I went on a first appointment with a prospective customer a few years ago and started talking about some ideas about getting this particular business off the ground. During the "needs analysis" portion of the conversation I started asking questions about profit margin, expenses, goals and quickly realized that they didn't have specific answers for any of these questions. How was I supposed to put together an advertising budget when ultimately this particular customer didn't even know what they needed to bring in to break even?
It is all too common that a lot of businesses aren't even working with a basic business plan. This plan needs to first address all of the projected expenses. You need to know exactly what it's going to cost to operate. Many businesses aren't even expected to make a profit their first two years of business. How many actually plan for that? Next is determining what you are going to sell and for what price. Sounds pretty easy huh?
I think the hard part is actually getting this information into a spreadsheet and working the numbers so that you have a goal to hit. Setting goals and being organized are weaknesses many business owners struggle with. So before you go too far...get someone in your organization that is strong with these aspects. Somebody has to be doing this. Without fail! OR you will fail. STOP WINGING IT TODAY! RIGHT THIS SECOND!
If you have never done this simple drill...please do it within the next 24 hours. You can't afford to wait. It could be eye opening. You might actually determine why you're not making the kind of money you expected to make when you first started. With this information you can start applying better practices that will help the areas that need improvement. I regularly post these practices so stay tuned to future blogs.
Getting back to the appointment I first spoke about, we established a business plan BUT sadly realized that with mortgage, utility and all of the other expenses that this particular establishment needed to do numbers that were just not feasible in the category they were embarking on. Based on that information we decided to not to take on the client and recommended against the business going forward. Of course this was information that they didn't want to hear. It was a hard pill for them to swallow but was accurate. The numbers don't lie. After 13 difficult months the business went under. By the time we met with them...it was already too late. They were already pot committed. I know this is how it goes down often...too often.
So get your measuring stick out and don't go all in with a seven and a deuce. Get it?
Monday, December 14, 2009
Sunday, December 6, 2009
Positive thinking is essential...everyday!
Ever wake up in the morning and while you are getting ready for the day stubbed your toe on the bedpost? Or maybe you spilled your coffee on yourself on the way out the door? Or every song on the radio is not to your liking AND you think..."my day is going to be BAD because it's not starting off so good". Relax! Your day is going to be fine. As long as you THINK it is.
Why is it that these little setbacks are more defined when they occur first thing as opposed to later in the day? Spilling your coffee at noon doesn't seem to ruin your day as much as it happening at 6am. Well, it's common to hear someone saying things like..."that's how my day started off so I knew it was going to continue". Come on! Really? Ever wake up on the wrong side of the bed? Yes...it's your excuse to walk around miserable all day long.
Obviously some days you are going to wake up feeling a little sluggish. Some days it's a little harder to wake up. Some days you even wake up a little late. It's no big deal. Let the power of positive thinking get you back on track. How? Just think about it for a second. That's it. Use these little moments to remind yourself how GREAT the day is going to be. Take a mental inventory of what you need to get done then immediately think about how it's going to feel when you have accomplished everything. DON'T allow yourself to get down...not for even one second. Remind yourself that it's not worth getting worked up about. Think about all the positive things happening in your life. Tell yourself that you are going to have a wonderful day. Start this thinking process right now and be consistent. Not only will it keep your mood positive it will help you focus on the tasks that need to get done today!
You will always get through the day better with this positive thinking and those around you will notice and want to know why you are such a good mood...EVERYDAY! It's very black and white...positive thinkers succeed...negative thinkers fail. Have a wonderful day!
Why is it that these little setbacks are more defined when they occur first thing as opposed to later in the day? Spilling your coffee at noon doesn't seem to ruin your day as much as it happening at 6am. Well, it's common to hear someone saying things like..."that's how my day started off so I knew it was going to continue". Come on! Really? Ever wake up on the wrong side of the bed? Yes...it's your excuse to walk around miserable all day long.
Obviously some days you are going to wake up feeling a little sluggish. Some days it's a little harder to wake up. Some days you even wake up a little late. It's no big deal. Let the power of positive thinking get you back on track. How? Just think about it for a second. That's it. Use these little moments to remind yourself how GREAT the day is going to be. Take a mental inventory of what you need to get done then immediately think about how it's going to feel when you have accomplished everything. DON'T allow yourself to get down...not for even one second. Remind yourself that it's not worth getting worked up about. Think about all the positive things happening in your life. Tell yourself that you are going to have a wonderful day. Start this thinking process right now and be consistent. Not only will it keep your mood positive it will help you focus on the tasks that need to get done today!
You will always get through the day better with this positive thinking and those around you will notice and want to know why you are such a good mood...EVERYDAY! It's very black and white...positive thinkers succeed...negative thinkers fail. Have a wonderful day!
Sunday, November 29, 2009
Why is the retail so boring?
I recently walked into a retail business and noticed there were no customers in the store. I approached the owner of the store and an employee and greeted them. The response I got was somewhat expected..."We're slow...we're bored." I immediately started asking a bevy of questions that my natural curiosity instinctually came up with. I wanted to know why they were so bored. I couldn't imagine how this particular business owner or any business person, employee, salesperson could EVER be bored. There is so much to do! Let's get going!
After normal business duties are completed...things like sweeping the store, inventory, straightening out racks, etc...if all you are doing is sitting there waiting for customers to show up you need to start doing some of these suggestions:
1. Identify and communicate with your core customer. These are the people that have come into your store in the past and people you know that may come into the store in the future. Did you approach each and every one and ask if you could market to them in the future? You could send these people your new inventory, sales, extra discounts, etc...ask for their address, e-mail address and even their cell phone number. Once you have this information you can contact these individuals who have agreed to receive this information. Send a postcard, e-mail or text as part of your overall marketing plan. Be careful not to do this too much as you may annoy or irritate these people and lose them just as easily as you got them.
2. Start social networking for your store. Sites like Facebook and Myspace have millions of users and if used properly can help to get your store noticed. Remember that these sites are "social" sites. People don't like being sold to so be sure that your posts and events give the user a reason to be interested. There are many companies that can help get this effort off the ground and even manage them for you. Commit to spending some time on a daily basis interacting with the network and you will see some positive results with your investment only being your time and maybe the couple of bucks your marketing partner requires.
3. Meet your neighbors. Spend some of your "bored" time visiting businesses near yours. Take a walk up and down the street and do some face to face networking. Let these business owners and employees know what you do and remember it's not all about you. Take the time to learn about what they do. Exchange fliers and brochures about each other's businesses and help distribute them for one another. Refer people you know to their business and they are sure to do the same. Because most consumers rarely travel too far from their homes a customer of yours is probably a customer of theirs.
4. Join networking groups and attend the meetings. Whether it be your local Chamber of Commerce, a professionals group, an advocacy group, etc...these relationships will help your business grow. People want to do business with people they know. People want to be loyal to those that are committed to the same things they are into. It could make the difference between someone choosing between you or your competitor.
I could go on and on about this topic. You can contact me if you need some more ideas to keep you busy. These simple ideas can really make a difference with your business no matter what business you are in. They apply to all businesses. So let's all agree to keep our people busy so we can all see positive results!
After normal business duties are completed...things like sweeping the store, inventory, straightening out racks, etc...if all you are doing is sitting there waiting for customers to show up you need to start doing some of these suggestions:
1. Identify and communicate with your core customer. These are the people that have come into your store in the past and people you know that may come into the store in the future. Did you approach each and every one and ask if you could market to them in the future? You could send these people your new inventory, sales, extra discounts, etc...ask for their address, e-mail address and even their cell phone number. Once you have this information you can contact these individuals who have agreed to receive this information. Send a postcard, e-mail or text as part of your overall marketing plan. Be careful not to do this too much as you may annoy or irritate these people and lose them just as easily as you got them.
2. Start social networking for your store. Sites like Facebook and Myspace have millions of users and if used properly can help to get your store noticed. Remember that these sites are "social" sites. People don't like being sold to so be sure that your posts and events give the user a reason to be interested. There are many companies that can help get this effort off the ground and even manage them for you. Commit to spending some time on a daily basis interacting with the network and you will see some positive results with your investment only being your time and maybe the couple of bucks your marketing partner requires.
3. Meet your neighbors. Spend some of your "bored" time visiting businesses near yours. Take a walk up and down the street and do some face to face networking. Let these business owners and employees know what you do and remember it's not all about you. Take the time to learn about what they do. Exchange fliers and brochures about each other's businesses and help distribute them for one another. Refer people you know to their business and they are sure to do the same. Because most consumers rarely travel too far from their homes a customer of yours is probably a customer of theirs.
4. Join networking groups and attend the meetings. Whether it be your local Chamber of Commerce, a professionals group, an advocacy group, etc...these relationships will help your business grow. People want to do business with people they know. People want to be loyal to those that are committed to the same things they are into. It could make the difference between someone choosing between you or your competitor.
I could go on and on about this topic. You can contact me if you need some more ideas to keep you busy. These simple ideas can really make a difference with your business no matter what business you are in. They apply to all businesses. So let's all agree to keep our people busy so we can all see positive results!
Sunday, November 22, 2009
How important is the offer in your ads?
I talk to many business owners during the course of my days and I have met many that insist on leaving an offer out of their advertising. These are usually the same businesses that consistently use cliche's in their ads like "great customer service", "low prices", "experienced", etc...and too many words similar to a laundry list. No wonder they have no idea if their advertising is working or not. So really how important is an offer in advertising?
I believe and teach a basic philosophy when putting a client's ads together. 10% of the ad should focus on a specific theme or "branding"..."40Th anniversary sale". 15% of the ad should be focused on creating urgency..."ends December 31" AND 75% should focus on the offer..."75% off". Yes 75% of the ad. This will allow the consumer to make a decision once they are exposed to the ad. Are you in or not?
Early in my career in radio advertising I had a meeting with an electronics store. They sold TVs, appliances, etc. The first thing this guy threw at me was "radio doesn't work for my business". (It's obvious I could tell this story using any medium...you will see it really doesn't make a difference). I listened intently at the specific reasons for his objections and finally offered him the opportunity to hear my point of view. I told him that I believed radio could work for his business and if he would meet me again I would put together a commercial that would definitely work for his business...I would be writing the copy. He agreed. We set up another confirmed appointment days later.
Upon my arrival for the second meeting I immediately played the commercial for him. Almost instantly the owner declared "I can't do that!!! People will be lined up outside my doors! I would go out of business!!!" That's not exactly the reaction I was trying to get but nonetheless I had definitely overcome his objections to the radio with an offer..."buy any television and receive a FREE VCR...offer ends Sunday". Pretty great deal that this particular business owner knew would motivate a consumer to come into his store. We eventually agreed upon a similar offer and began a prosperous relationship that has lasted over 12 years!
So when you are looking to get results that you can measure in a relatively short amount of time don't forget that the offer, not the medium is the sole reason for the campaign's success. It's the offer that forces the consumer to act. If your element of urgency is part of the equation then it forces the consumer to act before the offer ends. If your branding isn't a bunch of wordy cliche's these consumers may even remember to come back.
What a concept!
I believe and teach a basic philosophy when putting a client's ads together. 10% of the ad should focus on a specific theme or "branding"..."40Th anniversary sale". 15% of the ad should be focused on creating urgency..."ends December 31" AND 75% should focus on the offer..."75% off". Yes 75% of the ad. This will allow the consumer to make a decision once they are exposed to the ad. Are you in or not?
Early in my career in radio advertising I had a meeting with an electronics store. They sold TVs, appliances, etc. The first thing this guy threw at me was "radio doesn't work for my business". (It's obvious I could tell this story using any medium...you will see it really doesn't make a difference). I listened intently at the specific reasons for his objections and finally offered him the opportunity to hear my point of view. I told him that I believed radio could work for his business and if he would meet me again I would put together a commercial that would definitely work for his business...I would be writing the copy. He agreed. We set up another confirmed appointment days later.
Upon my arrival for the second meeting I immediately played the commercial for him. Almost instantly the owner declared "I can't do that!!! People will be lined up outside my doors! I would go out of business!!!" That's not exactly the reaction I was trying to get but nonetheless I had definitely overcome his objections to the radio with an offer..."buy any television and receive a FREE VCR...offer ends Sunday". Pretty great deal that this particular business owner knew would motivate a consumer to come into his store. We eventually agreed upon a similar offer and began a prosperous relationship that has lasted over 12 years!
So when you are looking to get results that you can measure in a relatively short amount of time don't forget that the offer, not the medium is the sole reason for the campaign's success. It's the offer that forces the consumer to act. If your element of urgency is part of the equation then it forces the consumer to act before the offer ends. If your branding isn't a bunch of wordy cliche's these consumers may even remember to come back.
What a concept!
Sunday, November 15, 2009
Restaurant study...why are most doing it all wrong?
I am of the firm belief that advertising results in getting your unfair share of the business available. Assuming location is a key element in a particular businesses success, a business can essentially alter the normal course of business with their advertising...when it's available.
This post is focusing on the restaurant business because my company works with a number of them but the philosophy can easily be applied to any business. Said philosophy is simple...spend your advertising dollar when you are the busiest. NOT when your business is slow. Your return on investment will double when you are trying to affect your business on the days when most consumers are going out to eat. Here are the facts...statistics are derived from a Cornell University study on restaurant spending revenues by day of the week:
Sunday - 16%
Monday - 8%
Tuesday - 12%
Wednesday - 9%
Thursday - 8%
Friday - 21%
Saturday - 26%
Notable fact of above...63% of revenue is done on the weekend Fri-Sunday.
So taking that into consideration why do so many restaurants continue to pour thousands of dollars of advertising into increasing business Monday through Thursday? If only 37% of the week's business is done during those days it's no wonder why the complaints continue. There are just not enough people even available to market to.
So to break it down by the numbers...if you spend $5,000.00 a week by promoting special offers for Monday through Thursday and each percentage point represents one person your cost per available person is $135.14. Remember you also have to have an offer that is going to motivate a percentage of those 37 people. So if you happen to attract 10% of those your cost per actual person is $1,351.35. Compare that to spending the same amount for Friday - Sunday offers your cost per available person drops to $79.37. If you attract 10% of those your cost per actual person is almost 50% less.
According to the National Restaurant Association 27% of consumers say that a restaurant's offers, discounts and coupons account for their decision on where they are going to eat...that's almost one out of every three people! It's easy to figure out that the restaurant's that are offering dynamic offers on Friday - Sunday are doing better than the many who are doing it the other way around. Most people are going out on those days and 1 out of 3 are choosing the places with the best offers!
Like I said before...this can be applied to any business. I would be happy to do the research for you and crunch the numbers. Doing so is essential for your business's growth. And by the way the NRA also forecasts 2009 restaurant revenues to grow 2.5% in 2009. Recession? What recession.
Keep following my blog for more exciting "Third Grade Math"!
This post is focusing on the restaurant business because my company works with a number of them but the philosophy can easily be applied to any business. Said philosophy is simple...spend your advertising dollar when you are the busiest. NOT when your business is slow. Your return on investment will double when you are trying to affect your business on the days when most consumers are going out to eat. Here are the facts...statistics are derived from a Cornell University study on restaurant spending revenues by day of the week:
Sunday - 16%
Monday - 8%
Tuesday - 12%
Wednesday - 9%
Thursday - 8%
Friday - 21%
Saturday - 26%
Notable fact of above...63% of revenue is done on the weekend Fri-Sunday.
So taking that into consideration why do so many restaurants continue to pour thousands of dollars of advertising into increasing business Monday through Thursday? If only 37% of the week's business is done during those days it's no wonder why the complaints continue. There are just not enough people even available to market to.
So to break it down by the numbers...if you spend $5,000.00 a week by promoting special offers for Monday through Thursday and each percentage point represents one person your cost per available person is $135.14. Remember you also have to have an offer that is going to motivate a percentage of those 37 people. So if you happen to attract 10% of those your cost per actual person is $1,351.35. Compare that to spending the same amount for Friday - Sunday offers your cost per available person drops to $79.37. If you attract 10% of those your cost per actual person is almost 50% less.
According to the National Restaurant Association 27% of consumers say that a restaurant's offers, discounts and coupons account for their decision on where they are going to eat...that's almost one out of every three people! It's easy to figure out that the restaurant's that are offering dynamic offers on Friday - Sunday are doing better than the many who are doing it the other way around. Most people are going out on those days and 1 out of 3 are choosing the places with the best offers!
Like I said before...this can be applied to any business. I would be happy to do the research for you and crunch the numbers. Doing so is essential for your business's growth. And by the way the NRA also forecasts 2009 restaurant revenues to grow 2.5% in 2009. Recession? What recession.
Keep following my blog for more exciting "Third Grade Math"!
Sunday, November 8, 2009
We really ARE on the same page!
I have recently had a major debate with a close colleague about his approach to marketing and advertising for his client base. One of which I strongly disagree with. It involves pages and pages of explanations of his philosophies published in lavish proposal documents that impress even the savviest of marketers in the field. Enough already! The last time I checked...and I do often...every small business owner has the same goal in mind...increase sales for the least amount of money.
So while my friend continues to struggle with finding new clients by complicating the whole process and taking a four hour walk that could have been completed in twenty minutes I am not ashamed to admit that marketing and advertising is as easy as third grade math...it's simple...REALLY! And although everyone may not take the same approach it's easy for me to say that a simple no-nonsense, accomplish the goal attitude works best.
I say this with confidence as I have instituted this approach to all aspects of my business...and life for that matter...especially in regards to the clients I have the privilege of working with on a day to day basis. We focus on results and achieving those results in the shortest time possible. Isn't that what everyone wants? Every small business owner I know shares...or demands...that same sentiment as I. When is the last time you were told that it's OK for IT to happen in another month or so...especially when it could have happened today? I am of the belief that if it takes too long then something isn't right. I know that statement can raise ample debate in itself but what isn't right?
I believe that an expert in the field can easily identify what exactly that is. Quickly. I also believe that an average "Joe" off the street can identify what that is just as easily. Yes...third grade math! I can identify why someone wouldn't want to eat regularly in a dirty restaurant, why a "dollar off" coupon doesn't increase sales by 20% or why a new car isn't moving when the price was just reduced to $34,995.00 from $38,995.00. Joe could tell you why as well. Do you get it? In the end we really are on the same page. Everyone. We may not all be motivated by the same things but when it comes to everyday behaviors and consumer patterns it doesn't take a rocket scientist to figure it out.
So to all those rocket scientist marketers out there...Really?
So while my friend continues to struggle with finding new clients by complicating the whole process and taking a four hour walk that could have been completed in twenty minutes I am not ashamed to admit that marketing and advertising is as easy as third grade math...it's simple...REALLY! And although everyone may not take the same approach it's easy for me to say that a simple no-nonsense, accomplish the goal attitude works best.
I say this with confidence as I have instituted this approach to all aspects of my business...and life for that matter...especially in regards to the clients I have the privilege of working with on a day to day basis. We focus on results and achieving those results in the shortest time possible. Isn't that what everyone wants? Every small business owner I know shares...or demands...that same sentiment as I. When is the last time you were told that it's OK for IT to happen in another month or so...especially when it could have happened today? I am of the belief that if it takes too long then something isn't right. I know that statement can raise ample debate in itself but what isn't right?
I believe that an expert in the field can easily identify what exactly that is. Quickly. I also believe that an average "Joe" off the street can identify what that is just as easily. Yes...third grade math! I can identify why someone wouldn't want to eat regularly in a dirty restaurant, why a "dollar off" coupon doesn't increase sales by 20% or why a new car isn't moving when the price was just reduced to $34,995.00 from $38,995.00. Joe could tell you why as well. Do you get it? In the end we really are on the same page. Everyone. We may not all be motivated by the same things but when it comes to everyday behaviors and consumer patterns it doesn't take a rocket scientist to figure it out.
So to all those rocket scientist marketers out there...Really?
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