Up and Running Blog

February 2009

Guest Post from Elizabeth Walker and Ken Burgin

Today we’re sharing what we call “ideas to steal”. They are all real-life ideas from successful businesses — action steps you can pick up and run with right away, without having to research, test or otherwise delay implementing. And, you don’t need to spend money to do them.

Pick three that you can sink your teeth into, and don’t hesitate to contact us if you want more information or help implementing them — these days we all have to work together.

1. Bill faster. Your receivables can count for 40 – 50% of your actual assets. Don’t batch invoice: bill as soon as you can. (See The 10 Most Dangerous Accounts Receivable Pitfalls  at: www.sterlingservices.ca).
2. Simplify your business. Weed out the unprofitable and the hard-to-sell.
3. Simplify your marketing message. Read  Made To Stick by Chip and Dan Heath. (www.madetostick.com).
4. Get your business and your web site listed in relevant directories. To find directories, Google the name of your town plus directories url” (e.g. “cobourg directories url”).
5. Learn to delegate. Figure out what you do that turns dollars. Then delegate the rest.
6. Encourage employees to explore more efficient approaches to their tasks instead of relying on their standard way of doing things.
7. Don’t forget suppliers. They might not be on your payroll, but they are more apt to do a few things for you at no charge because you really take care of them.
8. Work faster. If you can condense three four-month jobs into three three-month jobs, you can do one more job in the year.
9. Reward your team for meeting budgets and time lines. A 5% bonus is cheaper than a 20% increase in costs.
10. Cut overhead by automating most of the non-producing items like accounting, customer care, voice mail, sales reporting, ordering and record keeping.
11. Make sure you’ve clearly outlined project scope, and don’t be afraid to charge your customer for changes.
12. Offer to be a spokesperson on your specialty when your local media need an expert opinion. Send them a relevant press release every month.
13. Give something valuable away on your web site; at your front counter; when you send out your invoices; when you deliver goods. This should be free to you, but valuable to the recipient, for example, coupons or a “How To”.
14. Highlight offers, features, promotions and news in your email footers, invoices and letter signatures.
15. Start accounts with Twitter.com, Facebook.com and LinkedIn.com and post articles. (Get a good overview at: http://odeo.com/episodes/24070501-Guy-Kawasaki-Reveals-How-To-Use-Twitter-As-A-Twool).
16. Go where your audience is on the web. If your potential audience hangs out on forums, then post to those forums. Become a trusted advisor.
17. Get your supporters to refer you. Check out “Make A Referral Week” (www.makeareferralweek.com) to learn more about how referrals can build business.

ducttapemarketingbadgeElizabeth Walker (thinking and words) and Ken Burgin (creative genius) are the Marketing Masters. They are both Duct Tape Marketing Authorized Coaches. Liz leads seminars in business strategy and communications at the Schulich Executive Education Centre, York University. We are thrilled to be working with small businesses and entrepreneurs everyday, and derive considerable joy helping them build busy businesses.
web: http://www.marketing,masters.ca
blog: http://thebuzzwithkenandliz.blogspot.com/

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Prisoner one: “We’re going to break out of here, or die trying.”

Prisoner two: “Are those the only options?”

That’s in a scene from the movie Chicken Run. The prisoners are chickens. It’s funny, but it also makes a very good point, which relates directly to starting a business.

And that’s one question we forget.

Do we have a choice? Are those the only options?

Startup experts, including myself, produce lots of good lists of questions to ask. Most of these are business plan points, completely valid, vital to starting a business. They lead to absolute essentials such as: Will it sell enough, can you afford it, who wants it, can you make enough money to survive and then grow, do you have the right team and so on.

There’s a lot of that these days–people losing jobs, people starting up because they have to. We get cornered sometimes. There are a lot of entrepreneurs who didn’t really have a choice. They lose their job and can’t find another one. Or they’re offered buyouts, sometimes called golden handcuffs, that come with the undeniable indication that if you don’t take it, your job isn’t secure.

That’s different from the classic entrepreneur story of starting a business out of passion for the product or a vision, or as a leader, a builder, a doer. But it happens a lot.

If that’s the case, realize it, acknowledge it and put it that way to yourself and the people you care about. It’s too easy to fall into the lore and forget that this isn’t a risk you chose to take.

This comes to mind as I look at the list I posted here yesterday from Kelly Spors of The Wall Street Journal. I liked that list very much because it goes into the roots of the startup with beyond-the-business-plan questions like the one about whether your spouse, partner or significant other is on board on this and another about whether you’re prepared to sacrifice your lifestyle for a few years.

There’s no telling how much heartache people risk when they pit their business ambition against their personal life. The mystique of the passionate entrepreneur working impossible hours rarely remembers the relationships left behind. All of which takes on a completely different reality when it’s not a matter of choice. Life is tough sometimes. And particularly during this economic crash we’re dealing with, we should at least recognize that sometimes our entrepreneur didn’t want to take the risk but had no choice.

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People often talk about traits of the entrepreneur. Things come up like passion, persistence, dreamer, leader and so on. Sometimes you’ll see direct opposites–as if, for example, entrepreneurs are always doers instead of dreamers.

I posted a couple of lists myself, this year: 10 signs you’re probably an entrepreneur as listed by Andrew Patrico on Twitter, and 10 traits of successful entrepreneurs a few days later. Note the distinction between probably being an entrepreneur and being a successful entrepreneur.

Kelly Spors, small business columnist of The Wall Street Journal, has another list of traits in her column this week: So, You Want to Be an Entrepreneur. She does it with a list of questions you should answer.

1. Are you willing and able to bear great financial risk?

2. Are you willing to sacrifice your lifestyle for potentially many years?

3. Is your significant other on board?

I had to add a special note to this one: It’s way more important than most people realize.

4. Do you like all aspects of running a business?

5. Are you comfortable making decisions on the fly with no playbook?

6. What’s your track record of executing your ideas?

7. How persuasive and well-spoken are you?

8. Do you have a concept you’re passionate about?

9. Are you a self-starter?

10. Do you have a business partner?

These are all worth answering for yourself and thinking about–a lot–as you do.

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The Wrap-up

So you’ve completed your webinar. You had good attendance, the subject was well received. Your slides were sharp and supported your talk in a way that left everyone excited about your topic.

Everyone has left the webinar room and returned to their regularly scheduled day.

Time to wrap it up!

Links -  More than likely, you mentioned some resources during your presentation. If you thought ahead, you had a slide dedicated to information and resources you talked about. Make sure to tell people they’ll be able to get these links or even be able to download the slides very soon. Perhaps on a special post on your blog or in a follow up email.

Special Offer – You’ve more than likely presented this webinar to conntect with customers or potential customers, so give them something worthwhile as a thank you. A special deal just for the people who signed up or attended.

Follow up -  Don’t forget them! You worked hard to find and cultivate these new leads. Don’t just leave them hanging. Keep in touch with your webinar attendee’s. Send out a survey asking what they liked and what they didn’t like. Connect with them about what they’d like more of in the future.

Mistakes will happen-   No matter how well you plan or how much effort you put into making the event the best one ever, you’re going to have some mistakes. Own up to them. Apologize for them and then move on. Learn from them so they don’t happen again.

‘Chelle Parmele
Social Media Marketing Manager
Palo Alto Software

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All Good Beards Must Come to an End — Tim Berry shaves in celebration of Email Center Pro milestone

Tips for creating a great webinar, Part 1 — Planning a webinar as a value-add for your customers

Tips for creating a great webinar, Part 2 — The lead-up and the presentation of your webinar

8 Things You Need To Start a Business During  a Recession — Advice from guest blogger Barry Moltz

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We’re happy to welcome Mark Macias, author of  “Beat the Press: Your Guide to Managing the Media” as a guest poster today.  Mark Macias is a television journalist living and working in New York City.

You will never be the first person to call a reporter or producer with a story idea. Every day, viewers and readers bombard the media with poorly written emails and long drawn-out voicemails requesting coverage for events that are usually not news worthy. Sadly, this dilutes the credibility for everyone else trying to pitch a legitimate news idea. People frequently complain the media is unresponsive to their calls and emails, but there’s a reason for this discourse.

It’s not that reporters and producers don’t want to listen to the public; it’s impossible to field calls from every person, especially when one rambling caller can quickly eat up 20-minutes of time. Making matters worse, it’s easier for a reporter to hit delete on your email or voicemail than to review your entire message. Unfortunately, you can never shape or influence the media’s coverage without getting over this initial hurdle of making contact.

Every journalist is constantly measuring the value of a story during that first interaction with you or your business. Most experienced journalists believe they can tell within seconds of listening to a pitch whether it is a story or not, and they are usually right. Their attention span is limited over the phone, which is why you must be concise, comprehensive and coherent with every pitch. The quickest way to lose credibility with a reporter or producer is to ramble on for several minutes before explaining what your story is about.

There are no written rules for that first encounter with a reporter or producer, but just like life, there are unwritten rules to making sense of random chaos. There are ways to navigate this media maze so your emails and phone calls don’t get lost in the shuffle. There are also better hours and days to pitch reporters when their time is less pressing and their attention is more focused. But before you even make that initial contact, you must first learn how to effectively identify, pitch and communicate a news worthy idea.

Newspaper and television reporters should not be approached the same way when it comes to writing email press releases. The two mediums face different time constraints with their stories, and that will dictate how long or short you should make your pitch.

Let’s begin with television where white is always good. The more white space on the email news release the better. No one wants to open an email and see eight, long, single-spaced paragraphs. Your initial pitch should never have more than four paragraphs. This is a stereotype but television moves so quickly that no desk assistant, reporter, producer or news manager will take the time to read a release that resembles a novel. They might make it to the second or third paragraph, but they are not going to read three pages of single-spaced sentences.

Here is a formula that seems to work with my peers and me. Try to think of a catchy headline to put at the top of the release, then follow-up your pitch with one paragraph explaining the story. The second paragraph should tell the reporter why viewers would be interested in your idea. This might seem like a challenging task for the rookie publicist, but by applying the five W’s you will be able to narrow down the focus of the story. The third paragraph should be devoted to explaining what you bring to the table or why you are the person to tell this story. If you have more statistics, articles or research for the reporter, tell him in the email you can provide it upon request.

Why not give the reporter all of the research at once or send it as an attachment? It can be intimidating for any reporter to open an email and see several attachments because he won’t know which one to open. When time is of the essence, no one wants to waste time opening useless attachments. However, if a reporter asks for a specific request, you will know which attachment to send.

Many publicists make the mistake of trying to cram everything into one press release. The purpose of a release is to get the reporter or producer interested in the story. You are only trying to make them aware of the idea, and pique their interest. Don’t worry if the release doesn’t answer all of the questions. If it is a good story, the reporter will give you a chance to answer those questions later.

Your approach should change when pitching newspapers but you should still start with the same principles cited for pitching television: begin with a catchy headline, apply the five W’s to narrow the focus of the story, and explain why you are the person to tell the story. Your email release should be more in-depth, depending on the topic and news outlet you are pitching, but it should not exceed one page. You can add credibility to your idea by attaching recent journals or studies that support your idea, along with a paragraph that explains what knowledge the attachments will provide.

If you aren’t getting responses from your pitches, you might want to reconsider your entire approach. Perhaps your story idea isn’t focused or you are pitching to the wrong reporters. Maybe you haven’t properly identified why your story is newsworthy. Take the time to re-evaluate your press release to see if you are communicating the essence of your story. Remember, public relations is not advertising, but there is a home for every story. It’s just a matter of finding the proper niche and tailoring the pitch directly for that niche.

You can learn more about Mark and get more great advice by going to: www.BeatthePressBook.com

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(2010 update: I’ve been told very recently that Joanna Van Vleck is no longer running the Trunk Club, and that there may have been problems under the surface that I wasn’t aware of as I wrote this post. It was written in almost a year ago. Tim)

This is refreshing: the Trunk Club is booming. While so many businesses are struggling, this one has virtually tripled since November, and grew about 25 percent or so just last week. It’s a great example of a well-executed plan-as-you-go business planning process.

I’ve posted on the Trunk Club‘s success story on this blog before, and I wrote about it in my Plan-As-You-Go Business Plan book too. I have an obvious bias. Founder Joanna Van Vleck, still only 25 years old, is a survivor of my “Start Your Business” class at the University of Oregon, just four years ago. Like anybody else who teaches entrepreneurship, I love it when one of my students makes it big.

And there are some other reasons to like this example too. Such as having a huge growth spurt during the worst recession in 60 years. Also, having the sense to find (or invent) a very interesting market segment, listen carefully to customers, revise a business plan (more than once), and innovate.

I asked Joanna how things are going. She said:

Awesome. Could not be growing more. Last week was our biggest ever. We started our new virtual service in November, and it’s quadrupled our members since then.

The “new virtual service,” as it turns out, is a great example of how successful entrepreneurs revise and correct as they go, keeping the planning process alive, changing it when they have to.

Trunk Club helps men shop for clothes. A year a go it was a membership service opening new locations in Portland, Seattle, Dallas, and maybe the San Francisco Bay Area. Members paid an annual fee for expert shopping help. Today it’s only physical office is in Bend, Oregon, members no longer pay an up-front annual fee, and business is booming.

The key is the new virtual service, based on practical use of a webcam to give members a best-of-both-worlds. They get a personal style expert to buy their clothes at retail price, no-hassle returns, they get to try the clothes on first, but without having to go to the Trunk Club office. They use the webcam instead.

There’s no recession in this business. And, as I dig into it, this is not just random luck. Regarding the recession, Joanna says it may have helped by spurring people to try something new.

People don’t try new ways unless something’s not working. Economic hard times have made the retail industry as a whole come to a sudden halt and almost collapse. So I think we now have a new retail model emerging. This is something like traditional retail shopping, but using the web, and the webcam, to make it work wherever you are.

This was a major revision of the business plan. Opening the other locations was hard, getting members to sign up with significant up-front membership fees was hard, so Joanna changed the business model. She now has Trunk Club style experts, trained, certified, and supervised, who help each member with his individual wardrobe. The member signs up over the website at trunkclub.com and fills out a questionnaire. The style expert and he get together with a video call (using Skype or Yahoo! or Google video conferencing software) for an interview to determine what the member wants and needs in new clothes. The expert orders the clothes, Trunk Club receives them and gets a batch together, and ships. The member tries them on, consults with the style expert, keeps what he likes and sends back what he doesn’t. At that point, his credit card is billed for what he keeps.

There’s no longer a need for expanding via physical locations. The service now extends to any client with access to broadband Internet. The style experts can be wherever they have access to the Web. The Trunk Club consolidates the purchasing, shipping, and returns management at the main office in Bend.

I also like the excellently cut target market. Trunk Club members are male, with disposable income recession or not, who have broadband Internet at home or in the office or both. If they don’t have a webcam, the Trunk Club sends them one.

I see four lessons for struggling entrepreneurs:

  1. Focus that target market. Some of the best businesses grow by understanding who isn’t their customer.
  2. Recession doesn’t stop businesses selling something people need or want at a reasonable price.
  3. Keep your eyes open. Your best market might be a subset of your current market. New technology can resolve problems and offer new opportunities.
  4. Be willing to change, and change quickly when there’s a real opportunity worth pursuing.

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Guest Post from Elizabeth Walker and Ken Burgin

We are rabid fans of growing loyalty among Ideal Clients over pretty much any other tactic. It’s the lowest cost sales activity you will ever engage in, since you are already doing business with them, you already know what they want and need and you can easily find out if they are being wooed by someone else. How easy is that?

And yet…we have hundreds of examples of business owners who not only don’t take advantage of this fantastic opportunity, they positively destroy it. See if you recognize yourself in these stories (yes, they are all real).

A client who spends $100 a month in your salon calls to make an appointment only to find her favourite stylist has left. Or even better, who calls for an appointment and lands in voice mail saying the salon is closed for renovation. You lose $1200 a year.

A customer who has been leasing his upscale cars from you for years needs some emergency service. Your service centre is booked up so you tell him you’re too busy. The customer not only takes the car somewhere else for service, he never comes back. You lose a lifetime value of $500,000.

A customer buys over a thousand dollars in clothing and accessories. He is particular but happy to spend to get the quality he wants. He leaves the store and never hears from you again. You lose the $10,000 he would have spent with you over the next five years.

A client who spends $35,000 a month gets a call from her ad agency saying they have to let the client go so they can pitch a potentially bigger prospect in the same industry. The agency didn’t get the other client, the client who was “fired” bad-mouthed them for years, they lost over $400,000 in revenue from her and it cost them close to a million dollars to go after the client they didn’t get.

What would it take not only to keep those customers, but grow them by 25%? Without spending a cent you wouldn’t have spent anyway? Without even investing in a web site, if you don’t already have one?

The first step is a database of every single customer who does business with you. If you can, link it to your point of sales system, so you know how much they spend, on what, when. At the very least, set up a spreadsheet with different columns as follows: first name, last name, street, town, postal code, phone, email, and a column you can put an X in for the kinds of products and services they buy. Since your computer already comes loaded with Excel, that’s free.

The second step is to sign up for an automated email service like www.ConstantContact.com. Sending to up to 500 names, more than you will ever need, will cost you about $20 a month – almost free. And the first 60 days are completely, 100% free.

Stay tuned for real life ideas you can steal to grow your business without spending money.

ducttapemarketingbadgeElizabeth Walker (thinking and words) and Ken Burgin (creative genius) are the Marketing Masters. They are both Duct Tape Marketing Authorized Coaches. Liz leads seminars in business strategy and communications at the Schulich Executive Education Centre, York University. We are thrilled to be working with small businesses and entrepreneurs everyday, and derive considerable joy helping them build busy businesses.
web: http://www.marketing,masters.ca
blog: http://thebuzzwithkenandliz.blogspot.com/

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The Perfect Time to Start Over

by Tim Berry on February 24, 2009

Interesting post by Ryan Healy on Employee Evolution, A Bad Economy Is the Perfect Time to Start Over. Things were exciting during the barest startup days, he says, then got too easy after his company got financed.

But once you get funded, the headaches just begin, and it starts to feel like a “real job.” It’s easy to get comfortable, to forget about all the hard work you put in before there was cash in the bank. And strangely enough, you end up wishing you could go back to the beginning or sell your company and start a new one.

Ryan is one of the co-founders of Brazen Careerist, a Generation Y-oriented career site that, I gather from this post, has had its ups and downs. I’m aware of that blog because my daughter Megan posts on it occasionally, too.

Apparently Ryan’s too-much-success problem went away very quickly when the crash hit.

Then, before we even realized what was happening, the market crashed, investors pulled back, and we didn’t have salaries anymore. The whole company had gotten too comfortable; we weren’t prepared to handle the downturn.

But oddly enough, three months later, things are going really well. We made a decision to switch up our business model and bring in revenue any way possible. Every dollar we make is treated like gold, we’ve managed to cut our burn rate by nearly 50 percent without losing any productivity, and we’ve realized just how many ways there are to make money without begging someone for a multimillion-dollar investment.

He comes to a well-written and well-thought-out conclusion, which I’m happy to pass on. It seems particularly appropriate to the world of startups during tough economic times:

I’ve learned a lot from this whole experience, both personally and professionally. Difficult situations are the best learning opportunities; when things are good it’s very difficult to see how you can improve. But when times are tough, you have the opportunity to make difficult, life-altering decisions. Great businesses and great leaders embrace difficult situations and thrive when times are tough.

Well said.

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So you’ve got your topic, you’ve been sending information to and inviting your customer base. You’ve advertised it on your blog and Twitter and Facebook/MySpace.

Now what?

Send a reminder – email your registered attendee’s their login information and all important information right before the event. This will make them more likely to click over and attend. You’re looking to create that “Oh yeah!” moment with them.

Prepare - Don’t try and wing it, practice your presentation – and make sure to time it. Do a walk-through. Soup to nuts, as Tim is so often saying. Make sure as many of the kinks are out of your webinar as is possible. You probably won’t catch them all, but at least you’ll be better prepared.

Presentation - The way you approach and create your slides is important. You want to make sure they’re visually appealing and offer key points to what you’re talking about. But stay away from shoving as many words as possible into your slide. Make the slides easy to read. Short and to the point. Try checking out some really great slide presentations at Guy Kawasaki’s blog.

Support- The event will go better if you have another pair of hands and eyes. Have someone there to help field questions, monitor the Q&A window and in general be a helping hand. If you Twitter, consider making a #tag for the event. For our last event the hashtag was #dtmpa. There is a great explanation of what Hashtags are and how they came into exisitance can be found on the Twitter Fan Wiki.

Bonus tip- As a presenter, you want to make sure you’re giving as professional a presentation as possible, so think of the little things before you begin. If you’re sharing your computer desktop for the presentation, check out your background image, hide icons for your favorite games or shortcuts to websites. Turn off your instant messenger, your Skype and anything that might give off an alert or “take over” your focus during the presentation. Because Murphy’s Law is never more in effect than when you’re presenting something in front of 200 potential customers.

In the final part we’ll go over follow-up tips.

‘Chelle Parmele
Social Media Marketing Manager
Palo Alto Software

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