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Strategic Planning
At the end of 2009 I had the opportunity to be mentored by a business coach. He helped me through the process of creating a strategic plan, and I must say, I'm very pleased with the result.
I admit that I was of the opinion that vision statements, mission statements and the like were 'soft' concepts that felt good to create but that were nothing more than a lot of work with no bottom-line pay off. I was wrong!
A properly created strategic plan includes a detailed action plan that, when implemented, drives the business owner to creating his or her desired future. As my business coach kept saying: "OK, Mark, what are you going to put on your calendar to do tomorrow?"
That works for me because, once I put something on my 'to do' list, I do it. My problem was, like most small business owners, I had so many things to do, and because I prioritized nothing everything seemed to be critical, I did those things I liked to do.
Here's the rub: those things I like to do are, more often than not, not the things that I need to do to advance my business.
I would often find myself, at the end of the day, patting myself on the back for working so hard all day long. But, when I analyzed what I had done, I discovered I did a lot of 'stuff' that was important, but in no way critical. For example, I spent several hours one morning working on my brochure. Now, I can make a case that I need a brochure. But, is working on it from 8am-11am on a Monday morning the most effective thing I could have done with that time? Or, would I have been better off using that time making cold calls to prospects that might give me an appointment to discuss how I could help them grow their business? There's no way around it: cold calling for appointments, while not all that much 'fun' in my opinion, is a far better use of my time.
My mentor suggested that I include strategic planning as one of my services. I've taken his advice and have done so. The experience of helping several business owners through the process has convinced me that strategic planning is an essential part of growing a business. A business plan presents the vision, the end-result, in the form of financial projections, of successfully growing your business. The strategic plan shows you , step-by-step, the path you will need to follow in order to reach your financial goals.
Working through the steps of the strategic plan require a commitment to the process. I admit it: there were many times I wanted to 'bail' on the process. Thinking is hard. It requires focus and effort. It's a smack upside the head when you have to admit to yourself that, to get your business to where you want it to be, you must do those things that, in the back of your mind you know you need to do, but you've not been doing because you don't like doing it.
On the other hand, implementing a plan is somehow very freeing. I'm convinced that I'm now doing what I need to be doing (most of the time), and that gives me a feeling of confidence, even when the end result of my actions aren't what I was hoping they would be. It's just easier, mentally, to do what you know you need to do than it is to tell yourself you're working effectively when you know that, in reality, you aren't.
If you're ready to take the next step, to grow your business to the next level, I highly recommend you put yourself through the process and create your strategic plan. That way, each and every day, you'll be doing the most productive thing to achieve your business vision.
Thanks, and sell a bunch!
Mark Dahl
I admit that I was of the opinion that vision statements, mission statements and the like were 'soft' concepts that felt good to create but that were nothing more than a lot of work with no bottom-line pay off. I was wrong!
A properly created strategic plan includes a detailed action plan that, when implemented, drives the business owner to creating his or her desired future. As my business coach kept saying: "OK, Mark, what are you going to put on your calendar to do tomorrow?"
That works for me because, once I put something on my 'to do' list, I do it. My problem was, like most small business owners, I had so many things to do, and because I prioritized nothing everything seemed to be critical, I did those things I liked to do.
Here's the rub: those things I like to do are, more often than not, not the things that I need to do to advance my business.
I would often find myself, at the end of the day, patting myself on the back for working so hard all day long. But, when I analyzed what I had done, I discovered I did a lot of 'stuff' that was important, but in no way critical. For example, I spent several hours one morning working on my brochure. Now, I can make a case that I need a brochure. But, is working on it from 8am-11am on a Monday morning the most effective thing I could have done with that time? Or, would I have been better off using that time making cold calls to prospects that might give me an appointment to discuss how I could help them grow their business? There's no way around it: cold calling for appointments, while not all that much 'fun' in my opinion, is a far better use of my time.
My mentor suggested that I include strategic planning as one of my services. I've taken his advice and have done so. The experience of helping several business owners through the process has convinced me that strategic planning is an essential part of growing a business. A business plan presents the vision, the end-result, in the form of financial projections, of successfully growing your business. The strategic plan shows you , step-by-step, the path you will need to follow in order to reach your financial goals.
Working through the steps of the strategic plan require a commitment to the process. I admit it: there were many times I wanted to 'bail' on the process. Thinking is hard. It requires focus and effort. It's a smack upside the head when you have to admit to yourself that, to get your business to where you want it to be, you must do those things that, in the back of your mind you know you need to do, but you've not been doing because you don't like doing it.
On the other hand, implementing a plan is somehow very freeing. I'm convinced that I'm now doing what I need to be doing (most of the time), and that gives me a feeling of confidence, even when the end result of my actions aren't what I was hoping they would be. It's just easier, mentally, to do what you know you need to do than it is to tell yourself you're working effectively when you know that, in reality, you aren't.
If you're ready to take the next step, to grow your business to the next level, I highly recommend you put yourself through the process and create your strategic plan. That way, each and every day, you'll be doing the most productive thing to achieve your business vision.
Thanks, and sell a bunch!
Mark Dahl
Pay Me Based on Sales Growth? I like it, but...
Click here to return to Your Phrase that Pays
I recently talked with a prospective client that was eager to hire my marketing communications company if I was willing to work for a percentage of the increased sales the marketing communication developed.
I told him I very much liked that idea; as a matter of fact, I told him that I've worked with clients in exactly that manner.
There's only been one problem: it doesn't work.
Why?
Circle of Influence vs. Circle of Concern
I call my company Accountable MARKeting for a reason. I expect to be held accountable for every aspect of a client's marketing communication effort over which I have influence. That would include selecting the medium to be used, negotiating the rates, writing the copy, producing the piece, placing the buy, etc.
But, here's the problem: there are factors beyond even the most effective marketing communication effort that determine if a sale will be made, and all of these factors, while in my circle of concern, are outside of my circle of influence.
According to the Harvard Business Review there are five resource factors that determine the success of a business. In the order of importance to consumers they are: Place (geographic location as well as the physical plant), People, Product (service), Price and Promotion (including marketing communication). These five create a sixth success resource: the exPerience consumers get when they do business with you.
But, here's the problem: every client I've offered to work with for a percentage of the increased sales has refused to let me: rent new space for them at a higher traffic location (Place), remodel their store (Place), hire and train their people (People), select their product mix (Product), and determine their pricing (Price).
Why the Resources Matter to Sales
Consider this:
A man is driving to work one morning. He's listening to his favorite radio station and he hears an advertisement for a restaurant with which he is not familiar. He's impressed by the ad which promises great food (Product) and spectacular service (People). He decides that, as soon as he gets to work, he will make a reservation for himself and his wife for Friday night.
Did the advertising work? I think we can agree it did. Has the restaurant made the sale? Not yet. Do I get paid? No.
The man gets to work and, en route to his desk where he intends to phone in his reservation, he detours past the break room. While getting a cup of coffee a co-worker joins him. He tells her that he is going to make a reservation at a restaurant he just heard about on the radio.
The co-worker asks him which restaurant. He tells her.
The restaurant is now enjoying positive word of mouth! Is the advertising working? Yes! Do I get paid? No.
The co-worker says" "Oh! Do NOT go there! My husband and I ate there last night and it was awful! The food was terrible and the service was even worse. We will never go there again!"
Oops.
The restaurant made a Product promise (food) and a People promise (service), and according to a person that has exPerienced the restaurant, the restaurant fails to deliver on their promises!
We've agreed the Promotion resource (the marketing communication) worked. Yet, now, due to negative word of mouth-lousy food and service-the man now decides NOT to make the reservation.
All three resources-People, Product and the resulting exPerience-are not functioning properly. And each of these resources are outside my circle of influence. So, even though the marketing communication-a resource inside my circle of influence-worked, no sale is made and I don't get paid.
And here's the real kicker: the client blames the marketing communication! He fires me, hires another firm, and the results are repeated ad naseum.
How does that saying go? Doing the same thing over and over again, expecting different results, is the definition of insanity.
I expect to be held accountable. I agree that accountability includes telling truth to power. So, I make this pledge to my clients: should I discover something going on with any of the resources that is hindering sales, I will tell you about it right away!
In the meantime, I expect to be paid for doing the best job possible within my center of influence. That seems fair, doesn't it?
Thanks, and sell a bunch!
Mark
Click here to return to Your Phrase that Pays.
I recently talked with a prospective client that was eager to hire my marketing communications company if I was willing to work for a percentage of the increased sales the marketing communication developed.
I told him I very much liked that idea; as a matter of fact, I told him that I've worked with clients in exactly that manner.
There's only been one problem: it doesn't work.
Why?
Circle of Influence vs. Circle of Concern
I call my company Accountable MARKeting for a reason. I expect to be held accountable for every aspect of a client's marketing communication effort over which I have influence. That would include selecting the medium to be used, negotiating the rates, writing the copy, producing the piece, placing the buy, etc.
But, here's the problem: there are factors beyond even the most effective marketing communication effort that determine if a sale will be made, and all of these factors, while in my circle of concern, are outside of my circle of influence.
According to the Harvard Business Review there are five resource factors that determine the success of a business. In the order of importance to consumers they are: Place (geographic location as well as the physical plant), People, Product (service), Price and Promotion (including marketing communication). These five create a sixth success resource: the exPerience consumers get when they do business with you.
But, here's the problem: every client I've offered to work with for a percentage of the increased sales has refused to let me: rent new space for them at a higher traffic location (Place), remodel their store (Place), hire and train their people (People), select their product mix (Product), and determine their pricing (Price).
Why the Resources Matter to Sales
Consider this:
A man is driving to work one morning. He's listening to his favorite radio station and he hears an advertisement for a restaurant with which he is not familiar. He's impressed by the ad which promises great food (Product) and spectacular service (People). He decides that, as soon as he gets to work, he will make a reservation for himself and his wife for Friday night.
Did the advertising work? I think we can agree it did. Has the restaurant made the sale? Not yet. Do I get paid? No.
The man gets to work and, en route to his desk where he intends to phone in his reservation, he detours past the break room. While getting a cup of coffee a co-worker joins him. He tells her that he is going to make a reservation at a restaurant he just heard about on the radio.
The co-worker asks him which restaurant. He tells her.
The restaurant is now enjoying positive word of mouth! Is the advertising working? Yes! Do I get paid? No.
The co-worker says" "Oh! Do NOT go there! My husband and I ate there last night and it was awful! The food was terrible and the service was even worse. We will never go there again!"
Oops.
The restaurant made a Product promise (food) and a People promise (service), and according to a person that has exPerienced the restaurant, the restaurant fails to deliver on their promises!
We've agreed the Promotion resource (the marketing communication) worked. Yet, now, due to negative word of mouth-lousy food and service-the man now decides NOT to make the reservation.
All three resources-People, Product and the resulting exPerience-are not functioning properly. And each of these resources are outside my circle of influence. So, even though the marketing communication-a resource inside my circle of influence-worked, no sale is made and I don't get paid.
And here's the real kicker: the client blames the marketing communication! He fires me, hires another firm, and the results are repeated ad naseum.
How does that saying go? Doing the same thing over and over again, expecting different results, is the definition of insanity.
I expect to be held accountable. I agree that accountability includes telling truth to power. So, I make this pledge to my clients: should I discover something going on with any of the resources that is hindering sales, I will tell you about it right away!
In the meantime, I expect to be paid for doing the best job possible within my center of influence. That seems fair, doesn't it?
Thanks, and sell a bunch!
Mark
Click here to return to Your Phrase that Pays.
"The Myth of Excellence"
To return to your phrase that pays click here www.yourprhasethatpays.com
I'm currently reading The Myth of Excellence by Fred Crawford and Ryan Mathews. The authors report the results of a consumer research study that included 5,000+ consumers.
The book is primarily aimed at retail and service businesses and breaks the marketing process into five areas: access, price, service, product and experience. Crawford and Mathews suggest that trying to be "the best" in every area is a wast of time and money. Instead, they recommend that a business attempt to dominate by differentiating in one of the five categories, differentiate in one of the remaining four categories and be as good as the average business in the other three categories.
In other words, be acceptable in three categories, preferred in one and so dominate in one that consumers seek you out specifically to do business with you.
There are plenty of case studies, charts and diagrams,and the concepts are explained clearly; this makes the book easy to read, understand and apply.
I found the chapter on price ('Would I lie to you?') to be especially interesting. The authors say: "Price is perhaps the attribute most commonly abused by companies chasing the myth of excellence. Believing that price is the ultimate consumer siren song, too many businesses offer gratuitous discounts on items or services consumers would be happy to pay full margin for....Customers trust prices they believe are fair and honest, often distrusting promises of 'lowest possible cost.'...But the message from consumers is clear: Dominating on price doesn't necessarily mean having the absolutely lowest cost-it means consistently offering customers fair and honest prices."
Consumers will pay more for a product if they understand they are getting a value for the premium they will not get from a lower priced competitors. The authors discuss how successful businesses create and deliver that value.
I recommend the book.
Thanks, and sell a bunch!
To return to the web site click here www.yourphrasethatpays.com
I'm currently reading The Myth of Excellence by Fred Crawford and Ryan Mathews. The authors report the results of a consumer research study that included 5,000+ consumers.
The book is primarily aimed at retail and service businesses and breaks the marketing process into five areas: access, price, service, product and experience. Crawford and Mathews suggest that trying to be "the best" in every area is a wast of time and money. Instead, they recommend that a business attempt to dominate by differentiating in one of the five categories, differentiate in one of the remaining four categories and be as good as the average business in the other three categories.
In other words, be acceptable in three categories, preferred in one and so dominate in one that consumers seek you out specifically to do business with you.
There are plenty of case studies, charts and diagrams,and the concepts are explained clearly; this makes the book easy to read, understand and apply.
I found the chapter on price ('Would I lie to you?') to be especially interesting. The authors say: "Price is perhaps the attribute most commonly abused by companies chasing the myth of excellence. Believing that price is the ultimate consumer siren song, too many businesses offer gratuitous discounts on items or services consumers would be happy to pay full margin for....Customers trust prices they believe are fair and honest, often distrusting promises of 'lowest possible cost.'...But the message from consumers is clear: Dominating on price doesn't necessarily mean having the absolutely lowest cost-it means consistently offering customers fair and honest prices."
Consumers will pay more for a product if they understand they are getting a value for the premium they will not get from a lower priced competitors. The authors discuss how successful businesses create and deliver that value.
I recommend the book.
Thanks, and sell a bunch!
To return to the web site click here www.yourphrasethatpays.com
Americans Consume 5,000 Ad Messages Daily
(Click www.yourphrasethatpays.com to return to the website)
5,000 ad messages each day!
The average American is bombarded by as many as 5,000 ad messages each day according to research conducted by Yankelovich Consumer Research.
That's a bunch!
If your advertising is going to break through all the clutter it needs to do so in the first five seconds or you have lost your opportunity to sell the consumer.
Small Business Times magazine reported in 2002 that 80% of an ad's effectiveness comes from the headline!
And things haven't change much since renowned copywriter John Caples-he wrote Tested Advertising Methods in 1974-said the headline is the most critical component of an ad because 75% of the decision to purchase happens at the headline.
That's why your phrase that pays, the consumer-desired benefit only you promise to deliver, must be the headline of any single ad you run and why it must be the focus of your advertising campaign.
Can you name the sponsor, business or product from the phrase below?
Life/Changing
Legendary
Your World. Delivered
The Power to Make it Better
Rising
Imagination at Work
Higher Standards
How about these?
Be All You Can Be
Think Small
Just Do It
You Deserve a Break Today
Melts in Your Mouth, Not in Your Hand
When It Absolutely, Positively Has to be There Overnight
We'll Leave the Light on For You
How did you do?
If I were a betting man my bet would be you could name most, or all of the businesses or products from the second seven, and few or none from the first seven.
And the answers are:
First Seven:
Iowa
N Dakota
AT & T
AARP
United Airlines
General Electric
Bank of America
Second Seven:
U.S. Army
Volkswagen
Nike
McDonalds
M and M's
FedEx
Motel Six
That's the importance of a well-crafted phrase that pays!
Thanks, and sell a bunch!
Mark
(Click www.yourphrasethatpays.com to return to the website)
5,000 ad messages each day!
The average American is bombarded by as many as 5,000 ad messages each day according to research conducted by Yankelovich Consumer Research.
That's a bunch!
If your advertising is going to break through all the clutter it needs to do so in the first five seconds or you have lost your opportunity to sell the consumer.
Small Business Times magazine reported in 2002 that 80% of an ad's effectiveness comes from the headline!
And things haven't change much since renowned copywriter John Caples-he wrote Tested Advertising Methods in 1974-said the headline is the most critical component of an ad because 75% of the decision to purchase happens at the headline.
That's why your phrase that pays, the consumer-desired benefit only you promise to deliver, must be the headline of any single ad you run and why it must be the focus of your advertising campaign.
Can you name the sponsor, business or product from the phrase below?
Life/Changing
Legendary
Your World. Delivered
The Power to Make it Better
Rising
Imagination at Work
Higher Standards
How about these?
Be All You Can Be
Think Small
Just Do It
You Deserve a Break Today
Melts in Your Mouth, Not in Your Hand
When It Absolutely, Positively Has to be There Overnight
We'll Leave the Light on For You
How did you do?
If I were a betting man my bet would be you could name most, or all of the businesses or products from the second seven, and few or none from the first seven.
And the answers are:
First Seven:
Iowa
N Dakota
AT & T
AARP
United Airlines
General Electric
Bank of America
Second Seven:
U.S. Army
Volkswagen
Nike
McDonalds
M and M's
FedEx
Motel Six
That's the importance of a well-crafted phrase that pays!
Thanks, and sell a bunch!
Mark
(Click www.yourphrasethatpays.com to return to the website)
The 'Strategic Triangle'
I've been studying the 'strategic triangle' concept recently. That's the exact spot where you meet your customer and your competition head on and, from what you know about both, begin to determine your sustainable competitive advantage.
Kevin P. Coyne, in an article that ran in "Business Horizons" (Jan-Feb, 1986) titled Sustainable Competitive Advantage-What It Is, What It Isn't, says "For a producer to enjoy a competitive advantage in a product /market segment, the difference or differences between him and his competitors must be felt in the marketplace: that is, they must be reflected in some product/delivery attribute that is a key buying criterion for the market."
In his book "Jump Start Your Business Brain," Doug Hall discusses the idea of 'key buying criterion' in these terms: "Sales and profits explode when an Overt Benefit and Real Reason to Believe pair is offered with a Dramatic Difference. Without uniqueness, you have a commodity that sells for commodity-like profit margins. The new news is that for the uniqueness to be effective it must be dramatic-ten times bigger than you think it needs to be-and the drama must be focused directly on the Overt Benefit and Real Reason to Believe."
From my workbook "Your Phrase that Pays":
"Assume a customer wants to make a purchase. She knows of two stores in her marketplace that sell what she wants to buy, Business X and Business Y. She knows this about the two businesses:
1) They are directly across the street from one another;
2) She believes that both sell identical versions of the item; and
3) Business X is selling it for $100 and Business Y is selling it for $130.
"Given these facts, from which store will she most likely make her purchase? From which store would you buy if you were the consumer?
"Business X is the choice she can be expected to make because the only difference she is aware of is the 30% difference in price. If there is no other difference, if she perceives the item to be a commodity, why would she pay an additional $30? Would you pay the $30 premium?"
My guess is, you wouldn't pay the extra $30.00.
Consumer will pay more for a benefit they cannot get at a lower price point if they understand the value of the benefit. Consumers know that providing a true sustainable competitive advantage costs you time and money; if the benefit is important enough to them they will pay a premium to obtain that benefit!
How do you discover your sustainable competitive advantage, a benefit only you can provide or claim to provide that consumers care so much about they will purchase it from you at your higher price point? You analyze your strategic triangle.
Thanks, and sell a bunch!
Kevin P. Coyne, in an article that ran in "Business Horizons" (Jan-Feb, 1986) titled Sustainable Competitive Advantage-What It Is, What It Isn't, says "For a producer to enjoy a competitive advantage in a product /market segment, the difference or differences between him and his competitors must be felt in the marketplace: that is, they must be reflected in some product/delivery attribute that is a key buying criterion for the market."
In his book "Jump Start Your Business Brain," Doug Hall discusses the idea of 'key buying criterion' in these terms: "Sales and profits explode when an Overt Benefit and Real Reason to Believe pair is offered with a Dramatic Difference. Without uniqueness, you have a commodity that sells for commodity-like profit margins. The new news is that for the uniqueness to be effective it must be dramatic-ten times bigger than you think it needs to be-and the drama must be focused directly on the Overt Benefit and Real Reason to Believe."
From my workbook "Your Phrase that Pays":
"Assume a customer wants to make a purchase. She knows of two stores in her marketplace that sell what she wants to buy, Business X and Business Y. She knows this about the two businesses:
1) They are directly across the street from one another;
2) She believes that both sell identical versions of the item; and
3) Business X is selling it for $100 and Business Y is selling it for $130.
"Given these facts, from which store will she most likely make her purchase? From which store would you buy if you were the consumer?
"Business X is the choice she can be expected to make because the only difference she is aware of is the 30% difference in price. If there is no other difference, if she perceives the item to be a commodity, why would she pay an additional $30? Would you pay the $30 premium?"
My guess is, you wouldn't pay the extra $30.00.
Consumer will pay more for a benefit they cannot get at a lower price point if they understand the value of the benefit. Consumers know that providing a true sustainable competitive advantage costs you time and money; if the benefit is important enough to them they will pay a premium to obtain that benefit!
How do you discover your sustainable competitive advantage, a benefit only you can provide or claim to provide that consumers care so much about they will purchase it from you at your higher price point? You analyze your strategic triangle.
Thanks, and sell a bunch!
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