Thursday, December 31, 2009
Thursday, December 24, 2009
Monday, December 21, 2009
Friday, December 18, 2009
Six Ways Retailers Will Trick You to Spend More This Holiday
Six Ways Retailers Will Trick You to Spend More This Holiday
Chances are your wife doesn't need a matching pair of slippers to go with the pajama set you bought her this holiday.
But if you spend $5 more, you get free shipping on your order. So it would be silly not to buy them -- right?
As the crucial holiday shopping season progresses, retailers are desperate to make sure the few dollars consumers part with this month are spent at their stores.
By offering gimmicks such as free shipping, they're also hoping shoppers will splurge on that extra little something that wasn't on their list.
And the deals are more aggressive than ever.
"Everybody is in the discount business these days," said George Whalin, president and CEO of Retail Management Consultants. "If they [aren't], they won't get the customer through the door."
Because self-spending levels dropped off at the height of the crisis, a new strategy retailers have employed is distributing gift cards to customers who spend a certain dollar amount in their stores, analysts said.
Some consumers are more apt to spend a few extra bucks to earn these free credits because they seem like a bigger bargain than receiving a percentage off, said Brian Sozzi, equity research analyst at Wall Street Strategies independent research company. But often, the deals aren't as great as they appear.
At Abercrombie and Fitch, for example, shoppers who spend $100 receive a $25 gift card. The hitch, however, is that the cards can't be used until January. When shoppers return to the teen retailer then, the steep discounts are gone, and there isn't much in the store that fits into the $25 or less category, Sozzi said.
"You're spending maybe $150 on an entire outfit and you're only getting $25 off," Sozzi said.
That means two trips of increased sales for the retailer.
Free shipping offers similarly stimulate online sales, especially when customers have to spend a certain dollar amount to receive it. According to a study by the National Retail Federation, nearly 80 percent of online retailers plan to offer free shipping with conditions at some point this season.
At Bed, Bath and Beyond, for example, shoppers receive free standard shipping when they spend $100 or more over the Web. Even though shipping typically doesn't cost very much, this method persuades shoppers to buy that item they were up in the air about, Sozzi said.
Wal-Mart Stores offers a variation on this method, allotting customers free shipping to a nearby store. The discounter markets the service as a convenience, but it's another way to get shoppers into their locations, where they might add items to their carts, Sozzi said.
"In-store pickup programs can be an important differentiator against lagging multichannel competitors and a key tactic against online-only rivals," according to a Forrester research note.
Perhaps the biggest consumer peg this holiday is packaged deals, such as buy one get one free sweaters at Ann Taylor, Sozzi said.
Limited Brands has long marketed its products this way, offering "Buy 2, Get 1 Free" scents at Bath and Body Works stores and "5 for $25" cotton panties from Victoria's Secret.
And as always, retailers have designed their stores so that shoppers first have to walk through more expensive sections, such as apparel, to get to the highly reduced inventory, Sozzi said.
"They make it easy to pick up scarves and belts and other various accessory-type items," he said.
Retailers have also become more aggressive in offering discounts for those who spend a certain amount of money in one visit, such as at Express, where consumers get $15 off if they spend $30. But Whalin said he's worried that some stores may be taking the discounts too far.
"That's an awful lot [off]," he said.
Still, an NRF study found that impulse spending will fall again this year. What's more, experts agree it will be hard to break consumers of the crisis-bred expectation that they should never have to pay full price for an item.
But 2009's marketing approach is still an improvement over last year -- when retailers slashed up to 70 percent off on apparel -- because they had time to strategize deals and cut back on inventories, said Ellen Davis, vice president of the National Retail Federation. Plus, it's a way to move products out the door.
As the economy improves, Davis said she predicts retailers will begin to market different perks, such as the best customer service. But for now, price remains key.
"We all want a bargain, I don't care who we are," Whalin said. "Frugality is definitely the way of life today."
Chances are your wife doesn't need a matching pair of slippers to go with the pajama set you bought her this holiday.
But if you spend $5 more, you get free shipping on your order. So it would be silly not to buy them -- right?
As the crucial holiday shopping season progresses, retailers are desperate to make sure the few dollars consumers part with this month are spent at their stores.
By offering gimmicks such as free shipping, they're also hoping shoppers will splurge on that extra little something that wasn't on their list.
And the deals are more aggressive than ever.
"Everybody is in the discount business these days," said George Whalin, president and CEO of Retail Management Consultants. "If they [aren't], they won't get the customer through the door."
Because self-spending levels dropped off at the height of the crisis, a new strategy retailers have employed is distributing gift cards to customers who spend a certain dollar amount in their stores, analysts said.
Some consumers are more apt to spend a few extra bucks to earn these free credits because they seem like a bigger bargain than receiving a percentage off, said Brian Sozzi, equity research analyst at Wall Street Strategies independent research company. But often, the deals aren't as great as they appear.
At Abercrombie and Fitch, for example, shoppers who spend $100 receive a $25 gift card. The hitch, however, is that the cards can't be used until January. When shoppers return to the teen retailer then, the steep discounts are gone, and there isn't much in the store that fits into the $25 or less category, Sozzi said.
"You're spending maybe $150 on an entire outfit and you're only getting $25 off," Sozzi said.
That means two trips of increased sales for the retailer.
Free shipping offers similarly stimulate online sales, especially when customers have to spend a certain dollar amount to receive it. According to a study by the National Retail Federation, nearly 80 percent of online retailers plan to offer free shipping with conditions at some point this season.
At Bed, Bath and Beyond, for example, shoppers receive free standard shipping when they spend $100 or more over the Web. Even though shipping typically doesn't cost very much, this method persuades shoppers to buy that item they were up in the air about, Sozzi said.
Wal-Mart Stores offers a variation on this method, allotting customers free shipping to a nearby store. The discounter markets the service as a convenience, but it's another way to get shoppers into their locations, where they might add items to their carts, Sozzi said.
"In-store pickup programs can be an important differentiator against lagging multichannel competitors and a key tactic against online-only rivals," according to a Forrester research note.
Perhaps the biggest consumer peg this holiday is packaged deals, such as buy one get one free sweaters at Ann Taylor, Sozzi said.
Limited Brands has long marketed its products this way, offering "Buy 2, Get 1 Free" scents at Bath and Body Works stores and "5 for $25" cotton panties from Victoria's Secret.
And as always, retailers have designed their stores so that shoppers first have to walk through more expensive sections, such as apparel, to get to the highly reduced inventory, Sozzi said.
"They make it easy to pick up scarves and belts and other various accessory-type items," he said.
Retailers have also become more aggressive in offering discounts for those who spend a certain amount of money in one visit, such as at Express, where consumers get $15 off if they spend $30. But Whalin said he's worried that some stores may be taking the discounts too far.
"That's an awful lot [off]," he said.
Still, an NRF study found that impulse spending will fall again this year. What's more, experts agree it will be hard to break consumers of the crisis-bred expectation that they should never have to pay full price for an item.
But 2009's marketing approach is still an improvement over last year -- when retailers slashed up to 70 percent off on apparel -- because they had time to strategize deals and cut back on inventories, said Ellen Davis, vice president of the National Retail Federation. Plus, it's a way to move products out the door.
As the economy improves, Davis said she predicts retailers will begin to market different perks, such as the best customer service. But for now, price remains key.
"We all want a bargain, I don't care who we are," Whalin said. "Frugality is definitely the way of life today."
7 Holiday Marketing Mistakes to Avoid
7 Holiday Marketing Mistakes to Avoid
By Starr Hall
The holidays have arrived, and you still don't have a plan for marketing to your current customers or reaching out to new markets. Why do the holidays seem to sneak up on us every single year? As much as we try to prepare ourselves for family, shopping, gift giving and travel, it's no wonder we often forget about our businesses marketing during all the holiday mayhem.
It's quite common for business owners to freeze their marketing efforts over the holiday season with the notion that they're going to start strong in the new year; little do they know, however, just how many opportunities have passed them by.
The holidays can be the best time to bring in new business and reconnect with current clients and customers. The holiday rush is not just for brick-and-mortar department stores; it can also help your business by boosting revenue and customer loyalty before the end of the year.
Here are the top seven marketing mistakes businesses make during the holidays:
1.No marketing plan going into the holiday season. Your holiday marketing should have been planned in the summertime, but now it's the holiday season, so what do you do? Take some time today to decide what you are going to do and offer for the rest of the holiday season. If it's just too late, then start with a New Year focus. For 2010, set a marketing calendar at the beginning of the year that can serve as a blueprint for your marketing plans year round.
2.No communications. Many business owners mistakenly think that offices are closed or people are too busy to be bothered. If you choose not to follow up with leads or customers because it's a busy time of year, you're making excuses. Although the holiday season is hectic for most, for some businesses it's actually the slowest and the best time to pick up the phone and make a call for their business. If it's not the holidays, it'll be the New Year, or Spring break, then summer. Now is the best time to market precisely because so many people don't.
3.No holiday offers. People, for the most part, love the holiday season; they like to focus on gift giving, vacations and family time. So if you don't provide a holiday special or offer that helps them with those goals, you are doing them--and your business--a grave disservice. Any product or service can be repackaged with a holiday offer or theme. Search online to see what other companies are offering; it might spark an idea or two for your business.
4.Not sending holiday greetings to customers. These are people that have been loyal, bought from you and supported your business year round; you need to let them know that you are not only thinking about them over the holidays but that you are grateful for their business. Take a few hours out of your day and hand write a holiday greeting card. There are automated systems such asSendOutCards.comwhere you can design your own card (to add a personal touch) and you can even send a gift with the card. In addition, this service will put the postage on the card and send it for you, saving you a trip to the post office.
5.Forgetting to ask how clients are doing. This is something that most businesses completely miss the boat on; they do not survey clients and customers from the current year to see how they can improve in the future. How are you going to know what worked and didn't if you don't ask? If you keep doing what you have always done, you'll keep getting what you've always gotten. Find out what worked and what didn't, look at your systems and your marketing, and then make improvements and enhance your current offerings.Constantcontact.comhas great online survey templates. Offer a free gift or holiday discount to customers who take the time to complete your survey.
6.Shirking your public relations. Many businesses don't reach out to the media during the holidays because the owners are under the impression that media outlets shut their doors or are too busy to bother with new story ideas. This couldn't be farther from the truth. The media is always open and looking for the next great story or feature. If you can tie your story in with the season, all the better. If you missed the holiday calendar, you can still plant a seed for a feature in the new year. A great way to connect with the media during this time of year is to contact the media using LinkedIn, which will usually go right to their inbox.
7.Not tapping into year-end budgets. There are thousands of companies that earmark holiday and year-end budgets--that money must be spent. These budgets are usually set prior to the holidays and focus on staff or client gifts and employee training as well as planning for the new year. What service or product can you offer to help them meet their budget and year-end goals? If you do a keyword search that applies to your industry or topic on social sites such as Twitter, you can see what people are looking for and talking about. This can help you plan and approach contacts with holiday offers.
By Starr Hall
The holidays have arrived, and you still don't have a plan for marketing to your current customers or reaching out to new markets. Why do the holidays seem to sneak up on us every single year? As much as we try to prepare ourselves for family, shopping, gift giving and travel, it's no wonder we often forget about our businesses marketing during all the holiday mayhem.
It's quite common for business owners to freeze their marketing efforts over the holiday season with the notion that they're going to start strong in the new year; little do they know, however, just how many opportunities have passed them by.
The holidays can be the best time to bring in new business and reconnect with current clients and customers. The holiday rush is not just for brick-and-mortar department stores; it can also help your business by boosting revenue and customer loyalty before the end of the year.
Here are the top seven marketing mistakes businesses make during the holidays:
1.No marketing plan going into the holiday season. Your holiday marketing should have been planned in the summertime, but now it's the holiday season, so what do you do? Take some time today to decide what you are going to do and offer for the rest of the holiday season. If it's just too late, then start with a New Year focus. For 2010, set a marketing calendar at the beginning of the year that can serve as a blueprint for your marketing plans year round.
2.No communications. Many business owners mistakenly think that offices are closed or people are too busy to be bothered. If you choose not to follow up with leads or customers because it's a busy time of year, you're making excuses. Although the holiday season is hectic for most, for some businesses it's actually the slowest and the best time to pick up the phone and make a call for their business. If it's not the holidays, it'll be the New Year, or Spring break, then summer. Now is the best time to market precisely because so many people don't.
3.No holiday offers. People, for the most part, love the holiday season; they like to focus on gift giving, vacations and family time. So if you don't provide a holiday special or offer that helps them with those goals, you are doing them--and your business--a grave disservice. Any product or service can be repackaged with a holiday offer or theme. Search online to see what other companies are offering; it might spark an idea or two for your business.
4.Not sending holiday greetings to customers. These are people that have been loyal, bought from you and supported your business year round; you need to let them know that you are not only thinking about them over the holidays but that you are grateful for their business. Take a few hours out of your day and hand write a holiday greeting card. There are automated systems such asSendOutCards.comwhere you can design your own card (to add a personal touch) and you can even send a gift with the card. In addition, this service will put the postage on the card and send it for you, saving you a trip to the post office.
5.Forgetting to ask how clients are doing. This is something that most businesses completely miss the boat on; they do not survey clients and customers from the current year to see how they can improve in the future. How are you going to know what worked and didn't if you don't ask? If you keep doing what you have always done, you'll keep getting what you've always gotten. Find out what worked and what didn't, look at your systems and your marketing, and then make improvements and enhance your current offerings.Constantcontact.comhas great online survey templates. Offer a free gift or holiday discount to customers who take the time to complete your survey.
6.Shirking your public relations. Many businesses don't reach out to the media during the holidays because the owners are under the impression that media outlets shut their doors or are too busy to bother with new story ideas. This couldn't be farther from the truth. The media is always open and looking for the next great story or feature. If you can tie your story in with the season, all the better. If you missed the holiday calendar, you can still plant a seed for a feature in the new year. A great way to connect with the media during this time of year is to contact the media using LinkedIn, which will usually go right to their inbox.
7.Not tapping into year-end budgets. There are thousands of companies that earmark holiday and year-end budgets--that money must be spent. These budgets are usually set prior to the holidays and focus on staff or client gifts and employee training as well as planning for the new year. What service or product can you offer to help them meet their budget and year-end goals? If you do a keyword search that applies to your industry or topic on social sites such as Twitter, you can see what people are looking for and talking about. This can help you plan and approach contacts with holiday offers.
Monday, December 14, 2009
Big Risk in a One-Man Brand Like Tiger Woods
Big Risk in a One-Man Brand Like Tiger Woods
By TIM ARANGO
Published: December 13, 2009
Accenture, the giant consulting firm, ended its six-year marketing relationship with Tiger Woods on Sunday, showing once again that in advertising as in sports, there are no sure things.
Ross D. Franklin/Associated Press
In February 2009, Tiger Woods played in a golf tournament sponsored by Accenture, a giant consulting company that chose the golfer as the face of its brand.
-------------------------------
Mr. Woods had been featured in Accenture campaigns with the tagline, “Go On. Be a Tiger,” splashed in business magazines and airport waiting rooms since 2003. Since most consumers have no idea what a company like Accenture does, Mr. Woods became the human face of the corporation and a means to extol the corporate virtues of performance and risk-taking.
In a statement Sunday, the company said Mr. Woods, 34, was “no longer the best representative” for its advertising. The action came more than two weeks after a bizarre car accident involving Mr. Woods, who is married, led to a series of embarrassing revelations about affairs he has carried on with other women. Then on Friday he announced that he was taking a hiatus from golf.
Accenture is the first of Mr. Woods’s many sponsors to withdraw its support completely. Gillette has said that it would remove its Woods-related advertising for now and other sponsors, like AT&T, PepsiCo and Nike, have said they will wait to see when and how Mr. Woods returns to golf before making any permanent decisions. EA Sports, which has a line of best-selling Tiger Woods video games, is also standing by the golf star.
In response to Accen
ture’s announcement, Mark Steinberg, Mr. Woods’s agent, said, “We are disappointed but respect their decision.”
Accenture’s decision is another example of how risky it can be for corporations to base their marketing efforts on individual celebrities in an age when blogs, camera phones and the digital footprint left by the celebrities themselves can quickly expose their foibles to the world.
Earlier this year, Kellogg dropped its sponsorship of Michael Phelps, the gold-medal swimmer, after he was photographed using a bong at a party, saying, in language similar to Accenture’s, that his acts were not “consistent with the image of Kellogg.” In 2003, Nutella and McDonald’s ended their deals with Kobe Bryant after he was accused of sexual assault in Colorado; the charges were eventually dropped.
Among corporate pitchmen, however, Mr. Woods is unique. He dominates a sport for individuals that is marketed around the world while still being hugely popular in the United States, in contrast to sports like tennis.
More than any other athlete, Mr. Woods has built a billion-dollar brand around himself that has not only benefited him but has also made millions of dollars for his sponsors. Perhaps the best analogy for Mr. Woods’s predicament is not another athlete but Martha Stewart — another example of a billion-dollar brand based on the cultivated image of one person.
Ms. Stewart put her public company and television contracts at risk when she was convicted of lying to prosecutors about a minor stock deal. She emerged from her five-month sentence in prison to retake the reins at Martha Stewart Living Omnimedia, but the company has not returned to the financial heights it once enjoyed.
“Tiger is the best example of a walking, individual corporation,” said Ben Porritt, a public relations executive who advised Alex Rodriguez, the Yankees third baseman, last spring after his onetime steroid use was disclosed.
“Tiger is going to come out of this as somewhat of a bankrupt brand,” said Mr. Porritt. “He will have to restructure and go forward.” But, he said, “It’s going to be an ugly few months.”
Several companies that measure consumer reaction believe the ugliness has already started. Zeta Interactive, a digital ad agency that monitors message boards, blogs and social media posts, said that positive sentiment toward Mr. Woods had already plummeted. Before the accident, buzz about the golfer was 91 percent positive; by Friday, that figure had sunk to 43 percent.
The turnabout “is the quickest fall from positive to negative we’ve ever seen,” said Al DiGuido, chief executive at Zeta Interactive.
The Nielsen IAG unit of the Nielsen Company found that the accident quickly affected the brands Mr. Woods peddles. There were more than 20 instances through Monday, Dec. 7, of jokes being made on late-night talk shows that paired Mr. Woods with one of his sponsors by name, according to Nielsen IAG.
The recall among viewers of the brand mentioned in the joke was 55 percent, according to Nielsen IAG, compared with a norm in late-night shows of 39 percent.
About 11 percent of those viewers who recalled a brand with ties to Mr. Woods said they had a negative opinion of the brand, Nielsen IAG reported, compared with the average negative opinion of a brand mentioned in a late-night show of 6 percent.
David Arluck, an independent sports marketing executive, said that Accenture was in a different spot than other sponsors because it pitched a service to businesses, not consumers, and so it had centered its branding on Mr. Woods’s persona.
“In business, credibility means a lot and honesty means a lot, and Accenture wants to be a company that can be trusted,” he said. “Obviously Tiger Woods did some things that betrayed the trust of people who were close to him, and I can see how they would want to distance themselves from that.”
Even the most upright athletes seem to be aware of the tenuousness of image in the Internet age. On a recent evening in Manhattan, the Yankees shortstop Derek Jeter — a close friend of Mr. Woods — stood on a dais after receiving Sports Illustrated’s Sportsman of the Year award and was asked, essentially, how he was able to enjoy the perks of athletic superstardom for so many years and maintain his pitch-perfect image.
“Don’t jinx me,” Mr. Jeter said, to nervous laughter.
Ian Austen, Larry Dorman, Stuart Elliott and Stephanie Clifford contributed reporting.
By TIM ARANGO
Published: December 13, 2009
Accenture, the giant consulting firm, ended its six-year marketing relationship with Tiger Woods on Sunday, showing once again that in advertising as in sports, there are no sure things.
Ross D. Franklin/Associated Press
In February 2009, Tiger Woods played in a golf tournament sponsored by Accenture, a giant consulting company that chose the golfer as the face of its brand.
-------------------------------
Mr. Woods had been featured in Accenture campaigns with the tagline, “Go On. Be a Tiger,” splashed in business magazines and airport waiting rooms since 2003. Since most consumers have no idea what a company like Accenture does, Mr. Woods became the human face of the corporation and a means to extol the corporate virtues of performance and risk-taking.
In a statement Sunday, the company said Mr. Woods, 34, was “no longer the best representative” for its advertising. The action came more than two weeks after a bizarre car accident involving Mr. Woods, who is married, led to a series of embarrassing revelations about affairs he has carried on with other women. Then on Friday he announced that he was taking a hiatus from golf.
Accenture is the first of Mr. Woods’s many sponsors to withdraw its support completely. Gillette has said that it would remove its Woods-related advertising for now and other sponsors, like AT&T, PepsiCo and Nike, have said they will wait to see when and how Mr. Woods returns to golf before making any permanent decisions. EA Sports, which has a line of best-selling Tiger Woods video games, is also standing by the golf star.
In response to Accen
ture’s announcement, Mark Steinberg, Mr. Woods’s agent, said, “We are disappointed but respect their decision.”
Accenture’s decision is another example of how risky it can be for corporations to base their marketing efforts on individual celebrities in an age when blogs, camera phones and the digital footprint left by the celebrities themselves can quickly expose their foibles to the world.
Earlier this year, Kellogg dropped its sponsorship of Michael Phelps, the gold-medal swimmer, after he was photographed using a bong at a party, saying, in language similar to Accenture’s, that his acts were not “consistent with the image of Kellogg.” In 2003, Nutella and McDonald’s ended their deals with Kobe Bryant after he was accused of sexual assault in Colorado; the charges were eventually dropped.
Among corporate pitchmen, however, Mr. Woods is unique. He dominates a sport for individuals that is marketed around the world while still being hugely popular in the United States, in contrast to sports like tennis.
More than any other athlete, Mr. Woods has built a billion-dollar brand around himself that has not only benefited him but has also made millions of dollars for his sponsors. Perhaps the best analogy for Mr. Woods’s predicament is not another athlete but Martha Stewart — another example of a billion-dollar brand based on the cultivated image of one person.
Ms. Stewart put her public company and television contracts at risk when she was convicted of lying to prosecutors about a minor stock deal. She emerged from her five-month sentence in prison to retake the reins at Martha Stewart Living Omnimedia, but the company has not returned to the financial heights it once enjoyed.
“Tiger is the best example of a walking, individual corporation,” said Ben Porritt, a public relations executive who advised Alex Rodriguez, the Yankees third baseman, last spring after his onetime steroid use was disclosed.
“Tiger is going to come out of this as somewhat of a bankrupt brand,” said Mr. Porritt. “He will have to restructure and go forward.” But, he said, “It’s going to be an ugly few months.”
Several companies that measure consumer reaction believe the ugliness has already started. Zeta Interactive, a digital ad agency that monitors message boards, blogs and social media posts, said that positive sentiment toward Mr. Woods had already plummeted. Before the accident, buzz about the golfer was 91 percent positive; by Friday, that figure had sunk to 43 percent.
The turnabout “is the quickest fall from positive to negative we’ve ever seen,” said Al DiGuido, chief executive at Zeta Interactive.
The Nielsen IAG unit of the Nielsen Company found that the accident quickly affected the brands Mr. Woods peddles. There were more than 20 instances through Monday, Dec. 7, of jokes being made on late-night talk shows that paired Mr. Woods with one of his sponsors by name, according to Nielsen IAG.
The recall among viewers of the brand mentioned in the joke was 55 percent, according to Nielsen IAG, compared with a norm in late-night shows of 39 percent.
About 11 percent of those viewers who recalled a brand with ties to Mr. Woods said they had a negative opinion of the brand, Nielsen IAG reported, compared with the average negative opinion of a brand mentioned in a late-night show of 6 percent.
David Arluck, an independent sports marketing executive, said that Accenture was in a different spot than other sponsors because it pitched a service to businesses, not consumers, and so it had centered its branding on Mr. Woods’s persona.
“In business, credibility means a lot and honesty means a lot, and Accenture wants to be a company that can be trusted,” he said. “Obviously Tiger Woods did some things that betrayed the trust of people who were close to him, and I can see how they would want to distance themselves from that.”
Even the most upright athletes seem to be aware of the tenuousness of image in the Internet age. On a recent evening in Manhattan, the Yankees shortstop Derek Jeter — a close friend of Mr. Woods — stood on a dais after receiving Sports Illustrated’s Sportsman of the Year award and was asked, essentially, how he was able to enjoy the perks of athletic superstardom for so many years and maintain his pitch-perfect image.
“Don’t jinx me,” Mr. Jeter said, to nervous laughter.
Ian Austen, Larry Dorman, Stuart Elliott and Stephanie Clifford contributed reporting.
Six Things You Should Know About Collecting Receivables
Six Things You Should Know About Collecting Receivables
By JAY GOLTZ
In my last post, I explained how my lawyer, Ira Helfgot, who is president of the Illinois Creditors Bar Association, helped me collect a serious and seriously late receivable. Mr. Helfgot also gave me a quick six-point primer on the world of credit collection that I will share with you:
1. Many businesspeople think that if they get a lawyer to send a letter, the customer will pay. This is usually not the case. By the time it gets that far, your customer is probably not paying a lot of people and those people are all getting lawyers to send letters.
2. Collection agencies work on a percentage basis and generally do not file lawsuits to collect. Instead, they write letters and make telephone calls. But if a letter from a lawyer won’t work, neither are letters or telephone calls from a collection agency likely to work.
3. From a business standpoint, most lawyers don’t take collection matters because the business owner does not want to pay the lawyer on an hourly basis (otherwise known as throwing good money after bad), and most collection matters are too small to yield a reasonable fee for the lawyer on a percentage basis. (The standard contingency fee for lawyers is one-third, but there are lots of variables and the rate is open to negotiation.)
4. Most collection lawyers are willing to take small matters on a percentage basis but would rather not take a single file; most of their clients have hundreds of files. Various state or national bar associations, like the Illinois Creditors Bar Association, the National Association of Retail Collection Attorneys and the Commercial Law League of America may be helpful in finding a collection attorney.
5. In Illinois, a corporation can file a claim without an attorney if the claim is $2,500 or less. But filing a claim does not automatically result in obtaining a judgment, and obtaining a judgment does not automatically result in getting paid. This is a time-consuming and difficult process. Lawyers get paid for their time and expertise — just as you do.
6. Companies frequently wait too long to turn a bill over to a lawyer or compound their error by extending even more credit in a risky effort to double down. You need to know when to say when so that there is money left to get.
If you have any questions for Mr. Helfgot, you can e-mail him at iralaw@sbcglobal.net.
Jay Goltz owns five small businesses in Chicago.
By JAY GOLTZ
In my last post, I explained how my lawyer, Ira Helfgot, who is president of the Illinois Creditors Bar Association, helped me collect a serious and seriously late receivable. Mr. Helfgot also gave me a quick six-point primer on the world of credit collection that I will share with you:
1. Many businesspeople think that if they get a lawyer to send a letter, the customer will pay. This is usually not the case. By the time it gets that far, your customer is probably not paying a lot of people and those people are all getting lawyers to send letters.
2. Collection agencies work on a percentage basis and generally do not file lawsuits to collect. Instead, they write letters and make telephone calls. But if a letter from a lawyer won’t work, neither are letters or telephone calls from a collection agency likely to work.
3. From a business standpoint, most lawyers don’t take collection matters because the business owner does not want to pay the lawyer on an hourly basis (otherwise known as throwing good money after bad), and most collection matters are too small to yield a reasonable fee for the lawyer on a percentage basis. (The standard contingency fee for lawyers is one-third, but there are lots of variables and the rate is open to negotiation.)
4. Most collection lawyers are willing to take small matters on a percentage basis but would rather not take a single file; most of their clients have hundreds of files. Various state or national bar associations, like the Illinois Creditors Bar Association, the National Association of Retail Collection Attorneys and the Commercial Law League of America may be helpful in finding a collection attorney.
5. In Illinois, a corporation can file a claim without an attorney if the claim is $2,500 or less. But filing a claim does not automatically result in obtaining a judgment, and obtaining a judgment does not automatically result in getting paid. This is a time-consuming and difficult process. Lawyers get paid for their time and expertise — just as you do.
6. Companies frequently wait too long to turn a bill over to a lawyer or compound their error by extending even more credit in a risky effort to double down. You need to know when to say when so that there is money left to get.
If you have any questions for Mr. Helfgot, you can e-mail him at iralaw@sbcglobal.net.
Jay Goltz owns five small businesses in Chicago.
The Secrets to Collecting Receivables
The Secrets to Collecting Receivables
By JAY GOLTZ
One of the more harrowing parts of running a business is learning the realities of selling on credit. I sell art and framing to businesses and institutions, and I am forced to extend credit to many of them. I say forced because no one in his right mind would give credit if he didn’t have to.
This kind of credit, known as trade credit, is unsecured credit, which means you are at the end of the line to get paid if your customer goes broke. That’s what makes this a particularly dangerous game to play. Most entrepreneurs have little or no experience overseeing an intelligent credit policy when they start their businesses. They learn quickly. In the beginning, it’s all about making sales. After a while you learn that it’s about making sales and getting paid.
Last year I made a large art sale to a local college. One of the pieces it ordered was a commissioned sculpture that cost $70,000. For reasons that were never clear to me, everything the college ordered was billed through a “marketing company” that contracted for the work and paid the bills. I had done business with the company before, and it had good credit. As is customary, I got a 50-percent deposit on the order. So far so good.
We finished the project and billed the company for the balance. We did not get paid at 30 days, and our collection efforts started. First, my receivables person started calling and got the usual stories. At 60 days, my chief financial officer took over and got a different standard response: “We have over $600,000 in receivables ourselves and people are paying us slowly. Don’t worry, you’ll get paid.”
At 90 days, as per our protocol, I took over. There is something special about getting a call from the chief executive to get a bill paid. I called the partner who had signed the credit application and who is also the marketing company’s chief financial officer. I got the same $600,000 story. I told him I would call back in two weeks if I didn’t get paid.
Many times I do get paid; this time I didn’t. I called back and got the $600,000 story again. “Wait a second,” I said, “I own a business. I get the slow receivable thing. But how could your receivables not have gone down in the two months since we have been calling? Someone must be paying. What’s the real story?”
I learned this interrogation technique from watching too many episodes of “NYPD Blue” and “Law and Order.” This is not a game for the timid. I got a confession. The chief financial officer told me that the company had changed its “business model” from printing to digital and that the new computer programs they had developed took longer to get to market than they had expected.
When you extend credit, you essentially go into business with your customers. Twenty years ago I would have gone along with the program of financing their new business model — only to find myself cut out of the will when the company died. But I had seen this movie before, and I had learned my lesson.
I told him he had two weeks to come up with the money, or I was giving the case to a lawyer. I did not get paid, so I gave it to a lawyer who specializes in business credit collection. The lawyer, Ira Helfgot, is president of the Illinois Creditors Bar Association. The end of the story is that Mr. Helfgot got a judgment against the company and a garnishment on its bank account. I got paid.
Part miracle, part good legal work, part knowing when to send in the dogs. Every situation is different, but from my experience, when an account goes beyond 120 days you’d better face the reality that statistically you are very likely holding a bad hand. I have lost hundreds of thousands of dollars in bad receivables. It is sometimes the cost of doing business. Other times, it is the cost of not doing business properly. I have done both.
Here’s what I’ve learned: Always get a signed credit application. Always check credit. Always establish credit limits. Always call when they are late. Always assume that you are going to have some losses.
Jay Goltz owns five small businesses in Chicago.
By JAY GOLTZ
One of the more harrowing parts of running a business is learning the realities of selling on credit. I sell art and framing to businesses and institutions, and I am forced to extend credit to many of them. I say forced because no one in his right mind would give credit if he didn’t have to.
This kind of credit, known as trade credit, is unsecured credit, which means you are at the end of the line to get paid if your customer goes broke. That’s what makes this a particularly dangerous game to play. Most entrepreneurs have little or no experience overseeing an intelligent credit policy when they start their businesses. They learn quickly. In the beginning, it’s all about making sales. After a while you learn that it’s about making sales and getting paid.
Last year I made a large art sale to a local college. One of the pieces it ordered was a commissioned sculpture that cost $70,000. For reasons that were never clear to me, everything the college ordered was billed through a “marketing company” that contracted for the work and paid the bills. I had done business with the company before, and it had good credit. As is customary, I got a 50-percent deposit on the order. So far so good.
We finished the project and billed the company for the balance. We did not get paid at 30 days, and our collection efforts started. First, my receivables person started calling and got the usual stories. At 60 days, my chief financial officer took over and got a different standard response: “We have over $600,000 in receivables ourselves and people are paying us slowly. Don’t worry, you’ll get paid.”
At 90 days, as per our protocol, I took over. There is something special about getting a call from the chief executive to get a bill paid. I called the partner who had signed the credit application and who is also the marketing company’s chief financial officer. I got the same $600,000 story. I told him I would call back in two weeks if I didn’t get paid.
Many times I do get paid; this time I didn’t. I called back and got the $600,000 story again. “Wait a second,” I said, “I own a business. I get the slow receivable thing. But how could your receivables not have gone down in the two months since we have been calling? Someone must be paying. What’s the real story?”
I learned this interrogation technique from watching too many episodes of “NYPD Blue” and “Law and Order.” This is not a game for the timid. I got a confession. The chief financial officer told me that the company had changed its “business model” from printing to digital and that the new computer programs they had developed took longer to get to market than they had expected.
When you extend credit, you essentially go into business with your customers. Twenty years ago I would have gone along with the program of financing their new business model — only to find myself cut out of the will when the company died. But I had seen this movie before, and I had learned my lesson.
I told him he had two weeks to come up with the money, or I was giving the case to a lawyer. I did not get paid, so I gave it to a lawyer who specializes in business credit collection. The lawyer, Ira Helfgot, is president of the Illinois Creditors Bar Association. The end of the story is that Mr. Helfgot got a judgment against the company and a garnishment on its bank account. I got paid.
Part miracle, part good legal work, part knowing when to send in the dogs. Every situation is different, but from my experience, when an account goes beyond 120 days you’d better face the reality that statistically you are very likely holding a bad hand. I have lost hundreds of thousands of dollars in bad receivables. It is sometimes the cost of doing business. Other times, it is the cost of not doing business properly. I have done both.
Here’s what I’ve learned: Always get a signed credit application. Always check credit. Always establish credit limits. Always call when they are late. Always assume that you are going to have some losses.
Jay Goltz owns five small businesses in Chicago.
Eight keys to successful prospecting
Eight keys to successful prospecting
By Carleadbest
Johnny Appleseed had the right idea. Everywhere he went, he scattered apple seeds all around him. He knew that some seeds would take root and grow, bur many would not. Yet that didn't discourage him. In fact, it gave him incentive to sow more apple seeds, knowing that more would take root and eventually the whole country would enjoy the fruits of his labor.
Prospecting is based on the Johnny Appleseed principle. If you are prospecting all the time, you chances of reaping rewards are greater. There are eight keys to successful prospecting:
1. Always be prospecting
Plant so many seeds that you don't have to worry about each individual sale. You have much more confident when you know that if one sale falls through, another will sprout in its place. Constant prospecting gives you the experience needed to gain confident.
2. Qualify your prospecting activity.
Target key customers who have the greatest ability to buy your product or service.
3. Build relationship.
Treat prospects as if they are already your best customers.
4. Understand that rejection comes with the territory
Nobody likes rejection, but there is one basic truth in selling: If you are not getting a lot of rejections, you are not working hard enough.
5. Learn from your mistakes.
You're bound to make some along the way- ask yourself what you can do differently next time.
6. Believe 100% in your product or service.
If you believe that your product or service can help people solve their problems and make their lives a little easier, then you'll want to be out there selling all the time.
7. Keep an organized list of who to call.
Use research, networking and referrels to increase your chances of success.
8. Don't be afraid to move on.
Make sure you're not wasting your time with people who are stalling or leading you on. If you have enough other activity, you don't need 'going -nowhere" accounts.
Successful selling is not nine to five job. Top sales people are prospecting all the time. The more you put in your sales career, the more you get out of it.
Friday, December 11, 2009
The Secret of a Sales Manager
The Secret of a Sales Manager
A friend of mine is a very successful sales manager. After he had carefully interviewed and then selected a new salesman, he would take the salesman to a Cadillac dealership and insist that he trade in his old car for a new Cadillac. The salesman would usually balk at the idea. He would be frightened of the cost of the car and huge monthly payments involved. But the sales manager would insist that he buy the Cadillac as a condition of employment. At first, the salesman would feel guilt for buying the car, but within a few days, he would begin to see himself as the kind of person who drove a new Cadillac. He would see himself as a big money earner in his field, one of the top performers in his industry. And time after time, almost without fail, the salespeople in this organization became sales superstars.
Create the Mental Equivalent
Emmet Fox, the spiritual teacher, once said, "Your main job in life is to create the mental equivalent within yourself of what you want to realize and enjoy in your outer world." Your focus must be on creating the beliefs within yourself that are consistent with the great success you want to be in your outer world. You achieve this by challenging your self-limiting beliefs, rejecting them, and then acting as if they did not exist.
Behave Consistent with Your New Self-Image
You develop new beliefs by taking actions consistent with those beliefs. You act as if you already believe that you have these capabilities and competences. You behave like a positive, optimistic, and cheerful person toward everyone. You act as if your success is already guaranteed. You act as if you have a secret guarantee of success and only you know about it. You realize that you are developing, shaping, and controlling the evolution of your own character and personality by everything that you do and say every single day.
Make a Decision
Make a decision this very day to challenge and reject any self-limiting beliefs that you might have that could be holding you back. Look into yourself and question the areas of your life where you have doubts about your abilities or talents. You might ask your friends and family members if they see any negative beliefs that you might have. Often, they will be aware of self-limiting beliefs you have that you are not aware of yourself. In every case, once you have identified these negative beliefs, ask yourself, "What if the opposite were true?"
Keep Your Words and Actions Consistent
Your beliefs are always manifested in your words and actions. Make sure that everything you say and do from now on is consistent with the beliefs that you want to have and the person that you want to become. In time, you will replace more and more of your self-limiting beliefs with self-enhancing beliefs.
Action Exercise
Imagine that you have the "golden touch" with money. If you were an extremely competent money manager, how would you handle your finances?
A friend of mine is a very successful sales manager. After he had carefully interviewed and then selected a new salesman, he would take the salesman to a Cadillac dealership and insist that he trade in his old car for a new Cadillac. The salesman would usually balk at the idea. He would be frightened of the cost of the car and huge monthly payments involved. But the sales manager would insist that he buy the Cadillac as a condition of employment. At first, the salesman would feel guilt for buying the car, but within a few days, he would begin to see himself as the kind of person who drove a new Cadillac. He would see himself as a big money earner in his field, one of the top performers in his industry. And time after time, almost without fail, the salespeople in this organization became sales superstars.
Create the Mental Equivalent
Emmet Fox, the spiritual teacher, once said, "Your main job in life is to create the mental equivalent within yourself of what you want to realize and enjoy in your outer world." Your focus must be on creating the beliefs within yourself that are consistent with the great success you want to be in your outer world. You achieve this by challenging your self-limiting beliefs, rejecting them, and then acting as if they did not exist.
Behave Consistent with Your New Self-Image
You develop new beliefs by taking actions consistent with those beliefs. You act as if you already believe that you have these capabilities and competences. You behave like a positive, optimistic, and cheerful person toward everyone. You act as if your success is already guaranteed. You act as if you have a secret guarantee of success and only you know about it. You realize that you are developing, shaping, and controlling the evolution of your own character and personality by everything that you do and say every single day.
Make a Decision
Make a decision this very day to challenge and reject any self-limiting beliefs that you might have that could be holding you back. Look into yourself and question the areas of your life where you have doubts about your abilities or talents. You might ask your friends and family members if they see any negative beliefs that you might have. Often, they will be aware of self-limiting beliefs you have that you are not aware of yourself. In every case, once you have identified these negative beliefs, ask yourself, "What if the opposite were true?"
Keep Your Words and Actions Consistent
Your beliefs are always manifested in your words and actions. Make sure that everything you say and do from now on is consistent with the beliefs that you want to have and the person that you want to become. In time, you will replace more and more of your self-limiting beliefs with self-enhancing beliefs.
Action Exercise
Imagine that you have the "golden touch" with money. If you were an extremely competent money manager, how would you handle your finances?
The marketing system that guarantees success, Pt. 1
The marketing system that guarantees success, Pt. 1
By Annette Bau
Managing Member and Founder, MillionDollarMarketingPractices.com
Featured Expert: Sales and Marketing Strategies
My entire life has been dedicated to studying and interviewing successful people. I have interviewed hundreds of multi-millionaires to get inside their head and learn what they do differently to achieve amazing levels of success. Not surprising are the differences that separate an average producer and a top producer, or a millionaire and a non-millionaire. While subtle, these differences are clearly critical to reaching the ranks of the upper echelon in business and life.
From my 20+ years of researching successful people, I define success as a person who achieves a balanced life consisting of wealth, health, happiness and peace of mind. While most people who want to remain seated would not sit on a four-legged chair that was missing a leg, you shouldn't focus on wealth at the cost of failed relationships or health. In studying people who have long-term success in their business and balanced lives, the importance of a solid foundation quickly becomes clear -- which includes a plan and a clear vision.
Step 1: Decide
The first step is to decide what you want. When are you at your best? What motivates and inspires you? Take time to clearly see your future. Once you are clear on your ideal future, then create both a visualization board and a visualization book. This is a collage of pictures that motivate and inspire you. Each morning when you rise and each evening when you retire, review your book. Put your board where you can see it during the day.
Step 2: Write out your mission
The next step is to write out your mission statement. It should be clear, easy to understand and you want to memorize it. For example, MillionDollarMarketingPractices.com's mission statement is: "We are a consulting and coaching firm that provides solutions and strategies to help advisors grow their business and increase their income while creating a wonderful life."
Sun Microsystems mission is "To solve complex networking computing problems for government enterprises and service providers."
The key is to clearly and concisely identify your desired outcome.
Step 3: Write affirmative goals
The next step is to write out goals in every area of your life, including your career, finances, family, relationships, health, spirituality and community. The most effective goals are positive, present-tense.
Examples:
o I earn $500,000 per year working with 100 non-traditional affluent women.
o I weigh 125 pounds, work out for 30 minutes four times per week and eat lean protein, fresh vegetables and complex carbohydrates.
Step 4: Create HVFDAs for each goal
A successful life is a balance between your affirmative goals and actions. I recommend that you identify two actions, which I refer to as high-value fixed daily activities (HVFDAs), for each goal. These are actions you must do consistently on a daily basis to achieve your goals.
For example, sample HVFDAs for the first affirmative goal above could include:
o I complete one community feeder workshop each week.
o I prospect and make calls each day from 10-2.
Putting it all together
It's important that your goals, affirmations, HVFDAs, and objectives resonate with you and motivate you. If you have a tendency to procrastinate, or find it hard to remember or find time to set goals, I encourage you to create a daily checklist.
Once you have created a foundation, determined what you want, written out your goals and HFVDAs you are ready to choose a niche market.
Top producers who also have a balanced life understand the power of identifying and serving a niche market. Creating a target market is critical to becoming a rainmaker, because it allows you to streamline your business, become a specialist, and increase your value to prospects and clients.
I recommend no more than two niche markets, but you need to determine what works for you. No matter how many you go for, I think it's a good idea to become successful in one niche market before expanding into another.
So how do you pick a niche market?
The first step in determining the best niche market for you is to determine with whom you are compatible. When you work with clients whose values and personality profiles complement your own, work becomes fun, clients feel more like friends, and success comes with greater ease.
The four main personality profiles I use to classify people are:
Doers get to the bottom line and make decisions quickly.
With doers, it's essential to stick to the basics and keep it simple. Because time and results are so important, they need to get to the bottom line as quickly as possible. Ask them about their morning ritual and they'll sum it up in one or two sentences. Examples include most businessowners, executives, and non-traditional affluent women. Expressives and other doers tend to work well with clients who are doers. Amiables can work well with doers, if they learn to not take the doers responses personally.
Expressives are talkative and outgoing extroverts.
They know everyone and everything that's going on. They need you to listen and ask them questions, but don't leave the questions too open-ended or they'll just keep on talking. Examples of expressives include salespeople of all types. Amiables can work well with clients who are expressives.
An amiable's goal is to be your friend.
They value relationships, harmony, and connecting, and will avoid confrontation at any cost. Amiables will tell you something you what to hear in order to avoid a confrontation. Examples include traditional women and caregivers such as nurses, social workers, and teachers. Doers tend to work well with amiables, who are often married to doers. Just be sure they get to talk on their own, without pressure from a domineering spouse. I would say something like, "It's important to me as an advisor to take turns with each of you answering the questions, so I really understand how you both feel."
Analytics are technicians who enjoy all the details.
They're perfectionists and value being right -- which they often are. To work with this personality type, you need to provide plenty of data and release your need to be right. Analytics may have trouble making decisions or coming to conclusions. They can also be viewed as difficult or boring, unless you're as analytical as they are. Examples include scientists, engineers, CPAs, architects, and researchers. Analytics tend to work well with analytics.
Obviously, these personalities exist along a continuum, and often you'll have to make allowances for specific clients. But knowing basic personality types -- and knowing how they mesh with your own personality profile -- can help you find work that's as enjoyable as it is profitable.
Now you want to list your clients (from most favorite to least favorite) and then determine their personality profile.
So let's say, for example, that you decide you're best suited to work with doers. The next step is to take the time to research groups and associations where doers congregate. Once you have a list put together, call and find out if these associations allow affiliate memberships for people who are not CEOs, entrepreneurs, etc.
Once you have determined the niche market you want to work with, the next step is to learn how to serve them successfully... guaranteed!
By Annette Bau
Managing Member and Founder, MillionDollarMarketingPractices.com
Featured Expert: Sales and Marketing Strategies
My entire life has been dedicated to studying and interviewing successful people. I have interviewed hundreds of multi-millionaires to get inside their head and learn what they do differently to achieve amazing levels of success. Not surprising are the differences that separate an average producer and a top producer, or a millionaire and a non-millionaire. While subtle, these differences are clearly critical to reaching the ranks of the upper echelon in business and life.
From my 20+ years of researching successful people, I define success as a person who achieves a balanced life consisting of wealth, health, happiness and peace of mind. While most people who want to remain seated would not sit on a four-legged chair that was missing a leg, you shouldn't focus on wealth at the cost of failed relationships or health. In studying people who have long-term success in their business and balanced lives, the importance of a solid foundation quickly becomes clear -- which includes a plan and a clear vision.
Step 1: Decide
The first step is to decide what you want. When are you at your best? What motivates and inspires you? Take time to clearly see your future. Once you are clear on your ideal future, then create both a visualization board and a visualization book. This is a collage of pictures that motivate and inspire you. Each morning when you rise and each evening when you retire, review your book. Put your board where you can see it during the day.
Step 2: Write out your mission
The next step is to write out your mission statement. It should be clear, easy to understand and you want to memorize it. For example, MillionDollarMarketingPractices.com's mission statement is: "We are a consulting and coaching firm that provides solutions and strategies to help advisors grow their business and increase their income while creating a wonderful life."
Sun Microsystems mission is "To solve complex networking computing problems for government enterprises and service providers."
The key is to clearly and concisely identify your desired outcome.
Step 3: Write affirmative goals
The next step is to write out goals in every area of your life, including your career, finances, family, relationships, health, spirituality and community. The most effective goals are positive, present-tense.
Examples:
o I earn $500,000 per year working with 100 non-traditional affluent women.
o I weigh 125 pounds, work out for 30 minutes four times per week and eat lean protein, fresh vegetables and complex carbohydrates.
Step 4: Create HVFDAs for each goal
A successful life is a balance between your affirmative goals and actions. I recommend that you identify two actions, which I refer to as high-value fixed daily activities (HVFDAs), for each goal. These are actions you must do consistently on a daily basis to achieve your goals.
For example, sample HVFDAs for the first affirmative goal above could include:
o I complete one community feeder workshop each week.
o I prospect and make calls each day from 10-2.
Putting it all together
It's important that your goals, affirmations, HVFDAs, and objectives resonate with you and motivate you. If you have a tendency to procrastinate, or find it hard to remember or find time to set goals, I encourage you to create a daily checklist.
Once you have created a foundation, determined what you want, written out your goals and HFVDAs you are ready to choose a niche market.
Top producers who also have a balanced life understand the power of identifying and serving a niche market. Creating a target market is critical to becoming a rainmaker, because it allows you to streamline your business, become a specialist, and increase your value to prospects and clients.
I recommend no more than two niche markets, but you need to determine what works for you. No matter how many you go for, I think it's a good idea to become successful in one niche market before expanding into another.
So how do you pick a niche market?
The first step in determining the best niche market for you is to determine with whom you are compatible. When you work with clients whose values and personality profiles complement your own, work becomes fun, clients feel more like friends, and success comes with greater ease.
The four main personality profiles I use to classify people are:
Doers get to the bottom line and make decisions quickly.
With doers, it's essential to stick to the basics and keep it simple. Because time and results are so important, they need to get to the bottom line as quickly as possible. Ask them about their morning ritual and they'll sum it up in one or two sentences. Examples include most businessowners, executives, and non-traditional affluent women. Expressives and other doers tend to work well with clients who are doers. Amiables can work well with doers, if they learn to not take the doers responses personally.
Expressives are talkative and outgoing extroverts.
They know everyone and everything that's going on. They need you to listen and ask them questions, but don't leave the questions too open-ended or they'll just keep on talking. Examples of expressives include salespeople of all types. Amiables can work well with clients who are expressives.
An amiable's goal is to be your friend.
They value relationships, harmony, and connecting, and will avoid confrontation at any cost. Amiables will tell you something you what to hear in order to avoid a confrontation. Examples include traditional women and caregivers such as nurses, social workers, and teachers. Doers tend to work well with amiables, who are often married to doers. Just be sure they get to talk on their own, without pressure from a domineering spouse. I would say something like, "It's important to me as an advisor to take turns with each of you answering the questions, so I really understand how you both feel."
Analytics are technicians who enjoy all the details.
They're perfectionists and value being right -- which they often are. To work with this personality type, you need to provide plenty of data and release your need to be right. Analytics may have trouble making decisions or coming to conclusions. They can also be viewed as difficult or boring, unless you're as analytical as they are. Examples include scientists, engineers, CPAs, architects, and researchers. Analytics tend to work well with analytics.
Obviously, these personalities exist along a continuum, and often you'll have to make allowances for specific clients. But knowing basic personality types -- and knowing how they mesh with your own personality profile -- can help you find work that's as enjoyable as it is profitable.
Now you want to list your clients (from most favorite to least favorite) and then determine their personality profile.
So let's say, for example, that you decide you're best suited to work with doers. The next step is to take the time to research groups and associations where doers congregate. Once you have a list put together, call and find out if these associations allow affiliate memberships for people who are not CEOs, entrepreneurs, etc.
Once you have determined the niche market you want to work with, the next step is to learn how to serve them successfully... guaranteed!
Thursday, December 10, 2009
Thinking Outside The (Big) Box
Creative Disruption
Thinking Outside The (Big) Box
Julie Toscano Sequeira,
Experimentation can turbocharge innovation in the consumer packaged-goods industry.
Experimentation is an important element of emergent strategy that offers innovators the opportunity to test key assumptions early and get the information needed to move forward more efficiently and effectively.
In the world of consumer products, key assumptions that need to be tested often fall in the domain of the consumer. Will this concept resonate with target consumers? Can we convince them to shift well-established behavior patterns? What can we expect for trial and repeat? What price is appropriate?
The big box is key to volume and therefore is the ultimate goal for most new CPG products; the big box is often not the most conducive venue for testing such assumptions. From a channel perspective, shelf space is scarce and expensive, marketing costs are high, lead times are long, the environment is demanding, and product assortments are rarely dictated at the individual store level. From an internal perspective, getting the attention of the existing sales force amidst a more proven assortment can be difficult. And, from a competitive standpoint, an experimental offering in the traditional channel could tip a hat earlier than might be desired.
So experimentation in CPG often requires thinking "outside the (big) box" in order to be most successful. The results of tests run in alternative channels can offer evidence to support (or refute) a traditional launch and can help refine the concept in advance of such a launch. Further, in many cases, these channels can represent not only a venue for experimentation but also an early or alternate form of distribution.
The bottom line? Don't focus on volume when running experiments. Rather, focus intently on speed, affordability, connecting directly with consumers and concept refinement. Here are six different possibilities for structuring early experiments in CPG.
(Give It a Spot in the Company Store
Yes, this is a great way for employees to fill their pantry and demonstrate their product loyalty at a fraction of the retail cost. But the company store can offer a lot more for innovators aiming to get an early read on a product. Almost all CPG companies are diversified across categories and brands, and much (if not most) of the employee base can offer a fairly objective response to new products sprinkled onto shelves.
Offering a new product internally can enable a good-enough approach across several dimensions (i.e., packaging, messaging). True, the shelf is less crowded and the competition is less intense. But you're almost guaranteed a spot at the shelf, the price tag is cheap and the testing can happen very quickly. To get an early read on consumer appetite for a new idea, the company store offers a lot of advantages.
Leverage Cyberspace with a Virtual Launch
Want to bypass the retail channel altogether when testing a concept? The Internet enables manufacturers to conduct small-scale launches that do just that by setting up simple Web sites with order-taking and fulfillment capabilities.
To be sure, this is not the correct experiment to test uptake at the shelf or competitive positioning. Virtual launches, however, offer a lot of other advantages when testing assumptions around new concepts.
First, such launches enable rapid testing of consumer response to formulation, packaging and branding without the crippling cost of a full-scale launch. Second, such launches can create buzz as they can attract early adopters, bloggers, Twitter and Facebook users, and even the increasing numbers of mainstream press who are listening to these channels. Finally, manufacturers are able to gather valuable consumer information not possible through traditional channels, including feedback (i.e., comment boxes, chat boards), purchase behaviors (i.e., trial vs. repeat), and customer characteristics (i.e., location, demographics).
P&G ( PG - news - people ) has been very active in its experimentation with virtual launches with products including Crest Whitestrips, Pampers Change 'N Go, Swash by Tide and Align GI. And results from such launches have had a definite impact on innovation approach, whether that be doubling down or folding on an investment.
In the case of Crest Whitestrips, a virtual launch on whitestrips.com and in select dental offices generated unexpectedly high sales ($23 million from August 2000 to May 2001) and led to an acceleration of the retail launch timeline. In contrast, the information gathered from other virtual launches has ultimately led to the decision not to move forward--again, these exits are in many ways successes as the market experiments are conducted at a fraction of a cost compared to a true launch.
Reach for the TV Waves with Direct Response
Television can offer a unique placement opportunity for manufacturers seeking input on product, pricing, trial/repeat, marketing, messaging and a host of other product dimensions. These channels are typically most applicable for more complex or new-to-market products benefiting from such a high-touch sales model.
The two most common alternatives are home shopping networks (i.e., QVC) and infomercials. Home shopping networks offer a captive audience, live product demonstration and rich data analytics. This combination enables rapid iteration of messaging based on near real-time sales data. QVC, for example, boasts an 80+ million household audience to its 24/7 storefront. One well-known consumer products success story in this channel would be Bare Escentuals ( BARE - news - people ), the mineral-based beauty products company that began marketing its products on the network in 1997. However, lesser known companies such as Kim & Scott's pretzels (20+ appearances selling hundreds of thousands of pretzels) also have met with strong success.
Infomercials offer similar advantages to home shopping networks, with a twist. First, longer formats make them even more applicable for complicated sales models (i.e., devices, new platforms of products, new categories). Second, higher investment costs in the form of production make them more appropriate for later-stage tests versus a home shopping placement. Sure, there are examples of products like the Thighmaster destined for a lifespan in the world of late-night television. But, infomercials have also served as stepping stones for many products that have gone on to reach broader audiences. Looking for examples? Think of products like OxiClean (now distributed broadly in FDM channels) and Proactiv available online and through kiosks.
Consider Sampling Services
New product testing services provide another alternative for testing consumer reactions to early product ideas. Sampling services often cater to early adopters seeking the newest products on the market. While these solutions do not offer insight on pricing or at-the-shelf behavior, they do offer manufacturers the opportunity to glean valuable early perspectives on certain dimensions (i.e., formulation, packaging, marketing) before a product is ready for the mass market.
Other advantages of such services include being quick to launch, having built-in consumer bases and incorporating a feedback protocol. Several such services focusing on beauty have been gaining traction in recent years. One example is New Beauty, which offers a quarterly "TestTube" of high-end beauty products to subscribers for $29.95. After receiving the items, NewBeauty's members are invited to provide their reviews of products online. Another is BeautyFix, which combines a high-end quarterly sampling service ($49.99) with an expert panel and a beauty-focused community.
Remember that Good Things Come in Small Boxes
When key assumptions relate to at-the-shelf purchasing behavior or competitive dynamics, a more traditional shelf setting is required. In these cases, small independent retail outlets provide a great alternative for under-the-radar testing of new products. For personal care products, spas and salons can provide very relevant data points. For food products, self-serve restaurants, gourmet stores or health food stores are a good bet. For beverages, bodegas or self-serve restaurants get the job done. All of these settings can provide consumer insights similar to the traditional channel shelf in a smaller-scale experiment, often with the added advantage of providing feedback from the proprietor or salesperson.
Get Focus Fast with a Pop-Up Shop
Have a defined sense of your foothold consumer but unsure if the concept will resonate? Setting up a "pop-up shop" in close proximity to your target audience can quickly provide valuable insights at a low price tag. Further, this approach does not require a retail partner to buy-in. Of course, such an atypical buying environment can distort results, so pop-up shops should certainly be only one tool in a broader range of experiments, primarily appropriate for validating foothold consumer interest.
Think broadly and you'll surely find that appropriate venues can be found for almost all consumer segments. Interested in college kids? Try a university campus or bookstore. P&G did just that when testing Swash with such consumers. Aiming at athletes? Outside a gym might be a good bet. Have your sights on parents of young kids? A community fair will surely provide a captive audience. Urban youth? Hit the local basketball courts. Of course, approval should be gained in advance of setting up shop, but in many instances you will find that stakeholders are very open to the notion.
Another twist on the physical pop-shop is to leverage a vending kiosk or a mobile truck offering. A recent, interesting example of this type of approach is the Coke Freestyle beverage dispenser. Through this novel vending machine, Coke is able to offer over 100 different varieties of beverages (i.e., soda, tea, juice and water) by combining different "micro-doses" from about 30 cartridges in the machine.
Yes, the concept offers mass customization and drives much greater choice for the consumer. Beyond that, however, the machine offers Coke the opportunity to experiment with different flavors and beverages and to get instant feedback on consumer uptake by geography through RFID technology present on the cartridge. Of course, this type of vending experiment offers enormous cost savings versus the traditional approach of testing a concept by bottling and pushing through the traditional distribution channel to separate winners from losers.
Thinking Outside The (Big) Box
Julie Toscano Sequeira,
Experimentation can turbocharge innovation in the consumer packaged-goods industry.
Experimentation is an important element of emergent strategy that offers innovators the opportunity to test key assumptions early and get the information needed to move forward more efficiently and effectively.
In the world of consumer products, key assumptions that need to be tested often fall in the domain of the consumer. Will this concept resonate with target consumers? Can we convince them to shift well-established behavior patterns? What can we expect for trial and repeat? What price is appropriate?
The big box is key to volume and therefore is the ultimate goal for most new CPG products; the big box is often not the most conducive venue for testing such assumptions. From a channel perspective, shelf space is scarce and expensive, marketing costs are high, lead times are long, the environment is demanding, and product assortments are rarely dictated at the individual store level. From an internal perspective, getting the attention of the existing sales force amidst a more proven assortment can be difficult. And, from a competitive standpoint, an experimental offering in the traditional channel could tip a hat earlier than might be desired.
So experimentation in CPG often requires thinking "outside the (big) box" in order to be most successful. The results of tests run in alternative channels can offer evidence to support (or refute) a traditional launch and can help refine the concept in advance of such a launch. Further, in many cases, these channels can represent not only a venue for experimentation but also an early or alternate form of distribution.
The bottom line? Don't focus on volume when running experiments. Rather, focus intently on speed, affordability, connecting directly with consumers and concept refinement. Here are six different possibilities for structuring early experiments in CPG.
(Give It a Spot in the Company Store
Yes, this is a great way for employees to fill their pantry and demonstrate their product loyalty at a fraction of the retail cost. But the company store can offer a lot more for innovators aiming to get an early read on a product. Almost all CPG companies are diversified across categories and brands, and much (if not most) of the employee base can offer a fairly objective response to new products sprinkled onto shelves.
Offering a new product internally can enable a good-enough approach across several dimensions (i.e., packaging, messaging). True, the shelf is less crowded and the competition is less intense. But you're almost guaranteed a spot at the shelf, the price tag is cheap and the testing can happen very quickly. To get an early read on consumer appetite for a new idea, the company store offers a lot of advantages.
Leverage Cyberspace with a Virtual Launch
Want to bypass the retail channel altogether when testing a concept? The Internet enables manufacturers to conduct small-scale launches that do just that by setting up simple Web sites with order-taking and fulfillment capabilities.
To be sure, this is not the correct experiment to test uptake at the shelf or competitive positioning. Virtual launches, however, offer a lot of other advantages when testing assumptions around new concepts.
First, such launches enable rapid testing of consumer response to formulation, packaging and branding without the crippling cost of a full-scale launch. Second, such launches can create buzz as they can attract early adopters, bloggers, Twitter and Facebook users, and even the increasing numbers of mainstream press who are listening to these channels. Finally, manufacturers are able to gather valuable consumer information not possible through traditional channels, including feedback (i.e., comment boxes, chat boards), purchase behaviors (i.e., trial vs. repeat), and customer characteristics (i.e., location, demographics).
P&G ( PG - news - people ) has been very active in its experimentation with virtual launches with products including Crest Whitestrips, Pampers Change 'N Go, Swash by Tide and Align GI. And results from such launches have had a definite impact on innovation approach, whether that be doubling down or folding on an investment.
In the case of Crest Whitestrips, a virtual launch on whitestrips.com and in select dental offices generated unexpectedly high sales ($23 million from August 2000 to May 2001) and led to an acceleration of the retail launch timeline. In contrast, the information gathered from other virtual launches has ultimately led to the decision not to move forward--again, these exits are in many ways successes as the market experiments are conducted at a fraction of a cost compared to a true launch.
Reach for the TV Waves with Direct Response
Television can offer a unique placement opportunity for manufacturers seeking input on product, pricing, trial/repeat, marketing, messaging and a host of other product dimensions. These channels are typically most applicable for more complex or new-to-market products benefiting from such a high-touch sales model.
The two most common alternatives are home shopping networks (i.e., QVC) and infomercials. Home shopping networks offer a captive audience, live product demonstration and rich data analytics. This combination enables rapid iteration of messaging based on near real-time sales data. QVC, for example, boasts an 80+ million household audience to its 24/7 storefront. One well-known consumer products success story in this channel would be Bare Escentuals ( BARE - news - people ), the mineral-based beauty products company that began marketing its products on the network in 1997. However, lesser known companies such as Kim & Scott's pretzels (20+ appearances selling hundreds of thousands of pretzels) also have met with strong success.
Infomercials offer similar advantages to home shopping networks, with a twist. First, longer formats make them even more applicable for complicated sales models (i.e., devices, new platforms of products, new categories). Second, higher investment costs in the form of production make them more appropriate for later-stage tests versus a home shopping placement. Sure, there are examples of products like the Thighmaster destined for a lifespan in the world of late-night television. But, infomercials have also served as stepping stones for many products that have gone on to reach broader audiences. Looking for examples? Think of products like OxiClean (now distributed broadly in FDM channels) and Proactiv available online and through kiosks.
Consider Sampling Services
New product testing services provide another alternative for testing consumer reactions to early product ideas. Sampling services often cater to early adopters seeking the newest products on the market. While these solutions do not offer insight on pricing or at-the-shelf behavior, they do offer manufacturers the opportunity to glean valuable early perspectives on certain dimensions (i.e., formulation, packaging, marketing) before a product is ready for the mass market.
Other advantages of such services include being quick to launch, having built-in consumer bases and incorporating a feedback protocol. Several such services focusing on beauty have been gaining traction in recent years. One example is New Beauty, which offers a quarterly "TestTube" of high-end beauty products to subscribers for $29.95. After receiving the items, NewBeauty's members are invited to provide their reviews of products online. Another is BeautyFix, which combines a high-end quarterly sampling service ($49.99) with an expert panel and a beauty-focused community.
Remember that Good Things Come in Small Boxes
When key assumptions relate to at-the-shelf purchasing behavior or competitive dynamics, a more traditional shelf setting is required. In these cases, small independent retail outlets provide a great alternative for under-the-radar testing of new products. For personal care products, spas and salons can provide very relevant data points. For food products, self-serve restaurants, gourmet stores or health food stores are a good bet. For beverages, bodegas or self-serve restaurants get the job done. All of these settings can provide consumer insights similar to the traditional channel shelf in a smaller-scale experiment, often with the added advantage of providing feedback from the proprietor or salesperson.
Get Focus Fast with a Pop-Up Shop
Have a defined sense of your foothold consumer but unsure if the concept will resonate? Setting up a "pop-up shop" in close proximity to your target audience can quickly provide valuable insights at a low price tag. Further, this approach does not require a retail partner to buy-in. Of course, such an atypical buying environment can distort results, so pop-up shops should certainly be only one tool in a broader range of experiments, primarily appropriate for validating foothold consumer interest.
Think broadly and you'll surely find that appropriate venues can be found for almost all consumer segments. Interested in college kids? Try a university campus or bookstore. P&G did just that when testing Swash with such consumers. Aiming at athletes? Outside a gym might be a good bet. Have your sights on parents of young kids? A community fair will surely provide a captive audience. Urban youth? Hit the local basketball courts. Of course, approval should be gained in advance of setting up shop, but in many instances you will find that stakeholders are very open to the notion.
Another twist on the physical pop-shop is to leverage a vending kiosk or a mobile truck offering. A recent, interesting example of this type of approach is the Coke Freestyle beverage dispenser. Through this novel vending machine, Coke is able to offer over 100 different varieties of beverages (i.e., soda, tea, juice and water) by combining different "micro-doses" from about 30 cartridges in the machine.
Yes, the concept offers mass customization and drives much greater choice for the consumer. Beyond that, however, the machine offers Coke the opportunity to experiment with different flavors and beverages and to get instant feedback on consumer uptake by geography through RFID technology present on the cartridge. Of course, this type of vending experiment offers enormous cost savings versus the traditional approach of testing a concept by bottling and pushing through the traditional distribution channel to separate winners from losers.
Secrets Of The Self-Made Billionaire 2009-Donald Trump
Secrets Of The Self-Made 2009
Twenty-Two Questions For Donald Trump
Saddle up for some secrets of this self-made billionaire.
Net Worth: $2 billion
Age: 63
Source of Wealth: Real estate
What's the biggest business blunder you've ever made, and what did you learn from it?
Buying a yacht. It was an investment I couldn't wait to get rid of.
What's the one thing every first-time entrepreneur should know?
They should be prepared to go it alone--being an entrepreneur is not a group effort. It requires everything you've got.
What's the last book or article you read that you'd recommend to other entrepreneurs?
Edward de Bono's Six Thinking Hats thoroughly covers the process of thinking, and it's a way to avoid blind spots if you are thinking alone. He coined the expression "lateral thinking," and this book provides a comprehensive approach to using your brain in an efficient and effective way.
Mr. Trump, any advice on a Deed in Lieu that has been going on for over 9 months?
It's a sad joke, however it's my families sad joke. Should we just let them foreclose? We live in another state now....
What one job should every person have to do at least once in their life?
Work in an emergency room, or observe one.
How do you know when to keep fighting or to cut bait?
That's an instinct that can be developed, but it's definitely an instinct that we all have. Paying attention to the signals is what is important--and heeding them.
Will/should the U.S. have universal health care?
That very much depends on how it is handled at the core level--which is extremely complex at this point. It's not clear enough yet.
What will be the new retirement age for 2009 grads?
People who love what they're doing don't retire, so I hope there won't be a retirement age. That would indicate a large group of dynamic people who remain contributors to our nation and the world.
Finish this sentence: The United States' role as the leader of the free world depends upon ...
A very sound economic system at home and leadership that is internationally astute.
Should the government have a say on executive compensation?
In some cases, yes. If the government has bailed companies out, they should have a say as to how those funds are used. Being bailed out doesn't mean it's party time.
Gold: Hoard it, trade it or avoid it?
Hoard it if you have it.
You have $100 million to spend in real estate, what do you buy and where?
I'd buy Trump condominiums. They stand the test of time. The economy and the cities will recover--I'd go for New York, Chicago and Las Vegas.
Are we in a sucker's rally?
The bottom line is, we have to rally. That applies to the market and everything else.
You wake up dead broke tomorrow--what do you do?
Realize right then that there are still opportunities out there--and make a plan.
What keeps you awake at night?
Thinking about the world and my deals!
What's the biggest threat to your industry?
Fear. People sometimes don't realize that real estate runs in cycles. That's normal.
By the time a trend appears in the mainstream press, is it too late for investors to capitalize on it?
Not necessarily. Trends can have a long life span. Everyone thought reality TV would bite the dust within a couple of years, and that hasn't been the case.
What 21st-century invention (discovered or not) has the greatest potential to change our lives?
Computer science and technology will continue to evolve and involve us in increasingly diverse ways.
Who helped you the most in getting you to where you are today?
My parents. They were wonderful examples, and I learned a great deal from observing their work ethic and integrity in their daily lives.
How much vacation time to do you take each year?
I don't take vacations, but I golf on weekends year round, which is like a vacation except that I own my own courses so I'm always finding ways to improve them. It's a labor of love, which gives me energy.
What is your benchmark of success? When did you reach it?
Success is being pleased with your efforts. When I opened Trump Tower in 1983, it was a beginning, and I still haven't reached my peak.
At this point, does money still motivate you?
As a scorecard more than anything. I don't need any more money, so the challenge and the subsequent achievement is the motivator. I love making deals.
Describe your life in five words.
I am a happy man. Make that six words: I am a very happy man.
Secrets of this self-made billionaire.-R.J.Kirk
Twenty-Two Questions For R.J. Kirk
Saddle up for some secrets of this self-made billionaire.
Net Worth: $1.55 billion
Age: 55
Source of Wealth: Pharmaceuticals
What's the biggest business blunder you've ever made, and what did you learn from it?
I have on a couple of occasions permitted continued investment in a small company after the time that I had become convinced that the investment was unlikely to provide a return. At the time, I thought that perhaps I should give the younger members of my investment team, avid supporters of the little companies, the opportunity to "prove me wrong." This qualifies as a blunder because (1) there is absolutely no satisfaction in being proved correct while participating in the destruction of value, (2) if my organization must produce value by proving me wrong, I probably should leave and (3) there are more than a sufficient number of good opportunities concerning which our team is in full agreement, and focusing on these investments always will be the right idea. The lessons (unfortunately, these are lessons that I have had to learn more than once) is that investment (of time, money or any resource) should never be governed by any sense of inertia, and if you are on a team you should play like a team.
What's the one thing every first-time entrepreneur should know?
That the business world is full of "received wisdom," i.e., that the opinions of various business experts are often informed by untested propositions that eventually will be shown to be wrong. (Needless to say, this is per force true of most of the opinions I am passing along here.) The entrepreneur should be prepared to draw on many types of expertise but always with a view to building his case "from the bottom up," always bearing in mind the old saw: "Nobody knows nothing." Since no one else really knows, maybe you have a chance to figure it out.
What's the last book or article you read that you'd recommend to other entrepreneurs?
Genghis Khan and the Making of the Modern World, by Jack Weatherford (2004).
What one job should every person have to do at least once in their life?
Sell. Ideally, the experience would be on a sales floor and in a job working on pure commission, in competition with others who have that same job.
How do you know when to keep fighting or to cut bait?
One may only know when the final result is known. If the question is meant to ask how one decides in advance whether to persevere against challenge, the fundamental answer is that one must ask himself whether the application of effort can produce a good outcome. We often may observe people persevering in the hope that the world will somehow change to an environment that is more promising for this particular work, e.g., that the investment climate will improve, that the value of some type of thing, whether real estate or securities, will rise generally. To such people (and we all have been in this group at one time or another), I like to point out that if you are able to make such macroeconomic wagers, you should simply play an appropriate index that is reflective of your view and skip all the hard work. One should therefore concentrate his work into areas in which he is convinced that his efforts will make the difference between success and failure.
Will/should the U.S. have universal health care?
Yes, it will; no, it should not--no more than it should offer universal food, universal housing, universal transportation or any other communistic provisioning. The history of private enterprise and state enterprise convincingly demonstrates the folly of such state-run initiatives. I certainly understand why politicians want to do it, however, and that is why I believe it will occur.
What will be the new retirement age for 2009 grads?
I think that retirement on account of age alone will disappear as a convention.
Finish this sentence: The United States' role as the leader of the free world depends upon ...
Respect for individual liberty, private property and the rule of law.
Should the government have a say on executive compensation?
No. I do not understand the suggestion that society can be made better by providing less incentive to competitive individuals in private enterprise. I can easily understand, however, that American industry can be forced to become as mediocre as our government is by instilling within it the same sort of norms that have enforced mediocrity there.
Gold: Hoard it, trade it or avoid it?
I have no view on this topic.
You have $100 million to spend in real estate, what do you buy and where?
I would buy out of the obligation to do such a thing.
Are we in a sucker’s rally?
Answering this requires a macroeconomic forecast that has at least a 50% chance of being wrong.
You wake up dead broke tomorrow--what do you do?
The same thing that I did today and that I shall do tomorrow in any case.
What keeps you awake at night?
I sleep well, but I have plenty of anxiety about succeeding in the things we have undertaken.
What’s the biggest threat to your industry?
Increasing regulatory requirements and the steadily weakening intellectual property regime cause me to wonder whether my countrymen really want the remaining unmet human health needs addressed.
By the time a trend appears in the mainstream press, is it too late for investors to capitalize on it?
Far from it, but the best bet usually would be to go contra the reported trend. The more nonsense I have heard about supposedly "green" energy alternatives (that cost five times as much as hydrocarbon based fuels), for example, the more I have realized what a great investment oil and gas infrastructure must be.
What 21st-century invention (discovered or not) has the greatest potential to change our lives?
It is far too early in the century to call that, but, based on what I believe today, one area that is likely to give rise to a great number of innovations is what I am calling the Second Age of Biotech. For its first 30 years, biotech focused on the transcribed portion of the genome (genes) because of the obvious utility of their expression by-products (proteins). Increasingly, however, we are going to see biotech focus on the other, more interesting parts of the genome, which relate principally to its regulatory motifs. As our understanding of these essential logic controllers becomes more comprehensive (we are only scratching the surface today), we should be able to introduce an increasing amount of conditionality and "tightness of activity" to our customized production cells and to human therapeutics, thus spawning revolutionary changes in materials science, agriculture and health care.
Who helped you the most in getting you to where you are today?
My father, Joseph J. Kirk, was a great example of what a man could be. A high school drop-out who, at age 16, lied about his age in order to join the Air Force, he always held multiple jobs to provide for his family, to save and invest and to improve the lives of all whom he knew. I do not believe that anyone who knew him failed to believe himself better off for the experience.
How much vacation time to do you take each year?
I avoid enforced leisure. I have considered one of my personal missions to be "the optimization of the average day" and I have been successful enough at that to consider the typical day to be wonderful.
What is your benchmark of success? When did you reach it?
I do not possess even the bench on which to make such a judgment. It is for others to say whether I am useful or not.
At this point, does money still motivate you?
Money never motivated me, but seeing something that I had a hand in creating turn into a structure that is tangible to others, e.g., within which people live and raise their families, is a thrill beyond all imagining. Whether selling a greeting card or a motorcycle or building a company, one finds satisfaction throughout life in seeing things become more and more real as they reverberate into the world.
Describe your life in five words.
I decided to be happy.
Randal J. Kirk on the Forbes 400 Richest List
Secrets Of The Self Made Billionaire 2009 -John Paul De Joria
Secrets Of The Self Made 2009
Twenty-Two Questions For John Paul DeJoria
Saddle up for some secrets of this self-made billionaire.
Net Worth: $4 billion
Age: 63
Source of Wealth: Hair products, tequila
What's the biggest business blunder you've ever made, and what did you learn from it?
Investing with someone I knew and thought I could trust. I did not check where the money went, and I lost it. Lesson learned is if you ever invest with someone you know, follow through in the months following to see where the money went, not just what they told you.
What's the one thing every first-time entrepreneur should know?
Be prepared for a lot of rejection. This way you don't give up.
What's the last book or article you read that you'd recommend to other entrepreneurs?
What one job should every person have to do at least once in their life?
Go out cold-calling and sell someone something.
How do you know when to keep fighting or to cut bait?
When you are no longer having fun and you have tried enthusiastically at least 100 times to get something going.
Will or should the U.S. have universal health care?
Yes, everyone deserves to have national health care in a great nation such as ours. We just need to find ways to do it and not be overtaxed.
What will be the new retirement age for 2009 grads?
Seventy-plus.
Finish this sentence: The United States' role as the leader of the free world depends upon ...
Our ability to be honest and still remain extremely strong.
Should the government have a say on executive compensation?
No, let free enterprise work.
Gold: Hoard it, trade it or avoid it?
You'd be safe to hold 5% of your assets and savings in gold and silver. Insurance for the future.
You have $100 million to spend in real estate. What do you buy and where?
Sixty percent in commercial or industrial real estate with at least 80% to 85% rented and a triple net lease yielding at least an 8% return. Thirty percent in rental housing property with the same return. Ten percent in farmland.
Are we in a sucker's rally?
I believe that the present stock market is a little overvalued for today's economy. If you look one year ahead, it may be a good time to buy.
You wake up dead broke tomorrow--what do you do?
Go out and find a job--any job, in any field possible. Got to eat.
What keeps you awake at night?
Sometimes jet lag when I travel.
What's the biggest threat to your industry?
At Paul Mitchell, in many cases, it's black market and counterfeits of our products in drug stores and supermarkets. We only sell Paul Mitchell in professional salons.
By the time a trend appears in the mainstream press, is it too late for investors to capitalize on it?
No, a trend is something that lasts for a while. The free advertising has already started.
What 21st-century invention (discovered or not) has the greatest potential to change our lives?
Bio breakthroughs in DNA that will lead to curing most diseases and give us a longer and better quality of life.
Who helped you the most in getting you to where you are today?
N/A
How much vacation time to do you take each year?
Two to four weeks.
What is your benchmark of success? When did you reach it?
I was able to pay all of my bills at Paul Mitchell on time. It took about two years after starting Paul Mitchell to get there.
At this point, does money still motivate you?
Yes, I can do more things with it to create more jobs and opportunities as well as lend a helping hand. It goes back to the saying of "Give a man a fish, and you have fed him for today. Teach a man to fish, and you have fed him for a lifetime."
Describe your life in five words.
Very lucky and happy human.
John Paul DeJoria on the Forbes 400 Richest List
World's Friendliest Countries
World's Friendliest Countries
Rebecca Ruiz,
These nations are the most hospitable to expatriates, according to a new report.
The Middle East has long had a reputation for being one of the world's perennial trouble spots. But for expatriates, the tiny Persian Gulf county Bahrain ranks as one of the most welcoming places to work.
That's the surprising result of a new survey of 3,100 expatriates conducted by HSBC Bank ( HBC - news - people ). Bahrain ranked first in one key measure of how easy it is for expatriates to set up a new life for their families. It received high marks from expats who like the country's easy access to modern health care, decent and affordable housing, and network of social groups that expatriates can join.
Canada, which ranked first in a similar survey last year, fell to second place on HSBC's integration score, which measures how easily foreigners and their families can settle into a new country. Australia, Thailand and Malaysia rounded out the top five. Foreign workers in these countries found it easy to make local friends and said they enjoyed a higher quality of life than in their native countries.
Behind the Numbers
HSBC's Expat Explorer survey was conducted between February and April 2009. Survey respondents were from the U.S., Europe and elsewhere and lived in more than two dozen countries and on four continents. They ranked their new homes based on 23 factors, including food, entertainment, health care, commute and education. Of those measures, HSBC selected eight to create its so-called "integration score," a snapshot of which countries are most welcoming to expats.
Click here to see full list.
World's Friendliest Countries
It is possible that Bahrain's first-place finish is a fluke. Only 31 expats working in Bahrain participated in the survey, vs. more than 450 respondents from the United Kingdom. Bahrain ranked as the best country to join local community groups and coordinate health care. Respondents found it less easy to make local friends and learn the languages (Arabic, Farsi and Urdu), but the country ranked in the top five when it came to finding a home, setting up finances, and finding good schools.
The United Arab Emirates and the United Kingdom received some of the poorest scores on the integration scale. Expats in the Emirates reported finding it difficult to join local community groups; only 39% of respondents made local friends compared to 76% of respondents living in other countries. Foreign workers in England complained about the challenges of finding affordable housing.
Often foreigners will be surprised to learn that I am Canadian. When I ask then why the anwser will be along those lines; you're so friendly, no one has ever invited us...
Suzanne Garber, COO of the Americas Region for International SOS, a firm that provides medical and logistical assistance to overseas employees, says surveys like these give potential expats an overarching view of living in various countries.
But she says that family life is the leading indicator of whether or not an expat assignment will be successful. Many overseas stints end prematurely because an employee's family feels disconnected from the new country and has trouble handling basic tasks like refilling prescriptions, driving around town or dealing with the local police.
"The concerns are pretty much the same no matter where you are," says Garber. "You have to make sure the family's life is stable and secure."
Rebecca Ruiz,
These nations are the most hospitable to expatriates, according to a new report.
The Middle East has long had a reputation for being one of the world's perennial trouble spots. But for expatriates, the tiny Persian Gulf county Bahrain ranks as one of the most welcoming places to work.
That's the surprising result of a new survey of 3,100 expatriates conducted by HSBC Bank ( HBC - news - people ). Bahrain ranked first in one key measure of how easy it is for expatriates to set up a new life for their families. It received high marks from expats who like the country's easy access to modern health care, decent and affordable housing, and network of social groups that expatriates can join.
Canada, which ranked first in a similar survey last year, fell to second place on HSBC's integration score, which measures how easily foreigners and their families can settle into a new country. Australia, Thailand and Malaysia rounded out the top five. Foreign workers in these countries found it easy to make local friends and said they enjoyed a higher quality of life than in their native countries.
Behind the Numbers
HSBC's Expat Explorer survey was conducted between February and April 2009. Survey respondents were from the U.S., Europe and elsewhere and lived in more than two dozen countries and on four continents. They ranked their new homes based on 23 factors, including food, entertainment, health care, commute and education. Of those measures, HSBC selected eight to create its so-called "integration score," a snapshot of which countries are most welcoming to expats.
Click here to see full list.
World's Friendliest Countries
It is possible that Bahrain's first-place finish is a fluke. Only 31 expats working in Bahrain participated in the survey, vs. more than 450 respondents from the United Kingdom. Bahrain ranked as the best country to join local community groups and coordinate health care. Respondents found it less easy to make local friends and learn the languages (Arabic, Farsi and Urdu), but the country ranked in the top five when it came to finding a home, setting up finances, and finding good schools.
The United Arab Emirates and the United Kingdom received some of the poorest scores on the integration scale. Expats in the Emirates reported finding it difficult to join local community groups; only 39% of respondents made local friends compared to 76% of respondents living in other countries. Foreign workers in England complained about the challenges of finding affordable housing.
Often foreigners will be surprised to learn that I am Canadian. When I ask then why the anwser will be along those lines; you're so friendly, no one has ever invited us...
Suzanne Garber, COO of the Americas Region for International SOS, a firm that provides medical and logistical assistance to overseas employees, says surveys like these give potential expats an overarching view of living in various countries.
But she says that family life is the leading indicator of whether or not an expat assignment will be successful. Many overseas stints end prematurely because an employee's family feels disconnected from the new country and has trouble handling basic tasks like refilling prescriptions, driving around town or dealing with the local police.
"The concerns are pretty much the same no matter where you are," says Garber. "You have to make sure the family's life is stable and secure."
Best Practice and Good Practice
Best Practice and Good Practice
Introduction
To do or perform habitually or customarily; make a habit of: practices courtesy in social situations.
To do or perform (something) repeatedly in order to acquire or polish a skill: practice a dance step.
To give lessons or repeated instructions to; drill: practiced the students in handwriting.
To carry out in action; observe:
Definition - Good
Being positive or desirable in nature; not bad or poor: a good experience;
Having the qualities that are desirable or distinguishing in a particular thing
Serving the desired purpose or end;
Superior to the average
Definition - Best
Surpassing all others in excellence, achievement, or quality; most excellent: the best performer
Most satisfactory, suitable, or useful; most desirable: the best solution
Most highly skilled
What is Best Practice?
Best Practice suggests that there is a technique, method, process, activity, incentive or reward that is more effective at delivering a particular outcome than any other.
The idea is that with proper processes, checks, and testing, a desired outcome can be delivered with fewer problems and unforeseen complications.
Best practices can also be defined as the most efficient (least amount of effort) and effective (best results) way of accomplishing a task, based on repeatable procedures that have proven themselves over time for large numbers of people.
Best Practice is considered by some as a business buzzword used to describe the process of developing and following a standard way of doing things that multiple organizations can use for management, policy, and especially software systems. This is often true within the public sector.
What are the benefits of Best Practice?
A best practice strategy is one where the organization strives to copy those deemed to be proficient in a given activity. This can help your organization to:
• Respond more quickly to changes or innovations in your market space
• Become more competitive
• Increase sales and develop in new markets
• Manage and reduce costs and become more efficient
• Improve the skills of your people
• Use appropriate technology more effectively
• Reduce waste and improve quality
Tools to improve Best Practice
There are several business tools that you can use to achieve management best practice, including:
• Networking
• External benchmarking
• Quality and other external awards
• Strategic planning
• Performance management
Achieving Best Practice
We know that Best Practice means finding - and using - the best ways of working to achieve your organizations objectives. It involves keeping up to date with the ways that successful organizations operate and measuring your ways of working against those used by the market leaders.
Methods of Best Practice include:
• Benchmarking - learning from and through the experience of others.
• Standards - Best practice through achievement of standards.
Source: rapidbi.com
Introduction
To do or perform habitually or customarily; make a habit of: practices courtesy in social situations.
To do or perform (something) repeatedly in order to acquire or polish a skill: practice a dance step.
To give lessons or repeated instructions to; drill: practiced the students in handwriting.
To carry out in action; observe:
Definition - Good
Being positive or desirable in nature; not bad or poor: a good experience;
Having the qualities that are desirable or distinguishing in a particular thing
Serving the desired purpose or end;
Superior to the average
Definition - Best
Surpassing all others in excellence, achievement, or quality; most excellent: the best performer
Most satisfactory, suitable, or useful; most desirable: the best solution
Most highly skilled
What is Best Practice?
Best Practice suggests that there is a technique, method, process, activity, incentive or reward that is more effective at delivering a particular outcome than any other.
The idea is that with proper processes, checks, and testing, a desired outcome can be delivered with fewer problems and unforeseen complications.
Best practices can also be defined as the most efficient (least amount of effort) and effective (best results) way of accomplishing a task, based on repeatable procedures that have proven themselves over time for large numbers of people.
Best Practice is considered by some as a business buzzword used to describe the process of developing and following a standard way of doing things that multiple organizations can use for management, policy, and especially software systems. This is often true within the public sector.
What are the benefits of Best Practice?
A best practice strategy is one where the organization strives to copy those deemed to be proficient in a given activity. This can help your organization to:
• Respond more quickly to changes or innovations in your market space
• Become more competitive
• Increase sales and develop in new markets
• Manage and reduce costs and become more efficient
• Improve the skills of your people
• Use appropriate technology more effectively
• Reduce waste and improve quality
Tools to improve Best Practice
There are several business tools that you can use to achieve management best practice, including:
• Networking
• External benchmarking
• Quality and other external awards
• Strategic planning
• Performance management
Achieving Best Practice
We know that Best Practice means finding - and using - the best ways of working to achieve your organizations objectives. It involves keeping up to date with the ways that successful organizations operate and measuring your ways of working against those used by the market leaders.
Methods of Best Practice include:
• Benchmarking - learning from and through the experience of others.
• Standards - Best practice through achievement of standards.
Source: rapidbi.com
Ways to raise your confidence
Ways to raise your confidence
Is your confidence intensity is where you’d like it to be?
Many relationship issues occur from a short of of confidence or low self-esteem. little self-confidence can put in withdrawal, lack of closeness and even unfaithfulness in a relationship.
So, how can you amplify your confidence? Well, self-confidence is not a product that can be plucked from a tree or pulled from a bookshelf. You see, having advantage for ones self is all about self-love and that comes from inside. So, in numerous ways achieving self confidence is an expedition within.
However, there are various things you can do that will help to catch you the right track. To get you moving in the right path I’ve included the following “Ways to raise your Confidence”…
1. Think about a name that is confident and act, speak and walk similar to him or her. mock-up their mannerisms and activities. It works for them; it will work for you.
2. Smile a lot added. That doesn’t stand for putting a silly grin on your face! But smile when you walk down the lane, when you meet up people and generally be better-off even if you’re not feeling that way.
3. Gain knowledge from the past; don’t bang yourself up about it. It’s gone; it’s by no means coming back. Instead learn from it for next time.
4. Purchase yourself some new clothes, get your locks done, and care for yourself to something new. It will make you feel superior and will give your ego a boost.
5. Are you ready for situations? Are you prepared enough to meet up any test that may come up? Are you geared up for that meeting, that presentation, that job interview, when you meet somebody for the first time? If not, get to it.
6. Cooperate to your strengths. Know what you are excellent at and expose yourself to these opportunities at all opportunities - because you’re superior at it, you’ll enjoy it and have more poise.
7. Look up your weaknesses. Know and understand what these are and put a plan in place to improve them over time.
8. Gain knowledge of how to say no to people. Don’t be frightened, you’ve got nothing to be afraid of. Just watch the response on their face after you’ve said it the first time and there will be no going back.
9. Be positive. Gaze on the “can do” side of things rather than the “can’t do”. You’ve proficient lots in your life and you will accomplish lots additional in the future.
10. Be in charge of your opinion at all times. What is a thought? It’s just a query that you’ve asked yourself and the consideration is you’re answer. If you’re having negative thoughts, you’re probably asking a negative issue. Alter the questions to be more positive.
11. Whenever you experience a negative thought coming, discontinue, THINK, and say is this really vital in the grand scheme of things. A lot of the instance it isn’t. A lot of people in life major in minor things!
After you have done the superlative you can to address the connection issues, you can go back to the reasons you are having these discussions in the first place — the raise, help, change in job responsibility or shift you have been seeking. Only now you will find a human being with whom it is much easier to deal. Where earlier there may have only been stony silence, worry and stress, there should be extra open dialogue and difficulty sorting.
Efficient and good operational relationships are essential to productive negotiations. If they do not survive, you have to take time to expand them. It will never be trouble-free, but it is always priceless.
source : arxlove.com
Is your confidence intensity is where you’d like it to be?
Many relationship issues occur from a short of of confidence or low self-esteem. little self-confidence can put in withdrawal, lack of closeness and even unfaithfulness in a relationship.
So, how can you amplify your confidence? Well, self-confidence is not a product that can be plucked from a tree or pulled from a bookshelf. You see, having advantage for ones self is all about self-love and that comes from inside. So, in numerous ways achieving self confidence is an expedition within.
However, there are various things you can do that will help to catch you the right track. To get you moving in the right path I’ve included the following “Ways to raise your Confidence”…
1. Think about a name that is confident and act, speak and walk similar to him or her. mock-up their mannerisms and activities. It works for them; it will work for you.
2. Smile a lot added. That doesn’t stand for putting a silly grin on your face! But smile when you walk down the lane, when you meet up people and generally be better-off even if you’re not feeling that way.
3. Gain knowledge from the past; don’t bang yourself up about it. It’s gone; it’s by no means coming back. Instead learn from it for next time.
4. Purchase yourself some new clothes, get your locks done, and care for yourself to something new. It will make you feel superior and will give your ego a boost.
5. Are you ready for situations? Are you prepared enough to meet up any test that may come up? Are you geared up for that meeting, that presentation, that job interview, when you meet somebody for the first time? If not, get to it.
6. Cooperate to your strengths. Know what you are excellent at and expose yourself to these opportunities at all opportunities - because you’re superior at it, you’ll enjoy it and have more poise.
7. Look up your weaknesses. Know and understand what these are and put a plan in place to improve them over time.
8. Gain knowledge of how to say no to people. Don’t be frightened, you’ve got nothing to be afraid of. Just watch the response on their face after you’ve said it the first time and there will be no going back.
9. Be positive. Gaze on the “can do” side of things rather than the “can’t do”. You’ve proficient lots in your life and you will accomplish lots additional in the future.
10. Be in charge of your opinion at all times. What is a thought? It’s just a query that you’ve asked yourself and the consideration is you’re answer. If you’re having negative thoughts, you’re probably asking a negative issue. Alter the questions to be more positive.
11. Whenever you experience a negative thought coming, discontinue, THINK, and say is this really vital in the grand scheme of things. A lot of the instance it isn’t. A lot of people in life major in minor things!
After you have done the superlative you can to address the connection issues, you can go back to the reasons you are having these discussions in the first place — the raise, help, change in job responsibility or shift you have been seeking. Only now you will find a human being with whom it is much easier to deal. Where earlier there may have only been stony silence, worry and stress, there should be extra open dialogue and difficulty sorting.
Efficient and good operational relationships are essential to productive negotiations. If they do not survive, you have to take time to expand them. It will never be trouble-free, but it is always priceless.
source : arxlove.com
10 Simple Steps to Self-Improvement
10 Simple Steps to Self-Improvement
When you came to the 40-year stage in your life, you will suddenly realize many things. You get to ask yourself questions.
How will it be when I get to the end of my life? How do I feel about the life I lived?
Then someone gave you some self improvement articles while telling you that it is not yet too late. Does that mean anything to you? You bet it does. The feeling of anxiety that will come next is just normal. Then you will feel confused because life had felt so good. You were happy, had a successful marriage, two wonderful kids, and a job you reasonably enjoyed. What was my problem?
It was your glass ceiling…The "practical" and fear-based side that had convinced you all along that your passion and dreams had died.
Here are top 10 basic steps that can help you move your life to the next level. This self improvement article will assist you in breaking through your own glass ceiling to create the life you really want.
1. GIVE YOURSELF PERMISSION TO DREAM
You probably had no problem dreaming as a kid. What happened to your ability to imagine and dream about what you want and who you want to be? When was the last time that you caught yourself daydreaming and appreciated it?
2. STOP LOOKING OUTSIDE YOURSELF FOR HAPPINESS
Stop looking outside yourself for happiness. Look inside. Increase your self-awareness. Get curious about who you are at the core. Cultivate and nurture a relationship with yourself.
3. COVER THE BASICS
Take the time to address your personal needs. How can you focus on thriving in your life if you are in survival mode? Set up that meeting with a financial advisor; get your space organized, clean up the details that are wasting your energy.
4. EMBRACE YOUR PAST AND MOVE ON
Embrace your past and move on. Shift from "why it happened" to what I want to do about it now. Asking: “what" is not a very empowering question? Asking what or how I want to proceed can be much more powerful and produce forward movement.
5. REMEMBER THAT YOU ARE NOT ALONE
It is easy to feel overwhelmed with life. Seek support. Read more self improvement articles. They might help you figure about some things that are puzzling you.
6. REMEMBER TO BE GRATEFUL AND COUNT YOUR BLESSINGS
What is working right in you life? Make a list. Set aside a bit of time everyday to acknowledge what or who you are grateful for. The more you practice gratitude, the more you attract into your life things to be grateful for.
7. COURT YOUR PASSION
You still have your passions though it has been a while since you may have felt it flow. When are you the most alive and joyful in your life? Who do you most admire and what do they inspire in you?
8. TAKE ACTION AND TAKE RISKS
Take action and take a risk. All the inspiration in the world is not enough to make you move your life to the next level. It takes inspired action to do that.
9. KEEP BREATHING
You probably forget to take deep full breaths. We have all learned to constrict our breathing in response to stress. According to many self improvement articles, we not only need oxygen to stay alive, we need oxygen to give us energy and keep us healthy. Right now take 5 deep, full breaths.
10. DO SOMETHING FOR YOURSELF
Call a friend, take a bubble bath, take yourself to an art museum or schedule a whole day out in nature. Put on some great music and dance till you drop.
When you came to the 40-year stage in your life, you will suddenly realize many things. You get to ask yourself questions.
How will it be when I get to the end of my life? How do I feel about the life I lived?
Then someone gave you some self improvement articles while telling you that it is not yet too late. Does that mean anything to you? You bet it does. The feeling of anxiety that will come next is just normal. Then you will feel confused because life had felt so good. You were happy, had a successful marriage, two wonderful kids, and a job you reasonably enjoyed. What was my problem?
It was your glass ceiling…The "practical" and fear-based side that had convinced you all along that your passion and dreams had died.
Here are top 10 basic steps that can help you move your life to the next level. This self improvement article will assist you in breaking through your own glass ceiling to create the life you really want.
1. GIVE YOURSELF PERMISSION TO DREAM
You probably had no problem dreaming as a kid. What happened to your ability to imagine and dream about what you want and who you want to be? When was the last time that you caught yourself daydreaming and appreciated it?
2. STOP LOOKING OUTSIDE YOURSELF FOR HAPPINESS
Stop looking outside yourself for happiness. Look inside. Increase your self-awareness. Get curious about who you are at the core. Cultivate and nurture a relationship with yourself.
3. COVER THE BASICS
Take the time to address your personal needs. How can you focus on thriving in your life if you are in survival mode? Set up that meeting with a financial advisor; get your space organized, clean up the details that are wasting your energy.
4. EMBRACE YOUR PAST AND MOVE ON
Embrace your past and move on. Shift from "why it happened" to what I want to do about it now. Asking: “what" is not a very empowering question? Asking what or how I want to proceed can be much more powerful and produce forward movement.
5. REMEMBER THAT YOU ARE NOT ALONE
It is easy to feel overwhelmed with life. Seek support. Read more self improvement articles. They might help you figure about some things that are puzzling you.
6. REMEMBER TO BE GRATEFUL AND COUNT YOUR BLESSINGS
What is working right in you life? Make a list. Set aside a bit of time everyday to acknowledge what or who you are grateful for. The more you practice gratitude, the more you attract into your life things to be grateful for.
7. COURT YOUR PASSION
You still have your passions though it has been a while since you may have felt it flow. When are you the most alive and joyful in your life? Who do you most admire and what do they inspire in you?
8. TAKE ACTION AND TAKE RISKS
Take action and take a risk. All the inspiration in the world is not enough to make you move your life to the next level. It takes inspired action to do that.
9. KEEP BREATHING
You probably forget to take deep full breaths. We have all learned to constrict our breathing in response to stress. According to many self improvement articles, we not only need oxygen to stay alive, we need oxygen to give us energy and keep us healthy. Right now take 5 deep, full breaths.
10. DO SOMETHING FOR YOURSELF
Call a friend, take a bubble bath, take yourself to an art museum or schedule a whole day out in nature. Put on some great music and dance till you drop.
Successful Leadership in a Small Business
Successful Leadership in a Small Business
Practicing positive successful leadership in a small business, especially for the founder/owner, takes great skill and talent. In order to know what to do successfully in the start up phase and beyond takes understanding and self analysis.
Some entrepreneurs do not know themselves well enough to see their own faults. These faults can and will interfere in the success of the business.
The most crucial point in a small business where self analysis of the leader is necessary is during the transition to the professional management stage. The three important elements of people management, planning and the customer are built around the vision, mission statement and values of the company. As the entrepreneur grows the company, the leader must identify his/her need for control, sense of distrust, need for applause and defensive operations, also known as the “darker sides of the entrepreneur".
These characteristics if not monitored or unbeknownst to the leader can result in distorted reasoning and action making the transition (which is necessary for organizational growth) extremely difficult, if not impossible. Due to the leader's inability to recognize his/her destructive behaviors, the organization may be destined for perpetual smallness or destruction. Needs such as hiring more employees, growing additional branches and hiring managers to oversee teams of employees begin to appear. As a small business earns success and recognition, issues arise.
The entrepreneur generally desires such growth and success and happily appoints managers to continue training and developing and maintaining business relations. If the leader is unable to relinquish control, the managers will be unable to accomplish goals in alignment with the vision and mission of the leader. A large part of providing a successful mission statement is emulating the freedom to accomplish those actions as well as relinquishing control to those the leader hired.
Inconsistencies and deficiencies of the leader are well documented factors which limit the growth of entrepreneurial firms. An entrepreneur struggles with issues of authority and control and structure can be stifling. If the leader is unaware of this behavior, the employees will disengage and eventually leave, which costs the company money in recruiting and training of new employees.
If the control issues are allowed to continue, the leader may attempt to pull back the reins on those he/she hired to manage his/her small organization's growth. Thus, micro-managing and removing any control or power from the managers themselves. As entrepreneurs sometimes do, planning is done on a gut instinct. The transition to a professional management organization is no longer based solely on gut instinct. This transits the organization to rely upon several professionals sharing their knowledge and experience to guide the small business planning. If the entrepreneurial leader is unable to allow this to happen, the transition to a professional management organization ceases.
This behavior also affects customers. The integrity and enthusiasm that once existed deteriorates with the controlling, distrusting and defensive characteristics of the entrepreneurial leader. As customers receive lower quality service, unmet expectations and dissatisfied employees, the overall organizational reputation may be lost. The darker side of the entrepreneur negatively affects the small business, the employees and customers. It is vital for a leader to analyze his strengths and weaknesses in order to maintain a successful small business.
About The Author:
Robert II Smith has spent more than 19 years working as a professor at New York University. Now he spends most of his time with his family and shares his experience about English papers. Robert II Smith is a right person that can help you with Management papers.
Practicing positive successful leadership in a small business, especially for the founder/owner, takes great skill and talent. In order to know what to do successfully in the start up phase and beyond takes understanding and self analysis.
Some entrepreneurs do not know themselves well enough to see their own faults. These faults can and will interfere in the success of the business.
The most crucial point in a small business where self analysis of the leader is necessary is during the transition to the professional management stage. The three important elements of people management, planning and the customer are built around the vision, mission statement and values of the company. As the entrepreneur grows the company, the leader must identify his/her need for control, sense of distrust, need for applause and defensive operations, also known as the “darker sides of the entrepreneur".
These characteristics if not monitored or unbeknownst to the leader can result in distorted reasoning and action making the transition (which is necessary for organizational growth) extremely difficult, if not impossible. Due to the leader's inability to recognize his/her destructive behaviors, the organization may be destined for perpetual smallness or destruction. Needs such as hiring more employees, growing additional branches and hiring managers to oversee teams of employees begin to appear. As a small business earns success and recognition, issues arise.
The entrepreneur generally desires such growth and success and happily appoints managers to continue training and developing and maintaining business relations. If the leader is unable to relinquish control, the managers will be unable to accomplish goals in alignment with the vision and mission of the leader. A large part of providing a successful mission statement is emulating the freedom to accomplish those actions as well as relinquishing control to those the leader hired.
Inconsistencies and deficiencies of the leader are well documented factors which limit the growth of entrepreneurial firms. An entrepreneur struggles with issues of authority and control and structure can be stifling. If the leader is unaware of this behavior, the employees will disengage and eventually leave, which costs the company money in recruiting and training of new employees.
If the control issues are allowed to continue, the leader may attempt to pull back the reins on those he/she hired to manage his/her small organization's growth. Thus, micro-managing and removing any control or power from the managers themselves. As entrepreneurs sometimes do, planning is done on a gut instinct. The transition to a professional management organization is no longer based solely on gut instinct. This transits the organization to rely upon several professionals sharing their knowledge and experience to guide the small business planning. If the entrepreneurial leader is unable to allow this to happen, the transition to a professional management organization ceases.
This behavior also affects customers. The integrity and enthusiasm that once existed deteriorates with the controlling, distrusting and defensive characteristics of the entrepreneurial leader. As customers receive lower quality service, unmet expectations and dissatisfied employees, the overall organizational reputation may be lost. The darker side of the entrepreneur negatively affects the small business, the employees and customers. It is vital for a leader to analyze his strengths and weaknesses in order to maintain a successful small business.
About The Author:
Robert II Smith has spent more than 19 years working as a professor at New York University. Now he spends most of his time with his family and shares his experience about English papers. Robert II Smith is a right person that can help you with Management papers.
Market Research on a Budget
Market Research on a Budget
Research is the study of groups of people that you would like to sell your products or services to. Spending time to do Market Research minimizes risk and often improves your chances of success.
Researching your target market can provide you with sound and objective data. The problem is that market research can be extremely expensive. So how can you do the research if you are on a tight budget? Low-cost market research is not impossible, let me show you how.
First off, let's consider the things we need to look for when conducting our market research. Your target market should have at least four common characteristics. They are:
1. My target market has a particular need.
2. My target market has enough money to purchase my products or services.
3. My target market has decision making power.
4. My target market has access to my products and services.
In order to determine these characteristics you must spend time researching and asking yourself the following questions:
• My customers have a particular need. What is that need?
• My customers have enough money to buy what I am selling. Who needs and can afford what you are offering?
• My customers have decision making power. Who has the authority to say yes to what I'm offering?
• My customers have access to my products and services. How accessible are my products or services to my target market?
Where Should You Begin Your Market Research?
First Resource: Secondary Research
The best place to start looking for secondary research is online. Visit association web sites that are aligned with your industry. If you are in the consumer industry, visit the government agencies because you will find all kinds of consumer information on their sites. A great resource that you won't want to miss is the U.S. Census Bureau. Keep in mind that secondary research is not done for you, so some of the information and answers may not be applicable to you. Whoever it was that commissioned the study had their own questions that they wanted to get answered. The information you will find might be in the ballpark but not on first base.
Second Resource: Your Customers
Put together a questionnaire and have your employees ask prospects, customers, vendors, and suppliers to complete it. A couple of questions you could ask are:
• Do you like our products or services?
• What are we doing right?
• What could we improve?/This method of research also works very well when visiting trade shows. Take a walk around the hall and spend time listening to people's conversations and ask questions. Spending time doing this helps you gain insight to what your competitors are doing.
This method of research also works very well when visiting trade shows. Take a walk around the hall and spend time listening to people's conversations and ask questions. Spending time doing this helps you gain insight to what your competitors are doing.
You can also conduct:
1. Open-ended interviews with your customers.
2. Surveys
3. Focus Groups
Third Resource: Comparable Markets
Look for other comparable markets and share the expense of a study. Remember you want to do this with comparable markets but not competitors. For example, if you are a copywriter, find a company that does print advertising. Once you find someone, sit down and decide what information would be beneficial to the both of you and hire someone to do the study.
Author : Laura Lake
Source : marketing.about.com
Research is the study of groups of people that you would like to sell your products or services to. Spending time to do Market Research minimizes risk and often improves your chances of success.
Researching your target market can provide you with sound and objective data. The problem is that market research can be extremely expensive. So how can you do the research if you are on a tight budget? Low-cost market research is not impossible, let me show you how.
First off, let's consider the things we need to look for when conducting our market research. Your target market should have at least four common characteristics. They are:
1. My target market has a particular need.
2. My target market has enough money to purchase my products or services.
3. My target market has decision making power.
4. My target market has access to my products and services.
In order to determine these characteristics you must spend time researching and asking yourself the following questions:
• My customers have a particular need. What is that need?
• My customers have enough money to buy what I am selling. Who needs and can afford what you are offering?
• My customers have decision making power. Who has the authority to say yes to what I'm offering?
• My customers have access to my products and services. How accessible are my products or services to my target market?
Where Should You Begin Your Market Research?
First Resource: Secondary Research
The best place to start looking for secondary research is online. Visit association web sites that are aligned with your industry. If you are in the consumer industry, visit the government agencies because you will find all kinds of consumer information on their sites. A great resource that you won't want to miss is the U.S. Census Bureau. Keep in mind that secondary research is not done for you, so some of the information and answers may not be applicable to you. Whoever it was that commissioned the study had their own questions that they wanted to get answered. The information you will find might be in the ballpark but not on first base.
Second Resource: Your Customers
Put together a questionnaire and have your employees ask prospects, customers, vendors, and suppliers to complete it. A couple of questions you could ask are:
• Do you like our products or services?
• What are we doing right?
• What could we improve?/This method of research also works very well when visiting trade shows. Take a walk around the hall and spend time listening to people's conversations and ask questions. Spending time doing this helps you gain insight to what your competitors are doing.
This method of research also works very well when visiting trade shows. Take a walk around the hall and spend time listening to people's conversations and ask questions. Spending time doing this helps you gain insight to what your competitors are doing.
You can also conduct:
1. Open-ended interviews with your customers.
2. Surveys
3. Focus Groups
Third Resource: Comparable Markets
Look for other comparable markets and share the expense of a study. Remember you want to do this with comparable markets but not competitors. For example, if you are a copywriter, find a company that does print advertising. Once you find someone, sit down and decide what information would be beneficial to the both of you and hire someone to do the study.
Author : Laura Lake
Source : marketing.about.com
Tuesday, December 8, 2009
Selling 101-Part 4- Overcoming Buying Objections
Selling 101
Overcoming Buying Objections
At the top of this article, you assembled a list detailing each of your product's benefits. That was the fun part. Now you have to look at the other side. What objections might you face in a sales call? Salespeople are like baseball players: Generally, their failures at the plate outnumber their successes. But like good hitters, salespeople raise their average by examining their failures and adjusting the next time they come to bat. Always ask yourself why a particular sale didn't happen. What kinds of remarks have you heard from prospective buyers that kept them from going with your product? These are the objections you weren't able to overcome in your sales effort.
You should be able to put together a list of the six to 10 most common objections that pop up during sales presentations. When you have that list, write down your best responses to each of those objections. Some responses may involve several different elements. Some objections may be hard to respond to in a positive way. You've just got to do your best in formulating your answers.
For instance, if the objection is that a piece of equipment is too slow, maybe you can focus attention on other strong points that more than make up for this: perhaps less downtime, lower error rate, greater ease of operation and therefore less training required, and so on. Until you come up with an adequate response, that objection will continue to kill sales.
Once you've developed your list of responses, you must be ready to use them on the spot. You can't call prospects back in four days to tell them, "You know, I was thinking about that bad reaction you had to the high failure rate of our pumps, and I think you're overemphasizing its importance." You have to have all that sales ammunition with you in the room when you're making the presentation.
Never forget that your job is not just selling the equipment or service. In the minds of the prospective buyers, you're the company, and they're judging the company by your performance. Respond smoothly to an objection, and they'll be impressed with your professionalism (and that of your company). But if you get flustered by an objection, or leave without giving an adequate response, you will create the opposite impression.
If you see the same couple of objections arising time and time again, make the smart move: Eliminate that objection before it arises. Build a preemptive strike against that objection right into the core of your presentation, so your prospects won't be distracted by the thought of an apparent weakness in your product or service. As you're able to refine your presentation based on experience, you'll be able to eliminate a good percentage of the common objections you run into. Only then will your sales effort really begin to take off.
Getting to the Dotted Line
Getting someone to say yes is not always easy. And, as anyone with any sales experience knows, everything can be cordial and positive during the presentation. But once it's time for a decision, once someone has to write a check, things can turn dark.
If you see some reluctance to say yes, get involved in helping them make the decision. An effective way to wrap the sale up--without appearing overly aggressive--is to recap why you're there, the need that the company recognizes, and how your product satisfies that need in all its aspects. If you've done your homework well and made a skilled and informative presentation, you should have left them right at the door of making the decision. Respectfully ask them what's keeping them from making the decision right now: Are there senior people who have to approve the decision? Do they have to evaluate a competitor who's yet to present? Is there something about your product/service that they're unsure of? By the process of elimination, you should be able to trim away the possible reasons for delay.
Of course, many business decisions based on a presentation take some time. More often than not, you simply can't force the decision while you're there. If you're told that's the case, learn when you can expect a decision. Then tell them that you're looking forward to the possibility of working with them, and immediately send them a recap of your presentation with some new material--whatever you can pull together to show that your desire to provide them service is still on your mind.
Some salespeople have had success unlocking a sale with the direct question: "Do you want to purchase this service?" Follow it with silence, and let the prospect take over the conversation.
If you sense a negative decision in the making, suggest that you'll send them a recap of the meeting with your final best offer in a day or two. This will buy you some time to come up with a "Plan B."
Finally, let's assume for a moment that you don't make the sale. Your immediate course of action should be to call your contact, acknowledge the inevitable, and then ask if he or she can help you understand why the contract went to another company. This provides you with a real learning opportunity, in many ways more valuable than (although not, unfortunately, as financially rewarding as) winning the sale. Make it clear you're not disputing the decision or trying gamely to alter it. Mention how you put some work into the presentation, and you'd appreciate the chance to use your loss to improve the way you make the next presentation. Was it price? Was it product issues? Was it a superior presentation by a competitor? Probe to get specifics, which you should write up in a call report for later analysis. If you learn why people don't buy, then take steps to remedy either your presentation or the product itself.
If you do get the contract, your job is just starting in two ways. First, you've got to make arrangements to have the product or service actually delivered. Second, you now have a relationship to tend, new people to learn about and perhaps a new application in which to test your product or service. Congratulations.
Fill Out a Call Report
All salespeople hate to fill out call reports. They often feel they are being checked up on, that no one back at the office has to know the details of how the meeting went. Even sole proprietors hate call reports, and they have no one to report to. There's just something so archival and so seemingly unproductive about them.
In fact, call reports are prime marketing ore for future efforts. Think for a moment of the value you can glean from 200 call reports of recent sales presentations:
• Which companies have been approached, when and by whom
• What products they were exposed to
• Who attended the sales meeting--and who is responsible for purchasing your product
• Why they did or didn't decide on your company (assuming your salesperson followed up properly on a negative decision)
What can you do with this market intelligence?
• Study the successes to see what types of companies you're having better luck with. You can then intensify your efforts to make presentations to more of those companies.
• Study the failures to see what you can do to make your product more appealing to those types of companies. With good, concrete follow-up, you can--over time--enhance your product and alter your presentations for greater success.
• Use the unsuccessful presentations as a source for possible future sales activities. If you lost the ABC account pitch because your trucking firm didn't have enough experienced drivers, you can repitch the account when you get a little bigger.
• You know the people who hold key purchasing authority for your product. Keep them on a low-level direct-mail effort, to keep them informed of what's happening at your company.
Overcoming Buying Objections
At the top of this article, you assembled a list detailing each of your product's benefits. That was the fun part. Now you have to look at the other side. What objections might you face in a sales call? Salespeople are like baseball players: Generally, their failures at the plate outnumber their successes. But like good hitters, salespeople raise their average by examining their failures and adjusting the next time they come to bat. Always ask yourself why a particular sale didn't happen. What kinds of remarks have you heard from prospective buyers that kept them from going with your product? These are the objections you weren't able to overcome in your sales effort.
You should be able to put together a list of the six to 10 most common objections that pop up during sales presentations. When you have that list, write down your best responses to each of those objections. Some responses may involve several different elements. Some objections may be hard to respond to in a positive way. You've just got to do your best in formulating your answers.
For instance, if the objection is that a piece of equipment is too slow, maybe you can focus attention on other strong points that more than make up for this: perhaps less downtime, lower error rate, greater ease of operation and therefore less training required, and so on. Until you come up with an adequate response, that objection will continue to kill sales.
Once you've developed your list of responses, you must be ready to use them on the spot. You can't call prospects back in four days to tell them, "You know, I was thinking about that bad reaction you had to the high failure rate of our pumps, and I think you're overemphasizing its importance." You have to have all that sales ammunition with you in the room when you're making the presentation.
Never forget that your job is not just selling the equipment or service. In the minds of the prospective buyers, you're the company, and they're judging the company by your performance. Respond smoothly to an objection, and they'll be impressed with your professionalism (and that of your company). But if you get flustered by an objection, or leave without giving an adequate response, you will create the opposite impression.
If you see the same couple of objections arising time and time again, make the smart move: Eliminate that objection before it arises. Build a preemptive strike against that objection right into the core of your presentation, so your prospects won't be distracted by the thought of an apparent weakness in your product or service. As you're able to refine your presentation based on experience, you'll be able to eliminate a good percentage of the common objections you run into. Only then will your sales effort really begin to take off.
Getting to the Dotted Line
Getting someone to say yes is not always easy. And, as anyone with any sales experience knows, everything can be cordial and positive during the presentation. But once it's time for a decision, once someone has to write a check, things can turn dark.
If you see some reluctance to say yes, get involved in helping them make the decision. An effective way to wrap the sale up--without appearing overly aggressive--is to recap why you're there, the need that the company recognizes, and how your product satisfies that need in all its aspects. If you've done your homework well and made a skilled and informative presentation, you should have left them right at the door of making the decision. Respectfully ask them what's keeping them from making the decision right now: Are there senior people who have to approve the decision? Do they have to evaluate a competitor who's yet to present? Is there something about your product/service that they're unsure of? By the process of elimination, you should be able to trim away the possible reasons for delay.
Of course, many business decisions based on a presentation take some time. More often than not, you simply can't force the decision while you're there. If you're told that's the case, learn when you can expect a decision. Then tell them that you're looking forward to the possibility of working with them, and immediately send them a recap of your presentation with some new material--whatever you can pull together to show that your desire to provide them service is still on your mind.
Some salespeople have had success unlocking a sale with the direct question: "Do you want to purchase this service?" Follow it with silence, and let the prospect take over the conversation.
If you sense a negative decision in the making, suggest that you'll send them a recap of the meeting with your final best offer in a day or two. This will buy you some time to come up with a "Plan B."
Finally, let's assume for a moment that you don't make the sale. Your immediate course of action should be to call your contact, acknowledge the inevitable, and then ask if he or she can help you understand why the contract went to another company. This provides you with a real learning opportunity, in many ways more valuable than (although not, unfortunately, as financially rewarding as) winning the sale. Make it clear you're not disputing the decision or trying gamely to alter it. Mention how you put some work into the presentation, and you'd appreciate the chance to use your loss to improve the way you make the next presentation. Was it price? Was it product issues? Was it a superior presentation by a competitor? Probe to get specifics, which you should write up in a call report for later analysis. If you learn why people don't buy, then take steps to remedy either your presentation or the product itself.
If you do get the contract, your job is just starting in two ways. First, you've got to make arrangements to have the product or service actually delivered. Second, you now have a relationship to tend, new people to learn about and perhaps a new application in which to test your product or service. Congratulations.
Fill Out a Call Report
All salespeople hate to fill out call reports. They often feel they are being checked up on, that no one back at the office has to know the details of how the meeting went. Even sole proprietors hate call reports, and they have no one to report to. There's just something so archival and so seemingly unproductive about them.
In fact, call reports are prime marketing ore for future efforts. Think for a moment of the value you can glean from 200 call reports of recent sales presentations:
• Which companies have been approached, when and by whom
• What products they were exposed to
• Who attended the sales meeting--and who is responsible for purchasing your product
• Why they did or didn't decide on your company (assuming your salesperson followed up properly on a negative decision)
What can you do with this market intelligence?
• Study the successes to see what types of companies you're having better luck with. You can then intensify your efforts to make presentations to more of those companies.
• Study the failures to see what you can do to make your product more appealing to those types of companies. With good, concrete follow-up, you can--over time--enhance your product and alter your presentations for greater success.
• Use the unsuccessful presentations as a source for possible future sales activities. If you lost the ABC account pitch because your trucking firm didn't have enough experienced drivers, you can repitch the account when you get a little bigger.
• You know the people who hold key purchasing authority for your product. Keep them on a low-level direct-mail effort, to keep them informed of what's happening at your company.
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