Why small businesses stay small!
Of course there aware many reasons why a small business stays small. An important one is that the owner actually wants to stay small – that is a valid choice!
But what about those businesses that want to grow, that want to get to the next level but just cannot seem to get there?
The answer is not the economy, or resources the real answer is small business thinking.
Life is not the lottery! We don’t become rich and then figure out how to be rich. We find a success mindset and then success comes!
We first need to take on the actions of the position that we want in life and then work towards achieving that. In short, we decide who we want to be and then, be that.
In time, the world will catch up with us!
A huge part of my work, as a business consultant, is trying to get business owners to think differently about themselves and their businesses so that they are able to grow. The first step with most of my clients is to write a business plan that fits the goals, dreams and skills of the owner.
Our plans are exhaustive often running to one hundred pages. – sometimes more!
Why so much detail?
Wouldn’t a five-page plan achieve the same result? The answer is no it would not. The reason so much detail and drill down is required is that the imagination often needs overwhelming evidence of the possibility of change to accept that change can really occur.
Nothing can be achieved without first imagining that our world can be different.
It is the same with businesses as with people.
Small businesses stay small because the owners have a small business mentality focusing on the ideas and activities that will keep it small rather than ideas and activities that will help it grow.
My favourite quote in marketing is “your positioning becomes your position” by Dan Kennedy in his ‘No BS Marketing’ book. The meaning is simple, we first need to position ourselves in the market and then work towards that position. Without a new position and a new mindset nothing will change in our lives.
When I work with clients on Business Development the process starts with a series of conversations to understand the dreams, aspirations and fears of the owner and then comes the plan that reflects those dreams and considers the fears.
The next step is a complete branding ( new web, business identity, sales materials, etc) based on the plan.
Why branding?
Branding takes the new positioning statement of the owner and of the business and makes it visible and real. A plan is ‘just an idea’ but a new website and business cards tells the world that we are going places and they should expect something different. In turn, we begin to view ourselves as different.
So, small business owners!
If you want to be bigger or different, the first step is to lift your head out of the business and look around.
Get a good plan and then decide who you want to be, then be that!
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I am currently offering FREE 30 minute business development consultations via telephone.
Please visit my website for more details.
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Are commitments ‘old school’?
Do you meet your commitments?
It seems that people are more and more likely to drop commitments – both made to themselves and others.
Why is this?
As a rule, I would say that I am very good at meeting commitments.
I arrive on time, call when I say I will and meet important deadlines – well, most of the time. I made a commitment to publish a weekly email newsletter and am up to issue 267 without missing a week. Even while traveling and sick. I keep most of my fitness commitments religiously.
If I am ever late people tend to get seriously concerned because I am so dependable. That is a good sign I think! On the other hand, I did promise to ‘love, honour and obey till death’ the ex and well.. I am still alive but the commitment is long dead.
I do really take my commitments seriously and do hate missing commitments. For me, the problem is with commitments that people somehow talk me into when I am not really interested (the ex would be an example of this). I would say, “yes” to be nice and then drop out when I have had time to consider – I don’t do this anymore…
…I just say no!
My question is, when we blow off a commitment who do we really let down?
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I am currently offering FREE 30 minute business development consultations via telephone.
Please visit my website for more details.
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The Greatest Benchmark
If you want your business or your life to get better benchmarking is a good place to start.
Benchmarking is the process of comparing our situation and performance to an individual or organisation that we consider to be a quality performer.
This is a good strategy and provides the opportunity to both measure where we are and determine a comparison for where we want to be.
Benchmarking is powerful but perhaps a much more important is to compare where we are to where we think we are.
All of us live in a world of our own creation and our reality is not always the reality others see. We think we provide great service and do a pretty good job but are we really as good as we think we are and more, importantly are we as good as we could be?
The problem with self-assessment whether in business or our personal lives is that we are usually wrong. In fact, we tend to believe our own press, to believe our personal vision for our businesses and ourselves as individuals.
Research has shown that most people are poor witnesses to events and we are often not the best to evaluate ourselves. This is why top performers use coaches.
I see this in businesses and with individuals all the time.
For example, companies who believe themselves to be great employers but are, in fact, abusive of employees. Individuals who consider themselves fit but are a stone, or two, overweight.
When we look in the mirror we see what we expect to see not what is really there.
We lie to ourselves all of the time and so issues, problems, faults continue without being corrected. We want our lives to change but we see the fault with the people and systems around us rather than with ourselves.
“If only we had better employees, more honest suppliers, happier spouses, more directed children….”
We think that if we can change the world around us that we will change when, in fact, the opposite is true. If we want our world to change we must change first! This is true in every aspect of our lives.
Employers who suffer high staff turnover, too many sick days, theft, etc. are usually poor employers and so attract only those who don’t respect themselves or their careers.
The world gives us what we think about most of the time! This is true, without a doubt, for businesses and individuals alike.
If a business wants to change, to get to the next level, it must set new bigger goals but first must start behaving the way a larger business behaves. A small business mentality will only deliver a small business reality – anything else is impossible.
As an example, this is the great benefit from hosting the Olympics – so many businesses are forced to raise the quality of what they deliver to match the Olympic standards. This process makes all of us just a bit better, which benefits all of us for years to come. The same was true of NASA. The quest for the moon brought so much more to society. When we stretch we all get better.
So, how to get better? How to get an honest view of ourselves and our businesses?
This is where strategic planning is so very important to the growth of any business. Know who you are, know what you want, determine what that looks like and to start acting that way.
Success pursued with this approach is inevitable.
Logically, following from this, is that if you want to assess anyone or any business look their associates. Who we attract and who we chose to work with, do business with, love, live near, etc is always a reflection of how we view ourselves. To understand the values, priorities, goals of any individual or organisation just look at their employees, fiends, spouse, customers. The observation will tell you everything you need to know.
Of all of the actions we make everyday we only make a very small percent consciously. Most decisions are driven by our subconscious – this is why people say one thing and do another. Not because they lie but because often our conscious and subconscious drivers are inconsistent.
It is really our subconscious mind that rules our world which is why change is so difficult. The business equivalent is the business culture. If your company culture is not consistent with your goals then the culture will always win out.
Good plans, good strategy set up a series of new belief systems that we can actually follow and that will change our belief systems and culture overtime.
Change is possible!
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I am currently offering FREE 30 minute business development consultations via telephone.
Please visit my website for more details.
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Addressability – know where to fish!
Addressability is a measure of how easy or difficult it is to get in touch with your customers. A highly addressable market can be reached easily and quickly.
For many years I sold to the wholesale stationery, office products and artist materials market worldwide. This is a highly addressable market. In fact, it was not necessary to do any general advertising whatsoever as I knew each and every target customer world-wide for my products. They were all members of trade associations and were easily found and sold directly.
If your target market is this focused you don’t actually need to market to any large degree you only need to focus awareness and sales campaigns at your target list. This makes selling so much easier and this kind of market very desirable.
I have two businesses.
Davies International Consulting provides business development consulting and our market is not addressable at all. Businesses that need consulting services do so not because of the kind of business they have but where they are in their business cycle. Most of my clients come from referrals, speaking events and writing.
Davies Search provides recruiting services for businesses looking for sales, marketing and sales support staff. This is much more addressable and so any easier business to develop a sales plan. We look for businesses with inside / outside sales teams and these companies are sold directly.
I am often surprised that businesses with very clear and defined targets spend money on marketing instead of selling directly. If a business is selling table linen to London restaurants then marketing is useful but the best and most effective plan is to go out and sell them directly! There are thousands of restaurants in London but it is easy to segment that list by area and the types of restaurants that are likely to purchase or rent table linen. Once the list is created it becomes a very basic introduction, awareness and sales program. Not every restaurant will buy right away but all target restaurants are placed into the sales funnel with the objective of selling to them eventually.
A sales plan for this type of business includes a series of introduction letters, emails, telephone calls, in-person sales calls. The process is placed on a cycle which continues over and over and over for the life of the business. Surprisingly. Many businesses miss this very clear opportunity and run around trying to find new markets instead of putting the effort into conquering their primary market.
Is your target market clear and defined?
Is it possible to define it to such a degree that you can create a specific target list?
If you know who buys your products and services then sell to them! Forget the rest of the world.
Political parties understand this very well. They know who is voting for them or who might vote for them. They only pitch to the converted or to those that can be swayed. They do not try to win anybody else over to their side.
Who is your audience? Where do they hang out? How can I connect to them as effectively as possible?
Ask yourself this question often!
The answer will keep all of your business on purpose!
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I am currently offering FREE 30 minute business development consultations via telephone.
Please visit my website for more details.
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Dear customer, you’re fired!
If all customers are not created equal why do we treat them that way?
Customers are not equal!
One of the biggest mistakes a business can get into is attracting and then keeping the wrong customers. Next, to add to the error, is to treat them all the same.
High maintenance, low profit customers do not suit most business models and suck the energy and profit from a business whilst stealing resources that would be better spent on the customers we really want.
This is where business planning comes in – a well developed business plan asks the important questions.
Who are our ideal customers?
What will they demand from us?
Where do they hang out?
What is the simplest and most direct method to connect with them?
Can we create a marketing vehicle that will attract them and make them want to connect with us?
Who don’t we want to do business with?
Does our website and other marketing materials filter them out?
If they do connect with us how do we direct them to out competitors?
Do we have any customers that we should be firing today?
Yes, you can and should fire customers!
I have done it, a simple telephone call to let a customer know that in order for a business relationship to be a success both parties must feel there is a benefit and that I did not feel there was enough benefit to continue with the relationship.
Of course, we have all taken on customers to deal with short term business issues – like needing cash! Short-term decisions, however, rarely pay off even in the short-term and never in the long run.
The problem with this approach is that it ends up creating a culture of low profit, poor service and disgruntled employees.
Know who you are and price, market and deliver consistently with that market position.
Be happy!
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I am currently offering FREE 30 minute business development consultations via telephone.
Please visit my website for more details.
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Are you a pilgrim or a tourist?
Are you a pilgrim or a tourist?
This question was the theme of a Catholic singles weekend retreat that I attended twenty-five years ago. The weekend was held at a beautiful inner-city convent that had once been the home of a lumber Barron – an amazing place to spend a weekend of contemplating life. At the reservation desk was Sister Mary Louise ( who knew me better than I thought) and when she saw me said, “Oh Wyn, you’re such a tourist!”
Caught!
It was true, although raised in a deeply Catholic family, my faith never went beyond the pomp and ceremony of the Catholic ritual.
This lack of full engagement was not just part of my spiritual life. Honestly, no area of my life held my deep commitment. The result has been that most of my life lacked the depth that leads to deep and sustained success. To truly achieve anything we need full commitment and being ‘just a tourist’ doesn’t cut the mustard.
When we lack commitment in one area of life we also tend to lack commitment in all areas and this can really hold us back from significant achievement.
In fact, it is impossible!
More recently, I have understood the value of being fully committed to an idea and a purpose and the change in my life has been dramatic. Like a wild fire, the deepest most complete commitment for one area of my life has lead to deep commitments for every area of my life. I can say that I have finally understood the power of living in the moment and the total power of purpose that comes with complete commitment. Living one hundred percent on purpose is a powerful change that makes life very simple!
Think about this!
Do you ever struggle with breathing? I mean, does it seem to be too much work and not worth the effort?
Of course not!
Without breath we are dead and so our commitment to breathing is total and complete.
We don’t think about it!
The same can be true for any area of our life – business, education, fitness, family, relationships – all of it! Question your level of commitment and find reasons to become as fully committed to one area of your life as you are to breathing and an amazing process will follow! It will become a habit and you will soon find that you have complete commitment for every area of your life. Those areas that are not important and for which you cannot develop full commitment you will let go!
Why would you bother?
The result will be a powerful, happy, passionate life where you are fully committed to every thing you do and fully present for every activity! Work become easy, challenges become assumptions and life becomes a joy!
Powerful?
You bet it is!
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I am currently offering FREE 30 minute business development consultations via telephone.
Please visit my website for more details.
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Networking is NOT Selling
Be careful of the networking trap!
Networking is important but it is not selling!
Networking is a powerful tool – especially in a city such as London!
A long successful business career is built on many trusting relationships and many of these can start with networking. This could be joining Rotary, Golf Club or any place where people come together!
The more people you know the easier business will be for you!
Networking, properly done, however, is specifically not about selling it is about rapport building!
Selling is about identifying a buyer, presenting a compelling offer and then closing the sale – getting the order in the quickest time possible.
The difference between selling and networking is really the difference between selling and marketing.
Marketing is the process of brand awareness, development of a compelling message, and a clear offer that generates interest in the business, product or service. With an effective marketing program, which includes networking, presentations, referrals, blogs, social networking, paid advertising, web, SEO, etc… leads are generated (leads are people who have expressed an interest in the product or service) and then these leads should be sold.
Selling is the clear presentation of an offer and a request to do business (asking for the order). Smoozing and building rapport outside of delivering a clear pitch for business is not selling.
Order taking (waiting for someone to give us the business directly or indirectly) is also not selling.
In addition, none of the various marketing efforts listed above (included networking, presentations, referrals, blogs, social networking, paid advertising, SEO, etc) is selling – they are marketing! Marketing is important but it cannot replace selling (in most cases).
Here is the problem with many businesses – especially small businesses.
Many business people, including those with the title of salesperson are afraid to actually pitch for business and so stand around waiting for orders to fall into their laps. They keep busy networking and doing other forms of marketing hoping to generate enough awareness so that they don’t need to sell.
This approach keeps many businesses small at best and kills them in the worst case.
Now, if you have amazing products and great marketing – take Apple for example – then selling is not an issue as there are more than enough orders to keep everything rolling over. Most businesses are not this lucky!
If you want more business then you are going to have to learn how to sell or develop some amazing products or services that have the world beating a path to your door.
A good business plan and sales strategy addresses the sales process and defines how customers are going to be found and developed, in increasing amounts, over time.
If you do not actually know where your next customer is coming from but are hopeful that the next person you shake hands with at a networking event will be ready to give you an order or a referral then your business is in trouble and your business plan is not complete.
If you do not have a clear plan for getting new customers and growing your business then get some help!
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If you would like me to speak at your networking group – just ask!
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I am currently offering FREE 30 minute business development consultations via telephone.
Please visit my website for more details.
