A Brand Budget

How much should you, or must you, spend to brand your business?

The most common answer: It depends!

The cost of marketing your products and/or services, through advertising, sales, promotions, or other avenues is related to your goals and objectives. If your goals are indistinct or your objectives lack focus, the odds are that you will be wasting marketing dollars on ineffective vehicles.

For purposes of discussion, let’s assume you’ve built a convenience store off a high volume interchange on an interstate highway. It should be apparent who your target market is, so why would you advertise in a phone directory in a community 50 miles away without easy access to your place of business? While you may be able to justify the expense, in the mind of most business owners that would be wasted money.

If, on the other hand, you were able to invest that money in billboard advertising on the approaches to your exit, you are more likely to meet your objectives for sales.

What you spend to build your brand should be measurable and tied to the bottom line. If your goal is to have your brand identified with the market segment comprised of men between 24 and 35 years of age, you can quantify how many of the male species lives in your targeted area. You can also identify which media is most likely to garner a positive response from those men, and build brand loyalty.

It might take six months or six years to reach the level of penetration you desire for your brand, with many variables playing a role. If you gain acceptance through a social media community, the time span can be shortened considerably. A heftier advertising budget and well-placed commercials can also push up the acceptance.

An important consideration is to take the time to do some planning. Think about what you want to accomplish and the best method to achieve it. Allocate some funds to test the waters and measure the results. If the campaign works, build on it. If it doesn’t perform as expected, stop and think about what went wrong or could have been better. Tweak it and try again, within budget constraints. Measure the results.

If you operate blindly in spending your advertising dollars, you may wind up joining the thousands of other business owners who assert that advertising doesn’t work. It does, if done correctly. That’s what there are professionals for; to help you make the right decisions and use your marketing budget effectively.

Defining Success

As a business owner or key management person, you know your business should have a strategy for constantly adding to the bottom line. That growth strategy outlines goals and identifies the steps to be taken in achieving those objectives. In the end, this defines what you consider and will accept as success for your organization.

Larger companies generally have the resources to set these objectives through annual planning sessions or corporate retreats guided by independent third party professionals, such as Brand Irons. Smaller companies also have the ability to conduct these strategic success meetings and bring in professional guidance. The cost of these planning sessions are more than offset by the focus they bring to your corporate culture and the results they generate through higher productivity and reduced waste.

The richest value comes when your team agrees to and commits to the end result of the planning and is able to successfully implement a majority, if not all, of the objectives.

There are others, but here are five of the objectives your business should define:

Net Profit. What are your earnings projections for 2013? Subtract anticipated costs to come up with your expected net profit numbers for the year. Are those realistic and attainable numbers? Will they satisfy you and/or shareholders?
Annual Sales. Knowing what your bottom line is supposed to be, consider how sales will achieve those projections. Who is responsible for generating sales and what will they have to do to get them? Do you need more sales people?
Production. Evaluate whether the capacity exists to produce what is sold in a timely fashion, or whether there is sufficient inventory to meet demand. Take a close look at ways to streamline costs yet still deliver quality products and service to your customers and prospects.
Customer Service. How loyal are your clients to your brand(s)? Do they enjoy the experience of working with or purchasing from your organization? Do your sales personnel and front line people convey the right sense about your culture? That culture should pervade your entire organization. Does it?
Marketing Results. Whether it’s through sales, advertising, promotions, or public relations, your company’s marketing efforts should generate measurable results. What do you measure? Conversion rates for sales presentations. Client response to advertisements (sales directly tied to an ad, for instance). Increased “Likes” on your Facebook page. Phone calls asking for information or to arrange meetings. New subscribers to your newsletter. You decide what else to measure, based on what is important for generating results.

You define success measurements to better allocate resources. There’s an adage about setting goals that goes something along the lines of “If you set sail without a destination, how will you know when you get there?” sailing ship

If you place an ad in the newspaper and ask viewers to call about a special offer, you can gauge the success of the ad by how many calls you receive. Then you must ask: Were there enough calls to 1) pay for the ad? and, 2) warrant the expense in terms of sales that resulted?

However you define success for your business, make sure you take the time to think through whether that is, realistically, how you want to define your success.

Missing: Call to Action!

Far too often, advertisers neglect to include a call to action in their advertisements. What is the purpose of an ad? To get customers or prospective customers to buy your product and/or service! Pure and simple.

Be specific.
.

Author Paul G. Thomas shared a powerful message about the importance of a call to action in his book, Psychofeedback. Here’s an example he shared: Hold a pen or pencil with two fingers and tell yourself “I can drop this pen” repeatedly until you drop the pen.

Why does the pen stay in your fingers?

The message, like the call to action in your advertising, needs to be more specific. Try this phrase, “Drop it!”

Another friend, author Bob Nicoll – http://www.remembertheice.com/, shares a story that is specific to advertising. A convenience store near where he lived had a sign that encouraged patrons to “Don’t forget the ice.” Bob asked the owner how his sales of ice were. “Abysmal” or something similar was the response. When you tell people not to forget something, what do they do? Forget.

Bob asked for a marker and some paper to make new signs. His signs read, “Remember the Ice!” when he gave them to the owner. When he returned, he asked the owner how his ice sales were, and the owner replied he was having a hard time keeping it in stock.

The lesson in these stories: 1) Tell your customers and prospects what you want them to do.

Be specific. Think about the end result you want from any advertising you spend hard-earned money to put out there. Why would you spend good money and forget to ask for the sale? There are three basic actions to call your audience to do:

Come in;
Visit your website; or
Call you.

Many advertisers use the attraction of a sale to draw potential customers in to their store. Pick up a Sunday newspaper and browse through the ads to get a better idea of what I mean. “Special 2-day sale now going on” or “50-60% off all men’s shoes” or “This week’s specials” are fairly common lures to draw customers in, and the more successful ones are the ads that send a message to act now. “Buy a new Mercedes this Saturday and receive a FREE 60″ wide-screen TV,” is an example.

Ever wonder why retail stores include so many different products in their ad flyers or TV commercials? They want to attract you to come in but they’re unsure of what you really want or need or might be thinking about buying. That’s why they lump a bunch of products together to pull you in.

If you study those ads, though, the direct call to action may be too subliminal.

The call to action where an advertiser sends the consumer to the company’s website can be especially effective with the under 45 demographic. It can work for any age group, but can also be extremely narrowly targeted as well.

Success with this call to action requires that the website have the information the users are looking for in an easy-to-find location. Internet users have little patience. Remember instant gratification? If you’ve sent them to the web for a special offer, that coupon or banner must jump out at them once they land on the site you’ve given them. If not, you’ve probably lost them for good.

The intent is to get them to your site and pique their curiosity enough to get them to do some browsing on your site and learn more about your company and its products and services. The nice thing about this call to action as well is that it is easy to track the volume of traffic being generated by the site and correlate it to the placement of the message. Tracking is beneficial.

The third call to action is to generate a phone call. A professional hair salon or massage therapist, for example, may prefer that clients or potential customers call to schedule an appointment instead of walking in. Some professionals may encourage walk-in traffic, but doctors, dentists, optometrists and other medical professionals, as well as lawyers, accountants, and marketing consultants prefer a scheduled appointment to allocate sufficient time for the customer.

As you craft your advertising messages, think about the desired outcome. If you want the phone to ring, ask for it in a bold headline. If you want people checking out your website, use social media with links and make sure the address is easy to find once they’re online. If you want customers in the store, make sure they know how to find it and tell them to stop in.

Call Brand Irons at (920) 366-6334 for an appointment to clarify the call to action for your business and build your brand.

Budgets & Bullet Points

2013 Budget graphic When you are sitting down to develop an annual advertising budget, think about where you’re going to spend your hard-earned dollars. Will each dollar generate a return? How much will it cost you to acquire a new client, or to keep your existing customers?

You must measure these metrics to know if your strategies are working. If you plan on spending $20,000 on television advertising as part of your budget, you should also know what the value of a prospective client is to your business. Why? If your business is building websites and each prospect potentially represents $5,000 in business when they become a new client, that TV campaign would need to result in four new clients to cover the cost of advertising. More than four and you’ve generated a positive return on your investment (ROI).

Is it a negative ROI if you fail to land any new clients? From the bottom line perspective, probably so. From the viewpoint of the exposure you’ve generated for your business with TV spots, hardly. The bullet point becomes how effective was the message in your commercial.

And that is another bullet point. If your advertising fails to generate a positive impact on your bottom line, that should not result in the wide-ranging opinion and a deep-seated conviction that “advertising doesn’t work.” It only means it was somehow flawed.

More bullet points that impact your marketing budget when it comes to advertising:

Make sure you know your target audience for any advertising;
Verify that the delivery vehicle (TV, radio, newspaper, Internet) is effective in reaching that target market;
Find the market research that gives you reasonable assurance the audience will respond favorably to that message delivery vehicle;
Know what you’re offering but, more importantly, what the consumer is buying;
Craft a message that focuses on what’s in it for the consumer, not you;
Deliver the message by getting the audience’s attention first; and,
Finish with a strong call to action so the consumer has little doubt.

Back to my point about the effectiveness of your commercial. If you threw out a campaign or message that was missing some of the bulleted items above, chances are your results were less than what you anticipated. Add in that the commercial may have run at the wrong time for your audience or been buried on a seldom seen page of the magazine, and your results deteriorate.

We once worked with a jeweler who insisted on having the largest ad in the phone directory. We roughed out the concept and had the directory’s graphics department design an effective and attractive ad. We were good to go. When the directory hit the streets, we opened a copy to the “Jewelers” spread of pages and the ad wasn’t there! Phone directories place ads alphabetically. Our client’s ad was there, but it was on the page before the spread with all the other jewelers in town. Good effort wasted and beyond our control. Subsequent ads were mere bold-faced listings under Jewelers.

Rather than succumb to a sales representative suggesting your business belongs in their publication or on their station, take the time to think things through. Can they answer the bullet points you’ve established for your products and services to your satisfaction? If not, simply let them know that what they’re offering fails to meet the demographic profile of your target audience. They’ll understand, but not give up easily.

Another option is to use the professional consulting services of a business such as Brand Irons to help you come up with a solid profile for your customers and help you make those marketing decisions so they have a positive impact on your bottom line.

Do You Know Your Customers?

How well you know your customers, their preferences and their buying habits, can be the difference between adding to your bottom line or closing your doors. This knowledge also needs to include your prospective customers, so who are the people who consume or are most likely to consume your product or service?

The recent Coca-Cola ad during Super Bowl XLVII implied that Coke consumers were badlanders, cowboys, or showgirls, chasing through the desert after the elusive soft drink. At least that was part of the impression I took away from the spot as an evaluator. In other words, Coke created the perception that their product is for everyone, and that everyone wants (thirsts for) Coca-Cola. Consumers voting for the winner at cokechase.com gave the edge to the showgirls and even sabotaged the cowboys and badlanders (I put the kibosh on both groups once). It was a commercial that played out on the Internet, which was a different but not unusual way to stimulate consumer interaction. The outcome was understandable if you consider most of those voting were probably men.

In that last statement lies the root of understanding your customers.

If the consumer most likely to purchase your service is male, your message should be male-oriented. If it’s women, it should be female-oriented. Super Bowl viewers were most likely men under the age of 50, so scantily clad women garnered a better response than cowboys or bad boys. I haven’t seen the demographic breakdown, but it’s quite likely the women voters were split between the cowboys and the badlanders, but you never know, they could have been for the showgirls as well. The point is that knowing your customer makes the decision about spending your marketing and advertising dollars easier and smarter.

Let’s consider the consumer’s buying habits, too. A recent market research study we conducted showed that buying decisions are most often influenced positively by a friend’s recommendation or by word-of-mouth referrals. After those two, the Internet came up as the source for purchasing information across all demographic age groups. Television commercials also ranked high in influencing buying decisions. For those 55 and older, newspaper ads ranked quite high. A column in USA Today (2-4-13) http://www.usatoday.com/story/money/columnist/2013/02/04/wolff-print-advertising-upswing/1890205/ reported that the newspaper method of advertising may yet survive the digital onslaught.

Some secrets: Work hard to get and keep word-of-mouth marketing working for you. There is a lot of marketing truth in the concept that a client who has a negative experience with your business will tell 20 people or more while those who have a positive, enjoyable experience are likely to tell 5 or 6 people. Talk to your customers and deal with any negativity immediately. However, when it comes to social media rants (negative comments), your best response is often no response or to let your favorite fans knock down the negativity. Your response might only give credibility to the negative comment, but an apologetic tone may minimize the damage. Think before you act.

You should have a strategy in place for dealing with social media issues, as well as any potentially negative publicity about your business. Hopefully, you never have to use it, but it is better to have a plan in case it does.

Here’s a case in point: When I worked for the U.S. Jaycees, there was a case before the U.S. Supreme Court about allowing women to join the all male organization. I was lobbying for a plan of action should the 350,000+ member organization lose the case. I was told by the higher ranks “We’re going to win” so there’s no need for a loss strategy. We lost and had to scramble to put a response in place, which was poorly planned and executed as a result. Today the organization has less than 50,000 members.

Your Internet presence must be user friendly and relevant. Being relevant means you need to know your consumers and prospective customers. They will scan and leave your website if the content is not relevant to what they’re looking for or takes too long to find. Seconds count when it comes to Internet success. How often your website content changes and is updated is also critical for the major search engines to find you, and the relevance of that content to what users are searching for is also vital.

When you have a grasp of who your clients and prospects are, your success in reaching them can be ensured with a sound marketing strategy to deliver your message to your target audience in a way they are receptive to and that makes them buy from your business … and feel good about it. Consumers should be coming to you for the experience you give them.

Sex Sells – Part 2 – Super Bowl Ads

The January 28th edition of USA Today carried an article – http://www.usatoday.com/story/money/business/2013/01/27/super-bowl-commercials-pressure-volkswagen-of-america/1836881/ – about Volkswagen’s Super Bowl commercial that will air on Sunday, February 3rd, during Super Bowl XLVII (47).

In the article is this report about Mercedes-Benz: “While appearing in the Super Bowl is nothing new for Mercedes-Benz, there is a special twist to this year’s ad: It will try to attract a younger customer with a new lower-price-point Mercedes.

“With an average age of 50, we know we have to work to capture the minds of younger buyers,” says Stephen Cannon, president and CEO of Mercedes-Benz USA.

Little wonder that Mercedes put hotter-than-hot supermodel Kate Upton Upton, Kate in the spot. To assure plenty of eyeballs, she’s dressed in an extra low-cut evening dress that reaffirms Super Bowl ad wisdom: Sex still sells.

“The pressures follow the price tag,” says Cannon. M-B’s effort, too, could exceed $10 million for the spot, the airtime, all the promotions behind it and the brand’s naming tie-in with the New Orleans stadium where the game will be played. “It’s the biggest single marketing investment we’ve ever done. We’d better deliver.”

The Super Bowl exemplifies the epitome of how well sexual attraction can boost the sale of a product in the United States (and around the globe, for that matter). The football game attracts a predominantly male audience and, although there are millions of women who also watch, the game of football is about men being macho, tough, and masculine. The high levels of testosterone make the Super Bowl an easy mark for using sex to sell during the commercial breaks. Even the female viewers are likely to appreciate the messages, whether blatantly obvious or merely suggestive.

More than likely, your business is unable to afford the close to $4 million price tag for a 30-second commercial during Super Bowl XLVII, but there are still ways to employ the powerful “sex sells” method to attract customers.

Selling a woman on spa services can be as simple as letting her know she’s worth it. Looking and feeling good makes her feel good about herself and that can be quite attractive to her partner. That aspect of a spa treatment, however, is implied and need not even be mentioned in the marketing message.

Marketing is all about perception. If you’re planning to watch the Super Bowl on Sunday, pay close attention to the illusions the advertisers try to create in your mind. Each company is investing millions in the hope you will have them and their product at the top of your mind when the game is over.

And when Monday rolls around and you’re ready to ramp up your marketing strategies and improve your bottom line, give Brand Irons www.brandirons.com a call.

What is a Brand?

A brand is an illusion; a perception in the mind of a consumer.

Every consumer is different, so a brand can mean one thing to one person and something totally different to another.

Consider some examples:

If you drink red wine, and maybe have a glass every day, do you buy the same brand every time or do you try different reds? Do you drink a red because you heard it was good for you? Some of you may enjoy how you feel after a glass or two. All red wines are perceived to – in a branding sense – have medicinal purposes or go good with certain foods. If you, as the consumer, lock in and buy cases from a certain winery, you have bought the illusion it’s the best red wine … in your mind.

What convinced you it’s the brand to buy? Was it a commercial or advertising message? Was it an influential bartender? A good friend who also loves it? The perception that you should at least try the brand, followed by a bottle you really enjoyed, are the steps that would have created your brand loyalty.

My grandfather drove a Ford automobile. My uncle managed a fleet of vehicles for a multi-national company; all Fords. My dad drove Fords, although he was the trading sort and brought home a variety of makes and models over the years. This family history created the impression with me that Ford was the vehicle to own, so I’ve been loyal to the brand because of that perception. Three of the vehicles I’ve purchased new have been Mercury products; a former, now defunct, division of the Ford Motor Company. The kicker is that the illusion has stuck, largely because of history.

Yes, a brand is an association with a corporate product or service. Business owners will pay exorbitant fees to a big name accounting firm because of a perception, which might be that “they must be good because they charge so much.” In reality, accounting is about debits and credits so any certified public accountant (CPA) should be able to service your account as well, if not better, than the higher priced firm.

Is one brand of milk any better than the next one in the cooler? Only in perception … and probably price. Think about it. Where does the milk come from? A cow. What the cow eats may change the content of the milk, but it comes out the same way and is processed and bottled according to federal standards. And here’s a secret that applies to other products as well: Some milk processing plants bottle milk for a private label as well as for their own label.

From a business marketing perspective, the more people you can convince that your illusion – your brand – is what they should believe in, purchase, and remain loyal to as long at they need or want it, the greater will be the profits on your bottom line.

Illusions can work like magic if you create the right ones. That’s where professional help such as Brand Irons comes in, to strategize and help you create the most effective marketing for your product and services.

The Consumer Mindset

This is a topic that has always been fascinating to me as a professional business and marketing consultant. Marketing is about perception, so the mindset of consumers begs a whole series of questions.

What do consumers buy?
Why do they buy?
Why should they buy from a certain seller vs. a different one?
How do you reach the consumer when they’re ready to buy?
How do you convince or encourage them to buy when you want them to?

These questions seem simple, but the answers are rather complicated. Keep in mind that the average consumer wants to avoid being sold; they prefer to make purchases on their own terms. My hair stylist told me she finished her Christmas shopping early in 2012; she bought everything online. Her terms.

There are several factors that influence the consumer’s mindset, such as the budget (is the product or service affordable), the level of need (is it a necessity or a luxury purchase), and the deal (is it a bargain at the price offered or is it better to wait), among other variables.

Let’s start with the level of need. Remember the heirarchy of needs? It starts with basic necessities such as food, water, and shelter. If your business offers products to meet these necessities, the theory holds that your business should survive and succeed. The consumer, in most cases, wants toilet paper so you should have little competition … except there are different levels of softness, sheets per roll, and other variables. What determines the consumer’s decision to buy in this scenario?

Here’s where other factors come in. Is the consumer looking to stock up because the supply is running low? Is there a good price on their favorite brand? Are they totally out and need whatever they can find at whatever the price?

With other necessities, such as electrical power and a water supply, the consumer has little choice since the market is dominated by monopolies. Utilities provide cost savings through the control of grid systems which enable individual users to share the cost of a major development. Going “off the grid” for your energy needs is an expensive project for the same reason it is costly to develop your own water capture and filtration system.

Another aspect of the level of need is whether the purchase is vital or merely a luxury.

This can be where the budget factors come in. If a woman needs a pair of pants for work and the same slacks are available at a discount store for 30% less than at a name brand department store, where does she buy the pants? She may buy them at the department store for the “prestige factor” or save the money buying them at the discount store and saying she bought them at the other place.

As the retailer, your advertising is going to depend on which store you own or represent. The discount outlet can be effective marketing the pants as “department store quality at 1/3rd the cost” whereas the department store is likely to focus on the quality of the name brand with a message along the lines of “available exclusively at.”

Another influencers in the consumer’s mind is brand loyalty. If the woman needing pants has always purchased her work slacks at the discount store, she will most likely purchase the next pair from that store. And if she’s loyal to the department store, she will buy there despite the price difference. The deal is less a factor when the power of the brand trumps the perceived value.

So what have we learned about the consumer’s mindset?

While advertising tends to lump consumers together, the individual makes his or her own buying decisions based on their psyche, budget, personal preferences, and perceived value. As a business owner, it is essential to understand your customers as much as you possibly can so that you and your products or services, remain relevant to them and their desires.

If you’d like some assistance with some market research on your consumer’s mindsets, please contact Brand Irons.

Instant Gratification – Pros and Cons

If you’re “in to” instant gratification, you’ll need to scan down to get the pros and cons. If you’re a bit more patient, read the whole piece.

Business owners, especially those with significant advertising budgets, are scratching their heads in frustration over the generations that seem so intent on instant gratification. How do you reach someone who wants information, answers, and product “NOW”?

We’ll get to the answer, but let’s look at the pros and cons of this instant gratification mindset. It’s certainly a concept spawned by technology, so any answer has to incorporate a technological aspect. We live in an age where a person with a smart phone can look up a business online, get a phone number, and call that number right from their phone in a matter of seconds.

During the Christmas holidays, we were away from home and wanted to have dinner at a chain restaurant. I looked up the chain online, entered the city, and up popped the restaurant’s phone number. I tapped on it, called it, and learned they were not accepting reservations, which was fine. I had relatively quickly ascertained what we wanted to know. Instant gratification. I had an answer in less time than it would have taken to look up the restaurant in a phone directory.

Two points here: One is that phone directories have a limited life span due to these advances in technology, and the other is that if you have a service business such as a restaurant, it is critical that your business be smart-phone enabled, especially if you are on your own and operating independently.

Instant gratification pros:

Quicker decisions can be made;
Choices are focused on using the right key words;
Speed is easily rationalized by fast results;
Demonstrated skill in using electronics and technology; and,
Masses of information digested rapidly.

Instant gratification cons:

Quick decisions can often be rash choices;
Wrong use of key words can cause longer delays in searches;
Deliberation of potential consequences is given short shrift;
Loss of important, personal human communication skills; and,
Too much information can trivialize all of it.

Now let’s look at instant gratification from the perspective of business.

While there are still companies that make calculators, they must realize their future is finite. Smart phones have calculator applications and so do laptops and other computers. The stand-alone calculator has become a nuisance because it takes up space somewhere and you have to find it to use it when there’s one on your phone.

In order to reach the consumer market dominated by the need and desire for instant gratification, business advertising must have a technological base including a web site that has relevant content. It should also be smart phone enabled and embrace any new, emerging techology within a reasonable time frame.

Using social media effectively should also be given serious consideration. Users may search for your social media sites before deciding to use your services. Keep in mind that Facebook is less about selling your products than it is about showing your business has a social conscience. LinkedIn is more business oriented but still has social aspects that involve reciprocity. If a user endorses you, consider returning the endorsement. With Google’s other search engine, YouTube, being #2 behind Google, put some videos on a YouTube channel, including testimonials and endorsements. You also need to use Google, Yahoo, Bing, and other search engines optimally. Klout, Hulu, and a myriad of other social outlets come online regularly, so you need to be aware of social options and determine their viability for your business.

Understand that one of the most relevant methods to reach those infatuated with instant gratification remains to be word-of-mouth marketing. Flash mobs are a good example of how a message can go viral quickly. Word-of-mouth can help you reach a global market for your business, provided you’re ready to handle the potential rapid growth.

It comes back to having strategies for reaching your target audience effectively, so if you need help thinking this through and developing strategies, Brand Irons has people and resources to help.

5 Signs of Business Passion

One of the first elements I consider when meeting with a prospective new client is whether they have passion for their project or business venture. Without it, the process of creating successful business and market strategies becomes an uphill struggle that often winds up in the ditch, especially with existing companies.

Think of it this way: If your car is stuck on a hill in a foot of snow and you have to get over that hill, passion and determination must be necessary to get the job done. If you give up and tell yourself it’s futile and not worth the effort, your car (and you) will stay stuck in the snow or slide off into the ditch and stay there for days. You will be frustrated, stranded, and discouraged because you never got to your destination.

You would be amazed at how many entrepreneurs wind up that way. They have a great idea but get stuck and lack the determination and the passion to go any further, to get beyond that hurdle and achieve potential success.

The driver with passion takes the time to think through the solution to the dilemma, then acts with determination. The snow is removed from under the tires and the car may be backed up a little, but eventually a slow, steady climb gets the vehicle over the hill – maybe with a little help – and then it’s on to the next challenge.

Are you passionate about your business?

Here are symptoms that will identify the level of your passion:

You don’t consider that you have to go to “work” every day because you enjoy it;
You enjoy solving your customer’s problems and helping them in the process;
You value your employees because they seem to share your passion;
Your employees enjoy coming to work and take good care of your customers; and
You spend less time working in your business and more on how to make it better.

One of the five C’s of credit that banks consider in loaning money to business owners is Character. The major element of that character they evaluate is passion. The bank, or any investor, wants to know how passionate you are about the business, your customers, and the products and/or services you offer.

We recently counselled a client who was passionate about opening a franchise restaurant as a family-owned business. The passion was dampened when the franchise allowed another franchisee to open within the territory being considered. We opted for an independent yet similar business and the family-owned aspects of creating their own concept drove the owner’s passion to new heights. And the banker was impressed with that determination to succeed.

Keep in mind that passion is important in business, but should also be instrumental in everything else we do in life.