Key Ingredient to Business Success

by Don Harkey

I had lunch with the owner of a business brokerage firm yesterday. For those of you who don't know, a business broker helps people buy and sell businesses. This puts them in a unique front-row position to watch businesses undergo leadership change. Good brokers spend a lot of time analyzing the business they are helping to sell, so they have a lot of information on the current state of the business as well as information on the old and new leadership.

This particular brokerage recognized their unique perspective and conducted a study of businesses they had sold going back 5 years. They were looking at the ones that were successful and the ones that had failed and tried to find the factors that lead to success. They expected to learn that cash flow or maybe location had a strong influence on the future success of a business. They simply failed to find any significant correlation.

Refusing to believe that business success was random, they decided to go through their list of companies and gather the general impressions of the brokers that worked with the new owners. This was a much less scientific approach, but the results were interesting. The general impression was that the successful business owners were more passionate about what they do.

Consider the implications of this... a business located in the right place with strong cash flow with an owner who is less than engaged is more likely to fail than a business in the wrong place with poor cash flow and an owner who is on fire about making the business succeed.

Passion truly is productive!!

Strategic Planning: It's the Journey

by Don Harkey

I have heard a lot about Strategic Planning lately. Organizations who have struggled in the recent economy are realizing that they could have been better prepared. Unfortunately, many companies who thought they had a plan, found out that the plan didn't apply to rapidly changing conditions. I recently reviewed a plan from a professional firm that had been filed away shortly after it was created. The owner of the plan simply said that the situation had changed from when they created the plan. When would this not be true? Does this mean strategic plans are worthless? No...

When you want to develop a strategic plan, the steps are pretty universal. You look where you are, where you want to be, and then decide how you will get there. If you stop here, this is where your plan will become out of date before it is even completed. The most important step of strategic planning is to develop an understanding of who you are.

Last week, I took a Guerrilla Marketing seminar from Brett Curry (Curry Marketing). Brett talked about marketing strategy and the first thing he said was to develop a marketing message. You need to know who you are before you can go forward.

Imagine that you are standing in the forest with a trail in front of you. You are trying to get back to your camp. You develop a plan to get there. As you go on your journey, you find that your original path is overgrown with thickets. Are you going to cut through the thickets, find another path, or go back to the beginning and start over. Your decision might be based on the distance to be traveled, how much food and water you have, the temperature outside, how much energy you have... You need to have a clear understanding of the situation in order to make a good decision. If it is getting close to dark and you don't have a flashlight, it might be a good idea to punch through the thickets and accept the scratches that come with it. If you have lots of time, you might backtrack a little and find a new path.

The point here is that strategic planning is not about planning the path from where you are to where you want to be. It is about establishing the knowledge you need to make decisions while on your journey. There is no way that you can know what the future will hold, but you certainly can gain some clarity into who you are and what your values hold so that you can make decisions based on your strengths and abilities rather than on the heat of the moment.

Good strategic planning should apply to any situation, because it is a statement of your values rather than a concrete plan. It takes the foreseeable future and tests your values against it. It honestly evaluates your position and gives you insight into what you need to do to prepare for an uncertain future. It gives you clarity!

Clarity over Dollars?

by Don Harkey

A business owner is given a choice: Do you want to save 10% of your costs per year or do you want clarity on your organization's purpose and direction?

Most owners would probably pick the cost savings.

However, my experience is that most owners are much more satisfied with having clarity. I have done projects where I have saved companies thousands of dollars per month (or more!) and the owners tend to be satisified, but not as much as you would think. The response tends to be, "that's all it took?". It's almost strange... many of them actually seem to feel uncomfortable.

When I work with a client in assessing their organization and they begin to understand the core purpose of what they are doing, they undergo a transformation. They become energized and excited. They "get it".

My clients prefer clarity over dollars! This seems crazy at first, but it only highlights the fact that we really aren't supposed to be in it for the money. Besides, it's not like we are abandoning the money. Clarity is profitable. Companies whose employees know the core purpose of the company are 29% more profitable than other companies according to one study. They start to make improvements without management (NOOOOOO!!!!!!!!!). Owners feel like they are no longer alone in what they do. Plus they can apply their new found clarity to new problems.

What is clarity worth to you?

Where is Galt?

by Don Harkey

I know I haven't posted in awhile and I am very sorry for that! My schedule has changed and I no longer spend my time in the mornings getting new articles online. Don't fret! I plan to continue this blog and have some plans to make it better than ever by adding some services to supplement the articles online. I'll soon by announcing a "Leadership Book of the Month Club" complete with a new book each month and a newsletter summarizing and discussing the book by me and my good friend Randy Mayes of the Success Coach Network.

Also, I am setting up a speaking platform and will be announcing some dates where you can come and see me talk on various topics (similar to the blog, only louder!). The first date is August 7th at noon at Deer Lake Golf Course at the 19th Hole Networking Event. Watch for more information on how to register. The event is FREE and includes networking, golf instruction, lunch and yes, me (WOW! Free Golf Instruction!!!).

Hang in there my friends! I thank you for following me and for your comments!!!

Marketing for Dummies

by Don Harkey

I recently asked a business owner for their marketing plan. The reply was, "well, we thought about hanging fliers on campus". The business was not close to the college and probably wouldn't have a strong student base if they were. I can't really criticize as I knew less than nothing about marketing entering into my business. This is compounded by the fact that my father taught marketing in high school for many years! Not a lot of marketing taught in engineering school!

I've learned a couple of things that have helped me grow my business that I wanted to share with you.

Networking
is the most effective and important activity that I have engaged in. Business simply doesn't walk in the door while you are sitting in your office, on the shop floor, or in your place of business... at least not enough business. Even successful restaurant owners I know spend some time getting their message out. How do you get started? How you get started doesn't matter as much as getting started.

There are LOTS of networking opportunities out there. If you are just getting your feet wet, I would recommend joining your local chamber of commerce. The Springfield Area Chamber holds 3 major networking events per month (Good Morning Springfield, Business-2-Business, Business After Hours). Each is a different format. Try all of them. If you prefer a different approach, try joining a local BNI chapter (www.bni.com). BNI chapters have representatives from multiple industries who do not compete against each other. The members get to know each other in order to pass referrals for each other. This is another great tool for businesses. There are also multiple community groups and activities that present networking opportunities.

While networking, there are 2 key points that will help you. First of all, look for quality, not quantity. Don't be "that guy" who pushes their business card in front of everyone in the room. "Working the Room" is more for parties where you are already known, not for networking events. Your goal is should be to meet one or more high quality individuals whom you would like to meet with again. Find that person or persons and schedule a meeting to get to know them.

The second key point is what BNI calls the "Giver's Gain" philosophy. Do not approach the networking event as a source of business. Approach it looking to meet and connect other people with valuable resources. Ask a lot of questions and offer to connect people who might find each other valuable. Don't look for customers. This sounds counterintuitive, but believe me that this is the best approach. It will help you enjoy the event more, and it will get your more business. As you become the "go-to" person for multiple people, your credibility skyrockets and it becomes much easier for you to get work. People will go out of there way to find work for you.

One last thing... make sure you bring lots of business cards with current information on them. I can't tell how many times I have met new business owners without business cards or with cards with their old phone numbers on them. This is not a fatal mistake, but you only have a couple of minutes to make an impression.

Web Presence
A companies web presence is a hot topic in marketing and it is tempting to follow the story of the business that boomed from a viral internet marketing campaign. This does happen from time to time, but remember that corporations spend millions trying to make this happen and are not successful more often than they are. Viral is hard.

A better approach is to think of the internet as another networking opportunity. You need to have a professional looking website that properly conveys the image of your company. This is a basic need. Unless your business is on the internet, you don't need an extensive website. Also, don't use a Flash website (like mine!). It looks cool, but it is harder for search engines to find and they don't work on many smart phones.

There are other web options that might be worth spending a little time on (and I mean "a little" time). More and more people are reading blogs for information on a variety of topics. Establishing a blog with a regular readership can provide you with an excellent opportunity to target your market and get your message out. If you don't know anything about blogging and don't particularly like to write, you can check out other options like www.blarkets.com. Are blogs worth it? My blog (this one) gets 4 to 5 times more traffic than my website.

Another web option is the use of social media such as Twitter, Facebook, LinkedIn, YouTube... there are LOTS of them. Creative use of these tools can help you build awareness of you and your company. As a general rule, don't direct sell on social media. No one likes to deliberately follow a commercial. You should post useful and interesting content and use these tools in collaboration with each other.

Media
More and more businesses are looking for alternatives to marketing outside of traditional radio and television. However, this means that you have an opportunity to have a louder voice than before. My friends in the industry tell me that the most effective campaigns deliver a clear and consistent message repetitively. Running a single radio ad or TV commercial one time is not effective. Finding a good marketing consultant to help guide you is very valuable (http://www.brickad.com/).

Print media is also considered to be a declining industry, but again, it only makes your voice louder than before. Consider the publications that your clients will be reading and try to get into those publications. You can purchase advertising (again, you need repetition), or you can contribute to the publication as an expert. Contributing can establish you as an industry expert (again, you can't sell directly). In Springfield, I recommend the Springfield Business Journal as a great publication with extensive readership and great quality (www.sbj.net).

You
I think one of the temptations of marketing is that you can do x, y, and z, and get business. The truth is that the most important marketing tool you have is you. You need to take care of your clients. You need to present yourself as quality and high value, which means you actually have to be quality and have high value. You have to have a great product. One of the best advertising campaigns in history was Saturn in the 1980's. It was a "different kind of car company" and the brand struck American's very effectively. It worked until GM's quality (or lack thereof) leaked into the Saturn brand and the car's reputation outpaced their advertising. It turns out they really weren't that different.

When your business matures, you may be able to work entirely off client referrals. This is a nice place to be, but be cautious even when you get to this point. Market downturns can cause these revenue streams to dry up (as many of you are finding out!). Always be on the look for new markets and always maintain a marketing presence. Think of it this way... imagine being able to select only the best clients to work with. Nice!

Enough of this... get out from behind the counter or from behind your desk and make some noise! Meet some people, add some value, and get your message out there. Want a good resource? Read "Guerrilla Marketing" by Jay Conrad Levinson. Contact me at donharkey@galtconsulting.com if you are interesting in attending a seminar on August 12th in Springfield on marketing given by my friend Brett Curry. I can get you a special price!