Archive for May, 2010

Why You Shouldn’t Trust Statistics

You can make statistics say virtually anything you want them to.  Apparently even things that make no sense:

 
Make sure you that are getting the full story on any statistics that you intend to rely upon.

Friday, May 28th, 2010
Posted in Business Strategy, Random Musings | 1 Comment »

Guest Blog: Have You Hugged Your Monster? by Dave Mischler

Sometimes, we are our own worst enemies.  Our fear of facing fear often prevents us from moving forward.  I am delighted to welcome guest blogger Dave Mischler, President of Sun Advisory, LLC and President / Facilitator of Inner Circle Chicago to talk about hugging your monster.

 

DM: Monsters take many forms. Some of them come from far away worlds. Others rise from the depths of the sea or the vastness of the forests. Still others are of our own mind’s creation. It is this last group that should concern us most. Nothing is more formidable than the monster we invent ourselves because such a creature knows our weaknesses and can prey on our frailties. I spoke with a wise business owner who once said, “Sometimes you just have to hug the monster.” What he was talking about were the less-than-positive, sometimes harmful behaviors that virtually every owner has. As a business owner, your monster is that thing about your business that you have been avoiding, or the manner in your approach that is holding you back from achieving your full potential. It is your blind spot. These behaviors usually arise from years of habit. We have grown comfortable in their presence and convince ourselves that they embody our own best interests. This fact makes them hard to slay but slay them we must if we are to realize our goals.

How do you overcome such a fiend? As in so many fairy tales, nothing is more effective in defeating evil than the light of day. Bringing a monster out into the open for close scrutiny takes away its power. Your blind spot can be exposed through the experience, authority and credibility that outsiders bring – their objectivity. No one looks at your business like you do. When others are given the chance to delve deeply into your processes and your habits, your decisions and your indecisions, your successes and your failures, and when they have a chance to understand what you were trying to achieve but observe what you actually did, your monster will be exposed. And, if you are open-minded enough to listen, the brute’s days will be numbered.

The most successful business owners surround themselves with a group of advisors who will tell them the things they need to hear, not just the things they want to hear. This requires a special perspective from these advisors – one born from genuine support and with no specific vested interest other than your success. By exposing your monster to such a group, and by opening yourself up to the reality that it needs to be defeated, you will see a rise in your own business success and satisfaction.

____________________________


Dave Mischler is President of Sun Advisory, LLC and President / Facilitator of Inner Circle Chicago (peer advisory boards for business owners). In these roles, Dave guides business owners to collaborate with their peers or identifies resources and develops tools to help them become more successful and satisfied with what they do. You can connect with him through his blog or his website.


CR:  Once again, you can see the Spinach In Your Teeth philosophy embraced (pun intended) here.  Get advice you need to hear (not just what you want to hear).  Thanks again to Dave for his insights.

Wednesday, May 26th, 2010
Posted in Business Strategy, Homepage | 3 Comments »

Spin Sucks: Carol Roth interviews Gini Dietrich

From The CarolRoth.com Entrepreneurship Interview Series

When a guest starts off describing herself as “a dog with a bone who won’t let go”, you know it is going to be an interesting interview and Gini Dietrich did not disappoint. I had the pleasure of chatting with Gini, who is CEO of Arment Dietrich, a renowned speaker, online communicator and blogger at SpinSucks.com (the Fight Against Destructive Spin).

Gini and I cover a number of topics in our interview, including:

-What social media is and what it isn’t;
-How you can get started with social media if you are not using it;
-How you can improve your use of social media if you have been using it for a while;
-The biggest mistake that companies make in regards to social media strategies;
-How social media has shaken up the PR industry;
-What you should do about privacy online;
-If you need a social media policy for your business;
-How Gini increased her site’s visitors from 500 per month to 20,000 per month in less than one year;
-Plus lots of giggling and more

You can listen to the player below (it may not show for some of you) or click here to download or stream the MP3 file.

You can connect with Gini at SpinSucks.com or on twitter @GiniDietrich.  Feel free to leave comments here as well and I will pass them on to Gini.

If you are not already on my mailing list, fill out the form below to be alerted when I post future interviews (we have an amazing slate of interviews coming up) and to get free extra CarolRoth.com Entrepreneurship Interview Notes, only available to my mailing list.  And don’t worry, I only send out newsletters when there is something major to inform you about. 

Sign up now to get your free Entrepreneurship Interview Notes from Carol on her conversation with Gini Dietrich and other thought leaders:


Tuesday, May 25th, 2010
Posted in Business Strategy | 9 Comments »

46 Insights On Partnering And Collaborating In Business

Forget building or buying – when partnering is the way to go, heed these “do’s”

When looking to grow your business, the choices come down to build, buy or partner. I decided to focus first on partnering and asked like-minded entrepreneurs and advisors for the straight talk on how to approach partnerships and collaboration for maximum benefit. Here is what you need to know and need to do when approaching partnering in your business:

1. It's Really Simple

Make sure you find someone with complementary skills. If you are a programmer, find a business guy, and vice versa. Don't find just another "copy" of who you are.

Thanks to: Bob Cavezza of isWearing.

2. Values Matter!

Start with a small project that has limited risk as a way to test your values alignment with your new/prospective partner. People underestimate the power and influence of our values on decision-making and how we approach and perform our work. When values are out of sync - disaster ensues!
Thanks to: Kendra Coleman of Kindred Organizational Consulting.

3. Help Me, Help You.

Partnerships are great for entrepreneurs BUT make sure both sides help each other and get something out of it and it's not one sided. Everyone is looking to get ahead so when partnerships form don't be surprised if someone leaves you hanging. Make sure when you talk about partnering that each of you put on the table what you will do for each other. Partnerships can be a great thing but make sure you approach it as a "Help me, Help You," situation and you're golden.
Thanks to: Ashley Bodi of BusinessBeware.Biz.

4. Define Ground Rules Upfront

It's easy to say "oh yeah I know that", but most small business collaborations don't - make sure the ground rules of the partnership are firmly established upfront including financial terms. Make it clear the value each party is bringing, so if you are both delivering a solution to potential clients, you collectively can pour your collective energy into making the collaboration work for the benefit of the client and not second guessing the motivations of your partners.
Thanks to: Naomi Moneypenny of ManyWorlds, Inc.

5. Winning Partnerships

The best partner matches require the two people involved to have the same beliefs about money management. Much like a marriage, two people with differing values when it comes to how money is spent will destroy a relationship. So, make sure your prospective partner feels the same way about how to manage money.
Thanks to: Michelle Gamble-Risley of 3L Publishing.

6. Aim High!

Oprah Winfrey said, "Surround yourself only with those who lift you higher." That said, attend events to connect deeply with like-minded professionals with complimentary expertise. Explore win-win-win ways to work together. Action Plan Marketing Guru Robert Middleton organized an Info Guru Summit weekend in January of 2010. That event brought my "Bio Whisperer" expertise to a well targeted group that has introduced me to 1000's of new ezine subscribers, blog followers, and customers.

Thanks to: Nancy Juetten of Main Street Media Savvy.

7. Best Must Do Business Strategy

Do business with someone you can drink with. I learned this from the Koreans. When you can drink with someone, the real person comes out. The face of business comes off. You get to know if those "trust me" requests (that usually go along with a pile of one sided legal contracts) are really valid. Unfair to those that don't drink? Nah. I'm on a 1 month hiatus and I'm still cutting deals. Sure some people don't drink, and I respect that, no rule is absolute.
Thanks to: Mike Faith of Headsets.com.

8. Trust Is The Key

Trust is the key to all relationships. If you want to build profitable partnerships, work with people you trust. Effective collaborative relationships are built on trust. Go first, demonstrate your trust in the person with whom you are thinking about partnering. Be willing to share your thoughts and ideas. Gain the trust of others by trusting others.


Thanks to: Bud Bilanich of Bud Bilanich, The Common Sense Guy.

9. Map Your Client Ecosystem

A great collaboration strategy is to find referral partners who hunt at the same watering hole, but who play at different stages in the value chain. For example, our target clients are technology startups. One of the first things they do is go to a lawyer to incorporate. Next, they want to launch and raise money, so we are brought in, and then we refer them on to recruiters as they grow. In short, understand the value chain of your market and partner with those sitting in front and behind you.
Thanks to: Nathan Beckord of VentureArchetypes LLC.

10. Partnering To Stay On Track

I consult with start-ups & launchers on their PR strategies & do a lot of business coaching, too. As a solopreneur, I have different clients pulling me in different directions - it's hard to stay on track. So I hooked up with an accountability partner. We work together at least once a week; this keeps us on track & focused on long & short-term projects.

So that is my "must do" strategy - find an accountability partner, meet regularly & see what a big difference it makes in your business!
Thanks to: Lizzy Shaw of Lizzy Shaw Public Relations.

11. Be Specific

When entering into in a partnership of any kind, it is important to be specific about each person's role. Whether you are partnering or collaborating - be sure you spell out each person's obligation to the other, what you will get, and what the benefits are for each party. If partnering in a corp, be sure you have a shareholder agreement that specifies duties and roles, and consider having shares vest over time for each party. If only collaborating, be specific as to what each person gets.
Thanks to: Sarah Shaw of Entreprenette.

12. Swim With Bigger Fish

When considering partnering or collaborating, many business owners think they want somebody just like them.

Nice and safe, right? Maybe.

Considering that the point of collaboration is for growth then you would want to consider partnering with someone who challenges and encourages you to get out of your comfort zone. Staying in a place of comfort will keep you where you are. Working alongside someone who pushes you (in all the right ways) can bring growth.
Thanks to: Karen Graves of Vision Launch.

13. Partnership Is Like Marriage

Partnership is like marriage. Like marriage, sometimes you give more than you get and sometimes you get more than you give. A partnership is something that you work on constantly.
Thanks to: "Jolly" John Pulsifer of Jolly John Auto City.

14. Open The Communication Lines

Always keep the lines of communication open. This means to always ask questions and clarify with your business partner, making sure that both partners are on the same page. Lack of honest communication is the biggest downfall of partnerships. Example questions to ask your partner include; What can we do to help each other be more successful? What should we keep doing? What should we do more of, or less of?
Thanks to: Alan Vengel of Vengel Consulting Group.

15. What's In It For Me?

Businesses seeking partners are often clear on what they're looking for from that partner, for their own business. However, for a successful partnership that will go beyond the immediate deal, you need to think about the motivations for the partner. The ability to clearly articulate not only what's in it for you, but also what's in it for them, is key to success.
Thanks to: Sam Liu of Partnerpedia.

16. Partner Rather Than Compete!

A full 50% of our business comes to us through partners. Since we are 100% an internet business, the name of the game is search engine optimization (SEO). My partners are good at it, and as affiliate sites they get paid a commission only when a sale is made. It's like I'm piggybacking on their SEO. Sure I have to share their visibility with other merchants they select on their site, but the results prove out. I pay 15% of a sale which averages $10 per customer, very reasonable for us.
Thanks to: Jeff Block of JustPaperRoses.com.

17. Give More Than You Take

Find a way to give rather than look for what to get in all of your dealings and interactions. It may seem like a paradox and somewhat of a cliché, but it does seem to be true that the more you give the more you receive. The only way to see if this is really true for yourself is to put it into practice consistently and with sincerity and see what happens. Don't wait until you are successful to start giving back. Giving is not an afterthought to success, it is the foundation.
Thanks to: Jeffrey Gitterman of Beyond Success Consulting.

18. Key To Successful Partnering

The key to a successful partnering relationship is to make sure that the goals and expectations of both parties are aligned. The worst scenario is where one partner is expecting leads to be passed to them, and the other partner is anticipating sales to the other partner's existing customer base.
Thanks to: Tom Salzer of Quartermain, Inc.

19. Build Power Partners & Grow

Find your perfect power partners and create formal referral agreements. For example, a professional organizer will build a book of business more quickly if she aligns with a Realtor, moving company, junk hauler and cleaning company. Turn them in to Power Partners. Grow and rise together. All four companies can host workshops together, market together and become each other's sales force. Give each other 10% of the net sales or a flat fee for each referral that turns in to a paying client.
Thanks to: Angela Cody-Rouget of Major Mom.

20. Keep Communication Flowing

If you want to grow and enhance your business with partners and collaborators, it is critical to keep the lines of communication open. Make sure they know what you do, and are updated about your company's developments. Don't assume they know all areas of your expertise -- instead "market" to them as you would to any prospect. Be sure you also communicate as you work together -- no partner has ever complained about over-communicating, but many have been frustrated by the lack of it!
Thanks to: Beverly Flaxington of The Collaborative.

21. Put It In Writing!

Establish an agreement in writing that clearly defines the roles, responsibilities, financial terms, schedule and anything else that is part of the partnership. If the arrangement is between friends or among family members it is still vital (maybe even more so) to put it in writing. Having a defined agreement is more efficient, insures a successful project and protects partnerships, friendships or family harmony.
Thanks to: Janet Christy of Leverage & Development, LLC.

22. Communicate To Collaborate

The one 'must-do' thing we do in successful collaborations is to have weekly meetings that can be canceled only if both sides agree. If either organization won't commit to a weekly management meeting, odds are that the collaboration won't be successful because there's no clear communication channel for the collaborators.
Thanks to: Shenlei Winkler of Fashion Research Institute.

23. You're Getting Into Bed

Do your homework on a perspective partner upfront to determine if they are looking for a relationship that benefits both of you, or if they’re drowning, and flailing to grab onto anyone that will keep them from going under. Also, check in with your “gut reaction”. If they pass the tests, then trust completely.
Thanks to: William Milnazik of AXIS visual.

24. Be An Idea Expert!

Always have specific ideas and suggestions ready BEFORE you meet with the person with whom you want to collaborate. You will find that the ideas that come from your area of expertise are the reason why they should want to collaborate with you too. Present those ideas as a starting point. At the very least, he/she should appreciate that you have taken time to consider the options. At best, your ideas will be used as is or they may be the beginning of a strong collaboration concept.
Thanks to: Jessica Cohen of BucksMontMom.com.

25. Strengths & Weaknesses

When you partner with someone combine your strengths and their weaknesses or your weaknesses and their strengths to create the best synergy possible.
Thanks to: Julie Austin of HydroSport.

26. Collaboration: Free & Fruitful

Small business owners usually have limited resources (time, people, and money). An often untapped / under-used resource is their own suppliers. Suppliers often have experts, designers, drafters, engineers, and creative-types on staff who would be pleased to provide assistance in product development, advertising campaigns, marketing concepts, etc. Often you receive these services free of charge. My suppliers understand that this is "the cost of entry" for doing business with companies I run.
Thanks to: Mitch Pisik of Breckwell Products.

27. Goals And Champions

Successful strategic partnerships require two key ingredients for success: (i) distinct, well-thought out goals, and (ii) internal champions. The goals should be the result of serious and honest discussions between the partners regarding expectations, and should be translated into something measurable. Track your progress as you proceed. Also, each partner should identify by name an internal champion that has the necessary power and influence to move the relationship along successfully.
Thanks to: Christopher McDemus of VC Deal Lawyer.

28. Deep Industry Understanding

My one tip would be to find a partner who actually understands your business, not just on the surface but truly understands the business as much as you do. In essence you need somebody who can not only fill in the gap of specific market knowledge yet also understands what your company is capable of providing to each client.
Thanks to: Marc Anderson of TalktoCanada.com.

29. To Collaborate Or Not?

When deciding if it makes sense to collaborate, you must answer in the affirmative to this question: Is it beneficial to ALL parties?

When you do decide to collaborate you must give more than what you expect.

Does this sound crazy? No, when you are busy tracking who gave what, you lose the essence of collaboration which is to develop relationships and provide service beyond measure. An unmatched benefit of success.
Thanks to: Yvonne Rivers of The Phoebe Group.

30. Honesty Is The Best Policy

Have complete transparency in term of operations, remuneration and most importantly objectives. A crack in the relationship at an early stage or the revelation of a lie at a later date will not only destroy the immediate efficacy of the partnership but also create negative reverberations and possibly bad word of mouth that will damage the credibility and reputation of your business.
Thanks to: Daniel Callaghan of MBA & Company.com.

31. High Trust = True Synergy

In a high-trust relationship, speed goes up and costs go down. Demonstrate a propensity to trust by extending trust abundantly to those who have earned your trust, and conditionally to those who are earning your trust. Learn how to appropriately extend trust to others based on the situation, risk, and credibility of the people involved, and most importantly, keep commitments at all costs. Say what you're going to do, then do what you promised.
Thanks to: Stephen M.R. Covey of Global Speed Of Trust Practice.

32. Clarity When Collaborating

Be very clear about what you need from the collaboration and always be open to allowing the space to be filled with someone who we can help fulfill their dreams while jointly owning a space within your organization.
Move away from old business models of competition and comparisons and develop relationships that are structured around compensation being commensurate with contribution.



Thanks to: Heidi Reagan of Wake Up Women Be.

33. The Right Partners Add Value

Be complementary. Partners who offer services/products that truly complement yours--and your brand promise--are the ones that make the most sense. Ask yourself of each potential partnership: how would this company add value for my customers?
Thanks to: Kristin Warner of FirePath Communications.

34. Throw Give/Take Out The Door!

It's not about you. It's not even about give/take. I'm a firm believer that it's give/give. Give until you can't give anymore. In the long run, the benefit is tenfold.

I have a relationship with a chocolate and coffee company. Last year, I traded services for her product, which became my holiday client gifts. Not only did she benefit from my services, but she also received exposure to potential clients. She benefited more initially but I consider the relationship a valuable one.

Thanks to: Meghan Ely of OFD Consulting LLC.

35. Partnering: It's Not About You

As companies, we partner because there is value in it for us. But remember that the partner has to feel the same way too.

If we are strategic in what we are trying to achieve, the relationship has to be meaningful and fulfilling for both partners. Your partner must want you as much as you need them.

As a small business I have often less resources to offer than other potential partners. I just remember that what makes me unique for a client also makes me valuable in a partnership.
Thanks to: Phil Ayres of Consected LLC.

36. Pretend To Be Worst Enemies

An attorney and an accountant once gave this advice to me: "Pretend you and your business partner are worst enemies for a day. It will be hard to do, because you like each other now. But you need to think through various scenarios—like death, disability and financial disputes—as if you were adversaries. What processes and agreements do you want to put in place to protect yourself and your business?" Write down your roles, financial agreements and decision-making/communication ground rules.
Thanks to: Leigh Steere of Managing People Better, LLC.

37. Give To Get

Be willing to give more than you are expected to give. I have learned that when you freely share your expertise and allow yourself to have the heart of a giver, you will receive more than your share of help in return. The law of reciprocity definitely applies to your relationships with those who can advance your business more than you can do alone.
Thanks to: Dallon Christensen of FirstStep Concepts.

38. A Simple Age Old Method

Just email the person you want to partner with and pitch your proposal that very clearly states the benefit you have to offer that person. If it's going to benefit him, he'll get back. Most high profile people who understand marketing and PR get back with either a yes or a no. Even best selling author Seth Godin has replied to my email. It's the old method but it's very simple, it works. Try it!
Thanks to: Vinil Ramdev of StartUpGrowthExpert.com.

39. Must Do Tip

Communication. Solo entrepreneurs that partner and start a business with other entrepreneurs need to share and be transparent about all information. While solo entrepreneurs are used to running a business on their own, they aren't used to relaying their mind share with other decision makers. If people on the team are designated as account managers they'll have access to a lot of information and it's critical they have the ability to concisely take back and communicate that data to their team.
Thanks to: Lisa Loeffler of LightBox PR.

40. Partnership Prenuptial

Like any other partnership, situations change and can affect the relationship.

No matter how short-term or informal, terms and "what ifs" should be discussed upfront and documented. While you may feel you don't need a formal, written agreement, an informal e-mail, simply to confirm your understanding, can be invaluable.

Ideally, talk to an attorney about critical terms, make them "user-friendly", and create a template you can edit to use as a "confirming we're on the same page" e-mail.
Thanks to: Stacy Robin of The Degania Group.

41. Rules, Rules And More

My one "must do" tip when collaborating and/or partnering with others in business is to have a document that includes a firm set of rules and guidelines that are agreed upon and signed by all parties. This will set a clear path for an ongoing relationship. The document can also be updated when needed, but it is something that is imperative in order to protect all parties.
Thanks to: Laney Liner of Blue Thunder Creative Group, Inc..

42. Character Counts

The one “must do” tip to collaborate or partner is to understand the motivation of the other partner, and the value system or code of ethics under which they operate. Even when your partner offers the best of abilities which complement yours, know what their motivation is, where they are headed, and how they will respond when the unexpected happens. Understanding these issues will create an atmosphere of trust, and allow room for working through the challenges which inevitably arise.

Thanks to: Robert Scanlan of Robert Scanlan, Transitions Coach.

43. It Ain't What Or Who You Know

People say, "It's not WHAT you know that's important, it's WHO you know". The truth is, if you don't know how to persuade or motivate people, then I don't care if you know Bill Gates. Being able to persuade others without being a manipulative sleaze ball is the #1 difference-maker.

Mastering persuasion will improve your selling, negotiating, project management, marketing, and writing. Your job is to MASTER the science of persuasion. (Yes it is a science.)
Thanks to: Tim David of The Compel Model.

44. Think Long Term

The single most important thing in building strong partnering and collaborating relationships with industry vendors is ensuring that the relationship benefits both parties. This requires trust, effort and an eye toward the future: building a long-term relationship. Try to see the relationship from their side and what you can do to make it work for them. Do that and they will make every effort to make it work for you, or they simply aren’t going to be a good partner.
Thanks to: Scott Harris of Mustang Marketing.

45. Only A Few Matter

Most companies seem determined to engage in as many partnerships as possible. The reality is that only a small number matter. My tip is to figure out which partnerships provide the highest value and then focus only on them. In other words, identify what is most powerful and compelling about the combination of companies then give the partnership the best chance of success by 1) assigning joint executive sponsors, 2) naming dedicated teams, and 3) building a joint go-to-market program.
Thanks to: Thomas Butta of 21Weeks, LLC.

46. Explore Your Inner Publisher!

You'll attract more promising collaborative opportunities if you own locations where your unique content is published and updated daily. People like to collaborate with people who can spread the word about the collaboration. If all you have is a website and maybe a Facebook page, the value you add to a collaborative process is limited. If you own branded media outlets that you use to share ideas and showcase your expertise, you are a more attractive potential collaborative partner!
Thanks to: Donna Maria Coles Johnson of Founder/CEO, Indie Business Media.

I think that this list presents a very good foundation for thinking about partnerships. Many thanks to everyone who contributed this valuable feedback!

Saturday, May 22nd, 2010
Posted in Business Strategy | 18 Comments »

REALLY Knowing Your Target Customer

Knowing your customer really helps focus your advertising efforts.  Seriously…





Thursday, May 20th, 2010
Posted in Business Strategy, Random Musings | 3 Comments »

Are You Recognizing Your Employees for the Right Reasons?

Are you paying attention to what your employees really have to offer?

When I was working at Montgomery Securities, I had the opportunity to work on a follow-on public equity offering for Cooker, a once-publicly traded restaurant chain that unfortunately has since gone bankrupt and closed. 

As “low women-on-the-totem-pole” on the three-person deal team, one of my jobs was to make sure that the registration statement (which is what the investors read and gets filed with the SEC- think of it as a capital raising document for a public company) was correct.  Since the company was already public, it routinely filed statements with the SEC, so those parts of the document were audited and should have automatically been correct. But because I am diligent (i.e., extremely anal) and wanted to make sure that everything was in order (since that was my job), I recalculated every number in the registration statement by hand. 

When I got to the balance sheet, there was a problem- it didn’t add up.  Impossible- this was a publicly filed statement?!  I had my colleague double check the math, and lo-and-behold, I had caught a major math error (which kinda pissed off the CFO because it made him look bad, but hey, it saved a LOT of potential problems).

After the deal was done, we had a closing dinner with the entire team where the company, the lawyers and the investment bankers got together to celebrate the deal.  At these dinners, sometimes awards are given out.  My colleagues handed me an award.  Guess what it was?

Whatever you guessed, you are wrong.  It was the “We Got Leggs Award”, for the team member “most likely to distract institutions, management and other bankers through my alluring hemlines”.  Here it is in all its glory (maiden name included):



So, I found a mistake in a SEC filed balance sheet that had been audited and signed off on by company management and my freakin’ award was for wearing short skirts. Awesome (not really).  And yes, the fact this that trophy is represented by a horse’s ass was not lost on me either.  (They claim it was the only trophy they could find “with legs”).

Incredibly, the other bankers who were our co-managers on the offering actually stood up and reprimanded my colleagues for giving me that award and said that they were so amazed by what I did (the math part, not the skirt part) that they actually used it as a case study in their analyst training program on “what to do”.  They also told me privately that they could not believe that my team didn’t recognize that.

Now, I have a fairly good sense of humor, so I didn’t care that much, but it would have been nice to have been recognized for my work rather than my legs. 

If you have employees, make sure you are looking at (and rewarding) their work, not their legs.


Tuesday, May 18th, 2010
Posted in Business Strategy, Your Career (Is Your Business) | 4 Comments »

You Don’t Bring Me Flowers Anymore: What Your Business (and Personal) Relationships Can Learn From Setting the Right Expectations

Whether you are in a professional or personal relationship, setting authentic expectations up front can really create a foundation for the relationship’s longevity. 

If you do something when you first interact with a prospective customer (or partner), they will expect that to be the norm.  If you decide you no longer can or want to do that something, then you look like a jerk. 

For example, I buy a lot online from prestige cosmetics retailer Sephora.  Even though their products are pricey, they won me over originally with a number of sexy offers, from free shipping and free samples to a points program and free gift packaging.

At some point in the last 12 months or so, they took away the free gift packaging online- it now ranges from $2-4 per order.  This does not break the bank in any way and theoretically shouldn’t matter as I buy more for myself than I do as gifts there, but I still feel cheated.  Why?  They set the expectation that free gift packaging was part of their offer.  The worst part is that they didn’t need for it to come to this; the other offers were enough to win me over as a customer, but they went too far, offering something that they couldn’t fulfill long term and now it is a deficiency in my customer relationship with them.

There are plenty of other businesses that are affected by their expectations.  The spa that I frequent always has a coupon, so I won’t go if I can’t get the discount.  Many of my friends won’t buy their Clinique makeup if it is not “bonus time” because it is almost always bonus time somewhere.  If you make something the norm, your customers will expect it.

People do this all of the time in personal relationships too.  A woman may show off her domestic skills early in a relationship by cooking and doing housework and a man may try to woo a woman by bringing her flowers weekly.  That becomes the expectation.  However, if you can’t authentically keep that up over time, when you stop, it becomes a loss. 

When I met my husband, I was very clear that I don’t cook, I don’t clean and I really don’t do much of anything that would be considered “domestic”.  Now, I had to bring something of value to the relationship, so I was clear about all of the things that he would find valuable, such as the fact that I love sports ranging from football to MMA, that I am independent (financially and otherwise), that I am fairly low maintenance (personally, not professionally) and also a few other things that my husband would not be pleased if I wrote about, but let’s just say they add lots of value to a marriage.  These are all things authentic to who I am and not something that I struggle with fulfilling.

Now, if I ever do anything domestic (which is very rare, but does happen once in a great while), I become a hero because it is out of the ordinary- it is not expected.  This creates a very different situation than if I had pretended up front that I love to iron and then couldn’t keep up that charade.

Your business needs to do this as well.  You need to have an outstanding value proposition to the customer, but it has to be something that you can keep up long term.  Sephora never needed to offer the free gift packaging as an “always” perk.  They could have done a special offer with orders over a certain size or if you reach a certain level in their loyalty program.  Then it would have been a benefit, not an eventual deficiency.

Think hard about the expectations you set with your customers (and everyone else too).  Nothing good ever comes from someone saying, “You don’t bring me flowers anymore…”.

Monday, May 17th, 2010
Posted in Business Strategy, Customer Service, Homepage | 5 Comments »

How to Think Like a Corporate Raider (No Matter What Size Your Business Is)

Small Insights Can Make Big Differences

This post is a follow-up to How to Think Like the CEO of a $15 Billion Company (No Matter What Size Your Business Is) and was told to me by the CEO of an Australian company.

There is a well-known buyout investor in New Zealand named Graeme Hart (Chairman of Rank Group; well-known is a bit of an understatement-he is reported to be the wealthiest person in New Zealand).  According to the story, in the early 1990s, he was evaluating the purchase of a major bookstore chain that was part of Whitcoulls Group and decided to head with a colleague into one of the stores.

They were in the bookstore for no more than five minutes when Graeme left.  The colleague followed him outside and Graeme declared that he was going to try to purchase the chain. 

The colleague was baffled- they had been there just a few minutes.  He probed Graeme on how he had come to a decision so quickly.

The answer, Graeme said, was easy.  He explained that the store was merchandised like a library, with the books lined up on the shelves with their spines facing out, one after another.  Nobody could see the covers!  He told his colleague that all he had to do is take the books, change their orientation on the shelf so that customers can actually see what they are buying, and he guaranteed sales would improve.

As the story goes, he bought the chain, he had the books turned so the covers instead of the spines faced the customers, and sales increased immediately and significantly.  That illustrates the subtle-yet-keen insight that has allowed Mr. Hart to amass a nearly $9 billion fortune.

The takeaway:  How can you tweak your thinking just a little bit?  Can you look at things in a slightly different way in your business?  It may have huge rewards, just like turning books on the shelf did for Graeme Hart.

Wednesday, May 12th, 2010
Posted in Business Strategy, Homepage | No Comments »

Failing Spectacularly and More: Carol Roth interviews Jason Seiden (on Video!)

From The CarolRoth.com Entrepreneurship Interview Series

Given my Spinach In Your Teeth® philosophy, it’s not a stretch to imagine that I like to keep the company of other folks willing to tell the straight truth.  I had the pleasure of sitting down with my long-time friend, thought leader and fellow straight-talker Jason Seiden, who is a corporate trainer, blogger, speaker and author of such books as How to Self-Destruct and Super Staying Power.

Jason and I cover a number of topics in our interview, including:

 -Jason’s philosophy on making failure safe;
 -Why personal branding isn’t enough;
 -How you can be entrepreneurial without being an entrepreneur;
 -If owning your own business didn’t work for you, how you can transition back to the work force;
 -What qualities to look for when hiring employees;
 -What 30+ year old rumor Jason has been spreading about me (see around the 16 minute mark);
 -And more

You can view the video below.

You can connect with Jason at his Fail Spectacularly website and can also find his Super Staying Power and How to Self Destruct books available everywhere.   Feel free to leave comments here as well and I will pass them on to Jason. 

If you are not already on my mailing list, fill out the form below to be alerted when I post future interviews (we have an amazing slate of interviews coming up) and to get free extra CarolRoth.com Entrepreneurship Interview Notes, only available to my mailing list.  And don’t worry, I only send out newsletters when there is something major to inform you about. 

Sign up now to get your free Entrepreneurship Interview Notes from Carol on her conversation with Jason Seiden and other thought leaders:



Tuesday, May 11th, 2010
Posted in Business Strategy, Your Career (Is Your Business) | 5 Comments »

Guest Blog: Sales Techniques- Annoying People for Fun and Profit by Rich Gallagher

I am thrilled to have back as a guest blogger Rich Gallagher, communicator extraordinaire and President of Point of Contact Group.  Read on:  

RG:  A few years ago I was interviewed by a national business columnist, who among other things wanted to know how I closed sales. My answer made her choke on her sandwich: I never, ever try to “close” a sale.

In fact, I don’t sell at all. And neither should you.

I know, that flies in the face of every sales book you’ve ever read. Google the phrase “sales techniques” and you will come up with over half a million hits. But trying to get rich by reading many of them is like trying to attain good mental health by watching Dr. Phil.

Don’t believe me? OK then, picture yourself at a business networking meeting. In front of you are three people:

-Cal Closer, a back-slappy type who puts his arm around you, crows about whatever it is he is selling, and palms off his business cards on everyone.

-Hannah Hungry, who flits around the room expectantly, asking everyone whether they have any leads for her services.

-Sarah Secure, who obviously loves what she is doing, but spends most of the discussion genuinely interested in you.

Now, which of these people would you rather talk to? Who would you go to for impartial advice? Whom would you trust your son or daughter with on a date? And now, for the bonus points: if they were all selling the same thing, which person would you buy from? There you go.

This is why I never sell. And, not coincidentally, why I am usually very busy. Prospects soon discover that I won’t ever try to “close” them, overcome their objections, try to get past their gatekeepers, or use any other tiresome techniques to push for a sale.

Instead, they know I will listen to them, be honest about what I can and cannot do for them, and above all respect their intelligence. If I am not a truly outstanding choice for them, in their judgment or mine, I am more than happy to suggest other options and then shake hands.

The same thing goes for my existing clients. Whether they use me every week or every three years, we still have the same great relationship. One where they can talk to me anytime, knowing that I will be focused on them and not on snockering them into giving me more work. You see, I believe they are intelligent people who know what they want, they already know I am great at what I do, and I am not going to risk a good relationship by foaming at the mouth trying to sell to them.

Think carefully of all of the “sales-oriented” people you know – men and women whose agendas are obvious, and who would never, even under pain of torture, suggest something other than themselves.  If you are being honest, I’ll bet that anything you buy from them is probably despite their selling techniques, not because of them. Am I correct?

As for me, I learned my approach of “not selling” from, of all people, a car salesman. Jeff has always patiently let my wife and I test drive one car after another, never presses us to make a decision, and knows his products cold. He never asks us stupid questions like, “Are you prepared to buy a car today?” or “What would it take to get you into this vehicle?” That’s why we’ve purchased close to $100,000 in cars from him over the years, and hope to purchase $100,000 more. And why he’s always the busiest guy at the dealership. If Jeff’s employers ever make him read a sales manual, they’re toast.

There aren’t a lot of Jeffs out there, either on the car lots or in my profession.  But when you toss out your books and tapes on how to sell, sell, sell and start focusing on making your clients happy, incredible things will start to happen in your life. Join people like us, and watch what it does for your own business.

____________________________

Rich Gallagher heads Point of Contact Group (www.pointofcontactgroup.com), a training and development firm that teaches people what to say in their most difficult situations. His eight books include What to Say to a Porcupine, a national #1 customer service bestseller, and his latest book How to Tell Anyone Anything. And not one of the over 10,000 people he has trained has ever heard a sales pitch from him.


CR:  Thanks again to Rich for contributing.  So much to learn from him…

Monday, May 10th, 2010
Posted in Business Strategy, Customer Service, Homepage | 3 Comments »