Expert Columns Category

Move the Needle-Build a Great System

Monday, April 30th, 2012

A few weeks ago, my family was in the drive thru at Starbucks® for a post church coffee. My wife leaned over my lap and shouted her extremely complicated order (double pump with a half decaf something) to the barista on the other end of the microphone. The total for her small drink was $3.95.

Why would any person in their right mind pay nearly $4 for a small coffee? Can it really be that good?

One of the reasons we continue to visit Starbucks® by millions each and every day is that they provide something that we all crave – predictability and consistency. It has very little to do with the taste of the coffee.

How does Starbucks® deliver such a reliable experience every single time? It’s for the same reason that a Big Mac® served in Houston, TX tastes the same as one served in Vancouver, British Columbia. Both McDonald’s® and Starbucks® have developed and implemented a simple set of systems in each of their stores around the globe.

If you’re interested in building a successful small business you had better be prepared to follow in their shoes.

Michael Gerber, the author of the bestselling book, The E-Myth, points out that “the true value of the business is the business itself”. What he means is that it doesn’t matter if you sell coffee, groceries, accounting services or printing. All that matters is that you have developed systems that can deliver predictable results (profit being the most important) each and every time.

Like just about everything in small business, intellectually speaking, building systems is easy. Unfortunately, disciplining yourself to do it is difficult. Here are a few simple tips to get you started.

First, you will need to put together an outline or table of contents for your systems. While every business is different, they all share the same fundamental components. I would star with the following – marketing, sales, product/service delivery, customer service, operations and accounting.

Next, pick the area where you believe developing a system will add the most value. The area you choose depends on what’s going on in your business. For example, if you are generating a ton of leads but unable to convert them into clients you should focus on a sales system. If these clients aren’t returning to buy more products/services or referring you any new business, you may need to consider building a product/service delivery system.

Once you have selected the first system, schedule a meeting with everyone in your company who is involved with the process. Get them all around a table and start from the beginning documenting every single step in the system. A big white board is often helpful because it allows you to visually map out the process.
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Three Quick Reasons Why Good Sales Skills are Important

Thursday, April 26th, 2012

It continues to baffle me when I ask people what business they are in. They either give me a long, drawn out, confusing answer or look at me as if I’m from the planet Mars. Their inability to clearly articulate what they do is a whole other article, but here’s where I’m going to start this month’s marketing spotlight: people continue to forget, ignore, or fail to grasp that they are in the sales business.

It’s almost epidemic, and still shocking to me, that most people still have major hang-ups when I tell them that they are first and foremost in the sales profession. Yes, it’s a profession, because when done masterfully and with strong intent it adds value to other people’s lives, and does not take away from them.

The industry has been knocked for years in films, across college campuses and obviously within the media who continue to focus in on the few bad apples in business who’ve unfortunately abused others, while giving honest success stories little, if any coverage. It’s time for the tide to turn because a strong economy is in everyone’s best interest!

I don’t care if you have the best product, service, widget, idea, or message, it boils down to a couple of key points: if you can’t first and foremost get ‘Mind Capture’ or attention and then sell people on why they should consider buying from you, you are in for serious trouble.

All the best marketing strategies that deliver qualified leads and referrals to your door or inbox is for naught if the hand off is bungled and the opportunity to serve is blown due to little if any sales skills, training or strategy.

Here are three quick, yet important, reminders as to why great sales skills are of key importance:

#1. Competition is intense and it’s now global – think Google search

#2. You must be able to communicate and sell your message, ideas, and vision in a world where most people are skeptical and believe little, if anything, the first time they hear it

#3. Most people ‘wing it’ when it comes to selling and it costs them and their business a fortune

Tony Rubleski
Mind Capture
616-638-39121
www.mindcapturegroup.com

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Can You Sell Your Company to an Outside Third Party?

Wednesday, April 25th, 2012

We talk to business owners every day who “plan” to exit their companies via a sale to a third party because they believe that they’ll get more cash up front (and more overall) than if they sell their companies to insiders (family members or employees). Consequently, they believe there is far less risk selling to a third party than to insiders.

Are they correct? As diplomatically as possible, we suggest that they just might be dead wrong.

Third Party Sales Involve Risk

1. Sales to third parties are less risky than sales to insiders only if a business can be sold for all cash or if there’s simply no time to implement a carefully designed sale to an insider.

Investment banker Kevin Short reminds owners that unless a company meets the following criteria:

has more than $1 million (or even $2 million) in EBITDA;
is in a attractive market sector;
has strong fundamentals; and
enjoys a unique competitive advantage;
it is unlikely to sell to a third party—for substantially all cash.

2. Selling to a third party requires a third party wanting to buy. In a difficult M&A market, being in an attractive market sector is more important than ever. Again, according to Kevin Short, “hot” or “niche” industries include: power, alternative energy, health care, medical services and healthy-living products.

Companies engaged in construction, retail, real estate, automotive and consumer products will find it difficult, if not impossible, to attract a buyer in today’s (early 2012) marketplace.

For most companies, today’s M&A market is decidedly cool if not stone cold; few companies meet the criteria above. The most realistic owners quickly realize that there simply are no third parties interested in their companies.

3. Waiting involves risk. We suspect that some owners hold to the belief that there’s little risk in waiting for a third party buyer because it provides an excuse to “avoid the hassle” of planning. “No risk?” we ask.

What if a qualified buyer doesn’t show up?
What happens if, when you are ready to sell:
the M&A market is dormant; or
your industry niche has fallen out of favor; or
your business and/or the economy is in decline or worse?
Why subject your future financial security to these uncertainties? Why not assume control of your exit—your life, really—by creating an exit strategy that allows you to:
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Should Social Media be called “Media for the Anti-Social”?

Tuesday, April 24th, 2012

I believe Social Media has some challenges with its name. The definition of social is “of or relating to human society”. I guess my problem with this as a definition is because “social media” is by real definition, “of or related to a virtual representation of a human society”. My point is that the names we give things give them power and power should be earned so it owns its responsibility.

Technology cannot architect a relationship. “Where do we live and what do we live for”? to paraphrase Thoreau. Are we here for texts, e-mails, blogs and their replies? Or are we here to use these mediums or media to facilitate the handshakes, the hugs, the high –fives and the connectivity that comes from sharing in society?

In my world, I build relationships between companies and I am more than happy to create content, connection and response through the new media and use these tools to create “relationships” but I am not fooled by the saying “follows are friends” or even customers. Are you?

Use the tools! But understand their place and where they stand in your business and your life. Last week I got into a car accident. It took 2 ½ hours out of my day but I made friends with the guy that hit me and exchanged information with the people that I hit. We laughed, made fun of how long the cops took get there and how hungry we were. What was so illuminating to me is that I had a better relationship with these people than I do with 80% of the people who follow me on Twitter, Facebook and LinkedIn and that is because we had an accident for us to spend time with each other.

In the end, when you are sitting on your death bed, I doubt you are going to think about your last post. Use technology as a tool to become more social, not confuse it by behaving the opposite.

Tony Scelzo
Rainmakers Marketing Group
317-216-6345
Tony@gorainmakers.com

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