Small Business Revitalization Blog

If you are tired of throwing out your strategies time after time (or you need to throw out the ones you've got and revitalise your business!), the phenomenally useful book “Rework”, written by the founders of 37Signals, offers some of the best advice on business strategy I have seen in a long time…  consider these five little gems (and there's more Rework inspiration at www.onstartups.com) :

“Great businesses have a point of view, not just a product or service.”  If you ever wondered where to find your twenty of so points of difference to your competitors, this is a fantastic place to start!

“You have the most information when you’re doing something, not before you've done it.”  The best way to answer your strategy questions is to put your toe in the water and get real customer feedback.  Don’t just imagine… test and measure!!

“Saying yes when you should say no leaves no bandwidth available for the great rather than the merely good.”  What’s NOT in your strategic plan matters more than what is in some ways!!

“The longer it takes to develop, the less likely it is to launch.”  Quick wins… quick wins… quick wins are the key to getting traction and profits quickly. I launched a product for BlissTribe before I had a website… I was testing the BlissTribe concept and playing with ideas… now I know it has great legs and is worth putting lots of time into!!

“A business without a path to profit is a hobby.”  This is my favourite… I see this happening every day with new businesses… the funny thing is an hour or two spent on developing your business model (ie the plan of where your profits come from) will solve it!!

If you want some different perspectives on Accelerating Your Business strategically, the next Revive Playshop is for you.  21 June 2010 in Brisbane, Australia – miss it and you’ll miss out on insights that will make your business more profitable than you can imagine!!

There's more Rework inspiration at www.onstartups.com too - what's your best strategic business advice?  Share it below...

New business owners often get stuck when it comes to setting pricing. Pricing is determined by factors such as positioning, competition, market demand and, surprisingly, how you value yourself and the services and products that you offer!

Have you ever found yourself pricing a product or service in your business based on what you would pay in your current financial circumstances?  Did you stop to think about whether your personal perspectives are in any way a good match for your ideal customer?

Pricing is a choice.  But rarely do business owners exercise that choice with awareness of the potentials created by different price points.  Let’s consider a brief case study…

Erin is a natural health practitioner who specializes in a couple of healing modalities.  She is making $60 an hour and sees clients for 20 hours a week on average.  This equates to $1200 a week – not quite enough to put her into GST territory, but getting close.  By the time you take out taxes and costs of running the business (eg marketing, hiring space, training etc), Erin brings home closer to $30 a session - $600 a week is not a lot to live on!

So, let’s have a look at the common small business traps Erin has fallen into: She is doing what she loves and is great at, but is not reaping the financial rewards – she needs to charge what she is worth.

• She is swapping time for hours – there is no leverage in her business – if she doesn’t work, nor does the business
• She has not differentiated her service sufficiently so that clients will pay a premium.
• She doesn’t believe people will pay more than she is charging – but she hasn’t tested a higher pricepoint.
• She doesn’t like asking for money for helping people - her beliefs are in conflict with her purse!

Have you ever fallen into any of these traps?  What choices did you make to improve your financial position?  Share your story below – just click the Comment link.

Need inspiration for making more money in your business?  Book your place for the April 19 2010 Playshop:  ‘Show Me The Money’ – you’ll discover more about money and your business than you thought possible!!

(Creative Commons Image:  www.flickr.com)

As a small business owner, once you ‘shut up shop’ for the day do you also shut off thinking about your business?  I find my best ideas come when I’m not doing anything connected with work… I went to Riverfire and the Brisbane Writers Festival on the weekend – a few hours chilling out and five new and amazing business ideas landed in my ideas notebook!  

So, how exactly does that happen?  Most essentially, I am a keen observer, always looking for creative opportunities in unexpected places.  When I see a possible opportunity, I start asking questions… lots of them… until I find an idea that gives me tingles.  Here’s a few questions you can ask when you are out and about…

• Is anyone here in my target audience?  If so, what would it take for my business to get access to them at an event like this?
• What would make this audience want to know more about my business?
• Are there any unmet needs here that my business could fulfil?
• Are there any existing but underutilized resources here that I could leverage?
• What business ideas are beyond what I can imagine is possible? What would it take to make these ideas possible?

What other questions do you use to discover creative and  profitable ideas for your business?

Has it ever occurred to you that what you think is great service is actually only the ‘entry level’ activities which allow your clients to put you on the list of possible suppliers? If not, you may be in for a rude shock!

Recently I listened to a senior manager from a large transport company talk about the new improvements to their tracking technology and delivery service. The transport company thought they had delivered an exciting groundbreaking service.  

My business coaching client who uses this company was scratching his head wondering what was so special – these were things he’d been requesting for years!   All they’d done was fix the bugs in their systems and provide service basics that should have already been available!

Sadly this amazing new service was at best the ‘point of entry’ from my client’s perspective – so instead of being ecstatic about this news, my client took it as ‘done, thanks, what’s next…’.  

Imagine if this transport company had taken a little time to talk to their clients and include some ‘extras’ which would offer their clients genuine and extraordinary value based on their knowledge of the transport industry and their clients businesses.

What if they invited the top 10 fastest growing clients (yes there are plenty out there even in the GFC!) and took them away for a business building weekend…   Any business owner who has double digit growth in this market would jump at the chance to meet others with similar experiences… who knows what business opportunities could arise from such an event! Most importantly, the transport company would be positioned as the really smart operators who created further growth in their clients business…

Think about this for one second.  If these businesses grow even faster, the transport company grows too -  each of these businesses rely on transport for customer deliveries… it is a total win-win! Why wouldn’t you do it?

What extraordinary experiences and ideas can you offer your clients for mutual benefit?  Take 10 minutes to think of 5 'A List' clients and 5 phenomenal ways to add value to both of your businesses.  Then action at least one and measure your results!  My business coaching tip for this post? You may want to work ON your business more often!!!

This morning I was on the BRW site and saw a banner advertisement proclaiming 'Win a chance to meet Warren Buffett!"  All you had to do was subscribe to the Australian Financial Review.  It sounded great, but in the small print it actually stated that there was no guarantee the winner would actually get to meet Mr Buffett!!  Imagine that - you win the prize, but actually it's only the "chance" that you might run into him!  How disappointed would you be!!

AFR is a publication whose reputation and brand has been built on its high level of credibility and integrity of reporting.  What brand manager would let a promotion like that out the door?  Is the AFR so desperate for subscriptions that they're willing to ruin the credibility of their brand by being a little too 'smart' with their competition wording?  Technically they are not misleading their subscribers, but most people would not take the time to read the competition headline literally - 'meet Warren Buffett' would be the message that sinks in.

How often do you run a promotion or other marketing activity which is ever so slightly misleading for your customers?  Wouldn't you rather be a brand which values integrity in its communications? It is never the reality that matters but the perception.  Whether we like it or not, reputations are built on perception not reality.  The next time you put together a promotion, make sure you check what perceptions you are creating!

Often I meet business owners who are stressed, stretched or otherwise finding very little joy and ease in their business.  One of the most common causes is they are trying to be everything to everyone!  

Have you ever found yourself spending lots of time doing things you hate and aren’t even that good at?  Have you ever asked yourself why you are doing those miserable things rather than the things that you love and find easy?

When I talk to business owners they can almost always quickly identify the actions which are joyful and easy, and those which are hard.  So why do so many people make themselves suffer?  If you have staff, you have a simple solution… delegate!!  If you have no staff you also have a simple solution… outsource!

Many business people think they can’t afford to do this.  So why are you doing a $20 an hour job when you could add hundreds if not thousands to your bottom line by spending your time on what you are good at and what you enjoy?  

It is often the things we find easy that are our gifts… is it time to recognize your gifts and share them with the world?  Most of us forget that not everyone can do what we do with ease!!

My business coaching clients receive super valuable service from me because I focus on what I’m good at – communicating, generating ideas and creating connections…  If I was spending my time on bookkeeping and administration then not only would I be miserable, but my clients would not get to experience the amazing value that I can contribute to their businesses.  Also, my own business would be growing much more slowly because I’d be caught up in tasks that don’t add value…

What one task can you delegate or outsource today that will enable you to give more value to your clients AND give you more joy in your business?

If you're not sure about the best way to add value to your business and make yourself happier at the same time, schedule a free 30 minute introductory business coaching session with Lisa Murray... it will change your life and increase your profits!

Every business owner knows how important it is to have a point of difference, but few businesses take this seriously and effectively establish a truly unique position in the minds and hearts of their customers.  And of those that do, few ever leverage those factors that make the business special and desirable to anywhere near the profit potential of the initial idea.  In my business coaching sessions, I often work with clients on these two issues, as they offer some of the best insurance around for creating a successful growing business which is hard for competitors to copy.

The trend for TRANSPARENCY is just one approach you can consider…
There are many industries where customers are highly aware of the risks of being ‘ripped off’ or taken for a ride. If your business is in one of these industries, you have a golden opportunity to deliver way more than your customer expects.

Find ways to make your business dealings transparent to the customer. The more honesty and integrity you can demonstrate, the more trust you can build and the more referrals you can receive and the more you will be able to charge. This works especially well in highly competitive industries or industries where the client requires a high level of trust in you to commence the relationship eg financial services or construction.

What would it take for your potential customers to trust you? What could a transparent business model look like in your industry?

Need some support in discovering your goldmine?  Contact Lisa Murray to arrange your free business coaching session. (No obligation, 30 minute introductory session for new clients only)

Got a comment?  Share your thoughts below...

Many of the businesses struggling in the current economic environment are actually facing the same core issue:  their business model only works in a growth economy - that means it is looking a little beaten and broken right now.  An effective business model will work for your business in fair weather or foul... so what are the key issues you need to consider in developing a really profitable business model?

In essence your business model must be strategically designed so that your business can deliver you with lots of cash – regularly and easily!  As a business coach, I often observe that this part of the business is the most poorly defined for start-up businesses.  

If you don’t know who is going to give you money, for what, why they’ll hand over cash and how that will happen systematically, you don’t have a business, you have an interesting product or service idea, at best!  To build a sustainable business you must develop your ideas into a profitable business model!!!  

If your business model is based on one-off transactions you need to consider alternative models as the model most likely lacks sustainability.  To start with, you need to be able to offer a solution to the following:

• What do you offer and why would people choose your products/services over anyone else’s?
• What are your supply sources and how do they enable you to maximize your profit margins?
• Where will you find a ‘hungry market’ and how easily can they find you and buy from you?

Once you can answer these three questions you need to put your ideas into practice and work on fine-tuning your model so that it works everytime.  If the basic model is strong, then when the economy changes, in most cases, you will only need to tweak your tactics, rather than reinvent your business from scratch.

The businesses which will grow the most strongly in the next boom will be the ones which have created the strongest business model during the recession! 

What is required for your business to be financially successful?

Recently I registered a couple of .com.au domain names.  Not long after, I received a very official looking letter from www.domainregister.com.au asking me to pay for these names (again!).  A closer look revealed that these were the .com versions of the sites I had recently registered - and they were offering me the domain names for just $249 each!!  

A quick check on www.godaddy.com revealed that I could get them for $9.99 USD each - a saving of over $450!!!  Of course there was also the enticement of a "free" Ipod Shuffle to take your attention away from the basic offer... Remember that there is generally no such thing as a free lunch... my friends at Domain Register were still making a rather tidy profit from those less vigilant with their accounts!!

The other part of this equation to consider was did I need the .com domains - clearly not as I did not choose to register these first time around...  It always pays to be 'buyer beware' when you receive invoices.  Do check what you are paying for carefully.  It would have been easy to have let that one slip through...and that is exactly what companies like this are hoping for...

		Many small business owners ignore the marketing strategy of networking because they don’t see obvious results on the bottom line, or they feel they are just too busy to invest the time that networking requires.  Here’s 3 quick tips on how to leverage your networking investment and maximize the results:

1.    Define your networking objectives clearly.
‘Getting some leads’ is not a clear objective.  Consider the following instead:
•    Make contact with at least three people who want to know more about what I do
•    Meet someone who can ……….(fill in the gap – what do you need to make your business work better right now?)
•    Find at least two opportunities for joint ventures or promotional partnerships…
Now that you know exactly ‘who’ you are looking for, networking is going to start working for you!!

2.    Follow up!!!
By this I do not mean collect as many cards as you can and add them to your database without asking!!!  Be strategic in your follow-ups:
•    Write notes on the back of the person’s business card if you need to follow up in any way.  Do what you promised within 48 hours.
•    Set up an automated process on your website where you can enter their details into your database – BUT you give them the choice to opt-in!  I actually share an example ezine with my prospects to entice them to sign-up.
•    Be willing to explore.  I often have coffee with people I’ve met just to explore what the possible opportunities are – a quick brainstorm can lead to outstanding profit generating projects!

3.    Measure your networking returns
If you don’t know what you get out of networking events, it’s time to start measuring the return on your marketing investment for each event that you attend.  
•    Set up a simple spreadsheet that notes investment of both time and money, the follow-ups and the outcomes.
•    Measure the returns on any joint promotions that you undertake.
•    Measure the referrals you receive from people you have met networking.

Networking will work for you, when you start working it!  I always go to events with the approach of ‘how can I help you get what you need?”  Give first and you will always receive!