The Importance of Sticking to Your Area of Expertise

Quite a few years ago I worked in the Retail Division of Mobil Oil in Brisbane. I travelled around the state; stayed in luxury hotels; quizzed site owners about their operations; wielded power in allocating funds and appointing franchisees.

The Retail Division was seen as the flashy cousin to the dull and boring refinery operations. Everyone in Retail worked hard (more like we were driven hard!) and occasionally also got some play time as a group.

It was the '90's and the idea of combining petrol sales with convenience stores was still a novel idea in Australia. I was also heavily involved in the fast food sites located on major highways - another new concept.

Time moves on...

Over a few years the Retail Division was wound down, and slowly but surely became inactive.

Why?

Because it wasn't a good fit with the overall operation of Mobil. Essentially Mobil couldn't compete in the retail market place against the faster moving compettors of BP and Shell. It is a high investment, high risk industry.

And today it is reported that 7-Eleven buys Mobil petrol stations.

Behind the scenes it can be assumed that Mobil has struggled for many years to 'keep up with the Jones'. It is obvious that BP and Shell secured lucrative retail sites on major roads, and invested heavily in upgrading their sites.

Mobil stood still because they weren't committed to retail operations. They couldn't see a return.

The lesson here is that you need to define your market place, and your area of expertise, and make sure you stick to it. Mobil wandered into retail operations for decades without making a success of it.

Don't make the same mistake.

Creating Effective Local Promotions (part 1 of 2)

This is Part 1 of an article I wrote for 'The Science of Beauty', a national magazine for the salon industry. However the message applies to all businesses that promote locally.
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Creating Effective Local Promotions

The first thing you need to consider when planning a promotion in your local area is… Who is in your local area?

You need to have a clear image of whom you will be speaking to through your promotion. What type of person do you expect to attract?

Most salons service a distinct local area – usually within about a 5km to 7km radius from the salon. Have you actually mapped where your market is? The best way to do this is to review your client data and create a list of all clients by postcode. Then you can sort the postcodes (using a spreadsheet) and determine the actual geographic spread of clients.

Understand Who You Are Talking To

You might be surprised at the results. I have seen salons that have 80% of clients within a 5km radius. This has a huge impact on which marketing communication tactics you should use. There is no point promoting to people who live 10 or 15km away if they aren’t going to travel to your salon.

Once you know the geographic coverage of your local market area consider the demographic and socio-economic profile of the people living there.

Demographics means the age, lifestyle, family size etc of the local residents.

Socio-economic means the financial status of residents including what type of jobs they do and average household income.

If you’re new to your market area, or simply not sure about the different areas, why not hop in the car and take a drive around and see for yourself. You can also access census data from the Australian Bureau of Statistics if you want even more detail (visit www.abs.gov.au).

Part of your assessment of the local area should also include a competitor analysis. Who are your competitors? How do they compare to you for presentation of the business, services offered, pricing etc? Know your enemy!

One of the main reasons you need to have an understanding of the demographics and socio-economic factors is that it can help you decide what you should be promoting - which services and products, and at which price-point.

What to Offer?

I’ve written before about not offering a discount. Why is it bad? Because discounts undermine the perceived value in your services and products. It also makes it harder to get new clients to re-book at full price.

The best thing to do is to think about the purpose of the promotion. Then you can decide what to offer.

* Is it to attract more first-time clients?
* Is it to promote a specific service/product?
* Is it to fill a gap in your booking schedule?

For example if your aim is to attract more clients for any/all of your services, then you would want to promote the most popular services. Give people something they want.

Create a Package – Promote Value

Then think about how you can create a package combining a number of these services and/or products. Don’t simply reduce the price on your popular services. That’s business suicide!

The idea of offering a package is two-fold. Firstly, it creates a high perceived value. In reality you may have more margin to play with on services than on products. So by making smart decisions about your package you can still make your offer profitable for you.

Secondly, offering a package makes it difficult, if not impossible, for your prospects to easily compare you to competitors. This way you don’t need to offer the lowest prices to get attention.

Keep the focus of your offer on ‘value’, not on ‘price’.
And be sure to include a reason to respond NOW. Consider using a limited time offer, or a limited quality offer. Be specific about the time frame or number.

Stay tuned for Part 2...

Never Stop Marketing Your Business - Or You Will Get Eaten Alive

A stark reminder of what happens when you don't market your business. From this news story of today... the key part is this:

When the economy is genuinely humming, the growth rates of retail chains and small retailers tend to be roughly in sync.

However, during downturns it is common for their performances to diverge, with the chains using their greater pricing flexibility and marketing muscle to keep the top line ticking along.

For example, in financial year 2008, even as interest rates rose because of Reserve Bank fears about an overheating economy, the growth rate differential between the chains and the independents - excluding businesses in food away from home - was just half a percentage point. Since then the difference has blown out to almost 9 percentage points.

My work is mainly within the B-to-B sector, but the comparison to how larger franchise and company-owned groups (the chains) maintain their position in tough times by using their 'pricing' and 'marketing muscle' is a strong reminder of why you always need to market your business - no matter what industry you are in.

1. Define your niche (or specialty).
2. Identify the value you provide (in the eyes of your client).
3. Develop an effective marketing program.
4. Keep doing it - all the time.

The 24-7-30 follow-up approach

Here's a great tip on how to stay in touch with people you meet at networking events. From Andy Lopata in the UK...

I'm often asked about how to follow up contacts you meet at a networking event.

One of the most popular processes I share was outlined by a delegate on one of my workshops a few years ago. The 24-7-30 approach is based on the principle that interacting with someone three times in the month after meeting them cements your relationships.

The approach dictates that you follow up with someone 24 hours after an event, 7 days later and again after 30 days.

Although I don't practice this as a matter of course, if I look back at the people who have become an integral part of my network after meeting at events, this pattern definitely applies. It may be an email, phone call and meeting. Or email, meeting and follow up. But those three touches in a month are certainly present.

The Real Entreprenuer Test

I get to meet lots of business owners. Some are quite savvy and switched on to what it takes to make decisions, take risks, and run a business.

Others seem to be waiting for the magical wand to be waved over them and for their business to take off.

If you're wondering if you have what it takes to be a business owner (call yourself an entreprenuer if you want)... take this 10 question test by business consultant and serial entreprenuer Barry Moltz.

The only entreprenuer test you need to take

In this brief video interview Dan Martin from Business Zone (UK) talks with Tony Wheeler, the founder of the Lonely Planet travel guides.

Tony mentions some helpful points about the serendipitous start soe businesses make; the advice he received from his MBA mates; and how to perservere.

Interview with Richard Branson - the man behind the stunts

Richard Branson is an enigma. He appears to be outlandish, with his wild business stunts. But when you see him in normal conversation he really is much quieter - and even suffers from dislexia. Watch this Richard Branson interview for some business inspiration.

Selling Luxury Goods in a Recession

See what America's respected business journal Inc. says when asked: What's the best way to promote our luxury goods? (I reckon it also applies if you offer a service.)

Get the answer here...

The answer is no surprise really:
* Offer/upsell to existing customers.
* Joint venture - partner with a related business to create an event.
* Be present in the right place to be found (location).
* Use social media networks to build awareness and engage prospects.

6 Simple Tips for Effective Promotional Flyers

See these real-life examples

1. Consistent Use of Colours (not too dull; not too many colours).

Don’t try using a rainbow of colours. Usually you should focus on colours that are part of your company’s colour scheme or logo. Figure out what will work best and stick to it. Consistency is the key – but ensure you have a colour that can be used to highlight the important points. Contrast is always helpful in attracting attention.

2. Interesting Main Graphic/image to Grab Attention.

Think about the newspaper. You look at the pictures first, then the headline. Then read the story (maybe). Make sure you use a relevant and interesting graphic, cartoon, picture, drawing or image. Don’t be too clever in your choice of graphic – make sure everyone will understand what the image is and how it is relevant.

3. Use a Clear Headline Stating the Benefit.

Lead with your strongest points. Your headline will grab attention – make the most of it. Think of the most important and attractive words to use such as Free, Save, Bonus, Guaranteed, Easy, Lose, Win, Limited, Exclusive, Easy… and more.

4. Include an Offer.

Give people something to respond to… NOW! Don’t assume they will call you. Give them something they can’t refuse. For many services a free report is a good offeras people want to be educated about what they are buying. Or a free trial. Or a value-added offer (buy 1 get one free). Try to avoid using a straight discount – it cheapens your service or product.

5. Include a Direct Call-to-Action.

Tell people how they should respond. Be very clear. Give them multiple options. People love going to your website to check you out before they contact you. Make sure your website is listed as well as phone, fax or email response options. Make it quick and easy to respond.

6. Contact Details or Location Clearly Visible.

Don’t make recipients hunt for your details – they don’t have the time. Many people won’t be able to read small print, so keep the font size at least 12 point or larger. Make it bold. Make it obvious.

Good luck with your next flyer!

By the way, most of these tips also apply to creating effective advertisements and brochures.

More sales and marketing tips here

Westpac Upsets Advertising Agencies - and why small businesses shouldn't fall for the glitz of 'great ideas'

“In the industry we work in, the person who comes up with the idea is seen as the hero and the person who implements it, second class.” - a statement by Jacques Burger, CEO of The Campaign Palace (a major advertising agency).

Small business owners often get carried away with the excitement generated by advertising creative people and overlook the hugely important aspect of how to implement an idea and get results for their business.

The quote above confirms that agencies usually put emphasis on 'great ideas'. That's not all bad - we need great ideas. But we also need great implementation.

Westpac (a leading Australian bank) has decided they want to be able to get the best ideas, and the best implementation - even if it means working with seperate agencies, and getting those agencies to cooperate and collaborate with each other.

That is a great idea. But it's one that many agencies won't really like. After all, most suppliers (providers) don't like sharing their client with competitors!

Tourism Australia gone wrong - a marketing lesson

Even large organisations get their marketing message mixed. Tourism Australia now says they want a longer term approach for their advertising campaigns. They want to copy what New Zealand and Victoria have done.

Boy... You'd think that with their history, the amount of money they spend, and the expert help they get from advertising agencies (charging a fortune for advice and creativity), they would have made this decision years ago.

But they didn't.

They've been using a bits-and-pieces approach. Trying to hook on to the latest fad (such as the ill-fated Australia movie).

The difference is now they say they wnat their own identity for Australia - like New Zealand has done with '100% Pure' and Victoria has done with it's 'Jigsaw' campiagn - both of which have run for many years.

Lesson: How can you create your own business identify? Be smart... Don't leave yourself to the ebb and flow of the latest fad or market trend.

3 Lessons From Business Survivors

According to a study done by the Small Business Administration (USA), two-thirds of all new small business survive the first two years but only 44% will still be operating by year four.

Here are three very important lessons from business owners who have survived, from an article in Business Week:

Lesson #1 - Recycle money early.
"during the crucial first years I learned you really always need to recycle money back into your business instead of taking money out of it. A new business needs to stay fresh..."

Lesson #2 - Diversfy your clients.
Rather than rely on one type of client for revenue, early on Niemeier decided to make sure he launched a firm with a diversified clientele working on educational, corporate, health care, and hospitality projects

Lesson #3 - Qualify and eliminate clients who don't 'fit'.
"But what I learned from that is that I really had to do a better job of screening and qualifying our prospective clients. Not everybody is a good client and when they don't pay their bills in a timely manner I realized we had to fire them."

Read the whole article.

Are You Preventing Your Own Success?

Are you standing in the way of your own success?

Do you set your goals so low - with a back-door planned - so you can escape the responsibility to make a commitment or achieve success?

I was reading a newsletter from Michael Port of Book Yourself Solid fame. He referred to the statistic that 80% of small businesses close within 5 years. He doesn't believe it's because of an overly competitive marketplace. He said...

I think 80% of business owners fail in the first 5 years because of one of two reasons. Either they haven’t made a non-reversible, do whatever it takes, no holds barred, beyond a shadow of a doubt, absolutely no going back, stick to it like super glue commitment to finishing what they start - to make their business work. Or, maybe they have. But, they haven't found a system that is proven to work so they can replicate it and succeed.

Recently I was speaking with a small business owner - another marketing consultant in fact. This lady is very experienced and switched on. She knows her stuff. I've known her for some years.

But in talking with her I perceived that her business success wasn't absolutely critical because she and her husband were well established. And her husband had a well-paid career.

This issue came up because my marketing consultant friend was wondering about setting revenue targets, and what to do for her own marketing activity.

I made the point to her that unless the revenue from your business is 'essential' to your personal situation it is easy to become too relaxed and not really commit to doing what needs to be done.

Developing a small business into a sustainable revenue stream is hard work. You need to be persistant. You need to learn. Only a rare few have a 'dream run' and reach their targets easily.

What I'm suggesting here is to take a reality check...

** Are you doing what you're doing to develop a serious business?

** Or, are you doing what you're doing as a part-time occupation, never really expecting it to take your full commitment?

Either decision is OK... just be realistic about what you expect to achieve.

Then make sure you put in the appropriate effort to learn, try, test, learn again.

Are You Any Different?

Do you claim any of these:

- We offer the best customer service.
- We really care for our customers.
- Established for 25 years.
- We guarantee the lowest prices.

I hope you don't.

You see, too many small businesses try making big claims about the same stuff everyone else is saying.

So what?

To make an impact on your potential clients you need to connect with their problems. Then show you have clear options to help them.

Making big generalised claims may sound impressive. But nobody really believes it.

How can you identify the problems or pain your prospects are feeling?

Try thinking through these scenarios and how your prospects may be feeling.

(Note: These steps are a small part of a detailed process covered in the Marketing Mentor Program.)

1. Your prospect has come to a crossroad. They have reached a defining moment when they need to make a decision. What would that moment be for your clients - for your business?

2. Your prospect is feeling, or wants to feel, some emotion. What will your prospect feel as a result of using your products or services? Communicate in their language from their perspective - not yours.

3. Your prospect is ready to choose a service or provider. They are wondering if they can trust you. Will you really deliver what they want or expect? Identify the risks they may perceive and
explain how you will avoid that happening to them.

Then consider how you work with clients. What is your focus? You need to easily explain how clients will benefit from what you offer. Why will they feel good about it?

Importantly, you must create a 'flavour' for your business.
A way of working that sets you apart from your competitors.

Now you are ready to create a meaningful 'point of difference'.

You will be able to communicate your difference (sometimes called your USP) in a unique and compelling manner across all your marketing materials.

To create an effective marketing action plan, and get regular support to stay focused on results, join my Marketing Mentor Program.

Success > Receivership > Then more success... See how Poppy did it.

Remember Poppy King... and her lipsticks. An Australian success at 19 years old. $5mill p.a. in sales. Out of business at 25.

Like many entrepreneurs (young and old) Poppy had a great idea but not enough business savvy.

This led to her having to sell her business, which never got back to the $5mill turnover it had during its heyday.

In this article from the Sydney Morning Herald Poppy explains what has happened since then to help her once again start her entrepreneurial empire.

Under a difference name. In a different country. But much wiser.

And it goes to show that true entrepreneurs often have a rocky road to their final destination. In Poppy's case she was offered a prestigious role at Estee Lauder to launch and run a new range. This helped her to reestablish herself, and regain confidence.

However being an employee in a corporate environment didn't suit her ambition and attitude.

So, now she's off onto her next project.

Bottom line - being an entrepreneur and business owner is certainly risky. Not everyone is a success. Not every idea is a winner. You need to have confidence and faith in yourself... and always be looking for opportunities to move forward.