Author Archives: Coach

About Coach

Terry Misfeldt is President and Trail Boss of Brand Irons, a business and marketing consulting firm based in Green Bay, Wisconsin. Terry has conducted numerous feasibility studies and prepared a number of business plans to secure financing for clients. Terry and Brand Irons specialize in creating corporate brand identities based on the results of studies and plans to market businesses successfully.

Forgotten Art: Writing Business Letters

Does anyone write business letters any more?

The kind of letters that go out in envelopes with the company’s logo and address in the upper left hand corner and with a first-class stamp in the upper right? Or that are neatly printed on company stationery, signed with a person’s actual signature, and folded correctly?

Odds are that today’s preference is to send an E-mail to the intended recipient and wait for a response. One of the problems we’ve discovered with E-mail correspondence is that the sender assumes, when he/she hits “Send,” that the E-mail will be received by the recipient. Unless the sender gets some form of confirmation, he/she never knows.

We’re not saying we should abandon E-mail correspondence. There was a time not long ago when it was proposed that E-mail was a dinosaur and would not be around for long. Then it was realized how valuable a tool it was and here we are.

What we are standing up for is the good, old-fashioned business letter as a method of correspondence and means of enhancing a corporate brand. Quality paper displaying a crisp logo with a clean typed message (no typographical or grammatical errors) can be an impressive way of demonstrating the power of a company’s brand image.

The first step is to make sure the information about the person receiving the correspondence is accurate. Sending a letter with the person’s name misspelled or calling a male Ms conveys a negative impression right from the start and, in most cases, sends the letter to the recycling bin without being read.

The second step is to be concise. Know the reason you’re sending the letter and what response you intend or would like to receive. If it’s a congratulatory note, it’s probably best if it’s hand-written and brief. If it’s a bid or something similar, short bullet points are likely to get the best response. Keep in mind that even though it’s a somewhat personal letter, people rarely have time to go through their mail and read every piece in detail. Much of it is junk mail, so your letter needs to stand out when it arrives in the snail mail box.

Write the letter as if you were the person receiving it. What would you like to see or read if this piece came to you? How would you respond, based on what was in the letter?

Start with a cordial greeting, and end with your call to action. No one likes a letter that concludes with the recipient wondering why they even got it. Make sure the stationery has contact information on it so the person receiving it knows where to send a reply or to call.

It’s also a good idea to include two of your business cards in the envelope. Why two? One for the recipient to keep and the other for them to give to someone else to refer your services. Writing a good business letter can boost your brand identity with customers and prospective clients.

Brand Your Work – Work Your Brand

A Positive Spin

It is easy to head down the road of negativity. It is an element of our human nature to want to bring other people down, especially if they have better looks or more money or whatever else irritates us about something or someone. When it comes to marketing your business, however, take the high road because a positive spin brightens your image with prospects and customers and with your overall corporate culture.

Putting a positive spin on your business builds brand loyalty.

Being in the midst of political campaign ads as we are, the mud-slinging is rampant. What the candidates hope is that their negative ads ripping their opponent will have an impact in a positive fashion (by getting the electorate to vote for them) and not backfire because the message is a slam on their adversary and they’re seen as bullies. The more effective message has a positive spin and focuses either on their record of service or what their plans are once they’ve been elected.

Enough about politics. We had a client that had a small, easily-contained fire at their place of business. They wondered whether they should notify their customers about the fire. When asked about the damage and the impact on clients, our initial response was that letting customers know didn’t matter since damage was minimal and the fire had no impact on the level of service provided to customers.

On reflection, though, a positive spin emerged that we shared with the client. The idea was to notify clients about the fire in a positive manner. We suggested the company advise clients to update internal safety procedures such as checking fire extinguishers and smoke alarms, teaching staff how to use fire extinguishers, reviewing emergency evacuation procedures, assessing computer system back-ups, and other steps to keep the business operating should something like a fire occur.

The suggestion came from being pro-active and the concept it’s much easier to prevent a fire than to fight one.

Think about your business for a minute or two. What’s the worst thing that could happen besides a fire or other natural disaster? Will it have a negative impact on your business? Do you have a plan for dealing with that catastrophe or a strategy that can put a positive spin on it so your company survives and/or thrives?

Those steps are important, and it’s also a good idea to have a positive approach to marketing your products and/or services.

This strategy comes down to knowing what it is you’re marketing to potential customers and what those consumers are buying.

For instance, selling life insurance has a negative connotation with most people. Providing peace of mind or the ability to sleep well at night has a positive spin.

Another common example: Consumers have a negative impression of used car sales people. The positive spin would be to let people know you provide reliable or economical transportation options.

Business and marketing consultants exist to provide business owners with the clarity they need to ensure that their business and its products and/or services are portrayed in as positive a light as possible. This perpetuates the corporate culture and builds brand loyalty. We like the adage that a pat on the back goes further than a kick in the pants.

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Image Is Important

There was a time when you would see a shop owner sweeping the sidewalk in front of the store before opening for the day. The reason was simple: Image.

Customers care about the image of the businesses they patronize. Why would they purchase the same jeans from a discount store when there’s a certain prestige in saying you got them at a higher end store? Image. The owners of a business should also care about their image for that same reason – because it’s important to their customers and prospective customers. Think about it.

Would you eat at this restaurant if you saw how the kitchen looked?

Would you patronize a fast food restaurant if wrappers, napkins, and straws littered the floor whenever you stopped in? Would you be a regular at a grocery store where the produce section displayed rotten tomatoes or moldy fruit? How about a machine shop where it looked like the floor hadn’t been swept in a month?

The inside appearance of a business is important for building brand loyalty.

Would you feel more confident if the kitchen looked like this one?

The image your business conveys to the public on the outside, including in your brand identity, logo, and your advertising, is even more critical to the long-term success of your business and your brand.

If you have a delivery or service vehicle with signage that advertises your business, how does it look? Is the paint or decal faded? Is the vehicle showing some rust or have a few dents? What does that tell your customers? Any lights out in your neon sign? Are you flying a faded, tattered American flag? Are veterans one of your market segments?

Do you showcase your location in your ads? Are you proud of what your building looks like? Take an objective look at your website. Does it convey the kind of image you want people to have of your products and/or services? Think about the last time it was updated.

Your website, like your place of business, should convey an image that gives your customers the confidence to send their family, friends, and referrals to you so they can become customers as well.

It’s often the little things that make a huge difference when it comes to the image your business conveys to the public and your customers. What message does it convey to shoppers coming to your grocery store if there are no carts available because they’re scattered around the parking lot? Yes, rounding up the carts and returning them to the corral is a menial task for some employee, especially if it’s raining, but those carts are usually the first contact those consumers have with your business.

If you’re not sure what the first impression is that people have of your business, try first to visit it impartially – as though you were a client yourself. What’s the feeling you get? Think about engaging a consulting firm such as Brand Irons to find that out. First blush is one measure, but that impression may go much deeper and require talking to your customers about why they patronize your business.

Something as simple as sweeping the floors could enhance business. Think about it.

Brand Your Work – Work Your Brand

What You Don’t Know

There’s no big secret. Many of us think we know it all, but don’t know what we don’t know. In many situations, business owners have to make decisions on a daily basis and make those choices without any information or knowledge of whether it’s the right one or not. But they make them.

The prevalence of that daily occurrence has prompted us to agree with the unflattering concept that business owners, like most people, don’t now what they don’t know. Allow an explanation.

Let’s say you want to warranty a product you manufacture and make the assumption someone on your staff can whip up a warranty document. What you don’t know is that such a document, meant to protect your assets against legal action, should be reviewed by your legal counsel. You want it to stand up in court, so unless your staff member is a lawyer, you should have your counsel review the document your staff person creates.

Whether you produce hundreds or hundreds of thousands of products, how to protect your company from legal action is something you need to know … or to know your attorneys can do it and be able to explain what they’ve done to cover your assets.

Your accountant should know about tangible property regulations and other opportunities to save money or reduce your risk. If you are operating your business and don’t have or want to spend the time to learn about these measures, make sure your accounting firm knows what you don’t know. That’s the reason you engage them, so make sure they keep you abreast of potential risks and cost saving steps you should be taking.

There are consultants and other professionals available to assist you with the things you don’t know about your business. Your insurance representative should discuss errors and omissions (E&O) insurance if your company is liable for performance or other risks. Do you have adequate fire, flood, and other coverage? Do you know if any of your employees knows how to operate a fire extinguisher? Do you?

Did you know your website should be updated regularly? Does your web developer check on your search engine compatibility or updates every month? Is your web content still relevant to your target market? Have those market segments changed? Odds are they have.

When you start thinking about all that’s involved in operating your business, it can be overwhelming. Especially when you consider what you may not know that could pose a threat to staying in business. Things like changing tax laws, interest rates, banking regulations, market shifts, and consumer trends can be significant if they put you at risk without your knowledge of their impact.

Keep an open mind. Avoid assuming that everything is fine the way it is. Rely on your professional team – bankers, insurance agents, marketing professionals, legal counsel, accountants, and business/marketing consultants – for the wisdom that keeps you from being blind-sided. Ask for help when you need it. If you don’t think you do, it’s probably the time you need help the most.

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Brand Success: Tylenol

Have you ever asked for acetaminophen?

More than likely, you’ve asked if anyone has some Tylenol. That’s a classic example of brand success. If you visit the Tylenol website, you’ll find 20 different varieties of the product, and learn that the parent company is the McNeil Laboratories subsidiary of Johnson & Johnson.

In the mid ’70s, Tylenol moved from the 5th most popular analgesic to become the number one branded over the counter (OTC) analgesic product on the market. It had become a more familiar pain relieving product than aspirin. As often happens when a product is the top-selling or more recognized brand, someone or something tries to take it down.

In 1982, someone tampered with bottles of Tylenol Extra Strength by adding cyanide which killed several people in the Chicago area. No one was ever caught, but Johnson & Johnson made a smart move. The company distributed warnings to hospitals and distributors and halted Tylenol production and advertising. On October 5, 1982, it issued a nationwide recall of an estimated 31 million bottles of Tylenol products with a retail value of more than $100 million.

Some considered the move a death knell for the product, while the consuming public praised it for the emphasis placed on the greater well-being of the general public.

The company advertised in the national media for individuals not to consume any products that contained acetaminophen. When it was discovered that only capsules were tampered with, Johnson & Johnson offered to exchange all Tylenol capsules already purchased by the public with solid tablets. The company also took the innovative step of creating tamper proof seals for bottles, creating a renewed sense of security with the consuming public when Tylenol was re-released.

Now, more than 30 years later, the tampering incident is little more than a footnote in the product’s history. The Tylenol brand owns the market for acetaminophen pain relieving products. Bayer still owns the brand recognition for aspirin, while one of the other pain relieving medications, Ibuprofen, has become recognized for the product rather than the manufacturer. In essence, it is it’s own brand.

The lesson in this case study of a successful brand is that Tylenol has dominated when it comes to the 1st Law of Marketing: The Law of Leadership.

It is the leading brand because it is the first brand in the prospective customer’s mind. People don’t ask for acetaminophen, they ask for Tylenol. Once you have a customer, they are likely to stick with your brand – as evidenced by Johnson & Johnson’s success with recalling Tylenol products because of the tampering incident. Tylenol has become the generic term for acetaminophen, another example of that 1st Law of Marketing.

Remember that marketing is perception, not the product, so people perceive the first product in their mind to be the superior product. The first brand tends to maintain its leadership because the name often becomes generic, as is the case with Tylenol.

Professional consultants are available to help your product become the #1 brand at whatever scale is possible.

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Viable Options

Which direction to go may not be obvious.

In our last blog, we wrote about the importance of feasibility studies. They can be critical in deciding whether your business idea is viable or not.

One aspect of a feasibility study that comes up is the various options it often exposes if the original subject loses luster. When a study is commissioned and a consulting firm such as Brand Irons is engaged, the business owner or entrepreneur has a fairly clear concept of what they want to accomplish. They may have a business location and other variables in mind for establishing their operations. While those may represent the ideal, the business owner needs to be receptive to what the study’s findings reveal, however.

The study may, and often does, uncover that while the concept may be a good one, the short- and long-term economic viability is less than desirable.

In the course of a study, however, new and often better options arise from the research. More economical and durable equipment options may be discovered, for example. A more reasonably priced piece of property a block away on the other side of the street may actually be more advantageous for consumer accessibility, and be more affordable. An entirely different, yet potentially more profitable, market segment may be identified. The study may also reveal that an entirely different product line may be the better way to proceed. These are completely unforeseen developments that are revealed in the course of a feasibility study.

That’s why we encourage business owners to keep an open mind and embrace the potential that another option may crop up and be better in the long run. They should avoid locking in on one, and only one, option. Different vendors and investors or financial partners may also be discovered when the entrepreneur is amenable to suggestions.

The purpose of the feasibility study is not to tell the person with the idea whether to go forward with their business concept or not. It is intended to provide the decision maker with reliable information on which to base their choice. That information, when thoroughly digested and evaluated, forms the knowledge base that gives justification for whatever decision is made.

The beauty of this process is that it reduces the risk of throwing boatloads of money at a project that fizzles before it turns a profit. Yes, there is a cost to conducting the study, but if you can save hundreds of thousands of dollars by sending a few thousand instead, it is worth the effort. And, if the decision is made to move forward, it’s money well spent.

Brand Your Work – Work Your Brand

Business Viability

Is your business concept feasible?

Will it make money at some point?

More often than not, we find business owners starting their endeavor without a clue as to its success potential. Success potential is a realistic consideration of whether the idea has a chance of earning a profit, and at what point in its existence.

Far too often, the person with an idea for a product or service has little experience operating a business. They’ve got what they believe is a great concept, and they become emotionally invested in moving forward. They probably invest some financial capital as well, but are unsure of how much more they may have to invest to make the project viable. They need to take the time to think things through.

Conducting a feasibility study involves taking a step back to evaluate the idea from several points of view, removing the emotional element (there’s a place to bring that back in), and assessing the business from a rational perspective. Among the considerations are financial projections – obviously – along with management, market demand, production, distribution, licensing and legal concerns, product definition, and a host of other business elements.

Financial projections need to be as realistic as possible. It’s easy to project an optimistic forecast for sales, but the pie-in-the-sky numbers can convey a false sense of short- and long-term profitability. The cost of goods sold (COGS), expenses, labor costs, and cash flow are among the down-to-earth considerations that can provide realistic numbers.

Realistic projections are also critical if the business owner needs financing. We’ve seen potential loans turned down because the borrower, when asked, told the banker the numbers were just “plug ins” and was unable to explain why they were in the projections.

An independent third party like Brand Irons can review the financial projections in a business plan and do the research to verify their accuracy. They can also look at the other elements, such as the strength of the management team, to provide a prospective lender with the information it needs to make a decision. Lenders often want to know if the management team is capable of making tough decisions when necessary, and the business owner completing a plan for financing is rarely objective on that issue.

One of the most difficult parts of conducting a feasibility study is removing the owner’s emotional attachment to the concept. Although it may be the best idea since the invention of the bread slicing machine, we advise business owners that they must be able to walk away from a project if all indications are that profitability is fleeting. Where emotion comes back into play is once the idea looks viable and the owner elects to move forward, their emotion becomes the foundation of the marketing strategy that convinces prospective customers to purchase.

Keep in mind that some people may have great ideas but lack the skills necessary to carry them through. Yes, a feasibility study can cost thousands of dollars and months to complete, depending on the concept and its variables.

It is well worth the investment if, in the long run, it saves the heartache of risking one’s personal wealth to realize they’ve lost it all. And, if it proves feasible, the study becomes the foundation of the business plan and marketing strategy. More next time.

Brand Your Work – Work Your Brand

If Management Is The Problem

Your business seems to be doing well, but customer service continues to fall short of expectations. You’ve brought in specialists to provide consumer-oriented training for your front-line employees. That shows slight improvement before slipping back to before training levels. You’ve analyzed products and systems and virtually everything else you can think of to evaluate, but nothing changes.

What if management is the problem?

The answer lies in being able to step back and view your operation from an outside, third party perspective. The hard part of doing this is removing any emotional attachment you may have to the members of your team. You need to analyze your management staff from the viewpoint of a potential buyer for your business, and be critical.

Whom would you keep? Which management staff would you let go if you knew everything a prospective buyer sees?

Management can get complacent. Team members may believe they have so much tenure that they’re beyond getting fired. They may be family or think of themselves as your friend, and bosses don’t fire friends, do they?

Management, like most employees, tend to resist change. Remember the adage: The only thing that’s permanent is change. The economy, consumer buying trends, market conditions, product features, disposable income levels, and virtually everything else in life changes. Evaluate how your management team has changed with the times. Has it?

Let’s look at an example pertaining to customer service. Assume your heating and cooling company employees are required to wear uniforms with the company logo, shirts tucked in, and a name badge to identify themselves to a customer. They are also supposed to put on shoe covers before they enter a consumer’s home. That’s the protocol.

Now assume a supervisor tags along on a home repair visit and tells the technician to skip the shoe covers because “we need to get in, get the job done, and get out quickly.” On subsequent calls, the technician foregoes the shoe covers on the assumption management thinks it’s okay. It’s acceptable behavior now. Then a customer complains about their soiled carpet.

Is it the technician’s fault? Or the supervisor’s? Or is it the company’s?

If you have all the facts, you begin to look at other short cuts the supervisor is taking. You wonder if his reports are accurate. Is he padding his expense report?

The protocol in this example was in place for a reason: Keeping customers happy. Deviating from it is unacceptable from a manager if the company expects front line employees to adhere to it.

The level of responsibility starts at the top. You, if you are the business owner, have the ultimate responsibility for every decision that’s made in your company. Yes, you need to delegate as much as you can to people you can trust, but the weight always comes down on your shoulders.

Always be willing, and able, to step back and take a hard look at your business. Do you have the right people in place? Can they be trusted to follow through and make the right decisions?

If you have a hard time separating yourself from your operations, that’s an excellent reason to bring in a professional business consulting firm such as Brand Irons. Consultants can often address issues by talking things over in a phone conversation. The key is to be open and honest with your consultant, lest they give you bad advice.

Brand Your Work – Work Your Brand

Handling Customer Complaints

We often find that training to help employees deal with customer complaints falls short of expectations. The result is dissatisfied customers, discouraged staff members, loss of brand loyalty … and profitability.

We’ve expanded on these eight steps from Associated Bank as a tool to improve your business, your customer service, and strengthen customer loyalty:

Train for the worst. When your employees, associates, customer service associates or whatever you call them are prepared for the worst possible scenario, such as the potential for an active shooter, they are ready to handle those situations. It makes handling the more simple problems much easier.
Listen. Customers are emotional when they complain. They want to be heard and give you information that is, indeed, helpful for operating your business. Provide your employees with the training they need to be able to listen and, most important, understand what is being said.
Assume the truth. You may get an occasional customer who tries to milk the system, but most are honest and should be assumed to be telling the truth. By assuming it’s true, your employees can focus on fixing the problem, which should be the desired outcome.
Apologize. An apology is more sincere than saying “I’m sorry” for something that may or may not be the employee’s fault. The apology is for the fact the customer had to experience the problem. It should be sincere – and count – so it can diffuse a potentially tense situation with an irate customer. Tread carefully for legalities so the apology doesn’t end up in court as a “Well, he said …”
Act Immediately. Staff should be trained to take care of the problem right away, and to keep the customer apprised of what’s been done. We asked someone registering us for an event to correct a misspelled name and it was done immediately. That instills confidence that the company does care about its customers.
Ask what they want. Be straight forward and ask what can resolve the problem to their satisfaction. They may not actually want anything other than to apprise you of a problem or potential issue. Use this as an opportunity to find a solution – for the client and for the prevention of future problems.
Make it easy to complain. Provide a phone number on invoices or your website. Give out an E-mail address for customers to express their concerns. A word of caution, however: Avoid letting those concerns reside and linger in a voice mail message system or in box for days on end. Take care of the complaints promptly.
Follow-up. If nothing else is accomplished, follow-up. Make sure your customers are pleased with your service, your products and/or services, and your company/brand.

Brand Irons can provide your company with an in-service workshop on customer service. You can find out more with a phone call to (920) 366-6334.

In our next blog, we’ll cover whether management may be the problem.

Brand Your Work – Work Your Brand

F-2-F Marketing

What seems to be a dying art – being face-to-face with someone – is still relevant for marketing your business. For those of us who enjoy interaction with other people, the trend toward faces down with eyes glued to the small screen is annoying.

Sure, texting and the other tasks you can accomplish on your smart phone seem to increase efficiency and enable us to do more, but does the fascination with being connected all the time detract from reality? How often do you see people in restaurants on their mobile devices when there’s a live, breathing person seated across from them?

Who is more important than the person you’re with at the moment?

There, we’ve exposed the secret to face-to-face (F-2-F) marketing: Be in the moment with the person you’re with!

If that person is someone you’ve never met before, you should get to know them for a number of reasons:

Are they a potential customer?
Do they have valuable connections?
Are they someone you can trust with your business?
Could they refer people to you?
Are they a reliable resource?

If the person you’re face-to-face with is someone you already know, how well do you know them? Do you know what they like to read? Where they live? How they earn a living? What they enjoy doing in their leisure time? Why they do what they do?

We can learn so much by being open to F-2-F discussions with other people. It may be awkward at first, but you begin by approaching someone and introducing yourself. Remember: They may be as bashful as you are when they’re approached.

Ask them their name, and try to remember it. A technique that we’ve found to work well is to repeat their name several times in the first few minutes of your conversation.

Ask where they work and what they do. Be genuinely interested in their answers. Pay attention and avoid distractions, such as looking for someone you’ve been dying to meet. That’s rude.

Ask why they do what they do, how long they’ve been doing it, and maybe even how they got into doing what they do. You may discover a rather fascinating story that leads you into a deeper relationship and potential friendship. You may share a favorite cuisine or vacation destination.

We struck up a conversation with a couple on a flight and showed interest in them going to help their son open a new restaurant on the east coast. Before the flight was over, they had pulled out the business plan and financial statements for us to look at!

The point of a F-2-F meeting may be to get acquainted, conduct business, close a sale, or to share camaraderie. Avoid being in a rush as much as you can. Take the time to enjoy the conversation. Assume you will learn something new. Crave knowledge.

If you’re face-to-face with a customer or prospect, concentrate on the individual and what his/her needs seem to be. If you’re unclear, ask clarifying questions. Get down to what they want and you’ll enjoy far greater success with higher closing ratios.

In our next blog we’ll cover the topic of Handling Customer Complaints. Stay tuned.

Practice the 3-foot rule: If someone is within three feet of you, they should know what you do. If they’re beyond three feet, get closer.

Brand Your Work – Work Your Brand