Articles Category

The Avoidable Failure to Act

Thursday, March 1st, 2012

Presented by T. Ray Phillips

“I never worry about action, but only about inaction. ” Winston Churchill

“I haven’t decided what I ultimately want to do with my business, or when I want to exit, or how much money I’ll need, or whom to sell to, so how can I plan my exit? Besides, I don’t want to exit right now. ”

If you’ve said this, or thought it, you are not alone. Many business owners are either overwhelmed with the thought of exiting or are so busy fighting daily business fires that they assume they cannot plan their exits.

If you aren’t sure about what you want, or when you want to leave, why is it so important to decide to act today?

First, recognize that when you take a passive attitude toward the irrefutable fact that you will—one way or another—leave your business, you are settling for less than the most profitable exit for yourself and for your family.

Second, understand that preparing and transferring a company for top dollar takes time—on average five-ten years. Most of those years will be spent preparing your business for the transfer and, if you decide to sell to employees or children (two groups who rarely have any money), giving them time to earn the money to pay you for your interest.

The more time you have to design and implement income tax-saving strategies, build value, strengthen your management team, and begin a gradual transfer of ownership (not control) to key employees or children, the more likely you are to reach your goals.

Third, if you decide to sell to a third party, remember that the market does not operate on your schedule and may not be paying peak prices when you are ready to sell.

If the prospect of leaving your company with little to show for it is unacceptable to you, let’s look at your three options.
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The Three C’s of Customer Retention

Wednesday, February 29th, 2012

The key solution to keeping customers from defecting and retention high is to make scheduled follow up communication a major priority in your business and not just an afterthought.

Here’s what I mean. Far too many business owners and those placed in charge of the marketing and sales functions, easily fall into the trap of walking over dollars to pick up pennies when it comes to the amount of time given towards cultivating customer relationships.

Driven by the need to get new customers, businesses of all shapes and sizes work hard to get a customer and then make the huge mistake of taking the business for granted by doing little if any follow up after the initial sale has been made.

I’m certain you’ve seen this happen with those you do business with and it’s shocking that it still takes place as often as it does when the cost in time and marketing dollars for new customer acquisition keeps going up.

Let me share with you what I call the “Three C’s” for staying in front of customers.

Connection. People buy from those they know, like and trust. You’ve probably heard that term before but let’s dig into a bit deeper for just a second. Do your customers really know you? Do they feel a connection beyond the product or service you sell?

I ask this, because the picky, busy, and Internet based customer of today is looking for more than just a transaction. They want to know more about those they choose to do business with and often ask themselves the following questions:

*Are they local and active within the community?
*Do they provide a good value for what they charge?
*What else do they provide that can help me improve my situation?
*Are they friendly and appreciate my business?
*What’s the company story and do they have a good reputation?
*Can I trust referring them to people I know?

One of the smartest ways to address these customer questions and concerns is to reveal your business and what makes it tick. A couple of great ideas include sharing your story in all of your social media channels and featuring your best customers, referral partners and staff in all marketing and communication efforts. It’s gotten super easy with tools such as Facebook, YouTube, blog sites and eletters.

The days of the nameless, lifeless company that collects money and hides behind a wall of secrecy are long gone. Many large corporations have yet to get this memo, and unfortunately many of them won’t until they see their customer retention take a negative hit and the number of referrals they hope to win either fade away or disappear. (Tony reminder: Hope is not a marketing strategy!)

Content. What information are you sharing with your customers? Is it mainly about helping them or is about how good you and your company are? Is it mainly educational in nature or nothing but continual sales pitches? These are two smart questions to ask yourself and think about for a moment.
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Understanding the High I Personality

Tuesday, February 28th, 2012

The personality assessment and profiling system I use for understanding employees and building a better relationship with your management team and key employees is the DiSC. In it there are four pure personality types: D which is Dominate or high drive, I which is Influential or highly social and great communicators, S which is Steady or very patient and thoughtful and C which is Compliant whose goal is to get it right. The D and C personality type are very TASK orientated and the I and S are very RELATIONSHIP orientated.

Understanding the High I Personality

The best descriptors of a High I personality are: enthusiasm, trusting, charming, popular, influential, confident, persuasive, convincing, inspiring, spontaneous, sociable, talkative, emotional, generous, optimistic, self-promoting and a good mixer.

Famous people with High I personalities are: Robin Williams, Bill Clinton, Jay Leno, Tony Danza, Oprah Winfrey, Steve Martin, Arnold Palmer and Dolly Parton.

The High I personality types are creative, creative problem solvers, and great encouragers. They motivate others to achieve through a positive sense of well being and many times with humor. They are good at negotiating conflicts and are peace makers. Throughout the campaign of 1992, reporters continually commented on the way then Governor Clinton energized and connected with people. President Clinton is clearly an extrovert, unafraid to show his emotion or express his concern. Even his foes state that he clearly cares about people, even if they disagree with his agenda.

General Characteristics – High I’s are very talkative. They are very relational and people orientated and like to talk about how their weekend was. They are the most optimistic of the four personality types and are fun to be around. They are good friends and very supportive of their other team members and are positive when dealing with goals for future success.

Communicating with the High I – They are motivated by popularity and acceptance. A verbal acknowledgement of a job well done in front of their peers will go a long way with them. Give them opportunities to verbalize their ideas, realizing that they will need assistance in turning their ideas into action. They work well in a friendly environment and freedom from rules and regulations. They don’t like structure and are motivated by new experiences, challenges and relationships.

Positive Characteristics of the High I personalities are instinctive communicators. They are, for the most part, very enthusiastic team players who do well in job positions that allow them to interact with others. They respond well to the unexpected, and willingly offer their opinion whenever asked for it. They thrive in group activities and a professional and social work environment.

Weaknesses – Many High I personalities avoid getting and staying organized. Follow through, detail and paper work is a constant struggle for them. Since they are always very positive and their goals are usually much higher than is reasonable to attain (monthly sales goals for example). Some may allow their friendships to dominate their time.
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Could Competition be the Best Thing for Your Business?

Friday, February 24th, 2012

How much time do you spend paying attention to your competitors? My experience with businesses is they only pay attention when the competitor hits them between the eyes. Then it’s about reacting rather than being proactive. Sometimes it’s easier to be a follower than a leader.

Walmart was considered the worst thing to ever invade the retail market. But Walmart, whether you like them or not, opened our eyes to pricing and what was possible. Soon we were on our way to a new phase of retailers. Sure small local businesses closed, others found their niche and became very successful. The Home Depot and Lowe’s Companies have had the same effect on other industries. But many smaller companies have profited from the advertising done by these two.

If you study your competition you will develop your own niche or pout and pull up your tents and move. Success is what often kills business. Rather than realize that both success and failure are temporary they miss the winds of change. The winds are often fueled by their customer who they’ve taken for granted.

The key is to always be thinking, watching and asking questions and realize there will always be someone looking to dethrone you.

I think that Albany, New York is about to go through a supermarket renaissance. Soon we will have our own “Supermarket Square” around Everett Road and Central Avenue. It will be comprised of The Honest Weight Food Co-op, Hannaford Brothers, Price Chopper and the new kid in town starting the rumble, ShopRite. ( For those of you who are fans of Trader Joe’s and Fresh Market I don’t mean to slight you but they’re far away from ”Supermarket Square.”) Besides, without “Two Buck Chuck” Trader Joe’s is missing one of its finer elements. As Gary Vaynerchuk, who reviews wines on this popular video blog said, “There’s not a doubt in my mind that the two biggest things that have happened to the wine industry in the last 10 years are the movie Sideways and Two Buck Chuck”. Maybe Trader Joe’s will open a wine store next to their market.

Hannaford and PriceChopper have had a lock on the area for years, competing across from each other on Central Avenue. The Honest Weight Food Coop is about to move closer to “Supermarket Square.” What will happen to them remains to be seen. They have their groopies and Gustoff, the “cheese head” has amased himself quite a following. My next door neighbor told me she couldn’t have her dinner party until she consulted with Gusfoff about the cheese and the wine.

I believe Price Chopper with its “gas card” and community commitment as well as their wonderful new store left Hannaford in the dust. Funny because Hannaford started their Nature’s Place several years ago which really catered to the “natural and organic foodies” who for the first time had lots to choose from at reasonable prices. Then all of a sudden Price Chopper expanded and blew Hannaford out of the water. At this point Hannaford looks small and uninviting by comparison. Hannaford is definitely strapped by its small store and maybe by the Delhaize Group out of Belgium who isn’t familiar with the Albany market.
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