Up and Running Blog

September 2010

What a great story here: The Big Gay Ice Cream Truck. Ed Levine posted it yesterday on the American Express OPEN forum. How’s this for positioning:

"It’s boring to just have a regular ice cream truck. New York City is full of them, and they all do the same stuff. We wanted to create something special." And so the Big Gay Ice Cream Truck was born.

Founder Doug Quint is a classical musician, with degrees from Julliard and such, working on his Ph.D. He plays the bassoon. But then he saw somebody renting an ice cream truck.

Yes, I know what you’re thinking: “What? Another ice cream truck in New York? Who needs it?”

Yes, but then there’s marketing . . . and a new world, lower barriers to entry, personalized marketing. Here’s what Doug and his partner Bryan Petroff did with the ice cream truck:

Doug and Bryan were new to food trucks, new to soft-serve ice cream, new to everything. They blogged about the journey: developing a brand, researching ice-cream topping ideas, obtaining a mobile food vendor license and bringing the Big Gay Ice Cream Truck to life. Readers felt like a part of the process because they really were. They weighed in, gave advice and watched Doug and Bryan’s vision unfold in real time.

And unfold in real time is what it did. The Big Gay Ice Cream truck is two summers old now, well-known and clearly successful. A new entrant in a crowded market, yes, but also a great example of what focus and identity can add to hard work.

 

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This morning, comedian Andy Borowitz tweeted that, “In honor of National Coffee Day, Starbucks is doing a special promotion where they try to get your order right.” You know you’ve made it when you’re the subject of a joke read by over 30,000 people.

Starbucks, the most-recognized coffee chain in the U.S., posted record profits earlier this year and is regularly one of the top corporate players in social media, with over 10 million Facebook fans.

While there are plenty of business owners who dislike competing with Starbucks and reject their target market as “new espresso drinkers” who have yet to embrace true coffee, there’s also a lot to learn, business-wise, from the Starbucks model:

  1. They gave customers what they didn’t yet know they wanted.
  2. They began in a place with a natural market, and replicated their success slowly through careful franchising and marketing.
  3. They chose their partners wisely. Their affiliation with Barnes & Noble did much to solidify the brand image of both chains.
  4. They responded to customer demand. While many of us are baffled to see a Starbucks on 2 or even 3 corners of the same intersection, the choice is not haphazard. Starbucks clustered stores for customer convenience, reducing lines and wait times so that the “affordable luxury” they offered wouldn’t become too expensive in customer time.

Our own Tim Berry applauded the main points of Starbucks’ founder Howard Behar’s book a couple of years ago, an awfully humanistic agenda for an international franchise. The summary he links to includes items such as Do It Because It’s Right, Not Because It’s Right for Your Resume, Care Like You Mean It, and We Are Human Beings First.

So, what’s your favorite coffee shop? And is it the coffee, or the attitude?

Sara Prentice Manela
Editor

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Do you know what your customer’s buying process looks like?

If you sell professional services, or other complex and\or expensive products and services, your customers probably view buying as a process rather than as an event.

If buyers go through a process to make their decisions then it makes sense that the more closely our marketing system is aligned to their process, the better our chances of being selected by them to provide our service. The key is to provide the information they need at each step of their buying process, so they can move forward to the next step.

In her book, eMarketing Strategies for the Complex Sale (Amazon affiliate link), Ardath Albee outlines a 7 step buying process.

1.    Status Quo – Beginning to experience a problem, but not ready to do anything about it
2.    Priority Shift – actively interested in learning what change might mean for their company
3.    Research – committed to resolving the problem and is focused on building a business case. Looking for experts and realistic outcomes he can plan for
4.    Options – Narrowing focus to develop a short list
5.    Step Backs –New information or concerns are causing hesitations
6.    Validation – Has a short list and needs to make sure his assumptions are true before making a final decision
7.    Choice – Ready to make a purchase decision

Your customers may go through a slightly different buying process, but I think this is a good place to start, particularly if you sell professional services.

One of the challenges that we face is that today’s customers perform much of their research and early decision making before we ever know about them. They research on the internet, talk to their friends and colleagues, read newspapers and magazines, etc., all before they speak to a sales person. In the buying process outlined above, it is not uncommon for buyers to be at step 4 (or further) before they ever have a sales conversation with someone at your company.

Our job as marketers is to provide the information that customers need at each stage of their buying process. By providing this information we help them move from one stage to the next, shortening their buying (and your sales) cycle.

The more complex the sale, the more decision makers and influencers will be involved. Don’t forget to provide the information needed to answer their questions as well.
KEY – We must provide the information prospects need to meet their goals and where they are at in their buying process.

Steps to take:

1.    Take the time to learn about your ideal customers and their goals
2.    Learn more about how your customers make buying decisions. Does the buying process outlined above hold true for your buyers? Who else helps them make their decisions to buy your services?
3.    Determine what information your prospects need to know at each stage of the buying process.
4.    Begin to update your marketing materials to
5.    Get in the habit of reviewing and updating your assumptions and materials on a regular basis.

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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Funny how the labels work: The lean startup tends to be called that because of a trendy and fast strategy, a lot of flexibility, and a high-powered startup mentality. Emphasize the phrase “high-powered.” But ultralight startups? That sounds to me like an extremely small and economical startup. I like the image it conjures. I think of ultralight as backpacking stoves, tents, sleeping bags, plus sporting equipment. It all sounds good to me.

I saw that phrase first in Ultralight startups: little capital, just computer published earlier this month. It starts with:

From his apartment in Berkeley’s student ghetto, 19-year-old Raymond Lei runs an online T-shirt printing business that grossed more than $60,000 in August, putting him on track to post more than $700,000 in sales this year.

It turns out that he started the company–ooshirts.com–in high school and has spent $2,200 on it so far. It’s a good story. And perhaps a trend:

“We have no firm data on the frequency of such events, but there’s no doubt that the new online model makes it very easy to start a business,” says Steve King of Emergent Research, an East Bay consultancy that has tracked “ultralight” startups.

I’m happy to credit Steve King with inventing the phrase, since his company is already tracking the ultralight startups. I think it’s something that’s always been there, but is, as Steve suggests, easier now than it used to be.

(Image credit: Chad Zemendorf/The Chronicle. You can click here, or click the image, for the original)

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It’s been awhile since I’ve posted here about the value of the local Small Business Development Centers (SBDCs), a network of about 1,000 locations in the United States, generally a great place to go for frontline, street-level small-business advice.

The SBDCs offer classes and one-on-one counseling sessions on practical topics related to starting and growing a business. The details vary by state and specific office, but usually you’ll find a good selection of specific classes on topics such as bookkeeping and employee management, offered in a mix of evening classes over several weeks, workshops for half a day or less, one-on-one counseling and longer-term programs.

The SBDCs are financed by three mostly public sources: the federal government (through the SBA), state governments and local education. Details are slightly different from state to state. The fees charged are surprisingly low.

SBDCs are strongest when asked to provide hands-on, ground-level practical advice to people who want to start or grow local businesses. You don’t go to the SBDC for high-level advice on getting millions of dollars in venture capital; you do go to the SBDC for practical advice on dealing with banks, local investors, local regulations, regular business tasks, local marketing, bookkeeping and administration.

Where I live, in Eugene, Ore., a lot of small businesses have been through our SBDC’s two-year, comprehensive night school management courses. The alumni group raves about the results.

This comes to mind because I’m traveling this week to attend the annual conference of the Association of Small Business Development Centers (ASBDC) in San Antonio, Texas. I’ve been a regular at the conference since 1995.

This year I’m going to present a three-hour workshop on teaching entrepreneurship using business planning, an introduction to a complete curriculum we’ve made available to teachers. That happens tomorrow at 2 p.m. at the conference in San Antonio.

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With so much “stuff” on the web about raising venture capital, I want to pass on this very good list of 7 tips for raising venture capital that I caught this morning when it was re-posted on Small Business Trends. The author, Prasad Thammineni, says he raised venture capital money last year, and it shows. I raised venture capital for my company about 10 years ago, and everything he says here rings true from my experience.

Just as a reminder, venture capital means money managed by professional investors. Some newbie entrepreneurs use that term to refer to any outside investment, but VC money is rare, reserved for only a few thousand startups per year, the cream of the crop.

I try to stay on top of this out of personal interest, experience and keeping up on trends for this blog. It’s been awhile since I’ve seen as realistic and practical a list as this one.

My personal favorites, of the seven, are the last two. And I think you should click either of the links above in my first paragraph to read the whole thing. But here are the headlines of all seven, with details from the last two:

1. Understanding your business is key.

2. Know when to raise capital.

3. Prepare for a long slog.

4. Approach VCs the right way. 

5. Practice your pitch.

6. Have due diligence materials ready.

We put together projections, operational stats and related legal files (as recommended by our lawyer) in one place online so that we could share the information with interested investors right away. We worked hard to keep momentum going when investors showed interest.

7. Hire a good lawyer.

Venture terms are constantly changing. VCs negotiate investment terms constantly; most entrepreneurs do so only once or twice in their careers. Without the help of an experienced venture lawyer, I don’t know how we would have gotten such a good deal.

Raising venture capital is a difficult process, but it can really help grow a business. Preparation is key to succeeding at the venture capital game!

Nice work.

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Here’s a conversation I have all the time:

Business Owner: “Almost all of my business comes from referrals. So I don’t need to do any other marketing.”
Me: “Great, then you have all the business you need!”
Business Owner: “Well, no. I’m pretty slow right now. ”

small business marketing ideas100% of Zero is still Zero!

Does anyone else see how illogical this argument is? So, let’s pretend for a minute that this business owner did other forms of (effective) marketing and instead of getting one new customer/job/sale a week, she got 3? All of a sudden only 30% of her customers are coming from referrals and 70% from other marketing. Referral marketing doesn’t look quite as omnipotent in that light, does it?

I’ve said it before – 100% of not enough is still not enough. Why put all your eggs in one basket? Why?

I know lots of business owners who do their due diligence; going to their weekly networking groups, asking customers for referrals, and working hard to be referable but what about the rest of the time? What are you doing to attract customers when you aren’t actively networking? That all takes a lot of time; what is the real cost of those referrals?

I’m not discounting referral marketing – it is the best marketing there is; when you have a system in place to harness its power. The problem is, most small businesses don’t have a system – they just show up and hope…

Marketing Doesn’t Work for My Business

My point is this- if you aren’t getting all the business you need then how can you say you don’t need any other form of marketing? “Well, marketing doesn’t work for my business.” – Another excuse I hear all the time. Is that your experience too? If so then here are 5 questions you need to ask yourself before declaring that your business is immune to the practice of Marketing.

  1. Was I doing the right type of marketing? Did you attempt to communicate with your customers and potential customers on their terms – or on yours? How do they prefer to be contacted? Direct Mail, telephone, email? It’s your job to find out and communicate with them accordingly.
  2. Did I stay with it long enough? Sending out one postcard, email or letter does not a marketing effort make. The key to effective marketing is repetition.
  3. Did I target the right people? If you can’t list at least 5 attributes of who you wanted to reach in your last campaign then you missed the mark. Your business serves a section of the population better than any other. It’s your job to learn what that section is and go and find them! Mass marketing to anyone and everyone is a waste of time and money.
  4. Did I follow up? Follow up an email or post card with a phone call or a phone call with an email or postcard…. The more we can “touch” our prospective customers the better our chances of converting them!
  5. What was my goal? What were you trying to achieve with your marketing campaign? Were you trying to build your email list? Make the phones ring? Get foot traffic? Without knowing what you were trying to achieve (and measuring it) how can you know if it worked or not?

Usually this is where I start to uncover the ugly truth: it’s not that “marketing” doesn’t work it’s that most small business owners don’t have the tools and the experience to market their companies effectively. If you want to get more customers, grow your business and not just “get by”, an effective marketing plan is the only way to get there.

I’d love to read your thoughts….

ducttapemarketingbadge Carolyn Higgins is the President and founder of Fortune Marketing Company. Her personal mission is to help small businesses stop wasting money on advertising and promotions that don’t deliver and help you implement an effective marketing system that will bring you more customers – consistently.

For more information about Carolyn Higgins and Fortune Marketing Company please visit http://www.FortuneMarketingCompany.com.
Email chiggins@fortunemarketingcompany.com or call us at 707.718.4489.

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Try this idea out: You’re starting your own business. It’s just you. You’ve already quit that other job, so you’re working on it all day, every day. Consider some of these options:

The home office: You settle into a comfortable home office, work your computer, work your phones, and work your refrigerator. You take meetings at clients’ offices or coffee shops. You do printing jobs at Kinkos.

You get companionship via Facebook and Twitter, and from your loved ones who share the house.  This worked well for me in my early stages, but a lot of people have trouble dealing with borders between home and work. My worst problem was the proximity to the refrigerator. The rent’s free, and the coffee is in the kitchen. And your favorite distractions are all there with you.

The small office: You ante up a monthly rental amount and open an office in a nearby office space. Now you have somewhere to go so you can separate work from home and draw those borders. Maybe, if it’s big enough, now you can take a meeting in the office. You have no distractions. And you walk to coffee alone, and get lunch alone. When the phone’s not ringing, you have your own thoughts to keep you company. Here too, these days, you might get companionship via Twitter and Facebook. But who are we kidding: That’s still just reading and typing.

I’ve done both of these first two options at different times. I’ve also had the home office with a couple of employees, which worked for a while but was really hard on the family, with non-family people in the house 40 hours or so a week. Back in the middle 1980s, when I was still in the home office in Palo Alto, some friends  who were also single-person businesses worked together in an open office space downtown where they could rent something like a cubicle with a desk in a large, open office space. They shared a meeting room, a copy machine and a fax machine. They also had company, and coworkers for the discussion of the latest draft, and the quick walk to the corner for coffee. And their rent, based on a desk and a cubicle, was less than for a small office. It seemed a nice compromise.

These days, that third option is called coworking.

Coworking: In this case, unlike the classic one-person entrepreneur, you’re not alone. You have an office to go to. When you get there, other people are around, talking at the water cooler or while waiting for the printer. You can talk about the game last night or your latest version of your prototype website. You can look around and find somebody to walk around the corner with for a cup of coffee or to get lunch.

That comes up because I noticed today that my friend Steve King is tracking coworking spaces over at Small Business Labs. His company, Emergent Research, has counted more than 250 of them, all of which meet these criteria:

  1. Self-identify as providing coworking space
  2. Offer a range of membership options
  3. Offer community space and/or activities
  4. Have coworking as an important part of the facility offering
  5. Cater to those using the facility for work-related purposes
  6. Be active

Personally, the home office worked really well for me. But I always saw the advantage of coworking, and I’m glad to see Steve and his group are keeping track of this trend.

If you’re interested in coworking spaces, in his post today Steve promises:

Over the coming months we will continue our research on coworking and the future of the workplace.  We will, of course, continue to report our finding on this blog and on our coworking project blog

(Image: from Emergent Research)

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Hone that elevator pitch, and it’s good for you–and maybe good for your business, too. British Airways is offering 250 winners free trips and some special event invitations, and the three top winners get to present their pitch to a celebrity panel. The overall winner gets airfare for 10 round-trip Club World flights.

If you accept the idea that pitching is good for you–which I believe is true–then you can’t lose with this one. Worse case, you’ve developed and delivered your business pitch.

My thanks to Steve Strauss for pointing this one out on Twitter.

And if you’re thinking of doing this, I have a short video on how to do a pitch . . . and a five-part series on how to do a business pitch, step by step.

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Watch Your Reviews–or Else!

by Tim Berry on September 8, 2010

True, good reviews are a very powerful marketing tool, and the new web makes them more accessible to entrepreneurs everywhere. Try any of the major search engines or any of the major mapping tools, search for a business–and watch the stars pop up. It’s cool, a great advantage to the user, customer and prospective customer, and potentially a nice marketing tool for all. But there are problems in that world, too. It’s not all fun and games.

For a good review of how to deal with reviews, I suggest three good posts on the subject by John Jantsch on his Duct Tape Marketing blog, in this order:

  1. First, from last February: “5 Ways to Rock Customer Review Sites”
  2. A follow-up post, from just a couple of weeks ago: “5 Ways to Get Rockin Reviews”
  3. And this one, about dealing with bad reviews: “Your Pizza Sucks And …”

A good reminder about what not to do came up recently with news of a PR firm getting caught seeding Apple’s iTunes store with fake reviews. John has some good advice for you on how to influence reviews without crossing ethical lines. And I want to add that trying to fake things is very dangerous in the long run. Not just ethically dangerous, but business dangerous, too. If you do a good analysis of the risks and rewards, what you lose in reputation when you get caught faking reviews is much worse than what you gain by doing it.

It’s a new world. If you’re marketing to consumers, don’t ignore review sites and reviews. Do it right.

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