept than lost I think you will agree.

Keeping an existing customer is Eight times cheaper than finding a new one, it is possible to double the profits in a business purely by keeping your existing customers, selling them more products, more often and winning some new customers in the process. Simple!

To your success! Have a good week.

Simply Consulting provides business development expertise to SME businesses, see our website at www.simply-consultancy.co.uk for details of our services and to arrange a free no obligation business development assessment.

Follow us on twitter http://twitter.com/SimplyConsultin

LinkedIn Profile http://uk.linkedin.com/in/clivemulligan

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Does anything really change?

Well the festivities are now starting to be a fading memory and life starts to settle back to normal. A friend of mine told me in an email over the weekend that he was looking forward to "getting back into a routine". "Thats interesting" says I, "last week you were telling me about the new years resolutions you going to make and this week is back to the old routine". For a considerable number of us making resolutions rarely last beyond the end of the first week of January and for this very reason I stopped making changes to my life in January some years back apart from paying so scant attention to lowering the calorie count, once the new year arrived.

For most small businesses change has to be a way of life, not a time of year thing, or a nice to have thing, but a real thing, reacting to the market and your key customers is part and parcel of running a successful small business. I sometimes think that providing he most to your customers is anticipating the next big thing, like the killer pass that opens up the defence in sport or foreseeing a need before the customer does. Just imagine a business anticipating the current salt shortage and how they might have been able to have placed their customers at an advantage.

It not all about financial advantage, running a successful small business is all about delivering value to clients and customers, being there when you customers arrive at the point when they need you the most is going to deliver real value to your client. 2010 has had an unprecedented start lets hope its energies now focus on an unprecedented recovery.

Have a great week!

www.simply-consultancy.co.uk

Blackberry or Raspberry?

Something that concerns me with the approach of Christmas and probably the only remaining true family time left in this busy world we all populate.

That is "How many Blackberrys' will be on the Christmas dinner table this Christmas"? Nestled quietly between the plethora of trimmings to the traditional turkey just on the off chance that Santa might just need to email the owner to get directions to the chimney of the relevant homestead!

Now I must pin my colours to the mast here, being a music lover, ooh and self employed my gadget of choice is the iphone, much less corporate, and granted difficult to switch off it will reside quietly in a draw for the christmas break unless it is needed to pump the inevitable christmas tunes through the sound system!

Peace for all men? I'll settled for the peace of not hearing the inevitable "ping" from an incoming communication!

Wishing you peace this Christmas. Join me in blowing a Raspberry to the Blackberry!