business building

Business Building Strategy: The most important question of all…

November 10, 2009 by Kathy Hendershot-Hurd

When you’re building a business – there’s a lot of questions that need to be answered. Dr. Jean Murray says there are 10,000 questions you’ll have to answer as you start your business. While I never stopped to count them all – I think she’s definitely in the ball park with that estimate.

Some of those start up questions are easy – and when a question is easily answered it’s usually answered quickly. Some questions are hard – and it takes time to discover the answer.

There is one word which can drive your business towards success more quickly than any other word. While this word can stand alone as a question – when it’s part of larger question – it’s presence signals that the question at hand is one of the most important you’ll ask over the course of your business.

This powerful word is easy to say – and easy to spell.

This mystical magical word is the word – WHY.

Why ask why?

Why is a powerful question to answer as you build your business. In Business Building Strategy: What will you do to get their money?, I talk about a common business problem – those idiot customers and their stupid requests. (If you don’t know me or haven’t spoken with me – you might not know that my tongue is FIRMLY in my cheek when I wrote the previous sentence.) Often – when you’re tempted to “label” a customer as “stupid” or an “idiot” – it’s often because you don’t understand thy “why” which is driving the customer’s behavior.

For example, “Those idiot customers keep calling to get directions to our store, even though we have a map on our web site!”

Ask “why” and suddenly the view of the situation changes. Asking why helps to move the view of from a customer problem – to a web site problem.

When you apply the “why word” to the questions raised – the questions suddenly take on an elevated level of importance. You can even add this mystical magical word to a simple statement to turn it into a thought provoking important business building question.

Take this “complaint” – “My [insert advertising media here] is driving visitors to my web site – but it isn’t generating any new business.” Adding the word “why”takes a complaint and turns it into an essential business building question.

Sometimes answering this question is easy. Sometimes it’s hard – but the reason it’s hard is not that it’s like solving a complex math problem hard – but rather it’s a “we’re going to have to do something that’s outside of our comfort zone.”

“Because I said so” is a LOUSY answer when someone -anyone – asks you why. If you’re tempted to give that answer – take a moment to think. Often, that answer is often a sign that you just aren’t willing to dig in and answer the real question – “why?”

Asking why often leads to discovering business problems which lie outside of your comfort zone. For that reason alone – knowing the answer to “why” is essential. The “why” can help you take that first scary step through the Looking Glass – which is known in MBA speak as “thinking outside of the box”.

Business Building Strategy: What will you do to get their money?

October 30, 2009 by Kathy Hendershot-Hurd

I’ve been doing a lot of individual work with clients and a phrase I’ve been using a LOT lately is…. “What are you willing to do to get their money?”

It’s easy to blame those idiot customers for not being smart enough or willing to work hard enough to do business with you.

You know – the idiot customers who aren’t SMART enough to properly spell your Eastern European last name which you use as your domain name.

The idiot customers who aren’t SMART enough to search for your business by name – and instead they’re searching for a solution to their problems.

The idiot customers who still call and ask the VERY questions answered on the FAQ page of your web site.

The idiot customers who call and ask for directions when there’s a map right there on the web site under “more information”.

What are you willing to do to earn their business?

One of the key elements I bring to my clients is an objective “outside eye”. Often, my input will ruffle some feathers – because in the end – I can’t make your customers “smarter” or “prettier”. Often – I find myself delivering this nugget of wisdom:

Your customers are NOT idiots – really. (Check out “Business Building Secret: People are pretty smart” for more on this.)

We can spend shit loads of money trying to influence customer behavior or we can go the quicker, easier and more profitable route which is to change how YOU ARE doing things rather than trying to change how YOUR CUSTOMERS are doing things.

If you’re waiting for your customers to make it easy on YOU to take their money- well – good luck with that. The worm doesn’t find it’s way to the early bird – it’s the other way around.

Something triggers the call…. maybe the “problem” has been niggling at you for weeks or months. Perhaps it’s visited you in your dreams. Something isn’t RIGHT and it needs to GET RIGHT – the sooner the better.

“Our web site is getting lots of hits – but no one is buying” – is just one sign that SOMETHING isn’t right.

That’s why you call in outside help – an objective eye – to see what you can’t see. Just don’t expect the answer to be, “You’re doing EVERYTHING right – you just need better and smarter customers.”

So assuming that you KNOW something’s wrong – and that what needs to change is on your end – where do you begin?

It would be easy to see the forest if you just weren’t surrounded by all these damned trees!

Begin with this – you don’t know what you don’t know.

If you did know – you wouldn’t need outside help.

Here’s the catch 22 – when you don’t know what you don’t know – how can you tell the difference between someone who really DOES know – and someone who just knows a little bit more than you do?

There was a time when finding out how much an “expert” knew meant sitting down – either in person or on the phone – and talking to them. You ask questions, the expert answers and you try to discern whether this “expert” can solve your problem.

However, and this is where “experts get frustrated, often as a potential client -it’s hard to get “up to speed” in a single 30-60 minute conversation. So – the prospective client meets with SEVERAL “experts” – asking questions and comparing answers. It’s all part of the process of educating themselves to the point of being able to MAKE a decision but from the experts point of view – these people are wasting time and time is what most experts are selling.

However – there is a way for experts to circumvent the time consuming client education process. Instead of sitting down with individuals – answering the same questions over and over – the expert can begin blogging.

About a year ago – I began to notice something about my “new client” conversations – the people who were calling had read my blog. Because of this, they were calling me at a later point in the “decision making process”. Instead of getting tire kickers – I was getting people ready to sign up to work with me.

I recently had a tire kicker conversation – from someone who hadn’t read my blog. I found myself – in the conversation – directing these people to various blog posts to answer their questions. That conversation reminded me of the “old days” before my blog – the days when I spent a LOT of time with “tire kickers”… trying to bring them up to speed as quickly as possible.

What are you willing to do get their money? Are you willing to make the investment of time and effort to educate your prospective customers with your blog?

The Business Value in Being First

August 18, 2009 by Kathy Hendershot-Hurd

business value of being first There’s all kind of cachet around “being first”. In Immutable Laws of Internet Branding – we are told that you absolutely MUST be “first” if you want to win in business and branding. But is it true? Is there really that much economic value in being “first”?

(Note: I’m not talking about being UNIQUE in this post, but about being the first to market.)

In What Michael Jackson can teach business about social media I shared that the King of Pop did not create the first music video. He did however effectively use music videos to market the biggest selling album of all time.

There’s a lot of “history” to be made in being “first” – and today there are all kinds of businesses clamoring to make their mark by being the “first” in their field.

For example, according to the LA Times, the first Digi-Novel Level 26 is being introduced at this year’s Comic Com. What is a digi-novel? It’s a book which enables the reader to participate in a “companion experience” online.

First usually needs explaining

There’s an old sales saying that goes, “A confused mind always says no.” This is one reason why being first doesn’t guarantee success. When you hear about a Digi-Novel – the first question that comes to your mind is probably, “What’s that?” (Answer: In a Digi-Novel, every 20 pages or so – the reader can “log on” and watch a 3 minute “mini-movie” to supplement the story. In addition to being able to tune in for “mini-movies” – readers can also create online profiles for themselves and interact with each other.)

First can be frustrating.

Being first means you get to discover all the bumps and twists in the road. When a trail blazer cuts a new path through the forest – they usually emerge covered with cuts and bruises. Being a trail blazer isn’t easy. It takes dedication and hard work to carve your own unique path through the forest. It certainly takes a lot longer than taking the well worn path of least resistance.

Sometimes as a trail blazer, you ‘ll cut your way through the forest only to discover you’ve created the most direct path through the forest to a 200 foot drop dead end off .

First means educating your user.

Not only do you have to familiarize your users with what your product is – you also must teach them how to use it before you can sell it to them.

One of my favorite anecdotes to share illustrating this phenomenon is the story of Google. In the early days, when “regular” users were sat down in front of a computer and told to “search” – they would looking pleadingly up at the researchers and ask, “For what?” Google’s minimal home page was confusing and overwhelming to most internet users at the time.

However, thanks to the dot com boom and millions of dollars of venture capital, people quickly learned about this new thing called the internet. In the aftermath of the dot com bust- not only were more people going “online” but casual internet users finally knew what it meant to “search” thanks in part to the millions of dollars invested in promoting companies that couldn’t make it simply because they were the first online.

When you’re first – there’s a significant amount of user education going on along the way. You’re not only having to create marketing messages which are compelling and selling, they also must be educational as well.

Being first can mean setting the standard.

You’ve heard of social media – and social media marketing – but EQAL is creating the first “social entertainment” company.

LonelyGirl 15 was an example of a new use of a new medium and the ensuing new type of media production company. LonelyGirl 15 caused a lot buzz online – most of which happened was when viewers learned the whole thing was “staged”. In the uproar that followed, the first”social entertainment company” was launched.

Learn more in this video interview with the creator Miles Beckett….

The only way to take users someplace they never expected to go was by being FIRST. In this case – being first was the key to success.

In an attempt to imitate the success of LonelyGirl 15, Naked Communications launched a similar “viral video” campaign on behalf of the Australian fashion designer Witchery. Here’s a link to the video. It generated a lot of buzz again – not all of it good.

Adam Broitman labeled it as one of interactive media’s most offensive campaigns. By the way, if you click over to the article, you’ll notice that Adam references “A website was created that cleverly (?) uses an Apple .ME account:”. That attempt to deceive is no longer around. However, the video which was uploaded to YouTube is still there – living on in what may well now be infamy.

Which just goes to show – you don’t have to be FIRST to get bloody and bruised by misusing social media.

Being first is probably the most difficult path of all to choose when you’re starting a new business.

When geese fly in formation – they frequently change leaders because being the leader of the V formation is so draining.

If you plan on being first, know that you’ll need plenty of support as you take that uncertain – but exhilarating – path to success.

Your Two Most Important Business Assets

June 17, 2009 by Kathy Hendershot-Hurd

time “Time is free, but it’s priceless. You can’t own it, but you can use it. You can’t keep it, but you can spend it. Once you’ve lost it you can never get it back.”

Harvey MacKay

No matter what business you’re in, never forget that time and money are your two most important business assets.

It’s called a “paradigm shift“… a radical change in your view of the world. It’s roots are in the scientific community – where radical discoveries lead to paradigm shifts. An example of a paradigm shift…the world is flat – OH NO!- now it’s round! To quote Weird Al, suddenly “everything you know is wrong.”

I had my own paradigm shift several years ago and it was the result of a message on an old style online bulletin board. The words were amazingly simple – yet they rocked my world….

You can always get more money – you can never get more time.

Prior to reading that statement – I’d been running my business in reverse so to speak. I’d been operating like I had all the time in the world. I’d spend hours performing a task instead of buying software to automate said task. There was virtually no limit to the amount of time I would invest to save a little bit of money.

I’ve since learned that this mode of thinking is also referred to as a “poverty mindset”.

When I began operating my business like my time was more precious than money – a surprising thing happened – I began making more money!

I had been fooled by the fact that time is free.

I had failed to realize that while time may be free, it’s also priceless.

Often, in the course of building a business – we’re faced with the dilemma of trading time for money and money for time.

Should I hire a lawyer or should I try to create my own articles of incorporation?

Should I hire a CPA or do I handle my own taxes?

Should I design my own logo or should I hire a graphic artist?

In the early days of your business – it’s a given that you’re going to have more time than money. However, don’t make the critical mistake of not understanding the importance and value of your time.

Time may be free – but it’s also priceless.

Which brings up yet another “gem” saying I’ve come across in my internet travels …

“You’ve either got plenty of time or plenty of money. If you’re lacking both – then you haven’t spent either wisely.“

I’ve got to admit – I didn’t LOVE that saying when I first read it. To be honest, reading those words for the first time almost made my eyes water- that’s how badly they stung! However, over time I’ve grown to love those words and the accountability inherent in them.

How effectively are you using your two most imporant business assets?

If you don’t like your answer to the question above – check out Tom Volkar’s post on getting on “right track.”

Who told you this was easy?

March 1, 2008 by Kathy Hendershot-Hurd

Lately, I’ve been being “peppered” with “complaints” of sorts. Oh, complaints isn’t the right word. It’s just an overall sense of “Gee… this building a business stuff is HARD work!”

For example, there’s the client who is struggling to get a logo designed for his business. He signed up and paid his money ($200) to an online company that promised “satisfaction” and came back with four nice, high quality, “generic” logos for his business.

The problem?

His business is not “typical” of this genre. His original web developer “got” that when he built his web site… and I “got” that after a few conversations with him. Heck a year later, he still holds my feet to the fire reminding me of that fact!

The problem was that this logo company didn’t get it. He tried SEVERAL times to explain it to them, and each time they kept “regurgitating” back the same “generic” logo samples. Obviously, they didn’t WANT to get it or weren’t capable of understanding. Either way, they were NOT gracious when he asked for his promised “satisfaction guaranteed” refund.

We had the same “problem” when we hired a video production company to produce his television commercial. We even used a firm in southern Florida so I could work closely with them on the production of the commercial. I know I drove the company NUTS but in the end, we fought and kicked and screamed and finally ended up with a commercial which accurately “reflects” this client’s business.

In the middle of the logo debacle… my client wrote to me and his frustration came through loud and clear, even through email: “Why can’t ANYTHING be simple!”

Right now… as he’s building his business…. NOTHING is easy. We’re pouring the foundation of the business… and just like pouring the foundation of a building, this is important. This is the stuff his business success will be built upon. He’ll be using that logo, the web site, that television commercial, those business cards for YEARS to come. Better to pay a little extra today than pay to rework it all next year.

I’ve never, ever heard ANYONE in any marketing circle say, “What the hell! It’s OK if it doesn’t “tell” the client’s story at a glance. After all, it’s just a logo!”

So if you didn’t know before, I’ll tell you now:

BUILDING A SUCCESSFUL BUSINESS IS HARD WORK!!!

building a business It’s hard and anyone who tells you otherwise is selling you snake oil!!!!

The reason for the high “failure” rate of new businesses is NOT because the business “didn’t make it.” The number of business “failures” in the sense of the business was in debt and unable to cover its expenses are actually much less common than you may imagine.

Over at Business Know How, Janet Attard says:

In fact, US Census Bureau data shows half of new employer businesses survive more than four years, and about one-third of closed businesses were successful at closure.

In other words, the reason for business “failure” is not because the business didn’t bring in enough cash to cover expenses but rather because the owner said, “SCREW IT! I can make more money for less headaches working for someone else!”

As a “boot strapping entrepreneur” you get to wear ALL the hats… even the ones you hate. You get to wear the sales hat… the bookkeeper hat… even the janitor’s hat. Oh, and even when your business “grows” to a point where you can hire other humans to wear these hats for you… the buck still stops with you. If the bookkeeper you hired doesn’t do his/her job… the buck still stops with you. If the sales superstar you hired doesn’t deliver, the buck still stops with you.

I guess because I grew up a family supported by my self-employed father, when I launched my business I knew it was going to be a long, hard road ahead.

As a side note, one of my father’s close friends was the late Jim DeVoe who launched J.D. Byrider. The J.D. in the name stands for Jim DeVoe. Another childhood friend of my father is Joe Astorg who now owns a chain of car dealerships in West Virginia. Both these men launched from “nothing” and worked for many years growing NOTHING into something BIG! My father was also a car dealer who launched several other businesses as well. I grew up hearing business growth stories nightly at the dinner table. I guess that helped to set my expectations when I launched MY business. I knew the business would first have to sit up before it could crawl… and crawl before it could walk… and be able to walk before it could pull a loaded wagon!

Now, 10 years later, running my business is not NEARLY as hard as it was in the beginning. However, when the “young pups” who launched their business last October call to complain… I remind them that their new business is a BABY! They haven’t even been in business a full quarter yet and they’re expecting their “baby business” to be walking, talking and going to work supporting them. I wish I could think of an example of a time when that has worked.