Showing posts with label Starting A Company. Show all posts
Showing posts with label Starting A Company. Show all posts

Oct 27, 2009

King Solomon's Wisdom and Building an Organization


I'm working on a new book based upon an article I published at AspireNow called "Great Leaders Series: How King Solomon's Wisdom Built a Kingdom" that I'll be rolling out along with several other books and workbooks this next year. Articles related to leadership, sales, and success are now published here at the ARRiiVE: Innovations In Business blog.

Have you seen the article on using King Solomon's Wisdom To Build A Team?

In the article, I bring up several issues and questions entrepreneurs face:
  1. How to align your organization for optimum chances of success?

  2. Where to focus your efforts to succeed?

  3. What way to gather resources?

  4. How to organize for selling and profit?

  5. How to eliminate strife internally?

  6. What type of partnerships to build?

  7. How to ensure your leadership role will last?

  8. How and when to inspire and celebrate?

  9. How to avoid extravagence to maintain bottom line growth?

  10. How to ensure longevity of the organization?

Yes, all of these questions are answered by studying King Solomon, who according to the Bible, was the wisest of men. King's Solomon's wisdom definitely shows in how he built his kingdom. If we are to learn how best to lead an organization, why not study the very best?

So, I encourage you to review the article on King Solomon. If you have any questions you'd like me to answer in the book that are not listed here, or perhaps to enhance or further investigate other aspects of Solomon's approach to leadership, please suggest them in the comments here at the ARRiiVE: Innovations In Business blog, or contact me directly.

(Note: above image provided courtesy wikipedia, Solomon and Queen of Sheba, by Giovanni Demin.)
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Oct 21, 2009

Focus: Starting A Business

Utilizing the power of FOCUS is key to starting a company or launching a product successfully.

If you're an idea person, as many entrepreneurs tend to be, you're likely at some point to attempt starting a business. Hey, it's challenging, it's fun, there's a thrill in the success, and well, there's also a bummer downside. But, nevertheless, if that spirit is inside you, there's probably nothing you can do to fight the urge.

Now, if you're like me, an idea person with so many ideas it is hard to keep up with them all, then your biggest challenge in starting a business might just have to do with FOCUS!

Yep, I'm admitting it. Sometimes a blog is the best therapy. But, seriously, if you notice friends comment that you have ADD (attention deficit disorder) and/or say "maybe you ought to focus" you just might consider they might be giving you words of wisdom.

Starting a business requires FOCUS!

For example, when I launched my first website, AspireNow, I had someone tell me to focus on just one thing, and do it well. I ignored her advice. While some other websites launched at the same time as AspireNow thrived, AspireNow struggled in the early years. I think if I'd done a better job with my focus, I'd probably have succeeded with that website much sooner.

I recently helped an entrepreneur launch a large digital screen network in California. One of the challenges we faced was myriad ideas from the entrepreneur that caused distraction amongst the sales team and made it difficult to sell what we needed to sell. Again, this was an issue of focus.

If you focus properly on what must be done now to win, you will often succeed where others may fail. Do you need every bell and whistle? In 1901, Henry Ford founded the Cadillac Motor Company. This company tried to be the most luxurious car, with all the bells and whistles, and failed (although pieces of this company later bacame part of General Motors).

During a time when most automobile manufacturers were selling all kinds of odd cars, Henry Ford later chose to focus on ONE DESIGN, ONE COLOR, for ONE TYPE OF CAR (part of the reason for the color, black, was because Ford ran into a bottleneck producing paint that could dry fast enough).

Ford later became the number one automobile manufacturer in the world. Why do you think that was? I think it had a lot to do with focusing in on doing one thing and doing it the best.

How about you? What are you selling? Can you tell me in thirty words or less? When you tell me, do you know for sure that I will understand what you're selling? Are you focused enough to execute on that promise?

Henry Ford focused on producing one car so well his ideas on manufacturing automation became known by 1914 as "Fordisms" and today Ford is a $146 Billion company with over 200,000 employees, producing over 5.5 million automobiles.1 And, although Ford Motor Company is experiencing decline over the past ten years, part of their plan to get back to a top position is to simplify and re-focus. Do you think focusing might help you, too?

When Sara Blakely formed Spanx (initially a form of hosiery products for women without the feet), she created a number of product innovations, but mainly focused on creating a new type of hosiery addressing a market that wanted to wear hose to give them shape, but not hose with FEET. I'm sure if I was a woman, I'd want Spanx, too, because I hate having my feet covered!

(left: photo courtesy of Spanx.)

If you're starting a business, I strongly success you FOCUS on ONE THING and do it very, very well. Do it to the best of your ability. After that one thing is thriving, maybe then add on that other swanky idea. In the meantime, why not just keep an "idea journal" to store all this fancy thoughts?

If you're failing, re-write your business plan, and re-focus. With your new focus ought to come a rejuvenation in your success.

If you're not sure what to focus your energy on and where to direct your clients, let me ask you a simple question: "What do you want clients to remember you for?" In the case of Henry Ford, it was a great, simple, well-built car you could rely upon. If it's your website, it might be "a great, simple, well-designed site you can easily navigate" (with the added clarity of what "type" of site, for sure!).

See how you can simplify, build quality, price, and product into your description in as few words as possible. Then, run it by a few clients, or potential clients, and see how they react. Test it out. As your employees what they think of it. Get feedback, then focus on what you choose. Stay with it for an extended period of time, and prove you can succeed with what you know will win.

Let me know what you're going to focus on - I love to know what entrepreneurs are doing! If you're looking for someone to review your business and see how you might simplify, I'd be happy to help. Drop me a note and we'll schedule a half hour or hour for us to review what you've got going on. I've done it for others and their business thrived after these meetings, so I am confident you'll benefit, too!

In the meantime, make a sign with "FOCUS" as the key word. Cut it out and post it places (like the fridge, by your computer, in your car, etc.) to remind you of the importance of this key to success in starting a business.

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1 Ford information courtesty of Wikipedia

Jul 9, 2009

Why Losing Your Job Can Be Good For You

I just watched the Steve Jobs' commencement speech at Stanford from 2005:




One of the comments Steve makes is how when he got fired from Apple, it was a blessing in disguise. He points out at 7:15 "I didn't see it then, but it turned out that getting fired from Apple was the best thing that could have ever happened to me. The heaviness of being successful was replaced by the lightness of being a beginner again, less sure about everything. It freed me to enter into one of the most creative periods of my life. During the next five years I started a company named NeXT, another company named Pixar, and fell in love with an amazing woman who would become my wife. Pixar went on to create the world's first computer-animated feature film, Toy Story, and is now the most successful animation studio in the world. In a remarkable turn of events, Apple bought NeXT, and I returned to Apple, and the technology we developed at NeXT is at the heart of Apple's current renaissance, and Lorene and I have a wonderful family together."

Did you lose your job recently? During a recession or difficult time in an industry, many people struggling with losing a job, as companies downsize their employee payroll to make ends meet. You may be one of them. Then again, entire companies go out of business during those times. At other times, the position you occupied may not have offered the right fit you and your growth. Or, perhaps, you did not deliver up to your hiring process courtship promises. Whichever, don't fret, because that job is now your PAST. What's important is what you do TODAY and in THE FUTURE.

If you are doing what you LOVE, you will find a way to SUCCEED. Your work fills a large part of your life. So, do what is great work. Steve continues "the only way to do great work is to LOVE what you do" and encourages the graduates to keep looking, don't settle. I believe what we do must also provide HIGH VALUE to others. So, what do you do that you love and that produces high value to other people?

If you're reading this, you've most likely traveled far from graduation. You're perhaps thinking "what now?" Well, if you've had a great idea inside you, but have been sitting on the fence, wondering when is the right time to launch that idea into a business, perhaps now is that time. I made a similar choice back in 2001, when I left EMC2 and turned down a job with Hewlett-Packard that promised $18K a month to make $0 with AspireNow, my first company. It was a costly decision, but in the end, I'm happier, and everything I am doing now came from that leap of faith, and essentially losing that job opportunity then. AspireNow continues to produce passive income on a monthly basis, and ARRiiVE Business Solutions, which launched out of AspireNow, is now providing exciting business launch services to terrific clients.

Recently, I relaunched ARRiiVE Business Solutions as a full-time endeavor. This came from a "job" turning from a job into a consulting assignment. Now, I am free to do as I wish, but also still working with my previous company to help them continue to launch their software. However, this turn of events also freed me to help launch several new amazing and promising companies.

What can you do to turn a "lemon" of a job situation into "lemonade" in your life?

If you need help launching your business, I suggest you work with a coach or business launch specialist who has been there, done that, and been through the challenges of failure and success. Find someone with whom you identify, and start building a team. Believe in your dream, seize upon the hope of what you love the most, surround yourself with other successful people, and then go for it with all you've got within you!
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ARRiiVE Business Solutions offers business development coaching, "acting" VP of Business Development/Sales, business launch creative marketing, and sales training services. To learn more call 805-459-6939 for an initial discussion about how I might help you with your endeavor, or email info (at) ARRiiVE (dot) com.
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Jan 6, 2009

Twine for Starting A Company

I just started a new "twine" for starting a company.

If you're starting a company and/or interested in advice and connections for information on the following subjects, you're encouraged to join, follow, contribute, and share with friends. Here's the link:

http://www.twine.com/twine/11rr86z2y-lq/starting-a-company

Subjects this twine will cover:
Business plan, strategy, funding, connecting with investors, sales plan, marketing collateral, logo design, website design, list building, business cards, and more!

ARRiiVE Business Solutions is a firm specializing in product launch and creating new company growth and also hosts a radio show called Innovations In Business.


Cheers!
Scott
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Sep 3, 2008

The Importance of Being Different: The Savvy Entrepreneur Series, Part III

"Do Something Different: The Savvy Entrepreneur" on ARRiiVE: Innovations In Business Show

When:
September 3, 2008 at 2:00 PM PST / 5:00 PM EST
Topic:
"The Importance of Doing Something Different"
Host:
Scott Andrews, CEO of ARRiiVE Business Solutions


Call In:
Call in at (724)444-7444 and enter 37798 # 1 # Text chat online: http://www.talkshoe.com/tc/37798 to text questions or listen online.

Details:

Visit http://www.talkshoe.com/tc/37798 To hear Scott Andrews, CEO of ARRiiVE Business solutions, discuss ways to be different to increase your sales and grow more business today at 2PM PST / 5PM EST.

Stop butting your head against the wall and copying all your peers. Figure out why most companies succeed where others fail: by differentiating and offering a different look, product, or service, you can dramatically improve your sales results, starting right now! Don't miss this fun and educational call with Scott.

Show hosted by Scott Andrews, CEO of ARRiiVE Business Solutions (www.ARRiiVE.com)

It's simple and easy to join - call (724) 444 -7444 enter 37798#1# to dial in or visit http://www.talkshoe.com/tc/37798 OR http://www.ARRiiVE.com (see radio show link) to visit online and/or text chat questions to Scott.

ARRiiVE Business Solutions provides sales training and executive coaching. Click the link or email info [at] arriive.com to get started.

Update: Share this article with a friend and forward this link!

Want to share your thoughts about this show? Weigh in below.
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Aug 22, 2008

Raising Money To Start A Company, Part I

How To Know When You're Ready for A Cash Infusion?

Frankly, you probably aren't ready to ask for money. Why? Because usually the problem with launching a business or product ISN'T whether you have enough money, but more rather how much VALUE you're providing. And, most entrepreneurs who are drawn to raising quick money aren't serious about keeping their business or building a strong business in the first place.

I have a few questions to determine whether you're ready:

Have you articulated your message well?

Are you delivering high quality products and services on time and under budget?

Do you have a solid team built who can help you grow your business?

Do you have a stream of customers starting to line up outside your door?

If so, your word-of-mouth will grow your business, and you may never need money. However, that is when you will most likely be able to receive money. If you don't have "yes" answers to the above questions, I'd suggest you tighten up your business FIRST before going after the money.

I often receive inquiries from entrepreneurs about how to raise money for their business. Well, I can help you write a business plan. I can also help you approach entrepreneurs. But if you haven't addressed the above information properly, it won't matter. No matter how much money you have, if you don't have a good business model you won't success. On the flip-side, if you DO have a good business model and you ARE winning new clients, getting funding will be much easier.

Then, it's simply a matter of making sure your financial numbers and projections are in order, and approaching the appropriate resources for the cash infusion you seek to GROW your business.

The problem with most people who are seeking to get money quickly is they are ignoring business basics and failing to develop a solid base of business BEFORE going for the cash. Now, in the case of the dot-com era, there was an exception to the rule. Many companies wanted to get online quickly and build it first, so they could establish market dominance. However, if you notice, there is still probably room for a company to sell books online successfully, even though Amazon, Borders, and Barnes & Noble already have a strong market established. In addition, there is probably still a market for a better or faster web browser, although my guess is that the next killer application online won't be a browser at all.

True innovation often leads to breakthrough products and services. Have you put out the effort to innovate? If so, you'll attract the business you need to succeed.

Now, if your situation is that you've covered your bases, you have a basic business plan, you've built a team, you have a product, you're making sales and making money, and want to raise money, then let's talk about getting you quick money for your business.

You'll need to answer the questions:

"How much do you need?"

"Why should they give it to you?"

"How soon can you pay it back?"

Once you can answer these questions, and you have a stream of happy customers starting to line up outside your door, then email me and we'll go from there. Stay tuned for Raising Money To Start A Company Part II (coming soon).
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Aug 7, 2008

Be A Better Entrepreneur: The Savvy Entrepreneur Series, Part II

If you have an inkling of an idea, you might be considering becoming an entrepreneur.

Entrepreneurs have an interesting life, without a doubt. If you want to be an entrepreneur, you'll learn many skills you might not posses from the corporate world, for sure. And, thankfully, there are wise owls willing to share their experience with us. For my part, I'll share what I've learned with you, and point out several aspects of entrepreneurialism I discovered the old-fashioned way: from the school of hard knocks!

Keys To Becoming A Better Entrepreneur

1. Your "Big Idea" is just that. Somewhere between 5 and 500 other people in the world may have had the exact same light bulb moment you did. The only difference is who will ACT on their big idea.

2. Your "Big Idea" is just a beginning. Where do you go from here? How do you create a plan? What ways might you implement your strategy? Who will you hire? Where will you base your headquarters? Who should you hire to help? There are so many questions facing entrepreneurs - start to make a list of ways you think you might need help. Then seek out resources to help you in your journey.

3. Most companies do not fail because their idea stinks. Most companies fail because their execution stinks. What am I talking about? Well, for starters, how well are you managing your money? This is the #1 place businesses fail.

(# Months) Life of business = $ in bank - burn rate per month + new money in.

This is the bottom line. Yep, cash IS king! If you're able to get your ego out of the way, you might look at this first:

a. How much money are you bringing in versus how much money are you spending?

When you can answer that question and the money in is greater than the money out, you're getting somewhere!

What's the next biggest area of execution where people fail? They go it alone. It isn't easy to be an entrepreneur. It's even harder to do it by yourself. This is why my firm, ARRiiVE Business Solutions, has two "i" letters (and why they're emphasized) -- because you no longer have to feel you're launching your product by yourself. I help you and we're now a team! i and i is the Rastafarian way of saying "we" so why not "i" and "i" doing it together?! Anyway, decide what kind of help you want on your team: marketing, legal, financial, operational, managerial, sales, support, HR, etc., and go get it. Most companies need help with either marketing or operations. The positions I've hired or outsourced have been marketing 60%, operations 25% and legal and financial the remainder. Make sure, at the least, that you have a good attorney and a good accountant. Their advice is always handy.

b. Get good help. Most entrepreneurs have a difficult time getting past their ego. If you can't get beyond your own "I think I know the answer" problem most entrepreneurs suffer from, you won't ever lift a finger or write a check to get help from people who can and will help you. I'd start with your operations. Make sure you have a solid product or service to offer FIRST, then you'll have a solid way to make money.

c. While you're getting help, make sure your marketing is in order. Most entrepreneurs skimp on part of their marketing. Perhaps they think that saving money in this area is wise, but it is the wrong place to save (I'll say more on that in a bit) but no -- make sure you spend money where you need to in order to have solid marketing.

Critical Marketing Success Tactics

1. Get A Logo. Your logo represents what you do. When I designed my first logo, I hired a graphic designer to help. (See www.AspireNow.com). My second logo, third, fourth, and fifth, I hired out help, too. Now I design logos for others whenever I want the side work, see www.ARRiiVE.com for an example of a logo I designed.

2. Professional Business Card. Hire a professional designer and use proper card stock. You'd be surprised how much more seriously people take you when you make this one simple change. If you're using the Avery ink jet printer cards, stop right now, call me. I can help you. The layout on your card is as important as the stock. I've also seen people skimp thinking they know graphic design (artists, especially) and then after I get through with their card, they always thank me for improving their card design.

3. Professional Website. Get your website right. Don't start big (like I did) start small. Keep it simple. Then focus on getting the word out and building traffic. The good news is that today you can start a website far less expensively and with much more power than when I started AspireNow.com. The bad news is that there are MILLIONS of sites you're now competing with. You'll likely need to hire an expert who knows how to get Top 10 position on Google and can teach you tricks how to drive traffic to your site (hint, hint). I have designed many websites. At ARRiiVE Business Solutions, I still offer web design as a service even though I now outsource 98% of this work. This is a good thing, because you gain extra eyeballs on the site design challenge and also gain another expert's opinion in the process, along with someone who's been there and done that and also understands layout AND sales copy. I find this useful to my clients and they're happy with the end-result.

4. Off-line Promotions. Are you going to trade shows? Are you going door-to-door? Are you speaking publicly about your services or related topics? (Speaking drives a considerable stream of revenue to my business). Have you created a nice 3-part brochure that showcases your product(s) and service(s) properly? Again, hire it out, do it right. But once you have the material to hand someone, you have to take ACTION and get out there. Go to networking events. Leave them with something but always ASK FOR SOMETHING in return. How can they help? Who do they know? Can THEY use your service?

5. Hone your Sales Skills. Entrepreneurs must learn to sell or they will fail - period. You must be a good salesperson. Right now, I offer a lot of sales advice at the ARRiiVE: Innovations In Business blog. You can browse around there, although sign-up for the blog on email because in the future I'll be offering video training to help you improve your sales techniques and grow success.

6. Improve Your Marketing Pitch. When you can say what you do in 20 seconds and people get excited and ask you to meet with them, you've got your pitch refined. Seriously, that's the essence of it, right there. Test it, test it, test it, practice saying it BEFORE that important contact at the mixer you attend, so you have it right on target there and capture what you need from those vital interactions.

There's so much more to being an entrepreneur... if I could leave you with one super-valuable piece of advice I learned the hard way: downsize your expenses immediately. Many entrepreneurs only give themselves 6 months worth of money to make it. We all read how it takes entrepreneurs up to 5 - 10 years to succeed, but then why would we only allow our self only six months? This is stupid. It is ego. Take out your ego and downsize immediately if you are serious about making this dream a reality. Sell your house, drive a less-expensive car, get rid of HBO, do whatever it takes, but downsize your bills. Figure out how to give yourself a 5 year money plan and then spend your money wisely.

If I had done this one step of advice I just gave you, I would have incurred zero debt during my first five years of business. Instead, I continued to live in an expensive house, drive a nice truck, and kept the cable bill on. Be smart with your money, and then figure out how to make more money quickly, and build, and improve, and learn, and improve. Notice I said "learn" not fail. I don't view failure as failure unless I failed to learn from it. So, I say learn, build, improve, learn, build, improve... it's a multi-part process. We will take a step back once in a while. But learn and then go two or three steps forward.

Take a deep breath... exciting days are ahead of you!

Coming soon:

Be Different: The Savvy Entrepreneur Series, part 3 of 10.
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Jul 21, 2008

The Value Of Starting Small - The Savvy Entrepreneur Series, part 1 of 10

Welcome to "The Savvy Entrepreneur Series - Part 1 of 10 - The Value of Starting Small"!



It is valuable to start small if you aspire to be a savvy entrepreneur.


When entrepreneurs dream, they often dream large. Is that good or bad? Well, if you ask many people, the problem with dreaming large is that large projects require large money to get off the ground. I recall my first seminar I launched. Rather than start small, with a handful of people in the room, I "dreamed large" and booked a room that held 600, scheduled guest speakers, booked a band, and so forth. I then went on the radio and promoted this seminar. Several days prior to the big event, we had less than 20 sign-ups for this seminar and realized I ought to have dreamed a little smaller when I launched the seminar. Or, at least I could have started smaller and held the bigger dream as a future goal. I ended up pulling the plug on that seminar after I realized a small turnout wouldn't cover overhead and lost about $2,000 in promotion fees plus a considerable amount of valuable time. It also gave me a little egg on my face at the time, too.

My point: start small.

The biggest mistake entrepreneurs make is starting too big, or even "acting" like they're big. Hey, if you're small, that means you're nimble. Be quick. Be nimble. And be DIFFERENT. This is the value of being small. Capitalize on that value. Start small and ACT like you're small.

Match your marketing with what you offer:

Don't act big when you're not big. Act small and promote the strength of being small to your clients.

If you're seeking ways to grow your business, don't be afraid to admit you're not a huge company. I'll admit that ARRiiVE Business Solutions is not a big company at the time of this writing. Will it grow? Probably. Do I need to act bigger to succeed with my products and services? Not really. Because people who hire me KNOW that I have an extensive network of resources at my fingertips. If my team can't get the job done, we know who to outsource work out to in order to complete stellar work at a highly reasonable fee.

Make sure you deliver what you need to deliver:

Maximize what you can do. Outsource what you can't do that is directly related to what you can do and need to deliver. Don't do the rest.

Make sure that you know your products and services. Build your team to deliver those services. And, if you can't hire permanent employees, build a network of outsourcing partners who enable you to deliver high quality work. I've been doing this successfully at ARRiiVE Business Solutions for several years, now.

Keep your start-up costs low:

When we start small, we can keep our cost structure low, develop a core service, then repeat and grow our marketing message until a massive number of customers consider us a valued business partner. From there, we can grow bigger. Use your noggin and be a quick, nimble, savvy small fish in a small pond and you'll eventually grow to be a bigger fish who can jump to a bigger pond.

Coming soon:

Be A Better Entrepreneur: The Savvy Entrepreneur Series, part 2 of 10. ________________________________________

Copyright © 1999-2008 by ARRiiVE Business Solutions. All Rights Reserved. SUBSCRIBE.

Apr 10, 2008

Why Titles Matter



Whether creating a new product or writing an article or book, you'll find that your titles matter.
Why do titles matter? There's several reasons why, ranging from the obvious First Impression to Searchability. We'll cover the basics here.

Why Titles Matter

1. First Impressions Matter.

It is critical that you explain what your product is from the name. Or, in a book, if people don't know what it is about, they won't read it. It also helps to categorize your product or information if it is named appropriately. So, the title you give your product, book, or article is as important as naming a baby. Take time to get it right.

2. Titles Set The Tone.

The title we give to a product, book, or article helps set the tone for what people might expect to follow. For example, "Fling or Ring: Which Finger To Give Him" makes clear it is about how to know if a man a woman is dating is "the one" for him. But, it could simply say "Is He The One, Or Not?" and it would have a different tone, right? Clearly, there's a sense of humor involved in the Fling or Ring title that suggests there's some sassy content to follow.

3. Titles Create Mood.

Spanx is hosiery by Sara Blakely. What I love about that name is it suggests a little sexiness, a playful way of covering your bottom, hosiery for women. Even their slogan "We've Got Your Butt Covered" continues to set the mood Sara's going for. Product titles also set the mood. Coca-cola became big during the era when manufacturers actually included cocaine as an ingredient in their products. Coca-cola still makes you feel like you're "getting away with a little" when you drink their caramel-colored sodas. Tide: wash away the dirt from your laundry. Double the pleasure with doublemint gum. The title, especially when combined with a slogan, can create a fun mood, a clinical feeling, or a sense of urgency.

4. Title Determines Searchability.

It may not seem like a big idea, but you could write a title that sounds really clever:
"We fooled them this time." and in the title of an article or book called "We fooled them this time" might get someone curious enough to open the cover if they were standing in front of it. However, we must keep in mind that for anything marketed over the internet that a search engine is a ROBOT.

Therefore, the search engine won't know what category or how to assign the fooling product! That's a serious problem. If you can't be organized you might not get found - and that will impact sells.
It is wiser to be more clear about the title so that a search engine can find it. For example: "Orange Tabby Cats Make The Most Loving Pets" might be an article about Orange Tabby cats and it would be OBVIOUS to the search engine what you're selling.

Deem: Green Dishsoap might be a name for a green dishwashing soap product. The search engine would know what it is by "Deem Dishsoap: Get Green and Clean" through a title and slogan.

Another approach is to use the reverse of what you want: "Want Poor Visibility, Don't Advertise" might be a teaser that provokes interest but it also gets keyword visibility for poor visibility and don't advertise. With email marketing, using the reverse is often more powerful than the stated desire approach. By stated-desire titles, I mean saying "The Cleanest, Most Safe, Comfortable Dentist In Los Angeles" is stating what the user most desires. In the instance of a service like a dentist-office, it might be wise.

In the event of naming a consumer-packaged good, it is wiser to use words that mean something versus hype. The Wine Merchant, Ltd uses the phrase "The Best Store To Buy Wine" http://www.winemerchantltd.com/) which came from a newspaper article poll. That's a bit of hype, although it may work for them. I prefer "Buy in multiples of 12 bottles for free shipping. Select Wines Only!" which is the current tag-line for http://www.thewinebuyer.com/. This is likely to produce more wine sales, because they're using smart copy that produces higher results. The best store is bragging. Buy in multiples of 12 bottles for free shipping is a fact and a cost savings. There's a big difference and both search engines AND the customer will notice the difference.

5. Begin With The End In Mind.
Begin with end-user (customer, site visitor, reader, buyer, etc.), that is. If we don't think about how the person shopping visits a store thinks, we'll probably pick the wrong title. For example, a company selling shoes might say "the latest brands for less money." Well, that didn't tell us much, did it? What if they were focused on the niche of comfort and style? They could say, instead, "The most stylish comfortable shoes you've ever worn." Now, that's a shoe store I'd enter. The same thing with titles.

For example, this article's title of "Why Titles Matter" was written with YOU in mind. My intention was to draw attention to the fact that if you don't set the write name you're already off on the wrong foot. So, get a good start, pick a title that matters not just to you but to the buyer or potential buyer of your wares.

You'll have more success when you do. ARRiiVE Business Solutions helps company leaders determine best names for products and services. If you need help, contact us at 805-459-6939.

Learn more about why titles matter through related posts at ARRiiVE's Blog:
http://arriive.blogspot.com/2007/11/best-way-to-increase-email-open-rates.html
________________________________________

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Feb 13, 2008

Bootstrapping 201: Problems & Solutions

Join the ARRiiVE: Innovations In Business Show, Wednesday, February 13, 2007, at 2:15 PM PST.

Show Topic: Bootstrapping 201: Problems & Solutions

Host: Scott Andrews, CEO of ARRiiVE Business Solutions

WEDNESDAY - 2:00 PM PST / 5:00 PM EST (duration ~ 1 hour)Call in and talk live:
Call Phone Number: (724) 444-7444
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Scott Andrews, host of Innovations In Business, discusses the the challenges, pratfalls, opportunities, and more, related to bootstrapping your dream and launching a blog, business, organization, or other venture.

Rave Reviews: "The breadth and depth of material here is outstanding. I look forward to hearing more great interviews." -- Andrew Long, CEO of Critical Pathfinders

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Visit http://www.arriive.com/arriive_liive.htm to learn more about this exciting, fun, and educational show.
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Nov 27, 2007

Why Leaders Fail

7 Ways To Build High Performance Teams

Are you managing an organization and want to boost your team's performance?

Whether you are heading up a division of a major corporation, leading a governmental agency, coaching a sports team, starting a new company, or just took the position of President from your local Toastmasters, you'll need to know the secrets to building a great team.

Questions new leaders will likely face are:

How do we get people contributing unselfishly?
How do we create unity, a sense of community, and wanting to be part of the team?
What can I do to make an immediate impact?


You must have a plan. You must act. You must be decisive. You must be inspiring.

Fail to do these things and you likely will struggle to achieve your objective(s).

Questions may arise about your leadership capabilities if you do not answer difficult questions quickly. As someone who studies leaders, I recently completed a poll of the actions and strategies of great leaders who build great teams. In this study, I evaluated previous leaders of great nations, head coaches of winning franchises, and interviewed teachers and other local leaders in California. In sharing these qualities with you, the goal is to help each of us create better teams to lead to more empowered and successful organizations.

Here are our seven most successful strategies to build a great team:

1. Build a core nucleus.
2. Raise the bar of expectations.
3. Keep consistency in all things.
4. Have a singular objective, supported by three related objectives.
5. Promote people with performance success to leadership positions.
6. Recruit new winners to build around the core nucleus.
7. Create an atmosphere of fun, success, and being part of something special.

1. Build a core nucleus. If you want to build a fire, you will not succeed with one log. With two logs, you might get a fire to burn for a little while, but the fire will almost always goes out before the full energy of the logs are consumed. Yes, a fire requires three or more logs to burn efficiently. You cannot build a bonfire without three logs. So, start with your three "logs" and build a nucleus around them. Phil Jackson of the Chicago Bulls used the power of three in his "triangle offense" which featured Michael Jordan, Scotty Pippin, and Horace Grant. Pat Riley used the power of three with the Lakers' 80's dynasties with Magic Johnson, Kareem Abdul-Jabbar, and James Worthy as his "showtime" offense. Bill Walsh and the 80's 49er organization used the power of three with Jerry Rice, Joe Montana, and Roger Craig. The Cowboys used the power of three with Troy Aikman, Emmit Smith, and Michael Irvin in the 90's. The power of three is the key to your nucleus, and it must start there.

2. Raise the bar of expectations. Did people fail before you? Is your organization in chaos? This is a good time for you to implement your program, as people are looking for leadership in times of chaos. In times of failure, we must learn. In times of chaos, we must lead. Leaders raise the bar of expectations. Winning is the objective. Building upon success is usually the strategy. So, find a small goal, set it, and achieve it at all costs. But raise the bar. The first year, set a goal for 30% improvement. The second year, raise it again. The third year, set a goal for 100% success, with 200% effort, and watch your success grow. Jon Gruden, Coach of the Raiders from 1998 to 2002, set a goal to beat division rivals in his first year. He did that in 50% of the games, a marked improvement upon his predecessor's record. The next year, Gruden aimed for the playoffs. He missed the playoffs but his team fought valiantly. The following year Gruden's team won twelve of sixteen games and went all the way to the AFC Championship before losing to the Ravens. The next year, the Raiders lost to the Patriots in a game many felt was a gift from the referees. A step back, Gruden left. The new coach kept his nucleus. He also kept the same workout schedule, the same playbook (with some new wrinkles), and the same great players (Jerry Rice, Rich Gannon, Tim Brown) and took the team to the Super Bowl before losing to Gruden's Buccanneers. Which leads me to our next key: consistency.

3. Many leaders fail because they are not consistent. If you have a plan, and you know it is a GREAT plan, then STICK to your plan. Use consistency to grow your team. In consistency, there are three components to success:

a. consistent habits
b. consistent location
c. consistent people

Consistent habits are important for individual performance, and also important for team performance. If you hold a meeting for your organization on Tuesday at 7pm, keep it at that time and don't change it unless absolutely necessary. Location is also important. My father is a Distinguished Toastmaster, which is Toastmaster's International's top ranking of achievement. He informed me that when he stepped down from President of his organization, the new President changed locations three times in one year. Their club went from twenty-eight members to eight. When the club drops to eight Dad says "that's when they start to fail." Well, I figure a DTM ought to know a key to consistency.

I once had a sales manager who frequently pulled salespeople out of one territory, then assigned them to a different geography. The team struggled under his poor leadership. The new manager assigned both geography and vertical markets to his team, and kept those territories 80% in place for three years. His team succeeded dramatically higher than the previous manager's team.

Consistency in people is the biggest problem organizations face. The pressure to succeed is enormous -- especially when you have been failing (missing quotas, missing playoffs, blowing budgets, etc.). New leaders often have such enormous pressure to win it all in their first season as coach. I've always felt there are two reasons why relationships fail: inability to communicate and unrealistic expectations. It is no different in leadership. Reasonable expectations, clearly communicated, should result in higher success over time. However, organizations with consistently poor performance usually have an unusually high record of "firing" or "replacing" their top leaders. Organizations that succeed keep their top leaders, keep their top players, and through that loyalty attract others to their winning ways. I've noticed the biggest key with consistency in people isn't so much the exact people or the people in what position, but defining the TYPE of person for each position, so that people can come and go, but because the system is established you still succeed. We've seen this success demonstrated with the Super Bowl team New England Patriots. They have a "team" system that creates opportunities based upon a network of inter-related events. When one person drops out of position, the next comes in with knowledge of the system to fill the gap. They're winning a lot of games, so clearly it works.

4. Not knowing an objective can sabotage leaders. Have a singular objective, supported by three related objectives. Great leaders almost always strive for a singular objective. In basketball, it might be to win 50% of games. Or, it might be to attain the playoffs. A winning organization might set a goal to win their top trophy and the big game. In government, an objective might be to eliminate wasteful spending and hit a new budget figure through innovations in organization. Whatever it is, figure out what is most important, and achievable, and set that as your goal. The very best leaders go a step further and implement a SYSTEM of success. Beneath that goal, there are usually three ways to focus on daily or weekly actions, which if succeeded will lead to success of the major goal. I look at it as the singular objective is your mission. The related objectives are the goals. Achieve each goal, mission is accomplished. Fail to achieve goals, you'll know where to adjust the next season.

5. Learn from failure. Promote your successful people and learn from your failures. It is okay to fail. In fact, many organizations do not appreciate the full height of success unless they first experienced the full despair of losing. The previous examples of the Cowboys and 49ers were both preceded just several years earlier with two win seasons, with twelve or fourteen losses. To put it mildly, they were ugly. The new coach first got a quarterback, then a running back, then a receiver. And they were on their way. The way the coach found those great players was by trial and error, at first, and the players who delivered in clutch situations were promoted to those key positions of leadership. It is the same for successful sales organizations. If you wish to achieve sales success, give each salesperson an equal territory. See which one performs the best during a test period of time, and you likely have your nucleus of performers. Or, if the nucleus is established, the way to figure out who will rise above the pack is to encourage each person equally, and place them with mentors. Make sure the mentors are informed as to how to "coach" their mentored teammate. The mentors will then let you know if their teammate will make it, and also help them succeed by teaching them their own secrets to success. If people do not succeed with mentors, they might require special handling, but promoting people who repeatedly fail is not likely to result in success. Learn from failure, promote from wins.

6. Poor recruiting can be costly. Recruit new winners and surround them with winners. Sometimes we cannot promote from within. Either we are growing quickly and we must bring in new people, or the people previously in our organization left for other opportunities. Either way, we must grow from an atmosphere of success. I once was recruited from my college campus for the Businessland College Recruit training program. This program was loosely structured, yet worked on many levels. For one, my manager placed me under the supervision of the top salesperson in his branch. This was invaluable experience, as during my first three months the ace salesperson achieved the highest percentage sales success anyone had ever had in Sacramento. It was phenomenal to see the growth and excitement this success created. Other salespeople started selling successfully. Even the salespeople who struggled eventually broke out and found a way to succeed. Nobody was replaced without first shifting them onto other teams. This system created loyalty. But the old ace moved on to a new assignment. What would have happened if my manager had not recruited new people and surrounded them with winners? His success would have walked out when the ace salesman left. While he was with the branch, my manager also brought in other salespeople, and groomed the younger salespeople for success by partnering them with the veterans. It worked more than I'd have guessed. For when each previous top performer left the firm, the second or third highest performer would step in and succeed just as highly as the predecessor. A key to attract high performers is to let them know they are part of something special. If you're building something special, and the mission statement matters to the recruit, they will join your team.

7. Not having enough fun may cause you to lose top performers. Top performers like to have fun. Create an atmosphere of fun, success, and unique mission (being part of something special). If you want to win, you have to have fun. People don't have fun when they are losing. They also don't have fun if they are blamed for failures, backstabbed in communication, or treated poorly. So, eliminate poor methods of management and replace them with empowering methods of communication.

People will rise to the occasion when you empower them. How do we empower others? Let them know the expectation, create a sense of fun, urgency, and doing something special, and then coach them by letting them know they are believed in, supported, and will be looked after. How many sheep will stay in a flock where the shepherd drives one out from being in a bad mood? Like the good shepherd, look after your strays, bring them back in, feed them, and love them. Yes, love your employees. It goes against popular human resource opinion, but it is a core to ARRiiVEs mission. If we are to create more abundance, we must create more love. And love is an action word. What actions do we show? Care? Concern? Do we listen and know what makes our team want to perform? What are individual needs?

I once gained a new manager when my company merged. The old manager was reassigned to a new territory but left a short while later. Besides being affiliated with an Ivy League school, I never figured out why that manager was successful, because he never did anything to empower me or show me he listened to me or my concerns. For example, the company had failed to pay me rightful commissions because the personal in accounts payable had a bad attitude. She had decided I didn't deserve payment on the sales in question, and with my previous manager, that was as far as it went. This issue was worth $10,000 to me at the time, which was not a small amount of money to me. In my first meeting with my new manager, he asked me why I hadn't been performing much lately with my ability to sell services. I explained candidly that I was holding out on the company because the company wasn't showing me they cared about my efforts. The new manager stopped me, gained clarification, then asked for the name and phone number of the commission accounting clerk who had decided I didn't deserve payment. I then saw him pick up a phone, right then and there, and proceed to chastise this clerk for not paying "his salesperson" and asking "who are you and how could you decide to keep this man from earning his money at our firm?" She had no valid answer. I was paid five days later. My manager took care of my needs, and two months later I was at 500% of quota. I think his needs were met from that success, too.

Another manager could get people to jump through hoops for him. How? He created fun. I remember he once traded computers for box seats at a local sports arena. Yes, we took our clients there. We also took our friends and family to top notch sports events for free. It's fun to have perks from our job. It makes us want to work harder when we have fun on our job. How do we create fun? Through humor, special events, being a little goofy sometimes. The dot-coms were great at creating fun in boring atmospheres. Think about it: what's fun about computers? Not much. But what's fun when you get to work on new technology that helps people do more in new ways, and at the same time, instead of boring break rooms you can play Foosball or table tennis on your break? That's fun for many people. Some organizations launch special events, others install toys and games, others have company parties or bar-b-ques to let people know they're having fun. Sometimes, just being funny creates fun. Try putting up your goal, and explain it with humor, yet seriousness, and watch how much people embrace the new goal. As long as the humor isn't disparaging, it almost always works better than the dry approach.

As a manager of a company, show your employees that they are part of something special. At ARRiiVE, we aim to change the way business is done in the world. It sounds lofty, and people get excited about it. But if you think about it, you don't have to change 10,000 companies to change business. You only have to convince ten to change, and when they are wildly successful and when others emulate them, through the power of the "Jones" mentality, the world changes with them. How would you like to be part of a fun, exciting, successful organization who strives to make a difference? I sure do. So, I'm creating one here at ARRiiVE Business Solutions every day. Make sure to communicate what makes your organization special in each of your meetings and frequently at other times, and see how people respond.

If you are a new manager or have an organization where you want to create a great team, you now have seven tools to add to your bag of success:

1. Build a core nucleus.
2. Raise the bar of expectations.
3. Keep consistency in all things.
4. Have a singular objective, supported by three related objectives.
5. Promote people with performance success to leadership positions.
6. Recruit new winners to build around the core nucleus.
7. Create an atmosphere of fun, success, and being part of something special.

Create something special with your team and let me know about your success. I love to hear about winners and great teams. Make your team great, and you'll be considered a great leader.
__________________________________

Post by Scott Andrews, CEO of ARRiiVE Business Solutions.

ARRiiVE Business Solutions helps executives improve sales, launch products and services, and build dynamic, cross-functional collaborative teams. For more information, contact info (at)ARRiiVE (dot) com or call us at 1 (805) 459-6939.

Copyright © 2007 by ARRiiVE Business Solutions. All Rights Reserved. You may republish this article only if you publish in WHOLE with the COPYRIGHT and ALL ACTIVE LINKS intact.

More useful than a cup of espresso: SUBSCRIBE to our feed to stay "in the know" with articles like this.

Nov 15, 2007

Plan For Success

I'm always amazed when I talk with a business leader and find out they don't have a business plan or sales plan. Why? Because, they just failed the most important step in ensuring success with their business:

Develop a plan!

A former manager of mine, Dick Boren, used to put a slide up on the overhead in every sales meeting. It read the following words: "Fail to plan, plan to fail."

Now, while that slide is perhaps against the Law of Attraction (why put the words fail on a slide in the first place?) it does highlight a basic truth in selling: you must plan to succeed if you are going to increase your success. As a law of attraction coach, I recommend another quote Dick used even more:

"Plan your work, work your plan. Measure your success."

See, because, when you have a plan for success, you're much more likely to succeed, because you've made a written agreement for success. People tend to honor written agreements more than verbal agreements. Why do you think that out of 100 graduating students, the 3% who wrote down their goals achieved more than the other 97%? This statistic came from a study of graduating students at Harvard University over fifty years ago. In the study, they found that the 3% who wrote down their goals were wealthier than the other 97%, combined. Not only that, but they were also more content. Big surprise, huh?

I recently read that less than 1% of Americans write down there goals. While I haven't yet substantiated that statistic, perhaps that might explain why Americans have so much debt! Land of the free? It's hard to be free when you're buried under a mountain of debt. I've been on both sides of that picture and I'd much rather be debt-free, with money in the bank, than fighting debt collectors.

So, if you're considering how to succeed, maybe you're nodding and realizing, "Hmm.. Scott's right! I need a plan."

Do you have a plan for business success?

If you're writing a sales plan, you'll need some basic elements, which include:

  1. Vision. What are you trying to accomplish in your selling efforts?
  2. Goals. What numbers, strategies, and basic goals do you wish to accomplish?
  3. Company numbers. I've always found a good rule of thumb is to take other people's expectations of me and double them. Why? Because, if I miss MY goals, I'll still HIT THEIR GOALS. And, that's all upper managers seem to care about. You can even do this for yourself, just pretend you're a manager. Give yourself a quota. Then put on your salesperson hat and double the quota! Write down the new number as your goal.
  4. Know your territory. If you're going after a sales territory, chances are high that you probably are either organized by a geography, product offering, or vertical market. Out of all the strategies, I've always found that organizing outbound telephone or email calls by vertical market to be wisest, as then you're speaking with the same vernacular during your calls. For example, problems managing the flow of paper in healthcare will carry over from one hospital to another. Language can be quite different between prospects, so by organizing by vertical you can lower the impact of this challenge. However, when making outbound face-to-face calls, it is wisest to organize by geography. This is to limit the cost and time-impact between calls. So, use both strategies to effectiveness if you wish to maximize your time both inside and outside while selling.
  5. Know your customer. If you were to ask me the single most important skill a salesperson might possess, I'd have to say "The art asking intelligent questions and listening to the answers for meaning." How many salespeople are great at telling you all about their product? How many salespeople are great at asking intelligent questions, listening, and then converting that knowledge into a solution for the customer? The latter is the salesperson I want to hire.
  6. Know your product. Okay, so you did a good job questioning your prospect. You listened to their problem. But when it comes time to describe your solution to their problem, you need to know what you offer, and specifically how it relates to what THEY need. I've been shocked at the number of times in my life when a salesperson either "winged it" or outright "lied" when they didn't know the answer to a question. Don't be lazy. Do your homework, know your product. Especially the features, functions, and benefits that will apply to your prospect's needs. Don't leave it up to them to figure it out. Make it easy for your prospect to buy from you.
  7. Have a gifting strategy. Gifting is the #1 most powerful way to build relationships quickly.
  8. Have a follow-up strategy: Following-up is the #1 most powerful way to get remembered and strengthen the relationships you build.
  9. Have a plan to build value, differentiate, and surprise your clients on EVERY call and in every meeting. This is the #1 most important rule in executing sales calls.
  10. Have an action plan. Which accounts, contacts, and strategy will you utilize for each prospect? You ought to at least define your strategic plan for your top ten prospects.
Similar techniques may be used in a business plan, although you'll add in competitive reviews, marketing strategies, market segmentation, financial analysis, and more.

Do you have a plan for personal success?

I even suggest to people to write down their personal goals each year. If you're running a business, evaluate your goal achievements on a monthly and weekly basis. Don't just wait for the quarterly review, as that might be too long of time-lapse between review cycles.

Last, if you need help with a plan, seek out professional assistance. My firm, ARRiiVE Business Solutions, offers executives help writing business plans to raise funding, business plans to improve strategy, sales plans, and personal growth plans. When you work with a professional, you cut the bull from "template" business plans you can buy. You eliminate the generalized answers and fluff you might get from your SBDC (small business development center) and software templates. Many software business planning systems use a "fill-in-the-blank" type of approach to generating business plans. I don't recommend fill-in-the-blank business plans. They are really obvious to someone familiar with reading plans. I use a template, yes, but I custom-write each plan for each client. Why? Because I find that I don't have as many holes. And, even more than that, I don't get FLUFF in my plans. You really don't want a plan if it is full of guesses and generalizations.

Get a plan that offers specific actions, dates, and ways to measure results against the plan to ensure you succeed with your objectives and strategies.

Last, remember, if you plan your work, you plan to succeed. Plan your work, and work your plan. Measure your results. And celebrate your wins! Life is too short not to have a little fun along the way. After all, success is in the act of doing, perhaps as much or more than the act of accomplishment.

The quality of your plan for success directly related to the quality of your results!

If you don't have a solid (quality) plan for success, you might be blocking your development. Either write one yourself; or, better yet, hire an expert to help you plan for your success. Watch how many positives will be drawn to you when you are working from a well-written plan. You can succeed. You will succeed. Make this your mantra. Make a plan. Write it down. Tweak it, work it, measure it, and celebrate it when you win.
__________________________________

Post by Scott Andrews, CEO of ARRiiVE Business Solutions.

ARRiiVE Business Solutions helps executives improve sales, launch products and services, and build dynamic, cross-functional collaborative teams. For more information, contact info (at)ARRiiVE (dot) com or call us at 1 (805) 459-6939.

Copyright © 2007 by ARRiiVE Business Solutions. All Rights Reserved. You may republish this article only if you publish in WHOLE with the COPYRIGHT and ALL ACTIVE LINKS intact.

More useful than a cup of espresso: SUBSCRIBE to our feed to stay "in the know" with articles like this.

Nov 4, 2007

7 Food Service Challenges

I've got several friends who run restaurants, and frequently entrepreneurs launching a restaurant ask my company for help with designing their logo, business cards, writing a business plan, training salespeople and, especially, raising money. Food service establishments are not the easiest to fund, because of several factors. Yet, if you can show me a business with more passionate owners, I'd like to see them!

Why is this? I'd say it is because we love to eat, and as much as we love to eat, many people love to cook good food. I even have my own dream to have a restaurant some day in the future. Why? I love food, I enjoy entertaining, and I love the dining experience - when it is done right.

Most GOOD restaurants are owned by people who love people and/or love food. Usually, both.

But, today, even the good small restaurants are running into challenges. What's going on?

I decided to take a closer look at the food service industry and open the kimono and share what I've discovered for those in other industries to gain insights from the food service industry. And, as you'll see, much of it isn't pretty. Is it all bad? No, of course not. Between 1970 and 2000, the food-service industry reported a compound annual growth rate of 7.5%, which outpaces most other businesses in America. But those statistics do not show the recent changes in business facing restaurant owners -- especially small restaurant owners -- over the past FIVE years.

I do want to illuminate the challenges facing food service operators, though, and review them here (please let me know if I've missed any):

1. Raising money. Food-service industry struggles to obtain funding. Restaurants are on a "grey" list for most banks to loan money. Why? Because restaurant owners frequently default on their loans, simple as that. According to the US Small Business Administration, 27% of restaurants fail in their first year, alone. Statistics like are a bit staggering. So, before you even get started trying to get money, the ghosts of Christmas' past, even those you weren't a part of, offer somewhat less access to money.

2. Locations. Restaurants are often slave to their location. How many times have you heard the key to a restaurant's success is "location, location, location"? I'll add to it "an excellent ambiance, lively experience, excellent food, at reasonable prices, along with great service" as also dictating success. Pick a great location, the business can thrive. Pick a poor location, God only knows how successful you'll be. High traffic, access to parking, proximity to crops and food supply, visibility, and more all determine how successful a given location will be at drawing and holding a clientele. From what I've studied, even factors like Feng Shui may influence the success of restaurant location. Besides retail, show me a business more dependent upon the RIGHT location -- I'm not sure there is a business more dependent upon location than the restaurant industry.

3. Rising costs. Prices are soaring on food products. According to Ken Burgin, the costs of dairy have SOARED in the past year: "Some dairy prices have increased 50%, soy bean and corn prices have jumped, and let's not start on seafood, beef and green vegetables. Why? Asia's rising affluence and demand, increasing use of ethanol in fuel (often made from grain products), and drought in many parts of the world. But the reasons don't help reduce the squeeze on your margins." Agreed.

If prices go up 50% and your menu only goes up 25%, guess what? You just might be upside down. According to Douglas R. Brown in The Restaurant Manager's Handbook, most restaurants must maintain a food cost between 25% to 40% in order to achieve profitability.

For example, if you sold $100,000 in food for one month, and your food cost was $40,000, then your food cost was 40% of your total revenue. Using a recipe and procedure manual, you can determine the cost of each portion or serving of food that your restaurant offers.

If you are to determine what to charge for food, according to Brown, you use this formula:

Portion Cost (Food Cost)/Menu Prices*100= 25% - 40%

If the portion costs have risen by 50% to 80% and you don't raise menu prices accordingly, then you'll lose the percentage on the right side of this formula that ensure your profitability. You might be thinking, "So, I'll just raise my prices, then." Well, with the jump in food cost happening so quickly, the consumer may boycott the restaurant that raises prices so dramatically in such a short time. In that event, the restaurant who maintains proper price adjustment MAY actually be penalized by perceived high cost of their menu.

4. Compliance issues. Compliance issues with handicap access and other compliance codes are costing restaurants, big-time. On the Central Coast, where I live, one gentleman (if you could call him that) went around suing EVERY RESTAURANT he entered, on the basis of handicap access discrimination. The result? Some restaurants closed their doors, others underwent very expensive retrofitting for their elevator and wheel-chair ramps to be compliant with the law. It's a costly endeavor, from what I've seen, often impacting the restaurant by thousands of dollars. Many restaurant owners don't have access to that type of working capital and a small restaurant, especially, will be hit hard by such a lawsuit. Additional costs in benefits with health care and sick leave benefits have also impacted the industry.

5. Labor cost. After initial studies on hiking the minimum wage stating that it would not affect the restaurant industry, nothing could be further from the truth. A recent NRA survey indicates that the hike of minimum wage indeed caused operators to raise their prices, as well.

The cost of wages has increased 35% to minimum wage and wages, in general, need to be higher than that if you are to attract and keep good health. Minimum wages alone have grown from $5.75 to $7.50 during just the past 5 years. That's a 158% jump in wage cost, per hour, per employee, that is very real money to most small restaurant owners. In a recent study by Aaronson and Eric French examined government-collected price data. In a series of studies over the last four years, Aaronson and French show that a 10 percent hike in the minimum wage increased restaurant prices on the whole by 0.7 percent, and prices at limited service (fast food) establishments by 1.6 percent. Does this labor cost reflect the whole of damage to the restaurant industry? At the least, we see higher prices, but do prices need to increase MORE than the .7 percent as a result of labor cost increases? This is the question that remains unanswered.

More than this, it is a HUGE challenge for restaurant owners to get employees to report the correct amount of money in tips to the IRS. Why does this matter? Well, in the United States, the landmark case of The United States v. Fior d'Italia, Inc, 01-463, in June of 2002, the Supreme Court ruled that the IRS can ESTIMATE the amount of cash tips based upon the amount of tips shown on credit card receipts. This ruling can impact the FICA taxes for a restaurant.

6. Impact of health reports. The cost of maintaining good health. A restaurant in Calistoga received a health report of "C" which provoked press visits, health inspections, and costs of over $1,000 for a new report. In addition, the additional preparation to raise the health report to an "A" added to thousands. Plus, we're seeing more and more food scares with products like "Mad-Cow beef," the "spinach-scare," and other health-related problems. These scares present a serious impact to food-service businesses.

7. Customer Service training costs. The cost of training employees for service. Although this cost was overlooked by most people in all of my research, it certainly is not lost to me. In San Luis Obispo County, I've noticed a significant drop-off in service from the restaurants in the San Francisco Bay Area. Why? Perhaps the standards are higher, but it just seems to me that there seems to be a small-town attitude that patrons ought to be thankful they were served at all in this county! Not good, if you ask me. It took me the better part of a year to "get used to" the poor service at various hospitality establishments. In addition, I've tended to gravitate to the establishments who I know train on service and seem to value my time. What is the cost of your service? Are your people trained on salesmanship and how to present food in a pleasurable and successful way for both guest and restaurant management? This is vital to the restaurant's success. The question I'd pose to you is "can you afford NOT to train your employees?"

What are solutions for restaurants who want to THRIVE, not merely SURVIVE?

I've put together a list of solutions for restaurants who want to go from SURVIVE to THRIVE(sales mark for ARRiiVE Business Solutions), and increase revenues and profits through intelligent responses to the challenges outlined above:

1. Cost-balance your menu. If you have high-cost items, you might suggest a sales script that pairs these items with lower-cost items to balance your overall margin. I've utilized this profit mechanism more than once in my own sales past.

2. Control Portion Costs. Make sure your estimated portion costs are matching the end-of-month portion costs. If your employees are eating all your profits, you might have to change policies. In High School, I held a job at Taco Bell. I recall a meeting one Saturday morning where the entire staff was called in for a meeting, and introduced to our new manager. The former manager had been fired. And, in that meeting, we were informed employees had been eating free and this would no longer continue. We would now be billed 50% for all of our meals. The restaurant went on to success as a result of changing their employee dining policy, which clearly had impacted their portion costs prior to this change.

3. Evaluate your supply chain. Determine if there are wasted steps or waste in food delivery throughout your supply chain. One restaurant in Calistoga was dinged on their health report from a supplier who dropped potatoes on the ground in their haste. With the cost of preparing and ordering a health report in excess of thousands for preparation and $1,000+ for the report, it is wise to eliminate anything that could cause waste.

4. Implement a Health Plan. On the subject of health reports, implement a plan that ensures health report success, and monitor it monthly. If you blow a health report it could cost you in both repair costs, a poor press review, and worse-yet: customers who read or hear about it and never return.

5. Utilize the down-sell. If someone isn't interested in a main dish, try offering them two smaller dishes and desert. The cost to the restaurant may be less, and the impact to the overall ticket minimal. Down-sells can be an effective way to keep your customers happy and offer highest profit-margin items as a contribution to your bottom line.

6. Utilize the up-sell. If your waiters give a check without suggesting a desert item, they're missing the up-sell. Most restaurants train their waiters and waitresses to ask if customers want desert. If yours doesn't, implement it immediately. However, you can go beyond desert. An excellent waiter will offer suggestions for "table-appetizers" or "starters" to build clever conversation and a more enjoyable meal. In addition, the smart waiter will maximize drink orders by suggesting fun and enjoyable beverages. Your staff ought to be trained on options for up-selling customers and presenting them in unique and entertaining ways.

7. Offer healthy-choice options. In this world of fatty foods, it still amazes me how many restaurants don't designate certain dishes as "healthy" in terms of lower cholesterol or saturated fat. I recall a restaurant in San Francisco which featured some rich Italian food ALSO offered a little heart picture by the capellini, and other lighter-fare pastas and salads. Some of these dishes can also maximize your profit margin, which, to me, makes a lot of sense.

If you're seeking additional ways to improve your sales and marketing for your restaurant, consider utilizing experts at improving sales and marketing. We take pride in helping customers improve their image, get funding, and train staff for better salesmanship. Or, if you seek to impact operational ideas to build more revenue and profit into your operation's bottom line, consider utilizing an outside agency or consulting firm to help you spot opportunity that otherwise might slip through the cracks.

We love seeing restaurants create enjoyable, entertaining, healthy, and successful dining experiences. If you have additional ideas on challenges facing the food service industry (as well as possible solutions) please either contact me directly or use our comment form, below.
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Post by Scott Andrews, CEO of ARRiiVE Business Solutions.

ARRiiVE Business Solutions helps executives improve sales, launch products and services, and build dynamic, cross-functional collaborative teams. For more information, contact info (at)ARRiiVE (dot) com, visit ARRiiVE , or call us at 1 (805) 459-6939.

Copyright © 2007 by ARRiiVE Business Solutions. All Rights Reserved. You may republish this article only if you publish in WHOLE with the COPYRIGHT and ALL ACTIVE LINKS intact.

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Oct 11, 2007

Bootstrapping 101: Get It Together, Then Get The Word Out

It amazes me that out of all the companies started each year, less than 1% are backed by a venture capitalist or angel investor. Yet, out of all the entrepreneurs I've talked with over the past year, when asked about their biggest problem, over 80% of them will say either "funding" or "raising money" for their enterprise.

Is it possible most of them are wrong? I think so.

Here's why: not that lack of money is not a problem, because it is. But, many entrepreneurs start out their organization before they fully realize what they're into. Hey, I did, I ought to know. They think to themselves, "well, I've got enough money in my bank account, or with stocks, and a last resort, with credit cards, to pay the bills until this thing takes off." What they don't realize is that their timeline might be off: by YEARS. And that is when they get into the money scramble game of trying to pay bills and trying to keep their company going.

How do you stay out of this dangerous lack/fear game with money?


First of all, start by taking the amount of time you think it might take you to launch your firm, and triple it. Or, take the amount of money you think you need, and triple it. Either way, you're probably closer to reality with this new budgetary figure for cash (lifeblood) than the number you first assumed would cover your start-up.

Second, get your act together. Most executives starting their venture are so blinded by what they know that they don't realize what they DON'T know. Their business plans suck. They lack marketing. Their products are a mess. They aren't selling properly. And so on. So many entrepreneurs I've talked to know they need help, but when you say, "you need help with this aspect of your marketing, or your logo, or.." they'll turn right back around and say "oh, no, we've got that covered." But, just two days earlier they had admitted, in writing no less, that they did NOT have that covered. What gives? The problem is our inate ability to bullsh*t ourselves. Seriously. The only way to cut the bull is to get real and realize that we DON'T have it all together. A ship cannot sail if it's leaking too much water. For our business ship to sail, we need the next step, finding help for where we have holes.

Third, find professional help. An example of this is with patents, trademarks, and copyrights. There's no way I am going to recommend to you that you do your own trademark from a box. Get professional help. Do it right. There's no way I'm going to tell you that you can buy Quickbooks and you'll have your own built in accountant. No, hire a professional and meet with them on a quarterly basis. Pay them for their time. It is worth it to have your financials in order. Not only that, but how many executives consider getting outside professional assistance to help write sales scripts, website copy, structure teams, build sales presentations, and develop ways to market to their clients outside the norm?

Wait - let's take a step back. Are you making any money? If not, you need to look at why not. Most people are not making money for one of the following three reasons:

1. Product/service poorly defined: you have not fully created what you do.
2. Product/service poorly articulated: sales pitch, graphics not professional.
3. Product/service poorly marketed: not enough people know about what you do.

It's almost always one of these three blunders. If your problem is money, as in making any money, then you need to examine these three critical areas of your product lines and MAKE DAMN SURE you have your act together on these, or you've got a partial company, at best. (To me, I see holes in the hull of your sailboat.) I made this mistake when I first launched AspireNow (http://www.AspireNow.com). Rather than get one product really well articulated, with tight sales copy, dynamite graphics, packaged right, priced right, and then communicated through the various channels of marketing, I missed an opportunity to make money earlier by focusing on an online service and networking. And, it cost me a lot to run my business without that income coming in.

Mistake made = lesson learned. Fill the holes, right the ship.

So, I've been there. Don't do what I did. Do it smarter. Get your act together with your products and services. Don't skimp on product design. I've been redesigning all of my products to include classier pictures of people enjoying the product or solution. We buy from emotion, justify with logic. Don't skimp on sales copy. I've been selling and marketing long enough now that I can offer sales copy expertise to people who need it. Is your sales copy written to dig into people's guts and make them thirst for what you offer them? Good copy will provoke the curious prospect to buy. How complicated is it? Many products are now sold on the web with three page websites. Do you know why? One of my websites has an average page view statistic of 1.5 pages per visitor. That means, that if I don't get an order by page two, I'm not going to get an order from that visitor. And, although they MIGHT become a repeat visitor; then again, they might not. So, I figured out that I need to sell on the FIRST page they visit. Not *hope* the visitor decides I'm so wonderful to just click on over to the products page and buy all my stuff. It just doesn't work like that.


Last, if you're not getting the word out properly, you've set yourself up to fail.

What are you doing to get the word out? I'm joining professional organizations, cross-linking, blogging (to create backlinks and position my expertise), hosting a radio show, speaking as an expert on professional panels, speaking in person at professional events, and more. Notice I didn't say that I'm flooding the market with press releases boasting about what we can do? I didn't say pay for an expensive advertising program. Hey, you're boot-strapping, right? But you've got to find creative ways to get the word out and not drain your bank account.

One sales tool worth spending money on is gifts.

One of my philosophies in sales is that *you have to gift your prospects* much like a man ought to gift a woman when they are dating. Frank Sinatra said "you gotta gift 'em." From a man who once had a drawer with 200 toothbrushes stacked in it, he would have known, right? Anyway, if you're not gifting your prospects, you're not seeding them to like you. I have one company I'm helping get in the door of a major distribution center right now. My approach: gifting. I'm gifting each of their top managers, the product tester, the buyer, and several distribution center managers with a generous amount of product. I will include a simple one page letter explaining the virtues of partnering with my client's firm. And, I'll include a packet of marketing brochures to show the glossy material to back it up. Last, I'll include a page or two of client references, with testimonials.

Do you think I'll get in?

Many companies are now approaching ARRiiVE Business Solutions to serve as an "Acting VP of Key Accounts" to enable them to get into their top prospects. Now, they have a team of 10 salespeople who can't do it. But we can. Why is that?

Because we GIFT. Not only that, but we also have a strategy and structure to the process of the approach, the pitch, product demonstration, company demonstration, financial demonstration/trial-close, relationship implementation that wins business. But it never happens if we don't get the word out, first and then gift, second.

I recommend you utilize this approach to your marketing:

Blast small freebies to your mass marketing approaches.
Seed larger groups with a trial, but inexpensive gift.
Gift larger gifts in larger ways to your top prospects.

What I mean is when you run a press release, post a new blog article, send an email newsletter out, those types of marketing methods can be blasts that have a small hit but are large blasts of targeted people. After all, a blog may be hit by thousands of people. Put up a post at Squidoo and thousands may see it. Send out a press release, thousands my see it. You could even run an adwords campain, and thousands of impressions will see it. Offer people a free report to come to your site or to call you and learn more.

But when you're targeting your initial prospect list, where you could actually name the companies or individuals you want to do business with, seed them with something larger. For example, a website may not know who this prospect is, but they know they are on a website page. They could seed with a free workbook, white paper, or small product for visiting a page that creates interaction. That's what I mean by seed larger. If you're trying to sell to The Gap, maybe the first thing you want to do is send a sample of the fabric you use, complete with intricate stitching, to their top executives and buyers. You've got the list, right? So, seed larger, with a small gift, that shows your capability. Or, perhaps, make it more fun, send them the seed, but let them know that you'll create a free patch for them with their kids name, spouse's name, friend's name, or slogan, with your material as a fun way to see how well you can respond to their demands. Different, huh? Be different. Add value. Be personable. These things help you get their attention.

Then when you have their attention, gift larger, with product they can try and possibly even sell to their client-base. Put it in their store. Make it easy for them. And, when it sells (because you've already tested that it will sell, right?) then you can ask for the price you want, because you've built a relationship that fostered trust.

If I were to do it all over again, I'd follow the advice in this article like a Bible. If only I could go back, right? Well, I can't, but you can. You have the opportunity in front of you to launch your dream, and create success. Bootstrapping doesn't have to be ultra-stressful. It can be a lot of fun. And, you can make a lot of money, if you do it right. Go after your dream, but get your act together, then get the word out the right way. Don't forget to gift 'em. And watch your sales skyrocket, too.
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Scott Andrews, CEO of ARRiiVE, heads up professional panels, offers keynote speaking, and leads professional services helping executives start a company, launch new products and services, improve sales and marketing, and empower teams through dynamic collaboration models and tools. Find out more at http://www.ARRiiVE.com.