Tag Archives: business consulting

Referral Based Marketing | Why it Pays to Have Trusted Business Relationships

Could this post BE any more about pop culture placement? As much as I would love to spend the entire article making sly references to New Zealand’s 4th most popular folk parody duo, this is about marketing your business through referrals. Simply put, there is no better or cheaper way to market than to utilize referral marketing.

Case in point: I have a networking friend, Albi (names have been changed to protect the guilty) with whom I am also a customer. He runs a real estate office of multiple agents. Because of our networking relationship, whenever someone would mention to me that they were either buying or selling a house, I would give them Albi’s name as an option and suggest they contact him to see if he would be a good fit. Since I knew him, I liked him, and I trusted him, it was a fairly easy referral to give.

The reason for that is not because I used him for my own house purchase first (in fact, that will come later), but because as responsible business marketers and networkers, we understood one KEY principle. People do business with people they like and trust. Albi and I spent time building a trusted business relationship. It starts small, with easy ways to try out a person’s trust level. We met for coffee, lunches, and even brought our wives in for an evening out. We decided for both of us it was important enough to know the quality level of the person, so that we could speak with honesty and integrity. After all, whenever you refer someone, you are ultimately putting your name on the line for them. Trust is HUGE.

When it became “Business Time” and my wife and I decided to buy a house, we chose to give him the opportunity. When we personally experienced his level of service and quality, we were even more blown away than we could imagine. I already knew and trusted that Albi would do a great job, and my expectations were fulfilled – even more than I thought they would be. Not only do I have a long term, trusted relationship with him, but it was tested with personal experience. Now he can’t keep me from talking about him. Who would not want to gain new customers this way?

Do people in your local area know you? Do they like you? Do they trust you? I encourage you to take a moment to think and see what you might be able to do to develop trusted relationships with business around you; think of the advantages it would bring you. Just don’t use too much tape.

(Image from www.gawker.com/flightoftheconchords)

Is Greed Good? | A Look at Business Vision and Profit

Originally posted at Pro/Vision Coaching.

As our friend Gordon Gekko once pointed out, “Greed is good.” It is the oil that keeps the economic machine running, the grease that lubricates our free market, and the sludge that is produced from our toxic waste sites. I contend to you, how good is greed?

http://www.youtube.com/watch?v=PF_iorX_MAw

Our free market economic system relies on one very simple premise: supply vs. demand. Without demand, there would be no reason for supply. Without supply, demand would rise so high that even reasonable adults would transform into raving lunatics running on pure bloodlust for the next Tickle-Me-Elmo. Welcome to the holidays.

“After Target decreed that Black Friday would start at midnight Thanksgiving night and that employees must report to work at 11 p.m., an Omaha worker, Anthony Hardwick, posted a petition at Change.org asking the company to move the official start of Christmas shopping back to 5 a.m. Friday. Response from workers and others has been stellar: 192,000 signatures by Monday.” CNN.com

Each year we have watched these stores open earlier and earlier, tempting shoppers with great deals at horrible hours. It’s simple (and good business): this time of year there is an inherent rise in demand for the holidays. Because of that rise in demand, supply becomes in danger. Small stores cannot keep supply on the shelves and the wholesale market caters to those who can continue to keep demand on the rise. Big-box stores such as Target and Walmart have the infrastructure to handle holiday demand, keeping a relatively decent supply of products on their shelves for the shoppers. Obviously they want to sell more than other stores, so they compete with each other; if Target opens at 4am, Best Buy will open at 3.

The people that stand to be hurt are the employees, all of whom have significant gripes against their big-box employer (see americanrightsatwork.org to see examples of offenses). Not only do people have to be there during open hours, but stocking, delivery, preparation and clean-up work are needed also. Can you imagine shopping in a Target ravished by holiday shoppers with no clean-up? Not fun. Truth be told, though, in this instance, the stores are only responding to the public. If no one shows up to go shopping at 2am, do you think Target would remain open at that hour? No.

Thus, the question remains. Who is to blame? Is it the big-box stores? Is it ourselves? Is it a flawed economic system? Is it Cap’n Crunch’s? Gordon Gekko was right. Greed IS good – at least to a point. Greed is the emotion that pushes us to be the best doctors, inventors, teachers, producers, etc… in a free market economy. This is based on the simple principle of competition. I want a better life and to reach it must do better than others. Good business coaching focuses on this – VISION. This can be a good thing, because in order to reach that, we need the help and cooperation of other people. Thus, the “if you profit, then I can profit” ideal was born. As communal greed grows, life grows. It builds cities, national parks and green energy.

This philosophy fails when restraint dies, giving us no control over our material desires. Greed without restraint pushes us to dangerous ends that destroy others and search for our good at the cost of others as opposed to the good of all. It is this mentality that leads to corruption and is the cause of many of the symptoms our economy currently faces. When we look to help ourselves with the point of doing it at someone else’s expense, we cross the line. That greed does not rebuild our economy.

Maybe the best lesson this holiday season is a classic proverb that can help us look at things from a different approach. “It is better to give than to receive.” If we all give, then we all will receive; if you profit, then I can profit. After all, I would want my children to receive the best education possible so they have the opportunity to reach their potential. If I keep cutting the wages of our teachers, then I am not promoting good greed that grows a community (and my children’s future), I am just being selfish.

Selfishness is not vision. Vision for a better life for yourself and others is a great thing and the ultimate description of profit.

E-mail Responses and the Perceptions they Hold; Especially in Istanbul

Originally posted at Pro/Vision Coaching.

There are times in one’s life when decisions just have to be made. What decisions, you ask? Life. Altering. Decisions. These are the decisions that change the course of your life – the ones that once are made, will forever change your direction and ultimate success.

One-ply or two-ply? Margarine or butter? Boxers or briefs? Ok, these are all very important decisions that need to be made, especially the two-ply issue, though I couldn’t imagine why anyone would choose one-ply; that’s just crazy. What I am talking about is deeper than that, one that affects the very core of your existence and the perception of everyone you meet. Inside the world of business, it becomes crucial. What type of email responder are you?

This is a bigger issue than when Constantinople changed their name to Istanbul! Which, since we’re on the topic of Istanbul, is why you should never make a business decision based on a pretty girl; it’s just not thinking clearly.

http://www.youtube.com/watch?feature=player_embedded&v=IqJXxHi6RwQ

Anyway, the matter of your response (and response TIME) is hugely important in the business world. Who do you want to show yourself to be? Listed below are a few potential options for response times and the perceptions they hold:

1. Immediate | How needy do you want to look? If you’ve been invited out for coffee after a networking event and you jump in the car before they tell you where to meet, you might find yourself in for some disappointment. The issue of time is one to be respected, and if people know they can grab you whenever they want, they will never be around when you want.

2. Within 24 Hours | Short-term responses can be incredibly powerful. Once you have given enough time to process and understand the request, a timely response goes a long in way showing that you respect their time, which in turn should grant you the same favor. People in the business world will already assume you are busy, so getting back to them quickly will show you care about their time as well.

3. Within 24 Weeks | This strategy can be very helpful, especially when working in post-apocalyptic times. Since zombies have already established themselves as the ruling class, it is to be expected that one can go weeks without an internet connection. In fact, if it’s been a while since zombies took over, 24 months can be considered a very timely response.

4. Invisible Responses | Originally created and popularized by The Acme Corporation in the late 1920s, invisible emails were all the rage. You could write whatever you wanted and no would ever see it because they couldn’t see it! The problem was that the un-invisibility potion was not created for another seventy years, thus rendering the ability to communicate impossible. Simply put, if you don’t reply, you lose all ability to communicate.

How and when you respond to a person goes a LONG way in the ability you will have to influence, befriend, or sell to that person. Take the opportunity to consider their needs before replacing the statue you took from them with an obviously worthless replica. If you respect the time and effort they put into communicating to you by doing the same, they will notice.

Whether it’s Baseball or Business, it’s All About the Numbers

Take me out to the ballgame; take me out to the crowd.

Buy me some peanuts and cracker jacks; I don’t care if I ever get back.

What a beautiful stanza to a gorgeous song that represents all that is right with this world. Baseball. The greatest game ever played, especially if you are in business.

I can already see the bevy of comments that will hit me on this post about my obsession, and specifically why I chose to write an article like this at this time, so at least I’m prepared. Yes, I just attended an entire series at Safeco Field in Seattle, though for the sake of my current city popularity, I will decline to admit my favorite team. The first comment to guess correctly wins a prize that will be revealed at the end of this post.

While attending these baseball games, one cannot avoid being smacked in the face at a seemingly constant stream of statistics. “In June 2010, Felix Hernandez won the American League Pitcher of the Month Award for his flawless portrayal of Felix the Cat in the local theater’s rendition of Rent 3D: Alley Cat. This was his 5th AL PoM Award in 6 possible months.” Obviously that means he had a good year. You know he did well because NUMBERS DON’T LIE, at least not like your Uncle Herbert.

So what? Who cares that I can make up odd baseball and pop culture connections? Here’s why: it’s all about the numbers. If you need to know how many baseballs you need to sell in order to keep your store open, you must rely on the numbers. Take a look at this – did you know that the average operating budget for a Major League team was $84 million dollars in 2009? The Seattle Mariners’ budget was at $98 million. Their average ticket price was $30. So how many seats did they need to sell to cover their expenses? Knowing they play 82 home games, the equation becomes simple:

(# of tickets sold x $30) x 82 games = ticket income If ticket income had to match operating expenses, the equation would look like this: 98,000,000 / 82 = 1,195,122 (income needed per game) / 30 = 39,837 (seats that must be filled)

Safeco Field has a seating capacity of 47,878 for baseball games. That means Safeco would have to be at least 83% full each home game to make budget. In 2009 (according to ESPN), Seattle averaged 27,116 tickets sold per game. Going back to the original equation, that means Seattle pulled in $66,705,360 in ticket income in 2009. Put that into the next equation: income – expenses = profit. $66,705,360 – $98,000,000 = $-31,294,640

OUCH! It’s a good thing they have other ways of generating income. Do you? Do you know what your income needs are and where they are coming from? The moral of the story is this: numbers are cold, hard, and factual. They will tell you the real story of your business in a way that would make J.K. Rowling look like your Uncle Herbert. Use them, do not be afraid of them, hate them, but above all trust them. The best businesses know it’s all about the numbers.

And, by the way, the prize is a cup of coffee and a pleasant conversation.

Why Knowing Your Target Audience Truly is the Bull’s-Eye

Originally posted at Pro/Vision Coaching.

I got into the sport of archery in high school. Led by a friend of mine, I found the sport fascinating, and I followed with stars in my eyes all the way to the store. The place I purchased it at had a full size shooting range in the back and tools to help their customers pick the right bow and accessories while trying them out. In the process of setting myself up with the perfect bow, I got into the challenge of archery, and learned that I actually had a bit of talent.

It has been a while since I regularly made it to the target range, but my love for the sport has never waned. The photo below was taken after a few recent practice rounds, and shows my grouping, and though overall it is nothing to be excited about, it was nice to see a few arrows right on top of each other.

The reason I tell you my background with archery is because of how much it has to do with successful marketing. Here are a few key lessons I have learned about marketing from my time in archery.

1. Practice is Mandatory | During my senior year of high school, all of those arrows would have been touching. The more I practice at hitting the center of the target, the more often I would succeed, and that success would come in groupings (consistently hitting the bulls-eye with each arrow). If you don’t keep at it, the ability you once had will fade away over time.

2. You Must Aim at the Center | If you only try to hit the target, your arrows will be scattered all over the target, with many missing it completely. The only way to consistently hit the bulls-eye is to “aim small, miss small” (The Patriot movie). In other words, the tighter your focus, the better your hit.

3. Know the Target and its Environment | In order for complete success, you need to know everything about your target. How big is it? Are you outside? What’s the wind going to do? How far away are you standing? Is there a vertical change between you and the target? The more you know about your target and its environment, the easier it will be to hit the center. Knowing your target also means that you know how to speak to that target, or in other words, craft that perfect message.

In the language of the business world, I am referring to your target audience. So that you can succeed with your marketing plan, you will have your best success when you treat your target audience like the bulls-eye. Who is your perfect target? What is that person’s environment? And so on…

You will find that if you follow these three rules in marketing, you will see significant growth in the number of prospects knocking down your door. You will find an engaged audience and have the right tools with which to get them interested in your product or service. Happy hunting!

Business Networking | A Huge Waste of Time, or Humanity’s Greatest Hero?

Originally posted at Pro/Vision Coaching.

A lot of people blog for their businesses simply to get better SEO (search engine optimization) for their website, thus leading to a higher search engine ranking and more clicks to their site. This is not a bad practice, whether you are in Omaha, Nebraska; Seattle, Washington; or anywhere else in the world. It is obvious (and truthfully, good practice) to make sure your business is known publicly and easily assessable. And as a business coaching firm, we would advise you to do just that. The world of the internet is a great way to make that happen (and also to sneak in wonderful keywords in THIS blog entry), but not the only way to get known and make your business successful.

Sometimes you just have to stick your face out there and be seen. Or do you? History has been faithful in teaching us that if you stick your face in front of a fan it might get cut off, or if you step out on a road you may get run over. Is growing your business really worth that risk? In the online game of Second Life—one of the fastest crazes to die in the last 10 years—you create a personal avatar (that can be you, or anyone you want to be) and go through “life” in the digital world. You are even able to buy products for your Second Life home, such as a TV from the Best Buy store in the game (which costs REAL money, by the way), or you could commit a crime inside the game and do hard time.

–Funny YouTube Clip on SecondLife–

If you are not like the 2 current members of the worldwide Second Life community, you prefer to live your life in the real world – and take note – that’s a good thing! But even so, many people are still uncomfortable with the idea of face-to-face business networking, and some of you may not even know what it is. Here are some questions I am often asked about the subject:

Q: Is it true that if you try to sell at a networking event, you will be captured and tossed into a dark cave beneath the Chamber of Commerce with a lonely, starved tiger? A: No. Ever since the Michael Vick dogfighting scandal, all the underground Chamber tigers have been released into the wild. Last I heard all but three tigers were accounted for at local area zoos.

Q: Ok, so they may not throw you to your death, but is it a bad idea to try and sell at a networking event? A: Yes. Even though your life should NEVER be at risk during networking, the goal is for you to build relationships with other networkers, thus building a community. People who come in and try to sell their wares right off the bat often miss out opportunities for future business growth.

Q: If I am allergic to shellfish and go to a networking event that serves it, should I eat it anyway and hope for the best? A: Do you always carry an EpiPen with you? Q: No. A: No. Allow me to say again that your life should NEVER be at risk during an event.

Q: Really? Last week I walked past a booth at a trade and they were literally shoving fried shrimp down my throat. Though I was able to run away, I lost my bag of goodies from the show. I think they were a rogue group of ___________________. (Mad Libs: Name an Industry of Your Choice) A: Seriously? That’s pretty crazy.

After all is said and done, if you go to a networking event with a sincere desire to meet people, learn about their businesses (first!) and then, when given the opportunity, share about how yours can be a benefit to people, you will do well. You may not end up being the hero networker, but it certainly won’t be a waste of time. Just keep an eye out for wandering tigers if you live in ___________________, __________________, or ____________________ (Mad Libs: Names of Cities).