Do You Know the Four Main Ways to Grow Your Business?

Many people think growing a business is a complex process, but it is simpler than most think.  In fact, if you’re seeking suggestions as to what guidelines to follow here are four that should become your guidepost.

• Increase the number of customers (of the type you want);
• Increase the transaction frequency;
• Increase the transaction or value of “average sale”; and
• Increase the effectiveness of each process in your business.

Okay, this seems easy enough.  In fact, it may appear to be too easy, but companies really need only to focus and commit to these functions for optimum success in the area of growth.

Increase the Number of Customers (of the type you want)
Getting business through the door often proves to be the most challenging and expensive aspect of growing a company.  It’s tempting to assume that you automatically need to seek new business without making sure you’ve already tapped the business you have.  However, finding a brand new customer can cost significantly more ’some experts estimate six times as much’ than working with the customers you already have.  What exactly does this mean? You already have a customer base that is sold on the services you provide.  This captured audience is just waiting for you.  Some of the best advertising you could ever have is the kind that a satisfied customer will do for you.  These customers also provide a higher chance of finding you the type of business you want versus whatever simply walks through the door. If your company is business to business, ask customers for referrals to other companies that operate with a similar mindset. If your company is business to consumer, engage activities that draw new customers from your current customer base.

 
Increase the Transaction Frequency
Once you have the right type of clients (that means the kind you enjoy working with and those who pay on time), you want to ensure that they not only stay with you, but increase the amount of business they do with you.  A one-time only customer may not seem like the best one for you.  Yet, if the customer is the perfect fit in the type of business you’re looking for, you need only to foster the relationship.  Customers will come to you for different reasons.  They may have been told about your service from someone else, or found you on their own.  The point is that the customer may initiate the relationship, but it’s up to you to nurture it and make it grow.  When you offer exceptional customer service and let the client know how much they are appreciated, you will create a client that returns again and again.

Increase the Transaction Value, or ‘average sale’
Business owners are often passive about the amount they sell to a customer.  However, if a customer seeks you out, you have to remember they are looking to you for your expertise.  Cross-selling is not only a benefit to you, but to the customer as well.  When you bring more value to the customer through multiple services or products you provide them with more opportunity.  In turn, you have created a more valuable customer relationship, which is easier and more cost-effective than creating a new one. And, as customers come back more frequently, their average sale often increases.
Increasing price should also be considered, but is sometimes difficult since clients become accustomed to a certain cost.  However, when you are able to break down price, volume, fixed costs and variable costs you’ll find that increasing your cost means truly applying the correct price to reflect the value of the service or product you offer. Some companies have taken a lesson from fast food restaurants, and have started offering ‘package’ deals. This pushes the customer to a higher price point with the perception of receiving a ‘discount’ on the overall order. This technique may be used in many industries.
It’s important to keep in mind that companies can lull into a comfy, cozy state of cost coma. One manufacturer, for instance, had not changed prices in 10 years. By increasing the price of just one product, the company increased profits 11 percent. The average sale is a powerful growth mechanism.

Increase the Effectiveness of Each Process in Your Business
How many of us just jump into work and do it? There may not necessarily be a defined process, but who has the time to figure out if there’s a better way of getting things done? The truth is that the time you take to increase your business’s efficiencies will have a direct affect on a project’s outcome and, ultimately, your profitability.

Business is a group of people carrying out a series of processes.  If the processes in place aren’t running as smoothly as possible, you can lose a considerable amount of time ‘and money ‘ on things such as overcompensation for mistakes, inadvertent doubling up of manpower, and troubleshooting problems.
Taking the time to evaluate how business is generated, whether or not the customer service chain is efficient, and where time is lost in the moving of products or delivery of services can provide you with more information for scrapping a system or improving on one that is seeing a significant return on investment.

AuthorSmart’s Virtual Publishing Conference

Why do I love to share freebies with you? I don’t know, I just really get a big kick out of it. I hope you enjoy them too! Just remember, I won’t pass along anything I don’t think is a great value and opportunity – there’s plenty of ‘free’ stuff out there; the trick is finding something free and valuable!

If you’ve been thinking of writing a book or anything remotely resembling a book, this is something you will definitely want to check out! Our book, and the books of many of our clients, have been greatly helped by Gail Richards and Jan King’s assistance. If a book is in your future, you will want to know these publishing gurus!

Gail Richards, a creative whiz and veteran in all things publishing and the founder of Authorsmart.com, and Jan King, former publisher, author of numerous business books and founder of eWomenPublishing, invite you to participate in their 11-Week course FREE just because you are in our inner circle!

For more information go here, and click here to register. Use Discount Code FREEFUEL.

SourceForge.net’s FreeMind

Mindmapping is not a new concept. I believe I first came into contact with it as a freshman in college. It’s a diagram used to represent words, ideas, tasks or other items linked to and arranged radial around a central key word or idea. It is used to generate, visualize, structure and classify ideas, and as an aid in study, organization, problem solving, decision making, and writing.

Mind mapping can really help you dump your mind out on paper and organize it as you go. If you organize it in one way and would like to rework it, no problem, you just move this string and add another one. It’s super easy, takes no instruction, and if you think in a connected or circular way, it will be extremely easy to use.

I have some clients who work best in this way and we pass mind maps back and forth as we brainstorm. I can put my information in it and then they can ask me questions and we can fly back and forth very quickly moving toward our goal.

If you think it might help to get your jumbled thoughts out of your head, your hunch is probably right. Why not download the software I use and take it for a complimentary test spin? Download FreeMind now.

There are other packages out there, too. I have another client that recommended Mind Manager (and this site has a tour you can take), plus there’s a free trial.

I can’t speak for these other packages, though here are some others to choose from – Visual Mind, Open Mind and Nova Mind (definitely the coolest looking package I’ve seen and haven’t sampled).

Testimonials Sell

Psst, hey you. Yes, you. Did you know there is a phenomenon that is affecting entrepreneurs from all sizes of companies? Yes, it is true. It’s called Inability to Ask for Testimonials Syndrome. If this affects you, never fear because the testimonial machine is here!

Here’s a quick formula you can use to create a questionnaire to give to your clients to quickly and easily extract testimonial gold.

1. Please share with us how you would describe your company to a person you don’t know. Example: We have a large manufacturing company with four locations.
2. Please share the problem you had when you first began working with us and what your thoughts were about this problem. Example: Our sales were at a standstill, and we didn’t know what to do. We weren’t even sure who to call.
3. What result have you experienced from working with us? (Please be specific if you would like). Example: Our sales have increased 22 percent in only six months.
4. What would you tell others about working with us? Example: If your sales are down and you want to increase them without adding a bunch of ‘stuff’ to the mix, then you need to call right away.

My experience tells me that people who love you want to help you. They will sing your praises to the mountaintops, they will refer, they will tell others how amazing you are, and with all of this, they will usually rarely give you a written testimonial unless it is solicited? Why? My hunch is that it goes back somewhere around second grade when everyone started to think that they couldn’t write. Regardless of the origin, this template can help you capture more testimonials and will help your clients give you one that really speaks to the hearts of your prospects!

January 16th 2008

Hello everyone-

I talked to a new client recently, and our conversation reminded me of how important it is to really honor what we need and how we work in the world day-to-day. Over the years, I’ve noticed that we all have our ways of approaching things. From the way we organize our files to the way we organize our thoughts, we each have our own distinctive way of being in the world. The more we know what we need to be our best selves, the easier it is to ask for it. Similarly, the clearer we are about what works and what doesn’t, the easier it is to support what works and minimize what doesn’t.

This week, we have a tool for those who think circularly. This is indeed a must-have for the person who has thoughts that flow in a non-linear fashion. I have really loved using this tool. It’s free, easy to use (very intuitive), and can be up and running in less than 10 minutes.

This year is off to a great start for us. Our new book will be out by May (insert a little detour) and supports our new program – True You Marketing. I have had a passion for helping people be authentically themselves within their businesses for a very long time so imagine my great surprise when the woman who helps us with putting our book together suggested that I let go of the straight-laced marketing book I wrote to embrace a book that is more ‘me!’ I’m super jazzed about it, and sharing everything I know (well, maybe not everything!)

As we move into 2008, be sure to let us know what you want us to cover and write about in Marketing Mojo – we would be happy to cover the topics on your mind! If you have a question, email me and I’ll start an Ask Tina column. That would be so much fun!

I’m so grateful about so many things and most of all, I’m grateful for the opportunity to share information with others who serve our great big world.

Best to you all.

Hugs-

Tina

P.S. Where are you ‘working around something’ in your business? Is there some area where you are working a system or a process that doesn’t work for you? If so, consider changing it! Do what works for you!

Market Outside the Box: Two Beer Stories

Quick, what do you think of when I say the word ‘marketing?’ Does advertising come to mind? Maybe a strategic marketing plan? What about beer? No?

Here are a couple of stories about marketing that you probably won’t forget anytime soon. Both deal with the age-old marketing problem – how do you set yourself apart from other players in an already overcrowded market?

These two stories are about beer. Why beer? Well, because beer is as common a product as any. If these companies could crack the marketing nut, so can you.

Blue Moon

If you are a new beer brewer, what would you do to stand apart from the competition? While I’m not sure it was a marketing slam dunk, Blue Moon’s presentation ended up being a huge stroke of luck for the Denver, Colorado brewery.

One of the ingredients in Blue Moon’s signature beer, Belgian White, is orange peel and coriander. It gives the beer a slightly citrus overtone (hey, I’m no connoisseur, so if I have this term wrong, forgive me). The creator of the brew, Keith Villa, suggested to bartenders that the beer be garnished with an orange slice. Imagine a tall glass of amber with a full round orange circle stuck over the edge of the glass similar to how a lemon slice adorns a glass of lemonade.

Legend tells that distributors attribute this curious custom to the wildfire take off of Blue Moon where patrons would see the strange drink and would say, “Hey, give me one of those!”

What could be better than creating a spectacle of your product and increasing sales in the process?

Pete’s Wicked Ale

Another micro brewer that came from humble and award-winning beginnings is Pete’s Wicked Ale. The Pete in “Pete’s” is Pete Slosberg who began brewing as a hobby back in 1979. At the time, Pete was really more interested in making wine, but the five-year fermentation process discouraged him. Over the next several years Pete became more passionate about beer, and in 1986, Pete’s Brewing Company was formed. His love of beer and taste for variety sparked a WICKED revival in brewing which has continued to flourish.

Pete’s marketing is almost legendary. I recently saw an interview with him where he said one of the company’s primary strategies was to have ultimate reverence for the product and irreverence for everything else.

This tongue-in-cheek attitude allowed him to create branding that built in notoriety. The cornerstone of his advertising was him – an almost cartoonish character that was committed to becoming world famous while poking fun at how not famous he was (at the time), and, oh yeah, he introduced the ultra different Wicked Ale beer that has now grown into one of the national leading brewers with distribution in all 50 states.

Pete’s out of the box marketing was a smashing hit and allowed Pete and his partners to cash out at a cool $70 million. Go Pete! To learn more about Pete’s branding philosophy, check out this great article.

In the world of marketing, many argue that if you can’t go all in, you might as well go home. These stories show how you can keep a focus, commit to it, and watch it grow. How can you add a twist to your marketing? I bet you have at least one opportunity that would rev up your marketing engine!

Do Something Different

I know when I get into a funky place that I’ve been on autopilot for an extended length of time. Same breakfast, same lunch locales, same conversations, well, you know… the same ol’, same ol’. Even the people I know who thrive on consistency and schedules still enjoy a departure from time to time to jump start the heart.

With marketing, I believe we can get into a rut. We sign up for networking groups, we talk to the same referral partners, we set up sales and marketing systems so that everything goes off like clockwork, and while all of this is good, we still need to retain that certain special something that allows that twinkle in our eye to shine.

One thing you can do to add a little race to your pulse is to do something different. Something zany will do just fine. Something really out there might be even better. You choose the level of adventure that is right for you.

Here are some ‘different’ things that people did that pushed them out of their comfort zone and into results!

1. Scott Stratten was a speaker who wanted to get more high-paying speaking gigs. He was following the usual protocol given by speaking experts when he landed on a ‘big idea.’ He launched his now infamous Time Movie and racked up a cool 250,000 subscribers to his e-newsletter. He also reached his goal of more speaking gigs, more product sales, and in the process launched a whole new company dedicated to helping others also launch successful movies.

2. Kim Holstein dreamt of making pretzels. Not just ordinary pretzels, mind you, she wanted to ‘stuff’ them with all kinds of yummy ingredients. Feeding her ‘dream jar,’ she and Scott began making pretzels in their small Chicago apartment. They took them door to door selling them to local outlets. Before long, they rented space and opened their first pretzel bakery. The big break came when QVC included them on a Super Bowl promotion and they sold millions of pretzels in two hours! Try them!

3. You’ve no doubt heard of Hooters – the mega chain restaurant that has made its way into our pop culture. But did you hear about how they launched onto the scene? Classic shoestring marketing put the first Hooters on the map. By all evidence, the original Hooters was a total dive. However, they attracted tons of press by asking the winner of a local bikini contest to wear one of their t-shirts and pose with the founder who was dressed up in a chicken costume! Not one to pass up a free advertising opportunity, one of the founders also swam out to an overturned boat and painted HOOTERS on the side. Several years later when the chain was at risk with the EEOC due to lack of male representation in its wait staff, the company’s owners marched on Capital Hill with their Hooter’s girls and fans in tow. Moral of the story: never underestimate the power of media.

4. Standing out from the crowd, Woot.com takes everything that works in internet marketing (think scarcity, deadlines, and urgency) and drives it toward selling one item per day until it is sold out. This site is a phenomenon in and of itself – most items sell out before noon and are posted at midnight of each day. Quirky and not always the lower price, Woot could inspire you to depart from the masses.

Depart from the crowd and see how you stand out! Dare to do SOMETHING different today. Or not. You can start small (haircut, change the route you take to drive home) or big (like the stories above) or mix it up. If you aren’t feeling a little queasy (you are approaching the edge of that comfort zone at that point), then up the ante!

Want Capital? The Basics You Must Know

When 14-year old Ashley Power unleashed her views on life on her Web site, “Goosehead,” who knew she would be a media sensation in a matter of months? Toiling away, night after night, the teen built what is now one of the hottest young adult sites on the Web with little money and no staff.

However, when the word got out, it soon was obvious to the teen’s parents it was time to invest and take the little Web site into the big time – and who knows, the same process may hold true for your own firm or company site. What if you don’t have a nest egg to fuel your entrepreneurial effort?

Basically, there are two types of capital: debt and equity. If you go the debt route, you secure a loan, maintain total control of your company, and must repay the loan plus interest and fees. Going the equity route provides capital and investors who trade an investment for a share of your company and, they hope, the associated profits or proceeds.

If your company requires a modest amount of capital, you may consider going the debt route by securing a bank loan, a Small Business Administration loan, personal loans from friends, family or partner (silent or not) that invest a large portion of the money required to get you where you want to go. Commercial finance companies also can provide financing. If, however, you are in an industry where a considerable amount of capital is required (such as high tech), you are better off going the equity capital route.

No matter who you make your pitch to, you will need:

1. An Executive Summary – 3 to 5 pages
2. A Business Plan – 50 pages maximum
3. Due Diligence Material, including market studies, research papers, etc.
4. Company Business Valuations and projections of post-investment values
5. A strong, short presentation you can make in person

Venture capitalists (VCs) usually enter the game at around $250,000. Below that, you may want to look at angel investors: wealthy people who invest in a similar manner as VCs, but do it independently rather than with a firm. They are called “angels” because they usually are more interested in acting as a mentor rather than controlling your company.

VCs and angel investors look at your business plan and, if everything looks good, they will invest in your company. To ensure you look “good,” be sure you supply the answers to these questions in your materials:

1. How much can the investor expect to make? What is the return on investment?
2. How much could the investor lose? What collateral is available?
3. How do you know your company will make money? Do you have third party documentation that can support your claims?
4. Who is running the company? Why should they trust you and your team know what you are doing?
5. Who’s going to buy your product or service? How will you market to your target? Does your plan have marketable validity?
6. When will the investor be paid back? What is the deal structure and terms?

Seeking venture capital isn’t for the faint of heart. VCs typically receive about 100 plans per week and invest in about 5-10 businesses per year. But, you never know when your presentation or business plan may land in another investor’s hands as a result of your VC actions. Who you know is very important when seeking venture capital. Networking takes on a whole new role as you try to meet potential investors. Ask your business advisor, attorney, banker and other colleagues who they know in the VC world.

Your action list for securing capital should look something like this:

1. Develop documents
2. Create presentations – one short (5-10 minutes) and one long (15-20 minutes)
3. Hone your presentation skills – try Toastmasters or personal coaching
4. Rehearse your presentation – your family and friends are a good place to start
5. Make your list of potential investors
6. Talk to colleagues and add to your list of possible investors
7. Remain focused and enthusiastic throughout the process – energy sells
8. Do your homework and avoid risky investors
9. Remember to sell your vision and the investment, not your service or product – What’s in it for the investor?
10. Each week, make a to-do list and follow it until you secure the capital you desire

No matter what stage of growth your company is in, financing is available to those who are patient and persistent.

Five Ways to Increase Marketing Results in the Next 14 Days

Want results, but feel like marketing is such a hassle? Here are five easy ways to prime the pump for more results – in as little as one hour!

1. Take someone to lunch. You could take any someone to lunch, but why not multiply your effectiveness by taking one of your top referral sources to lunch? Look for ways to refer back to that person and think about how you can do more business together. Is there a co-partner seminar in your future or a shared mailout?
2. Dig out old leads. Oh you know where they are. They are around here somewhere, right? Dig those out and start a new conversation. Don’t treat old leads like an old book – open a new chapter and start from there!
3. Plant new seeds. Take a look at the last few proposals you lost. Call those contacts and ask what happened and see how they are doing. Instead of saying, help me figure out why I lost the sale, start from a place of, How could I have served you better in this process? What did I miss that would have helped? This is a place where very few people sow new seeds – and it’s very fertile ground!
4. Assess your standards. Are your standards slipping a bit? Does your team need a sweet kick in the booty to play at the A-game level? Don’t delay. Take 15 (maybe 30) and have a focused talk about what your mission and standards are. Then begin living them again.
5. Face fear. Focus on that ‘dream’ client with all your might. Ask a few friends to connect you with someone, call the company direct, think of a creative way to get in front of them, whatever your strategy face your fear knowing that you will get 100 percent of the clients you never go after.

Make marketing happen today and sales are sure to follow!

Unleashing Creativity and Innovation

What’s the next great idea?

Who would have dreamed that putting water in a bottle and selling it for $1 would amount to a billion dollar hill of beans?

You get the drift … but how do you put yourself and other workers in a creative mode to even think of a great idea? How do you motivate your staff to remain cutting-edge in their thinking, when all they want to do is complete the next project, close a new deal and go home at the end of the day?

Unleashing creativity and innovation doesn’t happen overnight, but you can begin by thinking differently about the way you and your organization invest time, effort and resources into the creative process. It’s a proven fact that the best workplace inventions and ideas throughout history weren’t accidental at all, although we’re conditioned to believe they were because it’s so much more “glamorous” and exciting to actually believe Michael Dell became a millionaire overnight. It actually took him quite a bit of time building and selling computers out of his dorm room to even scratch the surface.

While it may be true that penicillin was discovered through a strange case of mold, finding your next big idea doesn’t have to be a surprise, and the time you invest in this activity should be considered golden. It’s a fact that successfully innovative companies are more likely to generate growth rates of 20 percent or more than less innovative ones, and companies that generate 80 percent of their revenue from new products consistently double their market capitalization within five years.

Organizations that rely only on their leaders will find themselves terribly uncreative, because this approach sends innovation to the fringes of a company. It presumes that the organization is, by nature, dull and slow, and that innovation can only be spurred on by a handful of creative types whose official job is to be innovative. As a result, this squelches most workers’ ideas because they don’t see it as their role to drive innovation.

In addition, many people believe creativity can only be driven by the company oddball or eccentric who may be “hip” and “happening.” Think of the cool cats who sip lattes and think of great ideas all day long. Think again! Certainly, organizations should not discourage this from occurring, but creativity isn’t the process of thinking of a great idea by sitting under the Juniper tree. It’s a process of planning.

How do you accomplish the creative process? Here are some tried-and-true methods that have spawned more than one great idea.

•Notice Everyone – Innovation is all around you, and usually begins from the bottom-up. In your own company or organization, the mailroom guy and the low-rung administrative assistant may be the most creative people on staff, and yet, you have no notion they have an inclination to think of anything outside the norm. Ask them for feedback and advice. Put them on creative teams and tell them you appreciate their efforts. Emphasize that this is more than the company’s suggestion box; you’re looking for more creative ways to accomplish your goals and drive performance.

•Go for the Biggest Obstacle First – It might be easy to concentrate on more creative ways to provide, for example, continuing education to your staff, but you’re more likely to achieve bottom-line results by tackling something bigger and more immense – like the sales process. If the largest problem is finding staff who can “close the deal,” then you’ve got to concentrate on coming up with solutions to tackle the issue head-on.

•Create a Business Case – When the challenge is identified, you need to devise various ways to solve it, and the natural inclination is to brainstorm and use problem-solving methods. If you work in teams, bring them together. After the team agrees on a viable solution, the next step is to create a hypothetical (yet in actuality, it could be real) business case to support new recommendations. This quickly illustrates whether the creative idea might work. Once you’ve tested and modified the proposed solution, if it seems to work, then present a formal proposal to the organization’s leaders.

Remember that creativity and innovative thinking shouldn’t be done in a vacuum; it should involve everyone in your organization, and although it might seem far-fetched, every idea should be considered for its worth.

World-class companies innovate every day in some way or another. Highlight innovations other companies have enjoyed.