Up and Running Blog

March 2010

The fifth annual Small Business Summit is almost here!  The date to remember is March 16th in New York City and Palo Alto Software is once again sponsoring the event.

What goes on at the Small Business Summit? I’m super glad you asked!  This year the event is focused on Strategies for the New Economy and some of the highlights include:

  • HOT TECH Demo (60+ companies have submitted their entries)
  • Exhibitors including Google, Intuit, Microsoft, and Dell and many more
  • Strategies for Growth Panel (Representatives from Intuit, Wasp, Elance and Google)
  • Keynotes include: Mel Parker, Director of Small Business at Dell (IT Strategies), Seth Godin (Being Indispensable), Melanie Atta, Campaigner (Boosting Email Marketing), Tim Davis (Using Comedy for Boosting Sales)
  • Women of Success Share Their Community Building Secrets
  • 10 Minute Power Presentations (Social Media;  Business Card Design Tips;  Optimize Your Time)

This is the hottest ticket going right now.  And speaking of tickets… we’ve got some to give away! Free!

To enter to win a full-day conference ticket, answer this question:

What is a SWOT?

The first three people to email hello@paloalto.com with the correct answer will win a free ticket – that’s a full day’s conference admission!

Fifth Annual Small Business Summit (http://www.smallbiztechsummit.com) – March 16, 2010

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Pamela Slim is releasing her Escape Workshop in a Box today. That’s a very interesting productized version of Pam’s one-day workshop based on her best-selling Escape From Cubicle Nation book.

I’m proud to be part of this project. I connected with Pam as I got started in social media because she’s a gifted writer. When I heard she was doing one of these workshops in Portland, Ore., near where I live, I volunteered to join her and do the business plan section that day in the afternoon. And I’m glad that a recording of that session is included in the product.

The escape is all about empowering people to go out on their own. How, why, what to focus on and how to make it work. She gives real, practical advice to real people. Take it step-by-step.

The whole project is fascinating to me. Take a very successful workshop and make it available to all of those who haven’t been able to attend the various workshops that have been given–all to very full rooms over the last year or so. It’s downloadable, so it can be viewed on attendees’ own time, and kept to be referred back to.

I hope Pam’s new product is very successful. If you’re interested in what it takes to go on your own, this is for you.

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I just read Lessons Learned As a Result of Running a Business on Pediatric Inc,  written by Brandon Betancourt, who runs his wife’s pediatrics practice. This is obviously a practice manager who knows business. And can write.

Too bad, for their sakes, that more doctors, lawyers and accountants don’t treat their practices as businesses. As the saying goes, “Ain’t no shame in it.”

So this post–and this list–are proof that good business thinking comes from a lot of sources that aren’t supposed business experts. Here’s what Brandon has to say about business:

1. Give the benefit of the doubt.

He makes it about trust. Not giving someone the benefit of the doubt is the same as not trusting him or her.

2. Communication matters.

These past years I’ve realized that, more than ever, how I communicate, when I communicate, to whom I communicate, matters. I realize now that the outcome of each of my communications hinges upon on how I convey messages. So I try not to take communication lightly.

3. Be your own boss is a lie.

Amen to that one. It’s the biggest myth in entrepreneurship and small business. Your customer is your boss. Your loyalty to your business, and to the outcomes, is your boss. Business owners are the hardest bosses there are.

4. Experts don’t really know.

So true. Everything is really a matter of case-by-case judgment, and experts are constantly asked (maybe I should say forced) to make generalizations. The real world is full of paradox, and expert advice isn’t.

Brandon eloquently says:

In our experience, experts bring a lot of data, analysis, tables, graphs and anecdotes of what other practices have done; but when analyzing our business, they often lack deep perception of the situation and judgment.

Now, I’m not suggesting experts are not valuable. In fact, many have helped us. But what I am suggesting is that, at the end of the day, you know your business better than anybody else. So don’t rely solely on experts, because they really, truly, don’t know.

I’m supposedly an expert. I’ve made a living as an expert for most of my adult life. And what he wrote here  is absolutely right. In my opinion.

5. Challenges are a necessity of growth.

No explanation needed, but still, this is well put:

I have a love and hate relationships with challenges. Being tested is annoying, not gonna lie. But at the same time, I understand that these trials I am faced with enable me to be better prepared for future challenges.

6. Trust your gut.

Yeah, of course. One last quote:

Sure, there are data, statistics, analysis, reports, input from others, etc., that will help one steer toward the right direction; but very rarely will things be clear-cut or simply black and white. More often than not, one will have to trust yourself to do what is right without having 100 percent certainty of the outcome.

So what can I say? The only thing I don’t like about this list is that I didn’t think of it first.

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It may not be useful, but then few surveys really are, and at least this one is a lot of fun. That’s Survey: 75% of iPhone Users Have a Wholly Inappropriate Relationship With Their Phones as reported by Dan Nosowitz on his Fast Company blog.

The survey in question was done at Stanford by a group of students with a sense of humor. Here are some results (quoting Dan’s blog):

The researchers surveyed 200 iPhone-owning students, 70% of whom have owned their iPhones less than one year, on their oft-inappropriate relationships with the gadget. Some of the most important (read: funniest) findings:

  • 75% admit to falling asleep with their iPhones. 0% would admit what happened when the lights went off.
  • 30% of the respondents checked the box reading, “I consider my iPhone to be a ‘doorway to the world,’” which allows the researchers to say “30% of respondents consider their iPhone to be a ‘doorway to the world,’” even though nobody actually says that.
  • Under the question “Losing my iPhone would be…”, 41% checked “a tragedy.” Write-in responses included “Betty White.”
  • 8% admitted that they at some point have thought “My iPod is jealous of my iPhone.” 100% of those respondents giggled while telling their friends about that response.

I still think most surveys are bogus because of bias in the framing or the questions, or the selection of respondents, or interpretation of results. But at least this one seems kind of fun.

(With thanks to Ian Aspin for his tweet about it)

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It’s Referrals Week over at the Duct Tape Marketing blog, and this morning features a great article by Pamela Slim, author of Escape from Cubicle Nation, on how giving referrals to other businesses can actually help your own:

“Here is the good news: one of your unique differentiators can be your ability to refer your clients to fantastic people who compliment your work. You don’t have to know everything. You just have to know people who do.”

Read the full post at the Duct Tape Marketing blog…

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trunk

Recently, blogger Penelope Trunk announced that she is separating her blog from her brand (Brazen Careerist). My first thought was, “is that even possible?”

Her blog bills itself as “advice at the intersection of work and life,” and given her peculiar life and work, it actually works. Every post attempts to offer some useful career advice, while unavoidably incorporating some of Penelope’s own eccentricities (she even has a navigation section titled “My life disguised as career advice”).

It got me thinking, though. What happens when the personality IS the brand? Is it possible (or even desirable) to separate them? Are we talking about breaking up the Beatles, or more like breaking Sting free of The Police?

The Barefoot Contessa


There’s the case of Ina Garten, the Barefoot Contessa. When Garten bought an upscale food store in the late 1970s, she kept its brand, Barefoot Contessa, and fit her approach into it: simple and fun, earthy and elegant. Over the next 20 years, she built it into THE place to go for high-end take-out comfort food in the East Hamptons, with smoked salmon for $32 a pound, or, for the budget-minded, roasted potatoes for $11 per pound.

When Garten tired of the day-to-day running of the business, she sold it to the general manager and chef and moved upstairs (she retained ownership of the building) to figure out her next move.

That move turned out to be leveraging the Barefoot Contessa brand into cookbooks (and, eventually, a TV show).

It might seem counterintuitive (or even actionable) to sell a business with an existing brand, let it continue to operate under that brand, and yet continue to use that brand yourself for a separate business. But after all that time, Garten and the brand were synonymous. Quite aside from Ava Gardner, to many of her customers, she WAS The Barefoot Contessa. The store itself closed the year after the sale (possibly at Garten’s influence – she reportedly offered a different lease agreement unacceptable to the new owners). Whatever the behind-the-scenes maneuvers, The Barefoot Contessa has long outlived its original location, purpose, business, and owner, and is still going strong – as is Ina Garten.

Men With Pens

On another end of the spectrum is James Chartrand, freelance copywriter and founder of Men with Pens. For many customers, Men with Pens IS James Chartrand – his monthly advice on Copyblogger is as popular among writers as Dooce is with housewives.

The only problem is, James Chartrand is not a man.

One of the great benefits of virtual interactions, where copy is always digital and a “meeting” means an online chat, is that you can present yourself in any way you choose. As Chartrand explained in “Why James Chartrand Wears Women’s Underpants,” the ‘James Chartrand’ brand (the male pen name) simply did better than her own.

The male brand brought in more money, more respect, less hassle, and more jobs, for exactly the same work.

Despite this revelation, Men With Pens continues, with Chartrand at the helm. The brand has simply been reframed. Only time will tell whether letting her mask slip affects the power of the brand.

Experts and Owners

In our industry (business and marketing planning), we have a lot of experts who are essentially their own brand, from our own Tim Berry to Guy Kawasaki to John Jantsch. Offering advice as an expert, it’s almost unavoidable. Any independent accountant, any martial arts instructor, any small-business owner who has lots of personal contact with customers becomes the company brand. Or it becomes them, as with Garten. This is fine while the business is small, but what happens when you open another location? When you want to retire? When you want to change roles in the company?

Make sure you’re not letting your association with your brand get in the way of change or growth – either your growth, or that of your business.

-by Sara Prentice Manela
Editor
Palo Alto Software, Inc.

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Hmmm . Sylvia Ann Hewlett posts Why Women Are the Biggest Emerging Market on the Harvard Business Review site today.  She has some convincing statistics:

Women leaders are the new power behind the global economy, proclaims Deloitte Touche Tohmatsu‘s announcement of its second annual webcast celebrating International Women’s Day. In developing nations, women’s earned income is growing at 8.1 percent, compared with 5.8 percent for men. Globally, women control nearly $12 trillion of the $18 trillion total overall consumer spending, a figure predicted to rise to $15 trillion by 2014.

Question: Do you change your market message to appeal to one gender or the other?

Question: Can all business offerings be focused on one gender or the other? Are there some that can’t? Or shouldn’t?

Question: Is it the message that appeals to women? A gender-neutral product or service, with a gender-focused marketing message?

There’s a lot of paradox in this area. With some obvious exceptions, focusing on gender in marketing makes me uncomfortable. It leads to stereotypes. It leads to condescension in multiple directions.

On the other hand, may both genders be equal in freedom, choice, opportunity, education, earning potential, and power. But may that happen without dissolving gender differences. Well, real gender differences, not perceived or socially constructed gender differences.


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burnmoneyburn

Tales of woe regarding small business direct mailing campaigns are all too common. A while back, a fellow Duct Tape Marketing Coach shared a story she heard from a prospective client regarding a failed direct marketing campaign. Here are some of the relevant numbers from the campaign:
•    Number of pieces mailed: 9,800
•    Response: 1%
•    Inquiries: 97
•    Number of prospects phoned to qualify: 67
•    Cost of qualifying: $29 times 67: $1,943
•    Qualified leads: 13
•    Campaign costs: $10,000
•    Cost per lead: $918.69

I don’t have the numbers of final conversions and sales, but since the company’s average sale is approximately $850, it’s fair to say this was not a successful campaign.

This scenario plays out all too often and leads many small business owners to think “marketing just doesn’t work for my type of business.”

burnmoneyburnI don’t know all of the details about the campaign mentioned above, but during the discussion, I recognized some common mistakes that you should work hard to avoid in your next direct mail campaigns. Here are a few:

1.    Failing to use a well researched, narrowly targeted list. Of course, in order to do that you have to have a clear picture of your Ideal Customer Profile.

2.    Sending one batch of mail and then stopping. In order for your campaign to be effective, you will need to follow up. Follow up with additional mailings as well as telephone calls.

3.    Failing to test. Rather than sending out one huge mailing, send out some smaller, test batches. Test different layouts, messages, call to action, etc. Find the most successful one and send that one to your complete mailing list.

4.    Failing to have a strong call to action. Make sure to include a strong incentive for your prospect to contact you and begin the process of getting to Know, Like, and Trust you.

Direct mail campaigns, done correctly, can be a very powerful tool for small business marketing. One of its strengths is the ability to directly measure the effectiveness of the campaign — a must for small business owners.

The secret to burning through your marketing budget without really trying is to perform random marketing activities without tying them to an underlying strategy.  So if you want to have a successful direct mail campaign, start with a sound marketing strategy.

ducttapemarketingbadgeBill Brelsford is the owner of Rebar Business Builders. As an Authorized Duct Tape Marketing Coach, Bill works with professional service firms and independent professionals who want to spend less time chasing business and more time serving profitable customers.
phone: 913.962.9261
email: bill@rebarbusinessbuilders.com
web: http://www.RebarBusinessBuilders.com
blog: http://blog.rebarbusinessbuilders.com

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baseball

Every year around this time, I find baseball analogies everywhere. Spring training is underway, and for a baseball fan like me, it’s a hopeful time when my team has the world ahead of it and anything is possible. Everything reminds me of baseball.

That said, business planning and baseball, spring training in particular, have a lot in common. So here’s my list of 9 ways running a business is like baseball.

baseball

http://www.flickr.com/photos/tulanesally/ / CC BY 2.0

  1. Choosing your team – Item one on the spring training agenda is nailing down the roster. Contracts were taken care of over the winter, so teams already know what stars will be playing where. But the utility players, the rookies, and the guys on the verge… Spring training is the time for those players to show managers and coaches what they can do. And for the coaches and managers, they’ve got to look closely at the talent in front of them so they can figure out who’s going to help the team win today and who’s going back to the minors.
    Sound familiar? One of the hardest parts of running a business is hiring and managing your staff. Startups have a spring training season of their own, as they hire the first employees who are going to help them make their business a reality.
  2. Who goes where? – Managers don’t have to just figure out who’s on the team. They have to come up with batting orders and pitching rotations, bench players and scheduling matchups. It requires a lot of planning to assess your team and determine the best way to use it. In baseball, you bat your power hitter in the “cleanup position,” because that’s where he can drive in the most runs. In business, projects go to the best person for the job. Have a big sales pitch? Who’s your cleanup hitter?
  3. Getting in shape – In baseball, spring training provides a time for players to work out together, getting their bodies and minds ready for the season ahead.
    A good company makes sure their employees are “in shape” by giving them the tools they need to do their jobs. Whether this means updating computers or software, offering education and training so your crew can stay abreast of changes in the field, or providing benefits that help you maintain a healthy workplace, staying on top of these issues and making sure everyone’s ‘in shape’ will pay dividends in the long run.
  4. Changing the plan – In both baseball and business, plans have to be flexible. If something isn’t working, you don’t stick with it just because it’s written in your business plan or on your lineup card. Players get hurt or have slumps or sometimes just don’t perform how you expected. Sales stagnate or market conditions change. Adjusting your plan to the current reality is the only way to stay on top, whether you’re trying to win baseball games or run a business.
  5. Giving the customers what they want – Every team plays 162 games in the Major League Baseball season, which means 81 home games worth of seats to fill. Baseball team owners are like the owners of any other business — they have to give their customers value. But since they’re not in control of the final result of the game, value means creating an experience. The food, atmosphere, accessibility… Ball park experiences are about more than the game.
    How is this like your business? You can’t just think about your product as the be-all end-all. How is it delivered? How do you follow up? The experience your customer has with your company can make or break their overall view of you and your products. Filling the seats isn’t enough. You want those seats filled by people who are happy they came.
  6. People remember - Baseball fans keep track of things. Lots of statistic-minded fans can tell you the batting average of every player on their favorite team, going back 20 years or more. And it’s not uncommon for serious fans to hold grudges against opposing teams for losses suffered ages ago.
    Your customers remember things too. One bad experience and they not only will remember, they’ll tell their friends. Don’t underestimate the power of brand loyalty and word of mouth.

    Glover Bryant Communications

    Glover Bryant Communications

  7. The power of the pitch – It’s a baseball cliché: Pitching wins ballgames. Not much more to say about it. But do you know how important it is to have a great pitch for your business? Every business owner should be able to describe their business quickly, succinctly, and most of all, interestingly. You never know who you might meet at a party, checkout line, or in an elevator.
  8. It’s not always glamorous – In fact, lots of people find baseball really boring. Compared to other sports, the pace is kind of slow. But if you really know what to look for, you can pay attention to the game within the game. The strategy, the maneuvers, the nuances… The more you watch, the more you learn and the more enjoyable it is.
    Sounds a lot like planning a business, doesn’t it? Crunching numbers is pretty boring, unless they’re your numbers and you have a deep interest in what they mean. Pay attention to the details of your business, and you’ll be rewarded.
  9. Play a new game every day- A pitcher can give up 10 runs one day and throw a no-hitter in his next outing. Each day is a fresh start, a new opportunity to put another check mark in the WIN column. The best ball players watch video of their own performances, looking for ways to improve what they did yesterday.
    The most successful entrepreneurs and business owners do the equivalent. You don’t need video to look back at what you did last year; figure out what went wrong (or right!) and put that to work for your future.

If you learn anything about business from baseball, it should be that planning and adjusting are the keys to success.

And don’t forget the hot dogs.

Jay Snider
Palo Alto Software

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I think this is a quick clue to marketability: how quickly can you explain what your business does? Can you do it in 15 seconds? Can you do it in 25 words or less?

Two- and three-word explanations generally mean marketing is relatively easy: gourmet restaurant. Limo service. Web-based to-do list. Online project planning. Gardening blog.

Longer explanations can indicate problems with marketing. I can’t give easy examples here because the business offerings that take longer to explain are harder to remember.

I’ve had two examples that are memorable failures for me, in my business, that I link back to the problem of not being instantly explainable. One was an Excel add-on called Forecaster, which allowed the user to do spreadsheet projections by drawing a line with the mouse. Colossal failure. And the other one would take too long to explain.

There are always exceptions. But this explainability factor is a good general rule. Try it with your business, or business idea: how long does it really take to get the idea across?

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