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Business Basics

Trade offs and compromising

February 1, 2008 by Kathy Hendershot-Hurd

According to my sources, the weather in the Northern US states is downright awful. Wind chills are bone chilling and snow is falling on top of a layer of ice. Tomorrow, when Phil the groundhog pears out of his burrow, many will be rooting for him NOT to see his shadow!!! Meanwhile, my conversations with those on the frozen tundra tend to begin with an accusatory, “What’s the temperature down there?”

In Port Saint Lucie, Florida on February 1, 2008…. it’s 81 F and it feels like 81. It’s sunny outside my window right now. The sky is blue and there are thin wispy white clouds, which in the Sunshine State officially qualifies as “partly cloudy”.

Now, before you begin cursing my “luck”… you should also be aware that living in Florida has its downsides as well. That snow and ice you Northerner’s are complaining about? That’s killing your insects so they don’t grow big enough to fight back when you step on them.

Let’s skirt over the obvious “them bugs is BIG in Flo-ri-da” and the “we don’t swim or ski in any pond or lake because of the alligators and water snakes” and move directly to the wildlife that I have encountered WITHIN MY NEWLY CONSTRUCTED HOME.

First, there was the bathroom snake incident of 2006… when my daughter stepped on a baby snake on her way to the shower. We’ve only had that happen once… on the other hand there are the jumping spiders, critters don’t spin webs because they feast on prey that is too big to be caught in a web. It takes almost a full large can of insecticide to stop one in it’s tracks. (Screaming in terror just seems to draw them towards you as well!) We’ve had multiple run ins with these 8 legged predatory beasts.

They say you “pay” for the sunshine… and my budget includes a nice hefty “pest control” entry as just one of those many payments. Incredibly high insurance premiums combined with ridiculous property tax bills are also part of the “sunshine payment package”.

Now, for those who are already sick of the snow respond with, “Those are a small prices to pay indeed! It’s WORTH it to not deal with snow and ice!” Meanwhile others respond with, “UGH! I guess snow isn’t as bad as that!”

Life is FULL of trade offs and compromises. It’s not whether the weather is better here than there… it’s a case of “Is is worth the price?” More importantly, it’s a question of “Is this a price you’re willing to pay?”

The same trade offs and compromises are present when one decides to pursue the “self employment” path. Just as some are more than willing to “pay the price” of ample Florida sunshine, some are more than willing to “pay the price” of self employment than others.

The same “trials and tribulations” of running a business will energize one person and while totally draining another.

Which do you value more? Is independence important to you? Do you find being master of your own fate (good OR bad) appealing? Do you RAIL at the thought of doing things someone else’s way simply because they’re the ones who are signing your paychecks? Then perhaps you’re cut out to be a business owner!

On the other hand, if you DESPISE making decisions and hate even more to be held ACCOUNTABLE for that decision (by the universe, your spouse, the bank, your creditors, etc.) then perhaps self employment is not your calling! If you treasure your “off the clock” hours and think of evenings and weekends as “your time”…. then perhaps that’s another reason that self employment may not be a great option for you either.

An essential part of self employment is marketing. If all you want to do is:

  • accounting
  • arranging flowers
  • counseling troubled youth
  • etc.

and the thought of doing anything outside of your passion drains you, then think twice about self employment as an option.

At the very least, invest a lot of time before hand building a team of experts to with whom to surround yourself. After all, it takes a village to build a one person business!

Decisions, decisions… marketing is all about helping customers make better decisions

February 1, 2008 by Kathy Hendershot-Hurd

Every day, we make decisions. Some decision are big, such as the person we are going to marry.  Others are seemingly small such as what to have for breakfast.

“What!  Donuts in the break room AGAIN!  Well, don’t mind if I do!”

Isn’t it amazing how a series of seemingly small decisions can suddenly add up to a lot!

“Hey!  My sweat pants still fit.  Why can’t I zip up my jeans this morning?”

We make hundreds of decisions every day.  When we don’t need a lot of information to make a decision, it’s usually because the end result isn’t WORTHY of a lot of introspection.  When we make a decision to purchase products and services without needing a lot of information, those are known as “Minor Sales”.

When the end result is more important, and the decision is worth the investment of time on the potential customer’s part… those are known as “Major Sales”.

For example, when the alarm went off this morning, you made a decision. You could either jump out of bed, or you could choose to hit snooze for another few minutes of sweet, sweet slumber. At that moment, your decision whether or not to hit the snooze button is based on the information available to you at the moment. If you set your alarm to go off a full 45 minutes before you absolutely have to be up and moving, you can feel relatively confident that hitting the snooze button once or twice won’t do much harm… until that fateful morning when you’re unexpectedly confronted with an unanticipated delay. From lost keys to an accident on the freeway, there are a thousand unexpected variables that can affect whether hitting the snooze button this morning is a good idea.  However, the REAL key in accurately access whether hitting the snooze button this morning lies more in the potential end result rather than the variables which may affect whether you’re late to work or not.

If your boss has issued the ultimatum “If you’re late one more time, you’re fired!” then the decision to hit the snooze button takes on increased significance.  If yours is a more relaxed work environment, then hitting the snooze button is a relatively minor decision to make.

Most days in most situations, the decision whether or not you hit the snooze button on the alarm isn’t an important one. It’s one of a hundred small decisions you’ll make without too much thought.

However, there are other decisions that deserve greater attention.   The importance of these decisions is a direct result of the impact they will have on our lives.  When it comes to these important decisions, the more we know about the factors and variables that affect the end result, the better our decision making process will be.

This is why potential CUSTOMERS need LOTS of information about certain products but not others.

It’s important to keep in mind that as you’re creating your marketing/advertising messages that your potential CUSTOMERS are faced with decisions of their own. Advertising/marketing/ web sites are all about providing the information potential clients and customers need to make better decisions.

Which is why, I ADORE blogs as the “web site of choice” for most independent service professionals.  Because many times, your potential customers need LOTS of information about you before they decide to do business with you.

  • The CPA’s potential clients need to know the he/she really DOES know the tax code and its implications for the their business.
  • The Chiropractor’s potential clients need to know that he/she really DOES know the cause of the symptoms of pain and really can provide treatment which relieves the pain.
  • TheRealtor’s potential clients need to know that he/she really IS looking out for their best interests.

How will this person’s services help me?

  • Will I find myself in the middle of a messy IRS audit if I use this CPA?
  • Will I find myself in worse pain than I was before if I allow this guy to crack my back?
  • Will I find myself being pressured to buy the “wrong” house if I use this Realtor?

A blog helps you to communicate with people who are your potential customers.  Through your blog posts, you should seek to answer those unasked questions on their mind.

The thing about blog posts is that, done correctly, they provide a window through which potential clients/customers can observe.  That’s why I write about some of the “horror stories” I’ve come across in my practice.  It helps me to point out to my own clients how well they are being taken care of while allowing potential clients to see what it’s like being a part of my “flock”.

Are Google Adwords the answer?

January 28, 2008 by Kathy Hendershot-Hurd

online advertisingVarious questions seem to pop up in groups within my practice. This past week, the topic that is poking its head above ground like a crocus in early March is the topic of Google Adwords.

To the casual observer, the Google Adwords program appears to be the key Effortless Marketing Magic.

  • Not enough web site traffic? Google Adwords is the easy answer.
  • Not enough sales?  Again, Google Adwords is the easy answer.
  • Need a tighter target?  Google Adwords is the easy answer.

I have clients who are inquiring about Google Adwords before their web site development has begun.  Clients who have yet to provide documentation on their anticipated product and service offerings are already signed up for Google Adwords!

Like any other marketing tool, Google Adwords is the GREATEST THING since sliced bread when it’s used correctly.  When used improperly though, it is a recurring nightmare which will run up your credit card balances faster than a lovesick teen racks up overages on your cell phone bill.

For example, I had one client who signed up with a self proclaimed “Google Adwords  Gurus”.    Long story short, my client ended up with a HUGE Google Adwords bill and not a single product sale or even newsletter sign up as a result.    Unfortunately, her experience is NOT unique.

In order to run a successful Google Adwords campaign, you have to have a clear target audience in mind.  You must already have mastered everything from writing compelling and selling content to meticulous order fulfillment.  You have to have a GOOD idea of what keywords your current visitors are using when they arrive at your site.   Only then are you ready to launch your Google Adwords campaign.

Even then, you have to THINK about where you want those ads displayed!  Long ago, when you signed up for Google Adwords, you were signing up to have your ads displayed worldwide.  Now, you can target your ads to a specific geographic location.  Some one should have told Arizona Furniture’s Adwords manager about that feature.

Backstory: Last weekend, I lost it.  My 14 year old cat compulsively chews on the pads of his front left paw.   (I blame myself as I had him declawed 13 years ago, shortly after he adopted us and made short work of my drapes!)  About once a month, he causes the pad to bleed and leaves a bloody footprints everywhere he steps.  (We’ve tried bandaging the paw, but it just makes matters worse.)  My tile floors clean easily, but my 2 year old beige microfiber furniture is stained beyond repair.  (So much for that scotch guard crap!)

Last Saturday, after I tried to spot clean the latest deposits… I had reached my breaking point.   I headed to my computer to begin shopping for leather furniture.  (Interesting note:  The cat is the reason we didn’t purchase leather furniture in the first place!  We feared he’d tear up the furniture with his hind claws.)

Back to Google Adwords and the Arizona Leather Furniture Company.  I head to Google and type in the search terms “wholesale leather furniture”.  Because I haven’t ignored Adwords ads for this search, I am presented with three sponsored links.  The ad’s content reads: “Quality Leather Furniture: Custom Made Leather Furniture To Fit Your Home & Lifestyle”

I arrive at the index page of the site, where I am assured that they ship nationwide.  Good, because when I click on store locations, I see their stores are clustered in the Southern California/Arizona area.  Since I’m in southern Florida, the headline encourages me to continue onward.  Then I click to see their offerings.  Well, the furniture is lovely but there’s no description of the product dimensions… no product description…. no price!  Suddenly, it dawns on me.  This site was designed to allow the Southern California resident to “pre-shop” the store from the comfort of their home.

Such a site is a GREAT idea, especially in highly populated areas where traffic congestion makes “pre-shopping” a necessity instead of a luxury.  However, displaying that ad to me, as I pre-shop in Southern Florida is a waste and an unnecessary waste at that!  How many shoppers residing in Maine, Missouri, Kansas and Virginia have clicked that ad?  What a waste and an unnecessary one at that!

Google Adwords is a GREAT way to issue “virtual invitations” to discover your business.  If your business is limited by the constraints of geography, you can limit who sees your invitation thanks to Google’s ability to target geographically where your ads are displayed.   In other words, the Arizona Leather Furniture Company could have specified that their ad only be displayed to people logging in from IP addresses in the SoCal and Tempe areas.  The only value I can see in not limiting the geographical locations for the ads’ display is so that some marketing firm can report big numbers to their client… with an equally big Google Adwords bill on the side!  (That’s what happens when you pay your agency a % of spend instead of on a % of results.)

Without a marketing plan in place… without a well defined, tightly targeted audience… well… Google Adwords then becomes just another way to drain cash from your accounts.

Need help with getting inside your target customer’s head?  Pick up a copy of my book Beyond the Niche: Essential Tools You Need to Create Marketing Messages that Deliver Results for a step by step process you can follow to figure out the who, what where and most importantly WHY customers buy.

The trouble with sanitized content…. or how BOLD can beautiful!

January 25, 2008 by Kathy Hendershot-Hurd

Let’s face facts… success either on the web or in business  doesn’t come easily to the meek or the mild.   Whether it’s blogging or writing marketing content…. bold is not only beautiful, it’s essential.

Take for example, the experience of a client of mine.  This client had been “sanitizing” her blog posts… after all, the purpose of the blog is to ATTRACT potential clients to her practice…. so she HAD to make certain her posts weren’t offensive.  However, one day last week… she “snapped”.  She began writing from the heart and as a result, produced a very “unsanitary” post… and followed it with another…. and another!  Once she started, it seems she couldn’t stop!

Turns out, that was a GOOD thing!

The results were immediately evident.  Traffic rose sharply as did comments to her “unsanitary” posts.  Some of the comments were positive, some negative but the point is… she had motivated her readers to take action by taking off the kidskin gloves and “getting real”.

Whether it’s a blog post or a radio ad, being bold is a great way to break out of the ever growing pack of the mundane.  However, I don’t recommend being belligerent merely for the sake of being belligerent.

BOLD is different than belligerent.  Bold is daring to stand up for what you think… while belligerent is merely picking a fight.

I passed on being bold the other day.  I came across a blog post that was extolling the virtues of a certain plug in for Word Press from Microsoft that required disabling a popular Google Sitemap generator plug in.  The comments on the blog were, “Hey!  Great advice!”  and “Thanks for letting me know!”  Meanwhile, the voice in my head is screaming…. “YOU WHAT?!?!  YOU DISABLED A PLUG IN THAT AUTOMATICALLY CREATES AN XML SITE MAP FOR YOUR BLOG FOR SOME GARBAGE FROM MICROSOFT?!?!?”

trafficI should have been bold.  I should have been daring and I could have done so without being belligerent.  I missed an opportunity to attract more readers to my blog had I done so.  Instead… I put my head down and got back to work.  My opportunity to be bold passed as quickly as it presented itself.  The opportunity to remain a part of the ” crowd of the mundane” is relentlessly persistent.

Liz Strauss would NOT be proud!

Business Reality: Email Newsletter Delivery and Economies of Scale

January 24, 2008 by Kathy Hendershot-Hurd

Recently, I’ve had a couple of clients express a desire to purchase/create their own email newsletter delivery software to run on their own hosting account. I’ve also had more than one client pass through my practice having pursued that path previously, with disastrous results.

In college, I picked up a second major in economics because I discovered that I had taken most of the courses required for a major without trying. I just really loved both micro and macro economics and what I learned in those courses have served me well, even two decades later.

In my course of study, one of the concepts covered was that of economies of scale. According to Investopedia:

Economies of Scale: The increase in efficiency of production as the number of goods being produced increases. Typically, a company that achieves economies of scale lowers the average cost per unit through increased production since fixed costs are shared over an increased number of goods.

It’s this economic principle that comes to mind when solo entrepreneurs decide to launch their own newsletter delivery/email broadcast service.

Quite simply, Marketer’s Choice (a.k.a. 1 Shopping Cart/Professional Cart Solutions/Kickstart Cart, etc.) is able to leverage economies of scale in their favor. For only $29 per month, you can subscribe to their service AND let them handle all the headaches that come with managing your own email newsletter list.

OR you can pay several hundred or even thousands of dollars (one client reported a quote of $3000) to have a custom application built for you.

The problem, as one client of mine discovered, is that the initial creation/launch of the software is just the tip of the iceberg.  Today’s effective email newsletter software is tomorrow’s invitation to hackers to find the security holes in your system.

Some of the biggest names in the internet marketing use either a version of 1Shopping Cart or Aweber to deliver their email newsletters.  Hopefully, some day, newsletter email will be a thing of the past thanks to RSS feeds.  Until then,  most web site owners would be better served to use the above mentioned services than try to develop their own.

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