Wise Wednesdays

People who say it can’t be done are usually interrupted by someone doing it.

Be careful about gross generalizations that don’t serve you. I hear this often: “The economy is getting tougher and people won’t spend. It’s not a good time to start a business.” My response is, “you get up in the morning, get dressed, make your coffee and go to work. You still buy.” In fact, many entrepreneurs may fare well in a downturn as established firms cut back on expansion -- a great opportunity to find a niche and fill it. People who say it can’t be done are usually interrupted by someone doing it.

What is important is the ability to learn about the market you want to sell to. It’s about the specifics. Making assumptions, without testing them, can be the costliest mistake you can make.

Ask yourself: How well do you know the market you want to sell to? Who are you selling to? What are they buying? Why are they buying? When do they buy? Where do they go to buy?

Last week’s Wise Trivia question: Generally, how long does it take before your business is a success?

Answer: Generally it will take you three times as long to get your business off the ground, then you had planned it would. So that date you had planned to be running your business fulltime in May probably won’t happen until the following year. Managing expectations is a tricky thing, especially in business. We fool ourselves into thinking we can achieve results quickly.

Do yourself a favour if you want to start a business then set timelines: When you’ll take that business seminar, finish that business plan, talk to people in the industry etc. Stick to it. Re-set your goals. Have a sense of urgency but be committed to doing it over a longer period of time.

You noticed I made an assumption. Except that this assumption has been tested by me and many other entrepreneurs time-and-time again.

This week’s Wise Trivia question: Where do most business start-ups get their financing from? (Find out next week).

Forgetful Fridays- You Gotta Have Heart

How are you going to thank your customers this holiday season? For many- this is a busy time of year and it can be hard to find the time to give back. But where would we be without our customers? 

Whether it is a simple card, a gift certificate, or a present of some kind it is important to let your clients know how much you value them. This is not just good business practice, it helps strengthen the relationships that you have with your customers. Think of how you feel when one of your suppliers goes out of their way to say "thanks" for your patronage- it makes you feel appreciated and creates a natural response that makes you want to continue to do business with that supplier.

It can be beneficial to create a "thank you" program as part of any marketing strategy and the holiday season is a great time to start it.

Forgetful Fridays Lesson #2- Remember to Say Thanks

Jen

Thoughtful Thursdays - Getting Out of The Gate

Last Thursday I indicated there are always obstacles to achieving sales. "For some it begins with just getting out of the gate and making the calls to prospective customers."

If you can identify with this, then there is a likelihood that you are the obstacle. Most agree that sooner or later you will have to talk to someone in order to sell your product or service. When you are not getting out there what expectations can you seriously have for making sales? No prospects = no sales.

What is keeping you from making those calls?

• You have to work on your brochure
• The print shop is holding you up
• You have to work on your website
• Your computer crashed
• You need to do more research
• It was raining

None of the above are acceptable reasons in my opinion, so I ask another question: What are you fearful of? Lack of confidence is one of the reasons we procratinate. If left unchecked this a situation can develop where you get in your own way, using convenient excuses like the ones listed above justifying to yourself why you are not making the calls.

One solution to this common issue begins with asking yourself what are the worst things a potential customer could say to you, and writing them down.

Next, take each one and determine if your anticipated fears are valid. Why are you fearful of that particular response? There shouldn't be any questions about the product(s) or service(s) you are offering you can not anwer, it is your business after all.

What I am encouraging is pre-call preparation to help mitigate the fears you may have. Anticipating objections and having the answers ready can be a real confidence builder. There is really little to fear. You already know that not everyone will be your customer, and you will get objections, that's life. It's how you address those objections that makes the difference between walking away and making the sale.

The next time you catch yourself talking yourself out of making a call, think about what your fears are and address them. If your competitor is getting out of the gate faster, you might risk loosing the sale, and that is not good.

Richard

Wise Wednesdays

What is the Purpose of a Business?

Whenever I start a workshop I ask the group this question: What is the purpose of a business?

Most people reply, “to be your own boss … for creative self-expression … to create fulfilling work.” All are incorrect. These may be your motives however the purpose of a business is to find and keep customers at a profit. Period.

I had two graphic designers as clients. Both had similar skills and decent portfolios. George (not his real name) focused on doing creative fulfilling work. He failed. Jonathan (not his real name) focused on activities that helped him get clients: Selling and networking. He dreaded doing these activities. Eventually he got better at it. Jonathan ended up hiring people and his business is thriving today.

Let’s be perfectly clear: Doing creative fulfilling work is important. However, not all your needs can be met at work. Most entrepreneurs realize early on if they are to be successful they will have to do things they don’t like to do. Selling. Networking. Watching their dollars. Be prepared to give something up. The Dalai Lama has a great saying, “judge your success by what you had to give up to achieve it” (and you better be prepared to give up more than just that Mocha Latte you have in the mornings!)

What are you willing to give up to be a successful entrepreneur?

Last week’s Wise Trivia: What type of businesses are successful 90% of the time? Franchises – 80 to 90% of franchises that start are still in business 5 years down the road.

You may say that franchises are really not run by entrepreneurs (because they are given a turnkey operation). However, franchises offer a valuable lesson. Franchises have a process they follow on meeting customer expectations. Each customer has a consistent experience. You walk into a Second Cup and you know you can find that Mocha Latte you so relish.

As an entrepreneur, you are creating a system, a process that the customer experiences. Can you describe the process, in detail, from the time a potential client comes in contact with you to the time they have bought your goods or services?

This week’s Wise Trivia: Generally, how long does it take before your business is a success and how much resources will you need? (Find out next week).

Cheers,

Dominik

Forgetful Fridays

I can't promise to be as dependable as Dominik and Richard- writers of Wise Wednesdays and Thoughtful Thursdays respectively- so I have taken up writing Forgetful Fridays.

Juggling the demands of my business with those of being a business advisor and trying to have a life, can leave it hard to find time to get everything done. That's a pretty common struggle for entrepreneurs and one of the best ways to manage all that you have to do is to manage expectations. It is important to be honest with yourself and with those that you do business with about what you can do and what you can't. The temptation can be to say yes to everything that comes your way, but if you can't come through when you promised you would, it does more damage to your reputation than saying no in the first place.

So in that spirit- I can't promise that I will be able to write something every week, but I hope that the title I have chosen has set the correct expectations.

Forgetful Fridays Lesson #1- Don't Over Promise and Under Deliver

Jenifer Forrest

Thoughtful Thursdays - What Are Your Sales Challenges?

I have worked with many business owners as they launched their ventures. One of the most common barriers to success they experience is the challenge of achieving forecasted sales revenues.

For some it begins with just getting out of the gate and making the calls to prospective customers. For others it is much further along in the sales cycle when it comes time to closing the deal.

No matter where you are in the sales process there are obstacles to overcome. Knowing how to address these challenges is the key to success.

I recently met with a client who is having difficulty closing a sale. When asked what they thought the issue might be the response was: “I think they (the prospect) are hesitating to purchase because …” Stop the presses! Stop thinking for the customer and find out for sure. Ultimately the deal may never close but it is up to you to find out why it went off the rails. The answer I was looking for would begin: “They (the prospect) told me the reason for the delay was…” It is tough to help when the issue is not positively identified.

Selling is very near and dear to my heart. Admittedly biased, I believe the sales function is the most important component in any business. This is where the rubber hits the road as they say.

Every Thursday I will be sharing thoughts and experiences on the subject of sales and welcome your comments and feedback.

Richard

Wise Wednesdays

Building a Foundation for Your Business

My ten years experience in helping entrepreneurs succeed has taught me that many people still have misconceptions on what it means to start their own business. Beginning today and every Wednesday hereafter, I will be discussing a topic of interest to budding entrepreneurs. The advice on this blog will not be found in text books. Nor will you hear about the latest and greatest business idea. Instead I want to share my experience with those who have a business idea or who have just started their company and want street-smart advice. Think of Wise Wednesdays as stepping stones in moving you closer to a thriving business.

Where Are You Now?

Common questions I get from budding entrepreneurs are, “Should I register my business?”, “Should I have a website?” or “Where can I get a loan/grant?” My response is, “Where are you now?” They look at me puzzled as if I am talking in Sanskrit. “Where are you now?” is one of the most fundamental questions any entrepreneur can ask themselves in determining what they need to do next.

Someone who wants to start a restaurant business, for example, but has limited restaurant experience, I would recommend to get more experience in the field (and some money in their bank account) first. For someone who is struggling financially, and has a large debt, I would recommend they have a plan to work that out, first. For someone who has a lot of experience in the business they want to pursue but very limited sales experience I would recommend they practice their sales/networking skills, first. In each of these cases the recommendations are tailored to the where the individual is now and the essential gap they need to fill before moving on.

The truth is that pursuing a business, and most successful businesses will have some sort of vision/mission, is unsustainable without some kind of foundation. You wouldn’t place a roof on a house with a weak frame. You would be surprised how many entrepreneurs do. Although some would-be entrepreneurs find it frustrating when I ask them tough questions I am weary of giving formula type answers to new entrepreneurs: This can lead them to believe that there is magic pill that will solve all their business problems. In fact a bitter pill, sometimes, is the best answer.

What bitter pills have you had to take as an entrepreneur? Let me know.

Cheers,

Dominik

Wise Trivia: What type of businesses are successful 90% of the time? (Find out next week).