Business Strategy Archives

Is Your Business Stuck on the Taxi-way?

Monday, November 15th, 2010 at 3:59 am  
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Recently, there has been a flurry of activity with business owners approaching my partners and me about implementing various Internet marketing strategies for them to profitably grow their businesses. It’s a very welcomed flurry to say the least but just like everything else, there have been some eye opening inquiries, too.

The projects getting the most interest of late have ranged anywhere from simple website redesign all the way to perpetual product launches that include automated follow up sequences with integrated websites that specialize in continually launching a product or service. There have also been quite a few projects that involve “traditional” SEO work.

All good stuff that’s a lot of fun!

There have been some head scratchers tossed into the mix that I’ll attempt to transition into a learning experience through the use of a couple of metaphors that you should understand fairly well.

The Beacon that Lost Power in the Middle of the Night? Hardly!

One thing that always pokes through with business owners that DON’T take action is that they’re looking to nitpick everything to the point of indecision and paralysis by analysis. Most entrepreneurs and business owners got their businesses started by being decisive and taking calculated risks … being action takers!

Somewhere along the line, entrepreneurs lose sight of the “lighthouse” by becoming too self-important or believing they can do everything themselves (i.e. the “Superman Complex”) much more cost effectively than anyone else on the planet.

An easily recognizable set of symptoms when entrepreneurs and business owners allow themselves to get way off course include:

  • Typically requiring in depth explanations of every strategy & tactic
  • Line item pricing on everything
  • Multiple proposals for extremely similar projects
  • Overly detailed scopes of work … the rationale is that if there is enough detail in the SOW, they’ll be able to implement everything themselves without paying an outsider
  • Frequent conference calls to discuss the same items repeatedly

They are like a ship out at sea that was focused solely on getting to the lighthouse only to deviate off course to the point they rationalize the lighthouse “must have lost power” … not that they got so far off course the lighthouse became invisible.

The First Fork in the Road for Most Business Owners

There almost always comes a time where a business owner becomes downright confused and overwhelmed about how to best grow their business.

This is one of the first forks in the road many entrepreneurs experience.

I see it everyday … I have experienced it myself on several occasions because marketing isn’t as easy as most people perceive it to be. The more you want to accomplish, the more complicated it gets.  It’s not all about catchy slogans, combining nice colors together to create a flashy piece of creative, developing a funny video that becomes viral overnight, hosting fun events, etc.

Not to boast or brag, but it takes some serious mental horsepower to dig into your prospects’ brain, figure out what they’re thinking and why then determine what will get them to pull their wallets out of their pockets to spend money with you instead of your top competitors. That’s not something most business owners thought about when they started their businesses. A look at the number of business failures every year proves that, right?

Today’s Business Owners … Pilots?

Today’s business owners are a lot like pilots sitting on a taxi way waiting for the control tower to tell them which runway to proceed to in order to best reach their desired destination.

A monumental problem arises when the control tower instructs the business owner (pilot) to head to the proper runway to take off because the pilot chooses to argue with the control tower about the price for taking off and landing.

How ridiculous does that sound?

Now, other flights have to be delayed, re-routed, and inconvenienced all because one fussy pilot suddenly has a change of heart after boarding passengers onto the plane and getting clearance to take-off because of … pricing?

What just happened here?

The control tower simply gathered the information about where the pilot wanted to go then instructed him how to best get there within the flow of the other planes scheduled to takeoff and land.

The pilot wasn’t concerned with pricing when he requested clearance for the runway because he was solely interested in the destination and the best path to get there, right? Why did price become an issue when it was time to head to the runway?

The question begs are you like the pilot arguing with the control tower over things that matter very little in the grand scheme of things, or are you truly interested in the destination?

Which Marketing “Airline” Would You Choose?

When you’re looking to fly your business to prosperity, doesn’t it make sense to book a flight with someone that’s able to get you there safely and on time?

Just think … the more you argue and nitpick over pricing when it comes to profitably marketing your business, the further away you get from your desired “beachfront” destination.

PS–Just like Southwest, bags fly free on all our flights! ;)

Southern Social Media 10-21-09

Wednesday, October 21st, 2009 at 7:19 pm  
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Wes and I just completed today’s edition of “Southern Social Media” for 10-21-09.  Among the topics of discussion:

  • Ford Fusion’s Social Media Initiative
  • 10 Applications of Social Media
  • Is Social Media Measurable
  • What to do when the word of mouth “flame” begins to dim
  • Getting Started with Social Media
  • Social Media’s Impact on Comcast
  • How to Use Social Media to Grow Your Restaurant, Dental Practice, or Hair Salon
  • Getting Your “House” in Order BEFORE Beginning a Social Media Marketing Campaign

Much, much more . . . listen in below!

Southern Social Media 10-21-09 [ 44:50 ] Play Now | Play in Popup | Download

Business Resources Cash Map

Tuesday, November 11th, 2008 at 8:03 pm  
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One of the most important considerations of running a successful and profitable online business involves resources.  By resources, I am referring to the suite of online resources that you use in your business on a daily basis.  Regardless of whether you are an internet marketer or online entrepreneur focusing on another niche, it is vitally important that you document the most common online resources that you use in your business.

There are three (3) main reasons why it is important to know, document, and utilize an electronic Rolodex of online resources.

1)  Save time – The first and largest factor of utilizing an online Rolodex of resources is to save time.  How many times have you looked to add a script to your website only to have to waste 30 minutes searching for the script?  When you cannot find a resource at the appropriate time, you are subjecting yourself and your business to inefficiencies that lead to lost production.

2)  Save money - When you know where to find your resources it will keep you from “Googling” to find a resource and from getting hooked on someone’s sales page.  About the time that you need a specific resource and cannot find it, the next obvious step is to search Google for that or a similar resource.  Just record your resource links to avoid this time wasting and money spending activity! It takes a little time, and I struggle with documenting because of that, but I honestly know better.

3)  Improved products – It takes time and money to buy resources.  When you’ve purchased something once……don’t waste time looking for alternatives or waste money purchasing competitor’s products.  Focus on the resources that you do have – use them daily and become an expert in the application of those resources.  Over time, your products will improve due to the consistency of use and of the resources that you use to complete daily tasks!

Overall, it is important to record your online resources for quick and efficient reference.  By doing so, you’ll improve business efficiencies leading to saved time and money!

What’s the point of all of this? I have literally stumbled across a resource that has attempted to do a few of these things for us.  It’s call CashMaps, and I was turned onto it by Rich Schefren who has partnered with the creators to help promote their wares in addition to trying to help businesses grow at a rapid rate.  If you haven’t checked out Rich’s latest report, The Uncertainty Syndrome, you owe it to yourself to download it (it’s free!)

I have purchased two of Rich’s home study products (The Business Acceleration Program and The Maven Home Study Program) and have learned a LOT from everything he’s produced.  More on that in another post down the road, but go get some great free stuff in the meantime as the links I’ve shared today take you to free resources that you can learn from immediately.

Random Business Musings and Ponderings

Saturday, April 5th, 2008 at 2:59 am  
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Ever had one of those days where you question whether you’ve made wise business choices lately? Today has been one of those days, but I’m afraid the answers I uncover over the next few weeks aren’t going to be to my liking. I know I violated my own gut instincts with one decision in particular, and I’m kicking myself for it pretty hard right now.

If you’re in a business venture with others, is it clear to everyone involved whether the business could succeed without you or not? If the business could succeed without you, why do you continue to hang around in a decision making capacity? Why should your partners listen to you if the organization could survive without you?

If you bring nothing unique to the mix, and someone else is primarily responsible for the success of the organization, why not do the right thing and get out of the way by taking on a diminished role? It doesn’t mean you have to leave completely, but move aside to let the others grow the business. Chances are you’re not helping; you’re in the way! I’m just sayin’.

Is the generation gap between Boomers and Generation X THAT wide?

Is new media good for business or bad?

How much do you engage in social media for your business? How’s it working out for you?

Are there any business “secrets” anymore? What about new ideas?

Why is there such reluctance from the older generations to embrace new media and accept the fact that the new rules of journalism are vastly different from the good old days? There are newspapers and television outlets that struggle with this mightily, and my suspicion is those outlets are run by elder statesmen. Time to wake up, people! Or get out of the way to let the younger generation take the organization to the next level. I’m just pointing out the elephant in the room that everyone wants to ignore. Don’t shoot the messenger!

If you could start any new business today, what would it be? What would be your first step?

Am I crazy to think $1 million isn’t that much money and shouldn’t be that hard for a business to generate?

Do you know of a sharp Internet marketer that is looking to be a part of a startup? How about a copywriter? If you do, please send them my way.

When starting a new venture, what’s the first hire you make?

Enough ramblings and ponderings for now . . . would love to get your take on any or all of this.

10 Ways to Improve Cash Flow

Wednesday, June 13th, 2007 at 7:07 am  
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Just about every business would like to improve their cash flow. Below are ten ways which may help your business achieve that objective rather quickly:

Bill Promptly; Take Advantage of Payment Terms

The faster you can invoice a client, the quicker the clock starts to tick for the customer to pay in order to meet the terms of the contract you both agreed upon at the beginning of the relationship. Conversely, if you’ve agreed to terms of Net 30 with one of your suppliers or vendors, don’t pay the bill immediately; wait a little bit to take advantage of those terms and keep the cash in your (hopefully) interest bearing account a little longer.

Offer Payment Incentives; Penalize Late Payers

Many times businesses set forth payment terms of Net 15 or Net 30, but they neither offer any incentives to beat those terms nor penalties if the terms aren’t met. Consider adding both to your invoices to decrease your accounts receivable days outstanding. Chances are most of your customers will pay promptly if there is an incentive involved.

Run Credit Checks on Potential Customers

While this sounds like a no-brainer suggestion, many businesses today take whatever business they can acquire and run checks only when problems arise. Often times it is too late to run a check after issues surface. It’s better for your business over the long haul to reject a customer immediately that slow pays or is consistently delinquent. Slow payers are frequently troublesome clients aside from their propensity to get behind on paying you—they are typically the impossible to please variety that will nitpick your organization and sap its resources.

Sell off Under Utilized Assets and Fully Depreciated Assets

Once an asset has run through its useful life and is no longer a depreciable asset, consider selling it off if you can get good value for it. You’ll get an influx of cash that can help you replace that asset or upgrade to a new technology or model and possibly reduce your debt in the process. Many assets will last well beyond their useful life so you may be able to fetch top dollar from a smaller business looking to improve their operation by adding used equipment.

Encourage Partial Payments

If your business is in a bit of a cash crunch, try encouraging your clients to make partial payments on the front end of projects or working arrangements. Most will be agreeable to such provided you make some concessions on your end such as small pricing incentive or discount to do so. This helps you improve your cash on hand while helping your client spread payments out so that everything doesn’t hit all at once in one lump sum.

Comparison Shop Suppliers Online

The Internet makes comparison shopping a breeze, and some of your vendors and suppliers may take you for granted by not adjusting their pricing to reflect current market and competitive pricing. By checking the competitive landscape every quarter or so, you can gain some leverage by knowing how much you should be paying for particular items especially those that are more commoditized.

Stick to Budgets

This is another suggestion that may seem rather obvious, but there are several projects that suffer budget creep throughout a fiscal year. A couple hundred bucks here or there may not seem like much for a particular project, but it will quickly add up if there are multiple projects going on across an organization.

Spread Out Payments; Don’t Pay All at Once

Spreading out payments through a month versus paying everything on one day can really alleviate a cash crunch due to the natural flow of business and customers’ payment preferences. All of the money due to you in a given month doesn’t come in on one day so why should all of the money going out? This little tip can save a lot of headaches even though the temptation to pay everything on one specific day to get it out of the way may seem logical at times.

Add a Shift Versus Taking on More Space

A lot of small to medium businesses are quick to add office or production space when it may be more cost effective to simply add another shift. If your business is a morning shift only operation, how much could you save by simply adding a second shift versus adding production capacity? Chances are you could save quite a bit of development and rental costs by better utilizing the space you have today.

Pay by Credit When Possible

Paying by credit seems to have a stigma attached to it, but it can buy you some extra time to stockpile more cash to pay things off if you play the terms correctly. Since there are also some low rate credit options available, it may be more cost effective to take on a little interest expense until the cash reserves are built up enough to pay things completely off.

Cash flow problems don’t have to cripple your business if you take a step back and evaluate your options objectively. Implementing a few of the tips above can improve things almost immediately and put you back on the right track to a positive cash flow.

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