Category Archives: Business Strategies

Starting With The End In Mind

In many aspects of business today, it is good advice to plan with the end in mind. That also applies to starting your business, and why a professional feasibility study can identify if the end you have in mind is realistic … and viable.

A basic example: Let’s say you have an idea for a product that fills a niche currently under-served or non-existent in the consumer world. Your goal is to start the business, establish the product in the market, grow sales volume, and eventually sell the business off to a major company at a $500 million dollar or higher price point.

Seems like a great idea until you’ve invested thousands of your own money, borrowed as much as you can, and guaranteed thousands more, only to discover that some other company beat you to market, sold “your” invention to the corporation you were thinking might buy yours, and already has the lion’s share of the consumer market locked up.

You’re forced to find alternative markets, retool a different product (if you can), changing your “end result” objective, or filing for bankruptcy. You may have wasted your life’s savings and possibly those of other family members as well.

A feasibility study can provide you with the research and the perspective, along with the financial data to avoid such disasters. When you engage a professional firm such as Brand Irons to conduct a feasibility study, it is important to share your end result up front.

Knowing that your objective is to serve a need is critical to establishing a viable business model. However, knowing what you want as the end result is the element that provides you with the driving motivation to build your business.

One of the most vital, and often discouraging, revelations identified in a feasibility study is the learning that the business concept has only a marginal commercial viability. This is discouraging because it often crushes the dream of someone’s idea. It is also vital in that it dissects and reveals the inherent flaws in the concept.

An example: A client wanted to create and build an elite level indoor skateboard park in a large city’s suburbs. The rent for the space requirements, the cost to build the custom-designed facility, and the operational expenses were all upper end. What the feasibility study revealed was the inherent flaw: Skateboarding enthusiasts prefer to be outdoors when they can and they don’t like to spend money to skate!

More on this later, but consider a feasibility study for your business idea. Whether it’s for starting up a new venture or expanding an existing one, take the time to think things through. If it’s a good, viable idea today, it should still be feasible in a month or two.

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The Little Things

Imagine driving a luxury car that gets outstanding gas mileage, handles like a hot knife through soft butter, has the speed of a cheetah, and looks like a museum tribute to automobiles. You admire it parked in your garage, love how it drives, but then realize it’s uncomfortable to sit behind the wheel. The seat somehow feels awkward and whatever you do, you are unable to adjust it to be comfortable. Do you keep the vehicle, or trade it in for a ride that’s more comfortable?

Little things can make a big difference when it comes to vehicles. In business, little things can also make a big difference when taking care of your customers.

You may have the best product on the market. Your management, production, and sales could be the smartest, fastest, and highest caliber teams on the planet. Yet a simple thing like how your company is perceived on a social media website could be devastating to your bottom line. Some might say your social media presence is far from a “little” thing and we might agree … but in the grand scheme of a product’s life cycle … it could be argued that it is relatively minor if a comment quickly fades, but a deeper crisis or impression that persists can wreak havoc.

Consider the example of a large, globally recognized company that offers a variety of products and, in most circles, is highly respected and trusted by consumers. Mix in the company’s choice to make itself virtually impossible to contact for problem resolution and where does the consumer’s trust level go? To the bottom! Is it a little thing? Other corporate giants might feel the strategy is a stroke of genius, minimizing consumer contact and reducing staffing requirements. With a consumer-centered mindset, however, that little thing looms large in the long-term success equation for the company.

Little things matter. Minor details can be crucial to the success of a business and its products or services. Is setting a table with a dirty spoon all that bad in a restaurant operation? Yes! A health inspection could close the restaurant. A consumer might overlook the “little” thing, but they’ll surely ask for a replacement, inspect that replacement piece of silverware closely, and be suspicious the next time they visit that establishment, if they ever come back.

From your perspective as the business owner, how much extra time does it take to make sure the silverware is clean, in light of the impact it may have on your long-term survival? There’s a familiar saying: If you don’t have time to do it right, when will you have time to do it over?

Another real life example: We checked a candy bar’s expiration date on a recent visit to a convenience store and found it was a month beyond its “Sell By” date. Checking the entire box, we found the same date throughout. Even though we did purchase a different candy bar, we took one of the expired items to the check-out counter and pointed out the expiration date to the clerk. While the clerk was grateful, she was also astonished and admitted that the candy vendor had just been in the store!

It’s the little things. Was the vendor negligent, or simply trying to move expired product to unsuspecting consumers? How much would that unsuspecting, yet trusting, consumer have had to pay if he’d broken a tooth eating a hardened, out-of-date candy bar? Potential for a lawsuit?

Think about your business and your products and/or services. What are the little things you overlook that may be huge in your customer’s eyes? Take care of them by making them “big” things. When it comes to marketing, everything matters!

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Back to the Beginning

There are times when it is wise for you, as a business owner, to take a few minutes, hours, or perhaps days to stop and re-visit the reason you got into your business. As we plow through the months and years, it is easy to forget why we do what we are doing. A consultant can help if you need assistance to come up with strategies.

Here are some questions to consider in reflecting on your business:

Are you happy? You should be excited about getting up and going to work every day. My bad. You shouldn’t even think of it as “work” if you enjoy what you’re doing. If you like/love what you do, that attitude infects the rest of your team … and your customers. If you are on the other side of the happiness coin, that also is conveyed to your employees, your customers, and your prospective customers. You obviously want to be on the happy side.

Are you fulfilled? Your business should be challenging and rewarding. Your responsibilities should push you to the edge of your comfort zone, and maybe over that edge if you learn and gain confidence in your ability to solve the problems or manage the crises. Walking in the same rut day after day can be mentally challenging and emotionally draining. You want to finish your day feeling you’ve accomplished great things.

Have you made an impact? Each of us wants to make a difference in the world, whether through our business, our volunteer work, or in the lives of others. Take a few minutes and think about the impact your business has on your customers? Is it able to fulfill their needs, wants, and desires effectively? Has your company served them at the level they expect to be served? Are your employees satisfied with what they do and feel fulfilled, as though they are also making an impact?

These are three questions to reflect on, whether you stop and do it once a month, every six months, or once a year. The impact this time has on your business can be measured in profits, and comes down to what you do about any low areas you may discover. If your business experiences peaks and valleys, it’s logical to fill in the valleys.

There’s only person who can change your attitude about going to work and managing your business. Likewise, there’s only one person who can decide whether you will be happy or sad as you go through your day. Leave work at work when you go home and enjoy the time with your family. Let your loved ones know you love them, in words, a hug, a kiss.

If you think about what you do for a living and it fulfills you, you’ve answered the second question. If not, think about what you can change that will make it fulfilling. If it becomes more fulfilling for you, it will do the same for your employees and your customers. If in doubt, ask your customers what would make what you offer be more satisfying for them. Then figure out how you can provide that to them.

By and large, if you have the answers to the first two questions, the answers to the third will fall in place. Take some time to think about it.

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Have You Reached The Top?

How do you know if your business has reached the pinnacle? Is it when you own the niche for your product or service and the accompanying majority share of the market? Is it when consumers come back and sing your praises throughout the land?

A lot depends on how you define the top. When a mountain climber reaches the top, there’s only one way to go, down. A business, on the other hand, can reach the top and remain there for quite some time. You might even compare it to the children’s game, King of the Hill. The stronger and smarter you are, the longer you stay on top but you can always be knocked off by a surprise move.

When you define what the peak is for your business, you may discover you have already reached it. If, for instance, the acme is achieving five million in sales for your product or service, your financials may show you’re already there. What was the goal in your original business plan? Have you looked at that lately? What do you do if you’ve achieved the goal you originally established?

The obvious answer would be to diversify and find another mountain to climb, or to re-define the peak you seek to achieve. If you achieved five million, can you do 15 or 20?

From a marketing perspective, the journey to the top involves taking the right steps, having a support system behind (and with) you along the way, and bringing others with you. There’s a story somewhere about the person who wants to climb the mountain and struggles to do so, but when she helps others reach the peak turns around and realizes that in the process of helping another get to the top, she has done so herself.

Back to marketing, though. When you do the right things and achieve the objectives you set out to reach, your continued success – the ability to remain at the top – depends on building brand loyalty. If your customers love being on top, #1, with you and you foster that admiration with them and your prospective customers, your place on top of the mountain can remain strong for a long time.

Last week’s blog referred to Ford and Chevrolet. Both remain strong on the automobile mountain because they have taken care of their customers, but also because they have not been afraid to take risks and innovate with new designs and different vehicles. They’ve made mistakes along the way, no doubt. Ford with the Edsel debacle and Chevrolet with the recent government assistance program.

The lessons to be learned are that if you remain focused on your customers and what they want, you can weather set-backs and still reach the pinnacle. Mountain climbers have challenges along their path to the peak; it’s not a flight of steps up to the heights.

If you are King of the Hill, enjoy it while you’re there!

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Is Competition Good For Business?

Before we dig too deep into the pros and cons of whether competition is good for business, let’s take a look back about 100 years … give or take a few years.

When Henry Ford started manufacturing automobiles, he wanted to produce vehicles that the “average” person could afford. In doing so, he established a certain loyalty to his brand among the people who bought his cars. That loyalty has spanned generations.

Imagine what it would be like today if Ford had not had any competition in the marketplace. Every car on the road would be a Ford and there would be no question what you would drive. Ford would dictate what color of cars would be available, what features they would have, and most importantly, what you would pay to own one of their vehicles.

We’re not experts in which started first, but General Motors entered the automotive scene as well and competition began. People who drove Chevrolet vehicles were proud of how they looked and performed. It wasn’t long before Ford people gained a disdain for Chevy people, and Chevy owners grew to dislike Ford people.

In the process of competing, both companies grew and expanded the world of motor vehicles in the United States.

The competition was good in that it kept both companies operating, although each saw an erosion in market share. As America’s population grew, the market kept growing, so although each company may have lost market share, the overall market expanded enough to keep both companies in business. Competition opened the door for other car manufacturers to try their hand at taking some of the market share, creating jobs and choices for consumers. Consider your choices for automobiles in today’s market, including the foreign competitors.

Back to the topic at hand. Competition is good for the consumer in that it generally keeps prices lower and options more plentiful. Where it can be detrimental to business is when the business dilutes it’s own market by competing with itself.

An example is orange juice. Orange juice now comes regular, with added calcium, mixed with other fruits such as pineapple, and a few other varieties. The same manufacturers compete against themselves for consumers by offering various choices and, in many cases, the consumer is unaware of the differences, except if it means a higher cost to them.

A business owner needs to understand that, in virtually every situation, there will be competition for the consumer’s money. Your business needs to develop strategies to embrace the competition by knowing how and why your business is different, and minimize the risks of competing against yourself.

A key element is to know your customer. What are their preferences? You may think you know what they want, but do you know – for sure – what they really want from your company and your products and/or services? Why do they, or should they, want to do business with you instead of your competitors? How loyal are they?

In our humble opinion, yes, competition is good for business. It keeps your business on its toes and makes you work harder to stay on top or to gain more market share. To use a comparison, athletes get better when they compete against someone better at their sport. Competition in business makes your business better and is better for the consumer.

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Designing a Print Ad

We have been receiving some good feedback, and although we’re not sure which of our posts are most appreciated, we will keep providing marketing and business-related topics designed to help you operate your business more profitably.

Before getting into how to design an attention-getting print advertisement, however, let’s remember that marketing involves every aspect of your business. Everything from how your parking lot looks to the first impression of users checking out your website, and from how your staff treats customers to what your business cards look like.

Example: Attended a meeting this morning at a banquet facility where the entrance doors looked like they had been washed with a dirty towel. Yes, that bad! Something so simple to do right, yet when done poorly has a tremendous impact on whether to recommend the facility for a wedding reception or other event. Makes you wonder how they do the dishes. Suggestion to management: Fix it, even if you have to do it yourself!

Back to business: When it comes to designing an ad, remember your audience. Is the ad – in total – appealing to your prospective customers? Do you have a headline or other attention-getting device? Headlines need to appeal to the readers’ interests. Does it help them avoid pain or obtain pleasure?

As with any message, the first requirement is to get the person’s attention. The next requirement is to keep their attention long enough to receive and absorb the message so they can act on what you want them to do. Do you know what you want them to do? Do you call them to perform that action? Copy sells. Art enhances. Print ad basics.

Headlines, traditionally, cover the top of an ad but can be used creatively in other locations to grab more attention. The sample ad here uses a “Z” design method based on the natural American/English tendency to read from left to right. The headline leads the eye to the image of the two cats, which then flows down to the logo and across to the call to action. Pay attention to where the eye is drawn in an ad, because that should be where the most important information is conveyed to the viewer.

In the sample, note that the copy ties to the image, adding relevance to the impression the picture of the two cats conveys. If you want your potential customers to stop by your place of business, an address and/or directions (including a QR code) should be included somewhere in the ad. In this case, it’s to call for professional assistance.

Humor can be used quite effectively, but remember that some people will appreciate the humor while others could be turned off by it. The image of the pointed gun is meant to relate to Brand Irons in a humorous way, but could easily be interpreted as the threat of gun violence if you neglect to make the call. That brings to mind a topic every business should think about. Do you have an active shooter protocol in place?

Another ad variable: The personality characteristics of your desired audience can be used to your advantage in designing your ads. There’s more in the book, Small Business Owner’s Guide to Marketing.

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Stop: Think About It!

This thought might seem like a bizarre topic but, when you do stop and think about it, there are far too many decisions you make as a business owner that you probably don’t take the time to think through completely.

Okay, the first question you raise: Can you ever think through an issue completely? No … unless you have identified all the concerns related to that issue and have all the answers clearly defined.

Here’s a scenario: Someone who knows someone in your company comes in to ask for a donation to the youth baseball league in your community. Odds are you make that contribution at a level you’re comfortable with, unless you’re not a baseball fan or a supporter of youth activities. It’s kind of a guilt trip when you’re asked. How can you be against baseball? Or young people who want to play sports?

If you think about the request logically instead of emotionally, you weigh the variables, such as whether you have the budget allocated for that level of donation. Can you lessen your tax burden through the contribution? Will you gain any market visibility or brand awareness with the donation? Is it a cause you want to be identified with as a company?

That’s one example of the importance of taking a few minutes to weigh your options when asked for a charitable contribution, rather than just handing over the cash. Whether it’s financial or an in-kind gift through employees donating their time and expertise to the cause, take some time to think about it.

A suggestion that might prove helpful: Develop a decision making check list to stimulate the thought process when it comes to making critical choices for your company.

#1 might be – Will the choice help us make more money? Sub-factors for this check point might be: How soon? How much? At what cost?

#2 could be – Will this decision increase our brand awareness? Build customer loyalty? Or possibly detract from our brand identity?

#3 – Will this enable us to increase market share in the community or other markets?

#4 – Do we have the budget for this expenditure/donation/expansion?

#5 – What is required of our company to fulfill this obligation or complete this project? How much time will be required of our employees?

When we’ve conducted fund raising projects for clients, there is often a desire to conduct a volunteer project such as a bake sale or car wash. These are good events for getting people involved in a cause, but when one stops and thinks about it, these relatively simple events require loads of time for a small return. If your company or organization had to pay for the volunteer’s time, odds are the event would lose money!

A decision matrix such as roughly outlined above can reduce the risk of making bad decisions, and save money that might be invested in the wrong venture. And there are times when having an independent third party to provide counsel on the concept is well worth the investment.

Take the time to think it through!

Thanks go out to the community following this blog. We appreciate your comments and support and hope to continue providing valuable content for you.

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Building A Commercial

The first step in building a commercial such as a 30-second TV spot or a promotional video for YouTube is to know your audience.

Basic demographics are age and gender. Understanding these basics for your audience, or viewer, are important because different age groups watch videos differently and each gender has different receptors for the message. The more clarity you have about your audience, the easier it becomes to design your commercial to get through to them and to influence their buying decisions. Remember that people, in general, prefer to avoid being sold and would rather make their own purchasing choices.

When you’ve determined which audience you’re targeting, part of the design work is to grab their attention. A good rule of thumb is to focus the attention-getting device (AGD) on your potential customers and what they are likely to want as the message relates to your product or service. Is the purchase for necessity, pleasure, or to avoid pain? There are other options, but we’re trying to keep this brief.

Once you’ve got the audience’s attention, the commercial needs to keep their attention or engage them to ensure the message is delivered as intended. Generally, you want to leave the viewer with an indelible memory, a positive perception, and/or an urge to buy what you’re selling. The hope is you will build brand identity and, if they like what they purchase, brand loyalty. You also want the viewer to stay through to the end, where you provide the call to action.

Know what you want them to do. That’s your call to action! Do you want commercial viewers to stop by your store? Would you prefer they call to set up an appointment? Send you an E-mail? Or do you direct them to your website for more information or to place an order?

Now that we’ve gone through the construction elements, let’s go back to the planning process. One of the worst reasons for producing a commercial for your business is “Everyone is doing it.” Know your purpose … and your audience. Whatever you attempt in producing a spot, you are building brand awareness. You want it to be favorable. Yes, you are trying to sell your brand, your product, your service, and maybe yourself, but keep in mind who’s going to be viewing your commercial. Why do they or should they care? Does the spot relate to them … or is it about you and your company?

Remember, too, that your commercial may not reach everyone in your intended audience, and will more than likely also be viewed by people outside of the audience you’re trying to reach. Both scenarios are okay.

What’s your budget? Fancy graphics, animation, and acting or modeling talent can rack up a big expense without any consideration for scripting, shooting, and editing the video. Plus you generally have to pay if you’re airing commercials on TV or cable channels. There are ways to reduce the expenses such as shooting two or three spots at a time, but either way, it’s best to have professionals help with production because your reputation, and brand, are on the line.

Consider, too, that you need to understand the time frame involved in producing a commercial. Concepts and script writing need to be thought through, modified, and finalized with your approval before the shoot can be scheduled. The logistics of finding a location, getting permission to use it, and then setting up the various shots takes time. The process of finding the right talent takes time, too. Remember to add in rehearsal time and get talent releases as well.

When you shoot video, shoot from several angles and do numerous takes to ensure you have enough material to work with when you get to the editing booth. Think of and take all the shots you think of so you can avoid returning to the location to shoot something you forgot you needed. Editing requires time to enter video, audio, graphics, and manipulate the sequences between scenes.

Sure, you can shoot some video with your smart phone and post it on YouTube, but is that the image you want to portray of your company?

Take the time to think things through, and get help if you need it!

Brand Your Work – Work Your Brand

Managing Priorities

You own a business. You need more customers. You have to complete payroll. You need to manage inventory. Invoicing to be done. Bills to pay. And, oh yeah, you have a family that likes to see you once in a while.

These are all priorities in one sense or another, and they can add stress to your life when everyone of them is due … today!

An easy solution: Delegate. However, what if you’re it? The owner, sole proprietor or only member of the LLC, sales person, order filler, and, basically, the only employee? How does that alter your priorities? What if there isn’t anyone as well trained or as knowledgeable about the task to get done as you are? What if you lack trust in someone you could delegate it to? All kinds of challenges for managing priorities.

You bear the ultimate responsibility, so broaden your shoulders, delegate what you can, and get what you can accomplish done. What you are unable to delegate effectively become your priorities for the day.

Two schools of thought.

1) Do the easy, simple and quick tasks to get them out of the way so you don’t have to worry about them. When they’re done you can tackle the larger, more important tasks that require more time and energy. You will still have to deal with interruptions.

2) Tackle the most important task first. If it truly is the most important job and must get done, then it doesn’t matter if the smaller tasks don’t get done because the big job has to get finished.

The first school of thought may seem inane, but if you have more energy and fewer interruptions later in the day or after you’ve cleared the small jobs, it can be a viable method of managing priorities.

The second seems more logical, and could be, depending on when you have the most energy to tackle that type of work. And, if you procrastinate on the big one, the other tasks will pile up and frustration will decrease your overall productivity.

The magic formula lies in assigning priorities to the tasks on your plate. A #1 or “A” priority should require your attention before a #4 or “E” task. Again, delegate if you can. What also helps is an understanding of approximately how much time the tasks on your To Do list are going to take. If generating a report for shareholders only requires a few key strokes and a review of the information, bump that up on the priority list because it is going to shareholders, and they like information in a timely fashion.

Each day is different, so keep that in mind, along with the realization that procrastination is also a decision … to do nothing about the task. Perhaps it wasn’t a priority after all.

Somewhere in this mix needs to be a priority on yourself and your family. Schedule yourself some “Me Time” and have some fun for a change. Go out to dinner, or catch a movie you’ve been wanting to see. Take a road trip. Go see your parents or grandparents and visit for a few days. Life is too short not to enjoy it.

A good friend, Jay, shared a saying that is appropriate: How likely are you to say to someone on your death bed: “I wish I had spent more time at work.”?

Brand Your Work – Work Your Brand

How Well Are You Communicating?

The ability to communicate is a vital skill in today’s world.

Good communication relies on feedback and goes both ways.

When you think about your ability to communicate with your customers, being able to connect with them is critical when it comes to marketing your products and/or services.

Pay attention to some of the commercials you may watch on TV these days. Is the company or product message promoting the company or trying to connect with the consumer? Most miss the mark.

Texts. Ask your customers how they would like to receive messages from you. Many with smart phones are now open to receiving text messages, but use caution and avoid overwhelming them with sales pitches. A text is an attention getting communication and generally warrants a response for the sense of urgency. Trying to sell the receiver something is usually considered a major turn-off.

E-mail. E-mail messages may seem like stone age communication with newer technological developments, but they have been a stalwart of electronic communication methods for more than 15 years. E-mail messages that are meant to be read are best kept short. Attachments are okay, provided they are relevant to the general message. Assuming the recipient has received an E-mail is a false assumption. Just because you hit “Send” is not a guarantee the recipient got it. It may have wound up in a spam filter or lost in the cyber mail system somewhere.

If you realize someone you are exchanging E-mails with is responding promptly to your E-mails, pick up the phone and call them!

F2F. While we could elaborate on communication methods and styles for an entire year, one of the most important is face-to-face (F2F) communication. Yes, some believe it’s a dying art form, but it is still ranked high among the most effective ways of communicating with another person. Laugh if you do this, but think how ridiculous it would be to text your spouse while he/she is in the bathroom and you’re in the living room. Go and talk to them, even if it’s from outside the bathroom door!

Face-to-face communication is a two-way process. The difficulty in the process, which is why some people avoid it, is in listening to what the other person is saying. Our natural tendency is to say something and then look like we’re listening while we’re thinking of the next thing we want to say. It’s a more common occurrence than you might think.

Demonstrate interest in what the other party has to say. Listen and learn before you determine your response. Consumer complaints are best handled by listening, and asking what the customer really wants. Many times, they just want to know you care and that they are going to be heard.

Listening is a key skill for business owners and managers, too. When you hear what your team members are saying, you may discover new opportunities to explore or potential problem areas that can be averted with the right action.

How you communicate reflects your brand, too. More in weeks to come.

Brand Your Work – Work Your Brand