First Day CEO

Culture Club (What Business Plans Forget- Part I)

I have currently been working hard on my mortgage company, and I realized that even though I have owned the company for over 8 years, there is something missing from my business plan.

Culture.

Even though our company is recognized by most in our area as a successful, professional company, we are still missing that critical element of "who we are".

Culture includes how we answer the phone, to how we interact with clients, to how we market to our clients, to how we market to potential new employees.  It's how we dress.  It's the design of of our office.  It's us.

Sure, there are mission statements and action plans, but without a detailed path as to the cutlure we want to create, they are meaningless.

Culture should be the first paragraph in a business plan, not the last.

This Blood's For You

That's the headline I wrote for my advertising copywriting professor at The University of Oregon back in 1989 while working on some campaign ideas for our local blood drive.  I absolutely LOVED writing advertising, which of course led me to career choices that were the total opposite end of the creativity spectrum.

Lately I am thankful I did not enter the advertising agency world, since advertising as we know it (or knew it) once again finds itself in position to change or be replaced.

With new terms such as "permission marketing", technologies such as Tivo, and markets being divided, and divided again, the mass advertising techniques (now known as interruptions) are no longer effective.

I listened to a web seminar today by Seth Godin promoting his new book Meatball Sundae and during the question and answer session he said something that is key to planning todays marketing strategy.  You can no longer use a "mega-phone" you must now use a "magnet".

I picked up a local real estate listing magazine at lunch and as I turned through the pages all I could see was one company after another using "mega-phones" to tell me how great they were.  Imagine if I was currently looking for real estate and actually came across an ad that discussed a free e-book about buying or selling homes that I could get by going to a website.  Magnetic.

Advertising is not going away as there is always the need for business to sell products, but it is changing quickly from what it was just a few years back.

Action Speaks Louder Than Knowledge

I think we are all getting smarter.  I also think we are getting less done.  We are becoming semi-experts on nearly everything that interests us with the point-and-click database of knowledge that is the internet.

So, when I discuss with others what is holding them back from success, I rarely find that it is due to lack of knowledge...it is more likely from the lack of action.

My favorite all-time book is The Power of Focus by Jack Canfield, Mark Victor Hansen, and Les Hewitt.  I read, and re-read this book over and over, and each time I'm amazed how much more I learn...but more importantly how much it reminds me to take action.

Creating a written action plans is key to getting what you want done, especially when it comes to changing existing bad habits.  Here's an example (taken from The Power of Focus):

A.  Habit holding you back:

Example:  Allowing distractions and interruptions throughout the day at work.

Consequences:  Priority tasks never completed, less time for money-making activities, increased stress, longer work hours, reduced family time.

B.  Successful New Habit:

Example:  Hire a personal assistant to screen phone calls, minimize interruptions and help with paperwork.

Benefits:  Able to complete projects, more time for money-making activities, reduced stress, more energy, better balance at home.

Three-Step Action Plan to Jump Start My New Habit

1. Write up an ideal job description
2. Advertise, interview and select best candidate
3. Train thoroughly

Start Date:  Tuesday June 6th

I love this approach to getting things done, and more importantly to getting things "changed".  My continual challenge is that I love to get involved in a lot of different ventures, and not always completing them.  By making the switch to written action plans I have been able to look at my priorities, and keep my focus (hey that would be a great title for a book)!

Three Super Simple Things You Need To Do (But Probably Won't)

Being in business is complicated.  There is a lot to do.  Bills need to be paid.  Projects need completion.  Clients want answers.  You want clients.

With all of the technology, the business books, the web pages, the blogs, the communities, all hurling ideas the easiest (yet most effective) actions to bring in more business  are pushed aside in the search of something better.   There is too much searching, and not enough finding.

Yes, Seth Godin tells us we need to create a Purple Cow, which I'm not arguing, however the search for these damn cows is grueling, exhausting, and you begin to wonder if there ever will be such a thing.  While in the pursuit of something that could change your industry, you must not forget that you are in your industry to make a living.

Every industry has successful people in it.

Most everyone will tell you that knowledge is the key to success.  Wrong.  Knowledge is a vital ingredient, but ACTION is the difference between success and failure.

So, here it is...another list.  Three random, simple things that have been written a thousand times, done by those who are successful...thought about by those who want success.  The list could be 50, 100,  or 500 items but I figure there is a better chance of you just doing three, and picked a few I like.  You'll probably laugh, roll your eyes and move on to another web page looking for something that will really improve your business, but here it goes.

1.  Send handwritten notes whenever you can to clients, friends, referral partners.  I have the absolute worst handwriting, yet committed to sending a handwritten note everyday for the past 15 months and it is without a doubt the number one thing on this list.  People are getting 200-300 emails or voice mails per day.  How many handwritten notes do they get?

2.  Change your voice mail every day (if not more).  This one is a difficult habit to get into.  I've talked with some business owners who say the finally got their message exactly how they like it and resist, but what better opportunity to stand out from your competition than having a compelling voice mail message that also updates them on your schedule for the day.  Mine usually goes something like this..."Thank you for calling The Lending Company, today is Tuesday October 23rd and we are looking forward to another fantastic day.  I am here in the office today though I have a couple of appointments this morning, but will be returning phone calls today between 10:30 and 11:30, and again this afternoon between 2:00pm and 3:00pm.  If you are a new client, could you please do me a favor and leave the name of the person who referred you to me, so that I can call them later today and thank them?  And if you are an existing client, well you already know how much I value your referrals so I'd really like to thank you in advance.  I look forward to getting back to, and hope you are having a great day". 

3.  Say Thank You! (often)  The fact that I even put this one on the list is laughable, but how often do you really do it?  For awhile I would get my domain names through Network Solutions, and then one day I just happened to be on GoDaddy.com and registered one with them, hey, it was cheaper.  But the next day a strange thing happened.  I got a phone call from a LIVE person who worked at GoDaddy.com thanking me for my purchase.  And then two days later a Thank You card in the mail.  I now send all of my business (like maybe 1-2 domains per year, not trying to say I send them a ton of business) to GoDaddy.com and even if they raised their prices I probably wouldn't even notice.

I can hear some of you saying "If these things are so easy, yet effective, then it won't be long until everyone in my industry is doing them and they'll be no big deal."  You know, 10 years ago when I entered into the mortgage industry I would have thought the same thing.

The truth is people will not do the simplest things to generate more business, they just won't.

I realize this probably isn't the life-changing post you were looking for today, or is it?

Hungry People With Money

I was reading an article by Brad Sugars (founder of Action Coach International) on Entrepreneur.com last month, and he said something that has really stuck with me.  This is not the exact quote, but pretty close:

"When building a restaurant it's not the quality of the chef, or the lavish decor that determines success.  It's finding hungry people with money."

Note how how he mentions both "hungry and money".

I see a lot of small business owners who do both wrong.  You can't sell your product to someone who does not want it, but you should also be careful of going after the customers who want it but can't afford it.

Look for niches that have money and need someone to feed them.

The Price Is Right - 2007 Version

By now everyone has heard (and probably seen) the new "Price Is Right" with new host Drew Carey.  I'm still amazed this program has lasted so long, but that's not the real topic of this post.

After only a short time with my blog I have been fortunate to already come across some amazing people, with amazing talent.  Talent is one thing, running your business is another, and that's where I hope my years of being a successful business owner might be of some use to someone.

I feel strongly that one of the biggest traps a self-employed service business owner (i.e. copywriter, graphic design artist, web developer, financial adviser, interior designer, etc.) falls into is to not set their fees high enough.

Sure it sounds logical.  Price low and you will make up for it on volume, plus you'll blow your competition away and get all of their business as well.  This seems to make perfect sense, and quite honestly I'm amazed how it absolutely does not.  The logic seems to fit, but trust me it won't work.

I own a mortgage company and have for the past eight years.  When I first started in the mortgage business I really thought it would be super easy to get all of the business...I'd just charge less.  Big mistake.  Due to the high amount of distrust of professionals (hmmhh...wonder why, see sub-prime mess?) in my industry, when offering what "I told" my prospects was a better rate or lower fees, it actually had the opposite effect in they trusted me less than they did before.

Once I changed my approach to "this is what I charge, and I don't negotiate my fees" I never had to deal with this problem again. 

Did I say never?  Well, there are always going to be clients who are only interested in one thing...price.  These are also the most difficult to please clients, so you really do not want them.  If they are not focusing on the value you are bringing them, they will not be happy even if you do it for free.  Let them go be your competition's nightmare and talk bad about them.

Christine O'Kelley, copywriter and owner of seocontentsolutions.com agrees.  Here is what she told me in an email in which we were discussing this very topic:

I ABSOLUTELY agree with you on that last point about charging higher rates.

Like many people who first start out in business, I started by targeting the low paying customer. These are the WORST customers to work with as they will suck the life out of you and do not understand quality and value. If you want to make profit, you must have clients that understand the value you are bringing them.

Christine brings up the absolutely most important point..."quality and value".

These two items FAR outweigh the price you charge.  If I hire a copywriter to write my website, do you think I really care if it costs me $2000 or $3000?  To some of you, I can hear you saying Hell yes it matters, but to me (your potential client) it doesn't, and that's where the confusion comes in.

I don't want a $1000 coupon.  I want a website that makes me money (or perfectly captures my company's culture, or communicates my business crystal clear to my prospects).  I want this WAY, WAY, WAY more than a crappy website that I pay $2000 for.  I actually want this so much that I am going to assume when I look at two different proposals that I have a better chance of getting  what I want if I go with the copywriter who charges me $3000.

I want quality.  I want value.

So here's what you need to do.  Today.

Raise your prices.  Find out what your competitors charge, and charge more, or at least charge what the top-end people you compete with charge.

Now give me quality, and give me value.  You charge the same but you make sure you give me even more.  Throw in a couple of press releases, maybe some bumper-stickers, a mini launch marketing plan...a bunch of stuff that wasn't in your proposal so I go WOW...I am so glad I picked you.

If you  are sitting there thinking,  "well, I just started out...I really don't think I can charge that much until I get more experience", I already know that.  By pricing so low, you are screaming this at me.

I want quality.  I want value.  (see, this really isn't a post about pricing)

Everything I Needed To Know About Marketing I Learned On Seth Godin's Blog

Yes, I admit it.  I'm a Seth junkie, and I promise I am not turning this blog into a Seth Godin fan club, but you really do need to check out his blog today.

His post today about viral marketing versus word of mouth provides you with key distinctions between these two forms of marketing (both great types of marketing for small business owners, understanding the differences is enlightening).

In this post there are a couple humorous chapters where Seth discusses one of his reader's dealings with a college professor who was not even aware of the term "viral marketing".  This got me thinking about the future of higher education.

How can colleges and universities possibly keep up with the growth of self-education?  Are these institutions now competing for the students in a "commoditized" industry just like banking, insurance, sugar?  How will they compete?  How will they stand out?

Higher education has always put a great divide between those who obtain their degrees, and those who do not.  That was their USP.

Students today have more choices than ever, and though the norm has been that a college education leads to a better career, I wonder if that will still be the case in 50 years (or even 50 months).  The marketing curriculum put together last Spring by the business professor, may already be outdated by the time he/she teaches the course in the Fall.  Can higher education keep up?

Some universities are already making changes.  Yale University is now offering FREE video courses to the public.  MIT has also committed to open sharing of it's academic materials through its OpenCourseWare initiative.  Are they trying to position themselves as the Linux (open source) in a Microsoft (closed, you can only buy it from me) run world?

I am very interested to see how this evolves, and if a Purple Cow comes out of it.

5 Days To More Traffic

Seth Godin has a great Squidoo lens outlining some of the fastest, easiest ways to generate more traffic, and all of these are simple to do...except one.

Be GOOD.  Without a doubt this is the most difficult, yet most important.  The good news is that I believe we can all be good.  If you are creating something you really have a passion for, it will be good.  If you are creating (copying) something just to generate revenue, it's possible that your message will get lost in the wave.

Be GOOD.

Bosses Day Today

By working faithfully eight hours a day you may eventually get to be boss and work twelve hours a day.  ~Robert Frost

Just a quick post about today being bosses day...I did a little research on the subject (amounting to Google, click , copy link) and discovered the origin.

What about all of the people who run their companies by themselves?  They kind of get ripped off.

Well, I've got two suggestions for those of you without any employees:

1. Give yourself some time off to go hang out at your favorite coffee shop, shop, relax.
2. Of course you should also consider your clients/customers your boss and send them a note once again thanking them for employing you, and that they are the best boss you ever had.

Have a great bosses day!

Director of Cool

Small business owners spend way too much time on the things that don't matter, and not near enough on the things that do.

In the book "Chasing Cool: Standing Out In A Cluttered Marketplace" by Noah Kerner & Gene Pressman, the authors call for a return to originality in the midst of the outsourcing revolution.  I highly recommend this book, though in my opinion it is less about the title, than it is about the more important subtitle.  Standing out has lost it's luster as most of us spend our time fitting in.

To continue with this theme, I recommend that for today (and most days) you give yourself the title "Director of Cool" and focus on what your business needs to stand out from your competitors.  Go crazy.  Make a list of WHY people hire (hint:need) you in the first place, and then do something cool and see if it works.

Here's the catch...ultimately (as the Chasing Cool authors have put it) you don't have any say in what is cool...your customers and clients do.  This is where you really look into the needs of your client or customer, the process they go through, or your product (packaging, use, delivery) and develop how you will stand out.

Here's an example.  If I were a Real Estate Agent (hmmmhhhhh...can you think of a more cluttered marketplace?) what things could I do to stand out from my competitors?

How about GPS?  Wouldn't it be cool if an agent loaned loaned you a GPS unit (for those of us who don't opt for the Nav System upgrades) that you can keep in your car while your looking for a house?  Imagine the agent emailing you each day all of the new homes that fit your search criteria that you plug into your gps unit, and while driving around the unit tells you if you are close to a match.  Seems cool to me.

Or, let's say I'm a freelance copywriter.  As the owner of my own successful business, there have been numerous times that I felt like I needed a copywriter.  However, each time I end up not using one because I feel I can do it myself better since I know MY business best.  What if a copywriter did all the research and work I needed done before they even approached me?  What if they walked in, gave me a personal brochure they created just for me to give to my clients that nailed it on the head for what I was in need of?  That would be cool. I wouldn't need to sit down, tell them all about me, how I'm different...it would be done.  I'd buy the brochure, ask them to write my website, work on some ads, etc.

Is there some cost and risk involved?  Yes, definitely.  For the Real Estate Agent there is the expense of the gps unit (though it should be easy to find if someone tried to keep it).  For the copywriter, there is the time put into the project, and the client could say no, though you could just keep revising it for competitors of your prospect until you get to yes.

Essentially what you are looking to create is a "Free Prize Inside" as Seth Godin does such a great job discussing in his book with the same title.  I agree with Seth in that the problem with discovering and nurturing these ideas to fruition is not that we can't think up great ideas on our own...it's that we don't spend the time thinking of the ideas in the first place.

As the newly appointed Director of Cool, it's now your job.