One of the most difficult aspects of a small business is that customers call [OR STOP IN] constantly and expect you to be instantly accessible. Once they reach you, they expect you to drop everything to deal with their matters. Most business people, feeling they are obliged to respond to their customers, divert themselves from the tasks at hand and acquiesce to the customers' wishes. By the end of the day, you may have had 10 customer calls and have been diverted 10 times from the important matter on which you intended to work. You now have 10 files open on your desk, on each of which you have spent about 15 minutes. It is difficult to create any continuity of thought working this way.
It is estimated that for each interruption you have you lose 2 to 3 minutes of productivity on the matter from which you were diverted. Each time you return from an interruption you must take some time to reintegrate your mind with the original task. You have to answer the question, "Now, where was I?" If you have 10 interruptions a day, you spend 20-30 minutes a day answering that question. This translates to 80 to 120 hours a year in lost time and revenues just trying to find your place.
There is also the issue of your work product. Every business requires analysis, assimilation, problem solving and creativity. The more continuity you have in your thought processes, the better your work product will be. The more pushed you are for time, the more shortcuts you will be forced to take. Therefore, constant interruptions not only cost you time, but quality.
The key to producing more productive work is to understand the difference between accessibility and responsiveness.
Accessibility means the businessperson can be reached whenever the customer wants him/her. Though this is a great comfort and convenience to the customer, it is disruptive for the businessperson. Ultimately it is detrimental to the customer because it will cause the customer's work to take longer and the sum total of the interruptions will erode the integrity of the work product.
Responsiveness means the customer can depend on having a conversation with you in a reasonable period from the time from their call. It means you return calls promptly. Ironically, businesspeople that are highly accessible are often not very responsive. The result of being accessible is that they get so far behind, they don't have time to return calls. This exacerbates the problem because customers learn that the only way to get through to you is to call relentlessly, leading to more interruptions, more delays, etc.
To increase your productivity, you should limit your accessibility and be fastidious in your responsiveness. Contrary to popular belief, though customers want you to be instantly accessible, most do not expect that you will be. They do expect you will respond within a reasonable period of time. That period is within 24 hours (or the same day if possible).
If you have a pager or cell phone, NEVER give the numbers to customers. Your staff are the only people who should have the numbers. If you give the numbers to a customer, that customer will take it as a license to contact you any time he/she pleases (including 4:00 am on a Saturday morning) and will be indignant if you don't answer or return the call within 3 minutes. From the customer's perspective, if you don't answer or call immediately, you are obviously ignoring them, which is a brazen insult. Though it seems like the ultimate in attentive service, giving customers your pager or cell phone number is almost guaranteed to inflame customer relations and cost you your sanity. You may as well just reserve your room at the asylum now.
Fostering the entrepreneurial spirit!
Friday, October 19, 2012
Sunday, October 14, 2012
Common Problems Affecting Personal Productivity
In a large sense, the freedom that attracted the businessperson to the small business environment becomes a major contributor to the productivity challenge. The point of having sought that freedom was to escape the oppressive structure of larger environments. Unfortunately, when the pendulum swings too far in the other direction, the result can be chaos.
Being in a small business exposes a businessperson to a lot more details to be handled in various areas not previously experienced nor anticipated. If your previous life consisted of coming to work, working on specific matters given to you, keeping track of your hours and going home, running your own business is often a real shock.
The first thing that often happens to businesspeople is they get overwhelmed by minutiae. Life becomes one annoying little problem after another with no one to handle them but them.
In addition, there are more little distractions, especially non-”selling” phone calls from friends, family and others, with whom you would not think of having protracted conversations if someone were monitoring your time. Distractions you might have allowed five minutes while you were in a large company suddenly become 30 to 40 minute adventures.
Then there is your computer. Computers have a special magic feature that makes them periodically malfunction, or worse still, function perfectly and give you something completely different from what you wanted. The real sorcery occurs when you attempt to fix the problem. Large blocks of time mysteriously vanish. You start working on the problem at 8:30 AM and when you look up from your monitor fifteen minutes later, it is somehow 10:27 PM.
Learn to prioritize and organize and you WILL overcome this!
"That some should be rich shows that others may become rich, and hence is just encouragement to industry and enterprise." - Abraham Lincoln
Being in a small business exposes a businessperson to a lot more details to be handled in various areas not previously experienced nor anticipated. If your previous life consisted of coming to work, working on specific matters given to you, keeping track of your hours and going home, running your own business is often a real shock.
The first thing that often happens to businesspeople is they get overwhelmed by minutiae. Life becomes one annoying little problem after another with no one to handle them but them.
In addition, there are more little distractions, especially non-”selling” phone calls from friends, family and others, with whom you would not think of having protracted conversations if someone were monitoring your time. Distractions you might have allowed five minutes while you were in a large company suddenly become 30 to 40 minute adventures.
Then there is your computer. Computers have a special magic feature that makes them periodically malfunction, or worse still, function perfectly and give you something completely different from what you wanted. The real sorcery occurs when you attempt to fix the problem. Large blocks of time mysteriously vanish. You start working on the problem at 8:30 AM and when you look up from your monitor fifteen minutes later, it is somehow 10:27 PM.
Learn to prioritize and organize and you WILL overcome this!
"That some should be rich shows that others may become rich, and hence is just encouragement to industry and enterprise." - Abraham Lincoln
Wednesday, October 10, 2012
Ask People Why They Do Business With You
Testimonials are great, but successful companies do something more direct.
How often have you actually asked a person why they do business with you, and not your competition?
Have you ever?
Most people don't bring up the subject. They're afraid that the customer might start thinking about whether or not they should switch. Believe it that's not at all likely, unless they were on the verge of switching already. In that case, you'll find out now, when you have a chance to fix it, instead of later, after they're gone.
When the customer hears a sincere question from you that you genuinely want an answer for, you'll be surprised at how often you'll GET a direct answer. And you'll be surprised at some of the things you hear.
What you consider important might not be at all what the customer thinks matters. Ask them with a genuine interest (You DO want to know why people spend money with you, don't you?) and then listen. Ask for specifics. And when they've answered you, thank them.
When you see a pattern forming, use that in your advertising. Look for the things that are common to your most valued customers. Build on those strengths.
You'll also notice that, when your customers tell you out loud why they buy from you, they're also telling themselves. They reinforce the reasons that you are the one that they do business with. And that's the best advertising you can get.
How often have you actually asked a person why they do business with you, and not your competition?
Have you ever?
Most people don't bring up the subject. They're afraid that the customer might start thinking about whether or not they should switch. Believe it that's not at all likely, unless they were on the verge of switching already. In that case, you'll find out now, when you have a chance to fix it, instead of later, after they're gone.
When the customer hears a sincere question from you that you genuinely want an answer for, you'll be surprised at how often you'll GET a direct answer. And you'll be surprised at some of the things you hear.
What you consider important might not be at all what the customer thinks matters. Ask them with a genuine interest (You DO want to know why people spend money with you, don't you?) and then listen. Ask for specifics. And when they've answered you, thank them.
When you see a pattern forming, use that in your advertising. Look for the things that are common to your most valued customers. Build on those strengths.
You'll also notice that, when your customers tell you out loud why they buy from you, they're also telling themselves. They reinforce the reasons that you are the one that they do business with. And that's the best advertising you can get.
Wednesday, October 3, 2012
Be a Leader People Want to Follow
There is a real need for leaders to lose the pretense and posturing that is so common today in people with power. From government to industry, congressmen with ethics issues and heads of major corporations mishandling their roles, leaders seem to hold themselves to different standards then they hold those who they lead and represent. They foolishly live by… “do as I say, not as I do.”
Some of the greatest and most loved leaders of all times have been ‘just plain folks’ who were approachable, genuine, real, and down to earth. People want leaders that they can believe, relate to and who they know relate and care about them. It’s all about the people.
Sadly, the higher up in the leadership of anything the easier it becomes to become isolated and lose touch with the people who you are responsible for…. The people who depend on you and who you, in the end, depend on also.
By remaining humble and authentic anyone can face the challenges of leading effectively.
Prepared by the OED Content Committee
Some of the greatest and most loved leaders of all times have been ‘just plain folks’ who were approachable, genuine, real, and down to earth. People want leaders that they can believe, relate to and who they know relate and care about them. It’s all about the people.
Sadly, the higher up in the leadership of anything the easier it becomes to become isolated and lose touch with the people who you are responsible for…. The people who depend on you and who you, in the end, depend on also.
By remaining humble and authentic anyone can face the challenges of leading effectively.
Prepared by the OED Content Committee
Monday, October 1, 2012
Major Business Money Myths
There is no mystery to financial success ... it is only a matter of mind over money!
Myth: "If only we had more money coming in, everything would work out."
Reality: More income (sales) does not necessarily change the bottom line. More money coming in is usually matched by more money going out. This is because most businesses are "programmed" for a certain relationship between income and outflow. The chain must be broken ... discipline must be put in place so that profit is made at the level of revenues at the present time!
Myth: "Financial success ... well being is defined by how much money the company earns."
Reality: Financial success is really about how much a business keeps of what it "earns" not how much it earns. To build "wealth", a company must consistently earn more than it spends. Profit! Profit! Profit!..... Profit!
Myth: "In an inflationary economy, using credit ... borrowing .. is wise because it allows the company to buy what it needs (wants) and pay it off later ... when money will be worth less."
Realty: Debt is bondage and in most cases should be avoided whenever possible.
Myth: "Once in debt, it is almost impossible to get out."
Reality: Debt can be learned from and reversed. The first step is to alter the behavior that created the debt. The second is to work out a plan with the debtors to work it down.
Myth: "If the economy were better, we'd make more money."
Realty: Putting the blame outside the company does nothing to solve the company's money problems. Some company is "getting the work" ... how do you insure that it is your company?
Myth: "Money is the root of all evil."
Reality: In business ... money .. profit .. is the only reason to exist. The profit the company makes allows the owners, the employees, the vendors, and the customers to contribute more to the economy and their individual life styles ... quality of life. Without PROFIT there is no employment or growth!
(Created by the Organization for Entreprenurial Content Staff)
Myth: "If only we had more money coming in, everything would work out."
Reality: More income (sales) does not necessarily change the bottom line. More money coming in is usually matched by more money going out. This is because most businesses are "programmed" for a certain relationship between income and outflow. The chain must be broken ... discipline must be put in place so that profit is made at the level of revenues at the present time!
Myth: "Financial success ... well being is defined by how much money the company earns."
Reality: Financial success is really about how much a business keeps of what it "earns" not how much it earns. To build "wealth", a company must consistently earn more than it spends. Profit! Profit! Profit!..... Profit!
Myth: "In an inflationary economy, using credit ... borrowing .. is wise because it allows the company to buy what it needs (wants) and pay it off later ... when money will be worth less."
Realty: Debt is bondage and in most cases should be avoided whenever possible.
Myth: "Once in debt, it is almost impossible to get out."
Reality: Debt can be learned from and reversed. The first step is to alter the behavior that created the debt. The second is to work out a plan with the debtors to work it down.
Myth: "If the economy were better, we'd make more money."
Realty: Putting the blame outside the company does nothing to solve the company's money problems. Some company is "getting the work" ... how do you insure that it is your company?
Myth: "Money is the root of all evil."
Reality: In business ... money .. profit .. is the only reason to exist. The profit the company makes allows the owners, the employees, the vendors, and the customers to contribute more to the economy and their individual life styles ... quality of life. Without PROFIT there is no employment or growth!
(Created by the Organization for Entreprenurial Content Staff)
Sunday, September 30, 2012
Avoid the One-Shot Marketing Gamble
“A good follow-through is just as important in management as it is in bowling, tennis, or golf. Follow-through is the bridge between good planning and good results.” - Anonymous
The key to effective marketing is to find something you can afford--then use it over and over again.
Sometimes this means repeating your marketing faithfully for weeks or months. Only after your ad message has had plenty of time to sink in will the public begin to notice you and buy from your business.
"Which marketing tool should I use?" people often ask. Use the one that reaches your prospects AND that you can AFFORD to use consistently month after month!
Keep in mind that before anyone will buy from you, they have to notice your marketing messages. Then they must become interested in your message. Finally they have to decide to take action.
Don't get impatient. This three-step process takes time.
One of the most important elements of business success is not contacting prospects and customers to purchase what you're selling – but re-contacting them (Follow-up!). This, however, is precisely what most business people don't do.
They send some sales information to a prospect ... then wait.
They make a single phone call to a prospect ... but never follow-up.
They send a fax to a customer... and hope something happens, but don't send a second one.
Get the picture? It's as if millions of people had decided to stake their fate on a single throw of the dice... on sending one catalog, or one brochure, or one letter, or one fax, or making one phone call.
But this isn't the way to make MONEY!
The overwhelming majority of people do not respond to a single marketing communication... or a single phone call... or a single fax... or a single anything else.
No wonder. We're all bombarded every single day with marketing communications. You can't turn on the television or radio... or open a newspaper... or get a newsletter... or leaf through a trade publication... without getting inundated with one "get this now, this is good for you" marketing message after another. We're an "in-your-face" marketing culture all right.
Yet, in all too many cases, what's missing is the Follow-up – the systematic attempt to break through the marketing "noise" that assails all of us and get your message -- all your message -- in front of just the people you want to have it... and do what's necessary for them to grasp it and take appropriate action.
I can give you a six-word formula for success: "Think things through - then follow through." - Eddie Rickenbacker
The key to effective marketing is to find something you can afford--then use it over and over again.
Sometimes this means repeating your marketing faithfully for weeks or months. Only after your ad message has had plenty of time to sink in will the public begin to notice you and buy from your business.
"Which marketing tool should I use?" people often ask. Use the one that reaches your prospects AND that you can AFFORD to use consistently month after month!
Keep in mind that before anyone will buy from you, they have to notice your marketing messages. Then they must become interested in your message. Finally they have to decide to take action.
Don't get impatient. This three-step process takes time.
One of the most important elements of business success is not contacting prospects and customers to purchase what you're selling – but re-contacting them (Follow-up!). This, however, is precisely what most business people don't do.
They send some sales information to a prospect ... then wait.
They make a single phone call to a prospect ... but never follow-up.
They send a fax to a customer... and hope something happens, but don't send a second one.
Get the picture? It's as if millions of people had decided to stake their fate on a single throw of the dice... on sending one catalog, or one brochure, or one letter, or one fax, or making one phone call.
But this isn't the way to make MONEY!
The overwhelming majority of people do not respond to a single marketing communication... or a single phone call... or a single fax... or a single anything else.
No wonder. We're all bombarded every single day with marketing communications. You can't turn on the television or radio... or open a newspaper... or get a newsletter... or leaf through a trade publication... without getting inundated with one "get this now, this is good for you" marketing message after another. We're an "in-your-face" marketing culture all right.
Yet, in all too many cases, what's missing is the Follow-up – the systematic attempt to break through the marketing "noise" that assails all of us and get your message -- all your message -- in front of just the people you want to have it... and do what's necessary for them to grasp it and take appropriate action.
I can give you a six-word formula for success: "Think things through - then follow through." - Eddie Rickenbacker
Thursday, September 20, 2012
Are you Planning For Growth?
Are you Planning For Growth?
Over the past few years have you done very much long-range planning for growth?
If you are forward looking and flexible in your thinking, more than likely you will be continually planning and executing changes - for change is a dominant aspect of modern competitive life. Although a wise businessperson respects the past, they should never be bound by it. Your long-range planning should take into consideration all of the following: selling methods and sales training, sales promotion media and devices, customer services, addition of income bringing services, building modernization (fixtures and equipment), branch development or location change, financing (especially the reinvestment of earnings).
Do day-by-day activities involve you so much that you find no opportunity for advance planning?
The small business owner must be both a planner and a doer. Day-to-day activities can be delegated so that you can do more important planning.
When you find that change is called for, do you act decisively and creatively?
Risk is always present in business. Some of it can be reduced by insurance. But there is no way to hedge on long-range planning. Once you have decided to make a change - based on all available facts - you should enter into the project wholeheartedly.
Do you find that recurring crisis force you to make most of your changes before you have been able to give them thoughtful analysis?
The failure to plan for changes that must be made if you are to hold your customers and attract new ones leads to great waste and poor management practices. Sudden changes add unnecessarily to your expenses, they disturb your established customers, and they upset your employees' morale.
When you determine that you must make a change in some policy or practice, plan ahead carefully and give all those involved a clear account of what is going to be done. By planning ahead, you lessen the possibility of crises and the need for snap judgments.
Do you have someone ready to take your place in case of emergency?
The uncertainties of life are many. You should have someone ready to keep the business running smoothly, if something should happen to you, until such time as a long-range decision can be made.
Are you grooming someone to succeed you in the not too distant future?
No matter how young the management of a business is, unforeseen disabilities can occur at any time. Someone should always be in training as a successor; otherwise, the business is no more secure than the health of its owner-manager.
Over the past few years have you done very much long-range planning for growth?
If you are forward looking and flexible in your thinking, more than likely you will be continually planning and executing changes - for change is a dominant aspect of modern competitive life. Although a wise businessperson respects the past, they should never be bound by it. Your long-range planning should take into consideration all of the following: selling methods and sales training, sales promotion media and devices, customer services, addition of income bringing services, building modernization (fixtures and equipment), branch development or location change, financing (especially the reinvestment of earnings).
Do day-by-day activities involve you so much that you find no opportunity for advance planning?
The small business owner must be both a planner and a doer. Day-to-day activities can be delegated so that you can do more important planning.
When you find that change is called for, do you act decisively and creatively?
Risk is always present in business. Some of it can be reduced by insurance. But there is no way to hedge on long-range planning. Once you have decided to make a change - based on all available facts - you should enter into the project wholeheartedly.
Do you find that recurring crisis force you to make most of your changes before you have been able to give them thoughtful analysis?
The failure to plan for changes that must be made if you are to hold your customers and attract new ones leads to great waste and poor management practices. Sudden changes add unnecessarily to your expenses, they disturb your established customers, and they upset your employees' morale.
When you determine that you must make a change in some policy or practice, plan ahead carefully and give all those involved a clear account of what is going to be done. By planning ahead, you lessen the possibility of crises and the need for snap judgments.
Do you have someone ready to take your place in case of emergency?
The uncertainties of life are many. You should have someone ready to keep the business running smoothly, if something should happen to you, until such time as a long-range decision can be made.
Are you grooming someone to succeed you in the not too distant future?
No matter how young the management of a business is, unforeseen disabilities can occur at any time. Someone should always be in training as a successor; otherwise, the business is no more secure than the health of its owner-manager.
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