Great business teleseminar – 5 deadly mistakes you can’t afford to make in this economy

I thought this would be great info for the South Orange County chamber blog, hopefully Rick and the Productive Learning and Leisure team won’t mind!  Rick Itzkowich was our featured speaker, and his company Productive Learning and Leisure fully admit they have made ALL of these deadly mistakes, and survived them, so it will be nice for us to be able to take some advice as opposed to taking some hard knocks   Thanks for sharing, Rick! 

Mistake #1 – treating sales and marketing the same. 

THERE’S A DIFFERENCE!!!!  Sales is not marketing.  Marketing definition:  getting people who have a need for your product and service to know you, like you, and trust you, so they can buy from you.  They need to know you have their best interest at heart, and a prodcut or service on hand that fills their needs.  Sales is more a short term in focus, and marketing is a long term strategy. 

For example, take networking.  Many people are in the Chamber, BNI, or LeTip groups.  Networking is marketing, NOT sales.  Go there to build long term relationships, not to sell.  If you go with a sales mindset, you’ll get a couple sales… but you’ll turn a lot of people off.  Just focus on getting people to know you, like you, and trust you.  Build that solid foundation. 

Businesses in this economy need to continue to sell AND market, or risk living month to month forever.  If you market and don’t sell, you’ll fail.  If you just sell and don’t market, you’ll always barely scrape by.  Is that where you want your business to be for the long term?  Of course not!

Mistake #2 – the acronym OOSOOM.  Out of sight, out of mind. 

There’s a famous Visibility, credibility, and profitibility model called VCP.  You need to stay visible, and be out there.  Credibility involves building trust, and being consistent.  Profitibility will come after you are visible and credible.  Don’t expect to be profitable if you have issues with visibility or credibility!

Ready for some stats?  The Ultimate Sales Machine book states only 3% of people are in the market to buy your products or services at any time.  7% are open to buying your product or service right  now.  So that totals 10%, The remaining 90% don’t pay attention, are not interested, or are happy with your competitor.  So in a nutshell, its a numbers game and you need to be in front of a lot of numbers. 

***Angie’s side note*** this is why organic SEO is SO IMPORTANT!   It weeds out the other 90% and gets you the needle in the haystack!  You’re getting in front of those 3-10% online who have searched for you, typing in a phrase that indicates they want to do business with you. 

Rick told a story of his BNI meeting where OOSOOM was painfully true.  There was a guest who came in for ink cartridges and Rick needed some new ones.  Obviously, Rick was in the 3% who wanted it now, so he decided to buy.  BUT, when the time came to renew for the cartridges, 8 months later, Rick couldn’t remember the cartridge guy’s name or his business, and he ended up buying from someone else.  Rick would have bought 100’s of dollars from the same guy if he stayed in touch, but instead those dollars went to competition.

Mistake #3 – Focusing on customer acquision and forgetting about retention. 

Most businesses are worrried about getting new customers, and they ignore keeping the old ones.   Yes, new clients are exiciting.  But you can’t think of your existing clients as old news.   Make sure to build your business goals around new AND old clients.  Don’t take your existing clients for granted, they are always your best resell or upsell opportunity! 

More stats:  79% of small biz owners have NO formal customer retention policy in place.  Do you have one?  Over a 5 yr period businesses may lose as many as HALF of their customers.  Aquiring a new customer can cost 6 to 7 times more money than to retain an existing one.   A small investment in customer retention pays GREAT dividends.  Sometimes its just getting the clients to hear from you.  Many times they think you don’t care, and then they leave

Mistake #4.  THIS IS A BIGGIE!  Trading time for dollars. 

Do NOT trade your time for dollars.  Most small business owners don’t have a business, they have a glorified job.   How do you know?  Well, if you go on vacation or get sick, and you don’t have any money or resources coming in, then you’re working a job you call a business. (sorry, we’ve all done it)  REAL Businesses still earn money if the owner is not performing the work themself.  Formulate your business systems so they generate passive income.  Rick mentions having other people selling your product or service, or even your website.  If you are doing all the work yourself, you have NO EQUITY.  You’re the only asset in your business, and that’s not a business at all.  Sometimes a barter can’t be avoided or is in your best interest, but be careful! 

Rick mentions Michael Gerber (LOVE HIM!!) and his Emyth concepts.  You need work ON your business, not in it all the time.  If you only ever work in your business then you’re honestly stuck in a job.  Yes, you need to do both, obviously!  But most people just work in it and wear too many hats.  Consider outsourcing, and remember time = money.  If your constantly working 40 hour weeks then you don’t have any more time to offer trades.  Really, RELATIONSHIPS = MONEY.  Try to build relationships with influential people in your industry and think of how much that one person could do for you.  It only takes a couple power partners to really take your business to the next level. 

**Another Angie note – its nearly impossible to work ON your business when you’re so busy in it.  What Angela and I do, which helps tremendously, is block out time for this.  No, not just “every Friday”… its way to easy to let yourself off the hook   We schedule her Trendwest timeshare at least quarterly, and we GO AWAY for the entire week (autoresponders on and all) to work ON the beast called Cal Coast Web Design.   If we didn’t do this, we’d already be out of business, I guarantee it.  By no means are we experts, but hey we’re still here after 5 yrs and that says something***

Mistake #5 -  Having no follow up or stay in touch systems in place. 

Most people go network on a regular basis, BUT, they never bother to follow up or keep in regular contact to stay front of mind.  You need a structured follow up system in place!  This isn’t only true of new prospects, but also of old people from the past.  You come out with new products, don’t you?  Don’t you think that some of your old trusted clients would enjoy the upgrade too?  A recent survey showed that almost 50% of the small businesses don’t collect email addresses from their customers. And of those who do, a large percentage don’t have a systematic way to stay in touch with them.

Are you making any or all of these mistakes?  If you are, you’re in for some rough times with your business, and you will lose some business to your competition in this market. 

But wait!  Here’s help on the horizon!  Rick offers a fully automated contact tool that can help you before you have to learn the hard way.  They’ve got great results and rave reviews – its called quoteactions.   This is an automated campaign that communicates with daily emails.  There’s a motivational or interesting quote, and an action that brings it to life.  All quotes and actions are pre-written, and they are tested for success.  You can be up and running with Quoteactions in less than 30 minutes.  Fees are really reasonable, less than a dollar a day.. and there is no risk or obligation – even a 60 day $$ back guarantee!  Pricing starts at just $24.95 a month, and there is a small set up fee.  Check out www.quoteactions.com for more details and to sign up or email rick@productivelearning.com .  

Q & A time:

Q.  What’s the best balance between sales and marketing? 

A.  Do 80% marketing and 20% selling if possible.  If you need to make sales right away, though, then flip that and do 20% marketing and 80% selling. 

Q.  Does the quote action bug people when they see it every day? 

A.  Possibly, but most people opt to receive messages 5 days a week, even when they have the option of less.  They’ve researched the stats, and less than 10% of the people who get the messages unsubscribe.  The messages are short and sweet so they don’t tend to be annoying, and the system is also a double opt-in so everyone is happy to get the emails. 

Q.  How do we get our people in the system?   

A.  There isn’t much for us to do here, we just need to send the excel database to Rick to import…they knew they had to make it easy for their clients. 

Well, that’s it because the office is a bustle – its hard to take an hour out in the middle of the day   Thanks again to Rick Itzkowich and the folks over at Productive Learning and Leisure for these great tips.  Hopefully everyone reading will comment their appreciation! 

South Orange County Networking – there’s so many options!

Is it possible to have a thriving business in this economy?

ABSOLUTELY, but you can’t go it alone!  One great way to get quality leads is NETWORKING.  There are all kinds of networking groups here in Orange County – RBN, LeTip, the Chamber, BNI to name just a few.  But what makes you stand out???

Have you heard about The Connectors Network?  Its a different kind of networking group – not just networking – its about growing your business, protecting your business, and getting more done in less time because you’re utilizing other trusted Orange County professionals to help you. 

If you know a way-too-busy business owner in Orange County, tell them to come to Spassos in Laguna Hills on Tuesday, Sept 9th to learn how to protect their businesses ASSets!

Kurt Varricchio with The Law Offices of Kurt M Varricchio will be speaking – not only will you get potential business, you will avoid potential pitfalls in your business – see you there!!  Admission is $25 at the door or $20 if you pay online in advance.

Lake Forest Chamber – what a great expo!

Today I had the pleasure of speaking on Internet Marketing and SEO at Lake Forest City Hall.  Its so nice how Orange County has such supportative Chambers of Commerce, you should really check yours out :) 

There were a TON of amazing speakers today!!  The chamber organized a business expo and there were a lot of great companies and people in attendance.  I saw Carol Bridges taking professional photos of the booths and businesses, Keith Cowan and LogicIT helping advise businesses on virus protection and managed IT services, Cox, AT&T, and others.   

The best part was the advice and speakers.  Here are my treo notes:

Keynote Speaker Scott Betty, Oakley

First up Scott Betty, from Oakley, who had a mile long bio…lets just keep it short and say he’s a marketing guru and has been a major part of taking Oakley to the next level.  Scott started with a nice video showing us the essence of Oakley. 

Today he focused on the emotional connection between your brand and consumer – here are my humble notes, Scott, thank you for allowing us to share  

Who is Oakley?  They were founded in 1975, selling at motocross races.  Now they have 10 worldwide offices, and 570 patents.  They expanded across the globe and have a good balance now with the various countries…right now Japan and Brazil are huge.  Oakley didn’t start with glasses, they started with handle grips, and now have products from apparel to watches.  Current yearly revenue is almost to 900m. 

Next we talked about the economy and consumer spending.  Do consumers stop spending in a recession?  NO, but they become more selective.  They will spend for need…but what about desire?  What are our needs?  Food, water, transportation, communication, right?

Once a consumer decides they need something, there is another set of decisions and criteria for purchasing:  based on price, convenience, promotion, and availability. 

But what if what YOU and your business offer is just a want?  Not a need with the above criteria?  For the want list there are a different set of criteria…brand, trend, peer pressure, celebrity influence, EMOTION.

So how do we connect that emotion with our product?  How do people justify what they want into a need?

Take starbucks.  Its not coffee.  Its a club…its an atmosphere.  Look how many people buy into it!  Also Air Jordans.  People buy them in advance every year – its an emotional footwear phenom.  Look at iphones – another emotional product and culture. 

Oakley makes an emotional conection by focusing on innovation, and performance, authenticity, and not being scared to take risks.  ie the green reader lens sunglasses for golf.  If you are a golf nut you’re going to drool over this!  If performance is the same – take the Oakley backpack example – then focus on design.  People may not need it but they sure will want it!   Oakley has awesome fabric for racecar drivers that won’t catch you on fire if you’re in a crash.  That’s emotional, saving your life while you play your exterme sports.  Creating products that have emotional connections is the way to go.

Scott says the best watch is the oakley watch.  All a watch does is tell time…so they needed to win the race with design innovation again. 

How else does the company stay front of mind?  Oakley has sports marketing ambassadors who its their job to integrate Oakley into any given sport.  Nascar, golf, surf, football.  Oakley is there building relationships with all of them, and this is what brings them success in sports.  They think of the athletes as family, and ask for opinions all the time.  Each sport becomes a power partner, and an avenue for publicity   Nice!

Another way to market is participation with consumers.  Roll out with the rolling ”O” lab.  This mobile booth allows consumers to literally experience the Oakley difference.  It showcases Oakley technology and shows consumers how oakley has better product performance. You may see the rolling O at your next big sporting event. 

Also online they have diarama contests to help do personality based marketing and connecting.  wooo hooo Oakley!!!  Way to embrace web 2.0.  Seriously, I’m going to take a second for kudos.  Everyone go look at Oakley.com.  NOTICE how they have the website separated into men and women.  Personalization.  Notice how the products say what sport they are good for.  More personalization.  Notice how each time the homepage loads there is a different emotional niche or sport being offered up.  Total personalization.  Notice how you can grab the exact link for any product in the address bar.  Not an accident.   Simple online innovations like this get people to actually interact and BUY from your website.  Go Oakley, thanks for setting a great online example too!

Back on track.  Scott advised the Chamber members to Be bold, take risks, do not be afraid because that is what blows peoples mind.  Ruffle feathers!!!  Consumers appreciate the fact if you don’t alway play it safe.  Embrace failure and don’t be scared of it… or else you are not really pushing the envelope!

Orange County Business Marketing Panel

Next up was the marketing panel.  I was on it, so that would be rude to take furious treo notes :)  Everyone feel free to comment your thoughts, though!!  I thought everyone on the panel had AWESOME advice, I’m always inspired by Michelle with Sandler Sales.  That woman knows her stuff!!!

OC Business Finance Panel

The next panel was a Q & A that went over effective cash management.  I fully admit this is not my strong suit so feel free to clarify these notes with comments!!  Here goes…

What is a good definition of cash flow?  In a nutshell, its what’s going in, what’s coming out, and then what’s left over.  Look at an accurate profit and loss statement.  subtract items or take items off of P&L that take cash but don’t earn revenue, like inventory, debt service, paying down principal, owner draws.  Then add back loan proceeds and depreciation into cash flow to know requirements.

What key metrics should biz owners have?  Balance sheet, liabilities.  Divide cash by liabilities and look for a number greater than 1.  Also keep track of average day sales. 

What are tax advantages of being a corporation?  Ask an attorney and a CPA if you should incorporate…its NOT always the best thing for all companies. 

If we finish the year with a loss.  Is there a way to carry the loss?  Yes, but most tax payers prefer to elect to carry it forward. 

How else can you keep your cash as a business owner?  One way is to make sure your inventory is not cutting into your cash flow.  Don’t buy too much that just sits on the shelf.  Ask yourself do you really need that?  In tight times business owners need to think about every purchase.

Frank suggested to not use your cash all up – keep cash flow with financing.  Be on top of your receivables.  Don’t be afraid to ask for your money.  If you don’t set the standard up front then people will think its ok to pay you last…remember….if they don’t pay…they are not a real client!!!  So simple, Frank, but so true!  Why do small business owners fear calling for the money owed to them?

A question was asked about a line of credit…Masuda suggested don’t wait to get this until you need it…then its too late.  Small businesses should have an LOC to keep them safe – like 25k is a good number for most. 

What if you can’t get an loc?  Frank suggested alternatives – accts receivable financing.  Its not based on your credit, but for your customers credit!  If you own a retail business then you can usually get a merchant acct advance for about a month.  Also consider a sale / leaseback.

Just because you have bad credit doesn’t mean that you can’t get financing.  First off, know your credit and get things current.  Lenders look at the story..is it solved, or is it a pattern?  Fico is your personal credit….Dunn & Bradstreet is your business credit. (d&b)….ooooh, that is what that means! (smack to forehead)

Can you still get financing if you don’t show profit?  You need to show cash flow, ability, or stability.  You’ll be considered on all of the above.

How does a small biz handle collections?  Remember people make a concious decision of who they are writing checks for…be the squeaky wheel.

What if someone can’t pay their bill?  Well, think about all options before settling, make decisions based on the situation.  Is that client going out or coming into financial difficulty?  Should you take what you can while there is still something there?  It may be the best decision..Masuda mentioned the Bad check restitution program is an Orange County service small businesses can use when they get bad checks – thanks!!!

What if WE are the ones in trouble?  What do we do as a biz to survive???  First take a look at where you are spending the money.  If you don’t have money in the bank then don’t write the check.  NSF fees build up big time and they are also a consideration in credit.  Postdate checks or ask for extensions.  See how much you are paying in merchant fees.  (I just did this Michael Durante with Card Services Direct saved me 1200 a year!)  Stay in touch with your people and almost anyone will work with you.  Don’t hide be in constant communication. 

What great info from our financial experts.

Next up was the human resources panel, but DARN I have to go!!!  Its my loss, I’ll fumble with our new hire now next week   I’m sure everyone was excellent, would love comments!!!

Your Commercial Queen seminar a success!

Hi All!

Just wanted to give a THANK YOU shout out to Debbie Lewandowski of Spotlite (our Chamber Prez) for hosting a WONDERFUL seminar this morning about how to do better 30 second commercials.  Really, we don’t even get 30 seconds before people tune out.  Debbie advised us we statistically have SEVEN seconds to grab people’s attention. 

 Tick, tock, tick, tock… what can you say to expand the mental clock? 

In the room we had all LADIES (what, guys, you think you know it all???) – there was Big Red Hund with Best DVD, Vivian with Advanced Litho printing, Jane with Xango miracle juice,  Tammi with Fruition graphic design , Lily and Cindy with St. Regis Resort membership club, and me…Angie Weeks of Cal Coast Web Design. 

 I love going to seminars like this because its such a great opportunity to get to know local businesses, WHILE you are improving your own business.  I got lots of great ideas from the other “commercial queens” in the room, hopefully I gave out a couple too. 

Everyone agreed that Debbie’s seminars are a big help, and Debbie mentioned she is going to keep up with future small business building seminars.  Sweet!!!  Everyone keep www.YourCommercialQueen.com saved to favorites, so you know when the next one will be!  I know I’m there   Or subscribe to this blog, we will definately be mentioning it here as well. 

Thanks, ladies – you are all SPECTACULAR!!!

Workshop by Your Commercial Queen

Debbie Lewandowski is often seen all over Orange County at networking events.  You now have the opportunity to experience Debbie live and in person by attending a fun, lively, and interactive workshop.  It is at this workshop you’ll be allowed behind the scenes access where you will discover Debbie’s personal formula for putting together dazzling half minute commercials.  Upon completion of this workshop you’ll leave knowing how to find the best places for networking your business as well as how to create your own 30 second advertisement that will knock the socks off client prospects and help grow your business. 

Cost:
$59 first 5 registered by February14th

$79 thereafter

Includes snacks and beverages.

Pre-registration required by Wednesday, February 27th.

Register by calling Debbie directly at: 949-633-7181

Saturday

March 1, 2008

10am – 12pm

23422 Mill Creek Drive, Suite #140

Laguna Hills, CA 92653

 

For more Information Visit http://yourcommercialqueen.com/