Out-Thinking Your Grinch
Friday 2/12/10Factoid #1: According to the U.S. Census Bureau, as of 2006, there were about 13.6 million companies nationwide, employing almost 120 million Americans.
Factoid #2: More than five million of those companies have fewer than 20 workers each and -- all told -- these five million firms employ 21 million people.
If you work for one of those 5 million small companies, the bad news is it's been a difficult 18 months, and not everyone has made it. The good news is if you have made it, you're probably stronger, leaner and smarter than you were. The better news is the downhill slide seems to have slowed and it feels like we're at the cusp of a recovery period.
In fact, the current vibe reminds me of the scene in "How the Grinch Stole Christmas" when the Grinch and his dog Max are trying to keep a ridiculously over-packed sleigh from plunging into the valley below and destroying all the Whos' Christmas paraphernalia.
Do you remember what kept the sleigh from going over…? What gave the Grinch the strength not only to save the Christmas trappings, but also to return everything to his Who neighbors?
It was the fact that the Grinch's heart grew three sizes that day. When he heard the Whos singing and saw that "he hadn't stopped Christmas from coming," the Grinch realized that Christmas was more than material things.
In the same way, we couldn't stop the recession from coming (it came, just the same…), so the question now is, what can we do to grow our own hearts three sizes to give us super-strength and keep our own sleighs from plunging into the abyss?
We've identified three basic steps, which we'll explore in the next three installments of this column:
- Identify both the strengths and opportunities you have to grow your business.
- Create a game plan that builds on those strengths and takes advantage of those opportunities.
- Execute and evolve that plan, and continue to build momentum.
Step 1. Identify both the strengths and opportunities you have to grow your business.
You may not realize it, but as a small business you have several strengths that can work for you. For instance…
- Nimbleness: With your small size and flat hierarchy, your business can respond at light speed to meet changing market demands and conditions. Need an example? Look at social media. A small PR entrepreneur with a laptop and a great idea can launch a social media campaign in the morning, collect daily (or even hourly) stats to see if it's working, then adapt it if needed.
- Minimal Fluff: Your leaner management structure and reduced middle management give you the ability to price more aggressively. Need an example? Pick any Wall Street firm.
- Keen Motivation: In this economy, you have a strong incentive (read, "people you sit next to") to build and maintain a stable client base with good cash flow and on-time payments, so you take extra pains to pay attention to them and are careful not to take them for granted.
- On the other hand, there are a few unique challenges that are inherent to small businesses. These objections are not insurmountable, but it's helpful to anticipate them so you can address them easily when they appear. For instance…
- Insufficient Staffing: Some prospects assume that a "small staff" means "limited ability." That is patently false. A small staff simply means that you have enough people to do the work you bring in…no more, no less. In fact, when you have more work, you can quickly hire extra staff without having to get approval from a top-heavy management structure. And you can do so without losing sight of the client relationship.
- Limited Resources: Some small businesses aren't in a position to offer a wide variety of services in-house, so they make a point of seeking out and creating partnerships with other small businesses to fill their gaps, meaning that a prospect who hires your firm can get access to a consortium of specialists. And when you are ready to grow your small business, you can do so organically by hiring exactly the people you need to suit your clients.
- Staying Power: Though it's not mentioned in polite society, prospects can sometimes be hesitant about working with small firms because they've not been proven. And in this economy, who can blame them? No one wants to create a relationship with a vendor, grow to trust and rely on them, then get the phone call/letter/email/visit announcing that the circus is leaving town.
Addressing this objection is probably the most difficult. It requires time and persistence to convince a prospect to take a chance. One idea that can work well is to start working with a local nonprofit to build your reputation. Be sure that whatever services you donate can be easily promoted, and attend events so prospects know that your volunteer work comes from a personal commitment.
What other strengths and opportunities do you find in your travels? I'd love to hear about them…email me at adam@gladworks.com.
Next month, we'll look at how to create a game plan that makes the most of your strengths and opportunities.
Six Degrees of Social Networking
Thursday 10/1/09I'm only three degrees from Kevin Bacon. And I'm three degrees from Hillary Clinton. In fact, I'm only two degrees from Barack Obama. (Sadly, Cal Ripken, Jr. is out of my network.)
How do I know this? Because LinkedIn tells me so.
LinkedIn and other networking services like Facebook, Twitter, StartUp Nation, Qapacity, Classmates.com exist for one reason: to connect people with other people. The reason for the connection and the tone of the introduction may vary depending on the networking site, but the mission is still the same.
Social networking sites are the virtual equivalent of, "I know a guy who knows a guy." And since most folks want to be helpful in some way, they're usually more than happy to introduce you to "the guy."
How to request and make use of that introduction is really the point of this article. How can you use your social networking sites most successfully? There are six degrees for that, too:
- First Degree: Populate yourself. Join several social networks. Make sure they're relevant to your business and personality profile so that you can reach more appropriate targets (it won't help you if you're the only adult professional with a MySpace page). Familiarize yourself with each one you use and join groups so you can build a community. Networking is a numbers game; make the numbers work for you.
- Second Degree: Find the target. Every social networking site offers you a way to "find people." If there's a specific person you want to meet (say, the purchasing manager of your dream client), look for them...everywhere. Check all of your networks (per the first degree) so you don't miss any opportunities.
- Third Degree: Learn who your target is. This idea holds true whether your target is a hoped-for client, a potential employee or a long-lost friend. Before you reach out to this person, you want to know as much as you can about them. Where do they work now and where have they worked in the past? What are their hobbies? Do they volunteer somewhere? Get to know and understand them, and your overtures will be more informed...and more readily received.
- Fourth Degree: Look for the connectors. There's a social theory that proposes that some people in the world are connectors. They're the folks who know someone in every city...in every walk of life...who do every conceivable job. And more importantly, these connectors delight in introducing those people to others. Chances are, if your target is well-known in the industry or community, the connectors you know will know someone who can help get you to your target.
Sometimes, you may find that you have several connectors who can help you reach your target. If that's the case, start with the strongest one for the initial intro but don't lose sight of your "supporting connectors." If your target perceives that you know many of the same people, they'll see you as a valuable connection and wonder why you haven't crossed paths before.
- Fifth Degree: Think about what you want. There's nothing more uncomfortable than being introduced to someone at a cocktail and, after the initial three minutes of conversation, having nothing to say to them. Believe it or not, that same awkwardness is possible online as well. So before you ask your connector to make the introduction, think about what you're trying to accomplish by this communication. Do you want a new board member for your pet nonprofit? Do you want to find out if a potential new-hire is worth training? Do you want to secure an appointment with a hard-to-reach prospect? Plan it out in advance so you have a ready follow-up after the initial contact.
- Sixth Degree: Seek out the introduction. Now that you know who you want to reach, how you want to reach them, and what you want to accomplish, it's time to make the ask. Be specific in your inquiry to your connector. And make sure they're comfortable connecting you with your target. If for some reason they aren't, don't give up: ask for an alternative option. Try something like, "I can understand that this request could put you in an awkward position since you're no longer working with that client. Do you know someone else who could introduce me?" Or maybe, "How would you recommend I try to connect with them if not through you?"
Actively using your social network to develop a community takes time, and it can be uncomfortable the first time or two. But once you get the hang of it, you'll be amazed at how time-efficient it can be and wonder how you ever got along without it.
So, what's next? Go forth and network!
Next month, we'll discuss how you can make your website "Flashier"!
How a Blog Is Like a Virtual Pet
Saturday 8/1/09Do you remember the virtual pet fad in the mid to late 90s? Thousands of children (and yes, some adults, too) had keyrings with digital "pets" that required virtual food and virtual care. They got sick, made messes and could even pass into the great digital beyond. (Not to worry; you could reset them back to life.)
Virtual pets faded out of fashion relatively quickly. Because they required constant attention during the day, kids took them to school so they could "care" for them. When the students became distracted during classes, many schools banned them. (Or maybe it was just that teachers got tired of hearing the constant beeping...)
Yet, digital pets were credited with one social good: they demonstrated to some folks that they were just not ready for the responsibilities of owning a real pet. If they couldn't remember to feed, water and play with a fake pet, it seemed unlikely that they'd be more careful with a live one. (And restarting a virtual pet is a lot easier than doing it with a real one.)
Having a blog is much like having a digital pet.
It requires regular attention, and its long-term health is dependent on your diligence, patience and care.
Why should you consider a blog?
- A blog can help your clients see the personal side of your company. Reading your posts, they can learn about you to see if you're someone they want to work with. And because blogs are generally informal, they tend to allow for more opinion-based content than many forums so you can be more "you."
- It's a little easier to show off in a blog without sounding boastful (a turnoff in most corporate situations). With your posts, you can casually relate experiences, share about exciting new projects, and demonstrate your expertise without appearing egocentric.
- From a marketing perspective, blogs are searchable so keywords can help more prospects find you. And since many bloggers post referrals to other blogs, you can benefit from virtual word-of-mouth that reaches far beyond your sphere.
Still interested? Keep these things in mind as you plan for this new addition to your family:
Feed me, Seymour. The best blogs are updated regularly. At a minimum, you should expect to post at least two or three times per week. If you don't have the time yourself and you don't have someone in your organization who's passionate about blogging, you may not be ready to take on this task.
Say what?! If you're going to launch your company into the blogosphere, make sure you have something to say. It's fine to repackage another's thoughts occasionally (assuming, of course, that you attribute it as such), but who wants to read secondhand information? Be authentic by generating original content about your company's culture, philosophy and work. Your readers will be able to tell if you're snowing them.
Go ahead; I'm listening. Remember that the purpose of most blogs is to start a discussion. You want others to respond to your posts...whether they think you're absolutely right or they believe you're a complete loon. Any kind of feedback can be useful if you know what to do with it. Prepare yourself to encounter resistance; not everyone will agree with you, but isn't that what democracy is all about?
Stay tuned! Stay engaged with your audience. If you simply post a blog and walk away, you're missing half the fun. When you start the dialogue, stick around to see what people think about it. Their feedback can also help you become a better blogger; if they miss your point, you may not have been as clear as you could be.
Note: You also want to stay tuned for responses to your posts so you can monitor others' comments. A negative comment that starts a grumbling discontent could require you to put out a fire or effect some damage control.
Act now for this special offer! If you've decided you're ready to blog, remember that you need to promote this service just like any other product or service you offer. Mention it on your company's website, include it in any direct mail pieces or e-blasts, even add it to the signature line of your email. If not, you may find that the only responses to your posts are coming from your coworkers.
It's true that having a blog is a big responsibility, but just like pet ownership it can be rewarding, touching, and hysterically funny. Now press RESET and get blogging!
Next month, join us as we explore the mysteries of pay-per-click (PPC) advertising.
How to Network in 3 Minutes or Less
Monday 12/1/08It happens every day.
You're going to the dentist/supermarket/PTA meeting and you run into someone you haven't seen in years. What happens next? Recognition, check-ins on one another's families and then, the inevitable question: "So, where are you working now?"
And just like that, you're on stage and have to demonstrate that (a) you know what you do for a living; (b) you can describe it to an outsider; and most importantly (c) you can sell it to this person who may be a prospective client.
There are lots of resources that can help you craft the perfect elevator speech which, despite the term, doesn't need to take place in an elevator, nor does it have to be a memorized speech.
Instead, it's important to have in your repertoire a few well-crafted sentences and phrases which accurately describe you and your company so that you can share them in a natural, conversational way. By keeping any networking interaction friendly and low-pressure, you'll actually connect with the prospect as a person rather than as a [gulp] "salesperson."
For instance, when I'm in this situation and someone says, "So, Adam, what are you up to now?" I typically respond with something like, "I'm co-owner of a marketing and web development firm in Providence."
That's short and sweet, and often it satisfies a top-level inquiry. If the person responds with, "Oh, really? We were just talking about updating our company's website, but it's so much work," I can start asking him for more information about their experiences -- and listening for pain points [which may be helpful if they become a client!]. More often than not, such a conversation ends about three minutes later with a plan to call later and book a meeting.
That's it. My goal with this encounter is not to describe what it takes to build a website or to convince them that our agency can build their website with less stress. Instead, this simple conversation lays the groundwork for building a relationship. Remember: no one will buy a truckload of widgets at their daughter's ballet recital, but they may agree to your calling them later in the week to book a meeting.
The lesson in all this? Be prepared to talk about yourself briefly... and to engage others fully. People want to know enough about your business so they can decide if you may be able to help them, so figure out what they need to know and tell them. Then stop talking and listen.
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It seems hard to believe, but this article wraps up our series for 2008! Check back in the new year for more tips and suggestions on ways to continue building your business. And have a great holiday season!
Let's Take It Outside, Shall We?
Thursday 5/1/08Outdoor media is perhaps the most original grassroots promotional tool.
Think about it: traditional outdoor media includes everything from the old Burma Shave signs to the signs for your front-yard lemonade stand or yard sale. You see outdoor advertising every day but perhaps you've thought it's not the best way to market your product or service.
That may be, but consider this: on a broader scale, outdoor media includes not only billboards but also taxi toppers, bus shelters and benches, and signage in shopping malls. And what about signage in stadiums, movie theaters and convenience stores?
Still think it's not for you?
Outdoor media is prevalent across our cultural landscape, and it's a simple and relatively inexpensive way to reach your consumers. Because of its cost-effectiveness, this tactic is becoming a larger part of companies' advertising dollars.
In a society that is time poor--and growing poorer by the minute--it's important to reach your target audience where they live and work. You can ensure they experience your message by permeating their world and surrounding them with your message, informing and persuading along the way.
Makes you wonder how you've lived without it for this long, doesn't it?
There are some general guidelines about how to create winning advertising for outdoor venues:
- Less is more. Use no more than two or three images to simplify the visual message your audience receives. Pick the most important message--the one that will make your prospect's life better--and communicate that.
- Less is really more. While outdoor media generally ensures that your message will be viewed repeatedly, use minimal copy to make sure it's read (and understood) quickly. The rule of thumb is a maximum of five to eight words.
- What can I do for you today? What is it, exactly, that you want your client to do? Call you? Visit your website? Go to your store? Tell them.
- Are you talking to ME? Make sure that your message is appropriate to your audience. If your message will reach a local Rhode Island audience, they'll understand references to the big blue bug. But if you're trying to reach a national audience, your message will be lost.
- And you are...? Remember that whatever design you use for your outdoor media, it should be consistent with your overall branding. A campaign that doesn't relate to who you are, or who you're planning to be, is probably one you should rethink.
Next month, we'll review one of the latest trends: guerilla marketing. Is it for you?
Online social networking may be a foreign concept to you, but trust me: it's not foreign to the new group of Gen Y adults who will be your clients tomorrow. Succeeding in the coming years will mean embracing (or at least, accepting) this technology and understanding how it can work for you.
And rest assured: it can work for you. Let me tell you how:
Professionally speaking, online social networking is more about the "networking" and less about the "social." Most of us are used to connecting with people face to face through our address books, rolodexes or PDAs, and you can easily apply the same principles to online relationships.
Services like LinkedIn and ZeroDegrees allow you to invite friends, family and colleagues to join your "group" (and through them, all of their "groups"), potentially connecting you to lots of people you may not know. And since many of these services are currently free, there's no downside to your invitees for participating.
Much like online dating, you can use these services to virtually meet people who may be able to use your products and services, which then can lead to real-life introductions... which can lead to real-life sales.
So what do you need to know? The same rules that apply to online dating apply for professional online networking:
- Always get a picture. Make sure you know as much as possible about your prospect and their company before you meet them. Is this someone you may want to see again?
- Use email to see if this person is someone you'd want to spend time with. Sometimes the resume and research make a prospect sound perfect, but when you start learning what they do day-to-day, you may realize they're not the person in a position to actually buy your products. If not, change your expectations.
- Invite a friend. If you realize that your prospect is not necessarily the one who can decide to work with your company, ask them to invite a friend... preferably a friend who is the decision maker you seek. This way, you can extend your network with the prospect which may make closing the sale a bit easier.
- Start with coffee; if it goes well, you can always move on to dinner. Remember that this first meeting is meant to solidify your prospect's suitability for your products and services; this is not the time to close a deal. Use this time to make a personal connection, learn more about their particular needs and establish a level of trust.
- If it goes well, ask for a second date right away. Assuming all goes well and your prospect is as interested as you are, don't be shy. Secure a follow-up appointment to deliver information, learn about a new RFP they're launching, or present a more in-depth demonstration of your company's offerings. Remember the adage: he who hesitates, is lost.
- And if you had a good time, call to say so. Don't forget your manners. After your meeting, regardless of the outcome, email a thank-you to your prospect. They were gracious enough to give you some of their valuable time, and even if it doesn't work out with them, you have a chance to make a good impression that will live beyond this meeting.
Online social networking doesn't have to be a scary prospect. In fact, you might realize how time-efficient it can be in managing your prospecting and spreading the word about your company.
Next month, we'll explore how you can use outdoor media to its best advantage.