Mike Michalowicz's Blog, page 91

Selling Ice To Africans

I don’t want that sales guy who is “so good” he can “sell ice to Eskimos.”  Why not? Because eskimos don’t need ice.  That sales guy has a horrible sense of the target market. That guy is a world class scammer.

I want the guy who can sell ice to Africans. That guy understands the target market. That guy understands how to serve. That guy is a world class salesman.

7 Risks You Should Be Aware Of When Using The Cloud

It’s not uncommon for business owners who aren’t particularly tech savvy to hear about running their business on the Cloud and go full-steam ahead heedless of the costs – both the financial costs and the risks involving security and company resources. The Cloud isn’t new; it’s just a new term that describes storage and application hosting that’s web-based, rather than based from your business’ computer systems. There are two things to remember before beginning your adventure in the Cloud – first, it’s not free. There are expenses associated with moving to web-based storage and apps. Secondly, there are some risks that you’ll assume. Here’s a look at the things you must consider before converting to the Cloud.

1. Maintenance times. Since the Cloud spans the globe, there’s no guarantee that site maintenance will be done at a time that’s convenient for your business. Unexpected downtime because of inconvenient maintenance can cause problems for you and your staff. Your best bet to head off these worries is to get to know your providers and pay attention to notices of scheduled site maintenance to maximize your productivity. You want to avoid bringing your staff in for a special project, only to discover that you’re unable to access the data you need due to site maintenance.

2. Upgrade schedule. Sometimes it feels like the second I get everyone on my staff trained on a new app, the cloud provider updates it and we’re all floundering again. Being forced into a new version of an application can require retraining your employees (and yourself!) One of my favorite tactics is to assign a few key folks to get up to speed on the new application and share knowledge with other employees, serving as resources for my team.

3. Terminating Employees. It used to be that when you let a member of the staff go, simply removing their access to their desktop computer meant that they were out of your system. Those days are over. Cloud based storage and apps mean that access can be gained from virtually anywhere, and your company is vulnerable to attack from a disgruntled former employee. You must be prepared with a protocol for changing passwords and completely preventing access for unauthorized users.

4. Inadvertent change. “Butt dialing” used to just be an annoyance, but now accidental manipulation of documents can cause problems if you don’t have a means of controlling potential damage from live editing of documents or financial accounts. It’s not just spreadsheets or company emails that are vulnerable, though. It’s smart to ensure that your social media guru employs security steps to ensure that he doesn’t accidentally post on your company’s Facebook page, rather than his personal Facebook page. Make sure there are steps to prevent accidents from becoming permanent problems.

5. Legal Problems. Particularly for businesses in which there’s a legal obligation for data security – attorneys, physicians, accountants – you must ensure that your cloud provider is as picky about security as you are. You don’t want to open yourself up to legal problems as a result of a security breach.

6. Becoming a Bigger Target. Let’s face it – the relatively small amount of data stored on your PC isn’t that great a target for thieves, but when you move your data to the Cloud and your information is combined with thousands of other companies, you’re at a much greater risk. Think about the magnitude of the problem Target faced with the theft of credit and debit card data. The more data, the bigger the payoff for unscrupulous folks willing to steal that information.

7. The Cloud is Unavoidable. It’s practically impossible to opt out of everything that’s Cloud-based, but that doesn’t mean that you should throw caution to the wind. Just because you’re conducting business via the internet doesn’t mean that you’re sure to be hacked. Your best bet is to analyze your risk and take action to mitigate the risks. Measures like verifying that sites you shop with use secure servers that protect your credit card information are a good start.

Entrepreneurs are inevitably familiar with assessing and managing risk, and your foray into the Cloud should be handled just as any other major business decision. Evaluate your risks and take action to mitigate or avoid those risks altogether.

Increase Your Close Rate By 25% With This Killer Sales Technique

I originally started the introduction to this article by explaining to you that my industry is soooooo competitive.  It is…truly.  I’m an author, and any time I’m pitching a new book, there are literally hundreds of other writers all doing the same thing – all wanting their piece of a publisher’s pie.

But then I thought back to my previous experiences as an entrepreneur, and I realized that competition has always been stiff.  My first company worked on computer networking, and we regularly bid against four or five companies for each job.  My second company did computer forensics, and not only did we have to compete against other bidders for each gig, but every one of those was jobs was time sensitive – we’d frequently get the request for proposals, have to compile and submit the proposal, win it and have technicians on site within twenty-four hours.  Talk about pressure.

Anyway, I realized that we all have pressure and all face tough competition in our struggle to attract and land customers.  I’ve found one foolproof method for making my proposals stand out among all of the others.

It’s all about timing.

Perfectly Timed Delivery.  When you pour your energy and time into creating a perfect proposal, you want to make sure that it’s examined carefully, rather than skimmed and discarded because the decision maker is distracted or overloaded.  How can you get an edge in terms of delivering your proposal at just the right time?  A little detective work!  Scan your prospect’s social media accounts and gather information about his or her schedule.  If you see posts about kids’ soccer games on Wednesdays, your best bet may be to send your proposal over two hours before the game with a personal note saying something like: “I wanted to get you this proposal right away so that it doesn’t interfere with kids’ sports.  I have athletes in my house and know how hectic the schedules can be.”  Now, you want to stop short of being a creepy stalker, but the idea here is to reach out to your prospect when the odds are best that they’re not otherwise occupied.  Use all of your available resources.

Perfectly Timed Follow Up.  The key here is to make serendipity happen.  For proposals sent via email, you could spend weeks wondering if your prospect has even opened your proposal.  My secret weapon is YesWare.com.  It works for both Gmail and Outlook (100 free uses per month) and it notifies the sender the moment an email is opened.  As soon as you get the notification that your prospect has opened the proposal, that’s when you call to follow up.  Your prospect is going to be astonished by the timing of your call, and you’re creating a unique moment that makes your proposal more memorable for your prospect.  If your pitch is remarkable, you’re halfway there!  Anything that makes your proposal stand out from the crowd – in a good way, of course – is to your benefit.

Perfectly Timed Responses.  When a prospect contacts you with questions about your proposal, your goal should be to turn those questions around ASAP – quicker than the other guys, for sure.  I’ve known associates who roll their eyes at a round of questions that precede a final decision on a project, but having a prospect contact you for further discussion is always a good thing.  If you weren’t in contention, the prospect wouldn’t waste his or her time with you.  One trick I’ve learned is to compile answers to common questions ahead of time so that I can copy and paste those answers into an email and save time.  Build some templates with FAQs that let you be the very first to respond and show how important the prospect’s business is to you.  Being prepared gives you the edge.  Make sure that you are ready and waiting for the email with follow-up questions so that you can convey your enthusiasm for the project.

There’s no magic, foolproof shortcut to sending out winning proposals.  They take hard work, and there’s no way around it.  Don’t ever underestimate the effect that timing can have on a proposal’s reception, though.  Do your homework and make sure that your timing enhances your proposal’s chances of success.

Build Raving Fans in 7 (Bizarre) Ways

Marketing is about connecting with consumers. Great marketing, though, is about transforming those consumers into fans, raving fans – people who feel loyalty, and feel invested in your business and its success. Sometimes creating these fans can require creativity and innovation, but the payoff is huge. Here are some ways to get started converting your customers into your biggest fans.

1. Have your clients do some of the work.

This isn’t about being lazy; it’s about involving your clients in a memorable experience. Build-a-Bear is the perfect example of this technique. Children receive many stuffed animals over the course of their childhoods, but none so special as the bear they built themselves, selecting the fabric and components. The consumer’s investment in the experience cultivates loyalty, and their unique experience can’t be duplicated anywhere else. Offer your clients a way to personalize their experience with you.

2. Reject clients.

It’s human nature to want what you’ve been told you can’t have. The more limited an item or service is, the more we value it, and if your customers feel like they have achieved something by managing to get your attention, for having earned the privilege of spending money with you, they’ll give you a lifetime of loyalty. As long as your product meets or exceeds expectations, then making it clear that you’re selective about who you do business with will make you more appealing.

3. Deny your own existence.

Though now a much more public item, the American Express Black Card was long the subject of curiosity, and the company refused to confirm its existence or answer any questions about the sorts of services the card might offer. Now, customers beg for an invitation for the Black Card, even though it comes with a ridiculously high annual fee. Think about it…customers clamoring to spend money with you? It’s a goal worth working toward. Cultivate the mystery and clients will seek you out.

4. Encourage tattoos.

Extreme? Maybe. Effective? Absolutely! Not only are folks who get logos tattooed on themselves acting as walking advertisements, they’re also absolutely certain to be loyal customers. You can encourage tattoos by creating a cool logo and by cultivating a reputation that’s unique and appealing. Question whether this is practical? Two words: Harley Davidson. For folks with Harley tattoos, the brand isn’t just a commodity; it’s a lifestyle.

5. Go underground.

Throw parties and hold events that are exclusive to members or customers only. The key here is not just to thank your customers for their business, but to use these exclusive gatherings to earn new business as well. Give existing loyal customers the inside track on new products and services at these events, and you’ll create your own little club that gives customers a reason to spend their time attending your events.

6. Create your version of boot camp.

Organizations like fraternities or the military create cohesion and loyalty by putting new recruits through tests and challenges. Let your customers know that your business runs differently than others, that you will require work and dedication from them. They will realize that they’re part of a special group, and they’ll feel invested in promoting your services. Providing code words and emblems of membership makes customers feel like they’re one of the elite, special few who have made it through boot camp.

7. Create an annual event or holiday.

Greeting card companies promote the heck out of Mother’s Day, and it ain’t hard to figure out why. Give your customers something to look forward to and a fun association with your brand. Think about something along the lines of 7-Eleven’s annual July 11th free Slurpee giveaway. Maybe your sporting goods store hosts an annual little league homerun derby or maybe your catering company partners with a DJ and hosts a karaoke contest for all of your customers that year. Whatever you choose, make it a fun, positive association for your business.

It’s no secret that marketing is radically different than it was even ten years ago. We have to work harder to promote our brands, but the potential upside is huge, because devoted, raving fans will take up your banner and do some of the work for you. Creating and nurturing these fans will reward your efforts for years to come.

Episode 28: Systemizing and Running Your Business Effectively with Tina Forsyth

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Show Summary

Tina Forsyth joins us for Episode 28 of the Profit First Podcast. Tina shares tips on how to profit from successfully implementing systems in your business.

 

Our Guest

Having worked online since 1999, Tina Forsyth is a ‘jill of all trades’ when it comes to running and growing a profitable service based business. She is the author of the award winning book The Entrepreneur’s Trap (available on Amazon) and creator of the CEO Business School for Transformational Leaders where she teaches entrepreneurs her proven step-by-step process to set a strong foundation for business growth.

Tina also founded the International Association of Online Business Managers and is the creator of the Certified OBM™ Training– the only program of its kind to train high-end virtual managers. As an entrepreneur and recovering control-freak, Tina is passionate about sharing her experience and helping other entrepreneurs setup the right systems, team and leveraged revenue streams that allow them to stop working so darn hard and have a business that can run without them. (woo hoo!)

 

Show Quotes 

Profitability comes from efficiency.

The idea of the bursting point: If you want to grow beyond a certain stage, and you continue to try and grow with having everything on your own shoulders, that’s where you’re going to burst. Look into getting some type of support and build systems and processes around that.

Centralize and get stuff out of your brain. Set up some type of management system or online tool that can help you with the “to do” list of the business. If your “to do” list is way too long, then chances are something needs to change.

At a certain stage of growth, the business owner should not be the one doing everything anymore. You want to really know what should be on your plate vs. what you can have someone help you with.

Make profit a habit. Profit is the business paying itself first!

 

Show Links

Website:  www.TinaForsyth.com 

Twitter: https://twitter.com/tinaforsyth

LinkedIn: https://ca.linkedin.com/in/tinaforsyth

Gift Offer:  www.TinaForsyth.com/gifts/profitfirstpodcast

 

Corporate Partners

Nextiva – VOIP phone providers for small businesses.

Fundera – Single source online funding for entrepreneurs. Also offers an adviser program for CPAs, bookkeepers and business coaches.

TSheets – The #1 customer rated time tracking solution!

Become More Efficient By Using These 8 Old School Technology Pieces

The drive for years has been to do more with less – that is to incorporate the functions of multiple tools into fewer and fewer devices. We all know where this ends up – the smart phone has become the ultimate business tool, coordinating our communication, scheduling, transportation, marketing, personal contacts, travel, and more – all in a single, pocket-sized device. How convenient, right? Surely the more functions that you can pack into a single device, the better. But if you think about it, we all have instances in which we’re crippled by our consolidation of functions into a smart phone. Regardless of whether you’re an iFan or a Crackberry addict, or a ‘Roid user, you know the fallout from a device malfunction. If you put all of your technology eggs in a single basket, you run the risk of finding yourself unable to function if that single basket is overturned. Don’t let yourself fall into this trap.

Here are eight tools you should have at your disposal:

1. Calculator – if you only select a single device from this list, let it be the calculator. A pocket-sized solar powered calculator solves a number of problems. You won’t have to page through your apps to find the calculator function on your phone or laptop; you won’t have to figure out how to simultaneously use the phone and calculator functions on your phone; and you won’t need to rely on your phone battery. The calculator is a simple and efficient tool that you should carry in your pocket, briefcase, handbag, or backpack.

2. Typewriter – We’ve all faced the challenge of needing to fill in a few blanks on an online form and submit it, only to discover that you can’t edit a field on the document, or if you can edit the field that you screw up the formatting and it’s unreadable. Go old school here: print the form, type your information, and then you can either scan and email or fax the document. You’ll save time and frustration. Knock it out old school and move on!

3. GPS device – Yup, I know your phone can do that, but when you’re on an important call, hands-free of course, you cannot simultaneously listen to your GPS and take the call. Get yourself a separate unit (much cheaper than they used to be) and you’ll be able to see the map and visual directions, even if you have to handle a quick call. Again – battery power can be a factor here too — if your cell phone’s battery dies as you’re driving through a sketchy area in an unfamiliar city, do you really want to have to ask for directions to your swanky hotel at midnight?

4. Alarm clock – If you’re on the road, especially for business, there’s nothing more important than making it to your meetings on time. A battery operated alarm clock gets you up bright and early even if you’ve forgotten your phone charger or the power goes out. Better to be on time than to make excuses for being late.

5. Compass – Okay, you may think I’ve gone off the deep end here, but seriously, a compass takes up almost no space and it can save you at critical moments. In Manhattan and all those tall buildings interfering with your phone’s GPS? If you have a compass and know that your destination is uptown, you’re prepared to get yourself out of a jam with a compass. Also, you may find that this old school device can be quite a conversation piece.

6. Watch – We all rely on our phones to keep time, but you know that there’s nothing more frustrating than trying to have a conversation with someone who’s constantly checking their phone. If you’re wearing a watch, you can keep track of time without appearing to be rude by checking your phone, and you also have what’s rapidly becoming a rare fashion piece. Make your watch part of your business persona.

7. Pen and Paper – When you really need to streamline your routine, this pair of tools simplifies your life dramatically. Rather than spending sixty seconds looking for and opening your notes app on your phone, and then spending another ten minutes dealing with the emails that have distracted you, go low-tech, high-efficiency. Jot down a note and move on with your day. Making notes reduces distractions, and you can slip a single piece of paper and a pen in your pocket and work through a busy day without needing to lug a briefcase or bag.

8. Polaroid Camera – You won’t believe how useful this old school device can be. What’s the ultimate leave behind after a sales pitch? A Polaroid of you and your new client shaking hands. Did you deliver a great speech? Hand out a couple of Polaroids of you and your audience members and watch their delight as they shake the pics and wait for them to develop. People LOVE this technology, and it’s so much more satisfying to have an actual photograph that you can pin above a desk, rather than just another digital image in an email.

I don’t expect everyone to start discarding smart phones for an abacus and a sextant. I know I’m hanging on to my smart phone. What we can all benefit from doing, though, is taking a hard look at the ways in which we use the technology at our disposal. Sometimes the very best solution is the simplest, lowest-tech option.

Why Is “Doing Different” So Scary?

Different is scary for most people.

That alien fish larvae looking mush that was just plopped on your plate is awfully unappealing. You’ve never had it.  And if all things go as planned, you never will. Different is unsafe. Sticking with the stuff you have always been eating (and have always been just bearing) feels so much safer.

That beautiful diamond ring that looks so precious and is priced so well, is just too good to be true. That deal is not normal. Not normal equates to problems. Different is dangerous. Skipping on the ring feels so much safer.

That membership, organization or group that will finally change everything for you, is so important to you in achieving what you need that you avoid it. Change is different and different, as you know, feels dangerous and unsafe.

The “alien fish larvae” was passion fruit. You missed out on the sweetest flavor of all. But, you will never know it, because you played it safe.

That “too good to be true” diamond ring, was good and true. But you will never know it, because you played it safe.

That organization or group you passed up on was exactly what you needed. But you will never know it, because you played it safe.

Doing different is scary, because it’s the unknown. It always feels safer to continue doing what you have been doing, because it is the known (even if it sucks).

25 Business Quotes To Live By

Entrepreneurs in general are take-charge, independent people. I sure fit into this mold myself, but I also recognize the wisdom that can be gleaned from the words of business and thought leaders who have shaped world to accommodate their vision and passion. I’ve assembled some of the choicest bits of wisdom on several business topics.

 

Minimalism/Simplicity

One of the traits I admire in many thought leaders is their inclination to simplify their approaches to business and to their lives in general.

1. “Any intelligent fool can make things bigger, more complex, and more violent. It takes a touch of genius — and a lot of courage to move in the opposite direction.”

E.F. Schumacher

2. “Almost all quality improvement comes via simplification of design, manufacturing… layout, processes, and procedures.”

Tom Peters

3. “If you see a snake, just kill it. Don’t appoint a committee on snakes.”

Henry Ross Perot

4. “That’s been one of my mantras – focus and simplicity. Simple can be harder than complex: You have to work hard to get your thinking clean to make it simple. But it’s worth it in the end because once you get there, you can move mountains.”

Steve Jobs

 

Tenacity

Entrepreneurs, contrary to the common belief, aren’t superhuman. We make mistakes, and if we’re smart, we learn from those mistakes and make all new ones on the next venture. We shouldn’t strive to be perfect; we should strive to keep trying even in the face of difficulty.

5. “There are no secrets to success. It is the result of preparation, hard work, and learning from failure.”

Colin Powell

6. “Most of the important things in the world have been accomplished by people who have kept on trying when there seemed to be no hope at all.”

Dale Carnegie

7. “Sometimes when you innovate, you make mistakes. It is best to admit them quickly, and get on with improving your other innovations.”

Steve Jobs

8. “Failure doesn’t mean you are a failure. It just means you haven’t succeeded yet.”

Robert H. Schuller

9. “Just because something doesn’t do what you planned it to do doesn’t mean it’s useless.”

Thomas A. Edison

10. “Once you free yourself from the need for perfect acceptance, it’s a lot easier to launch work that matters.”

Seth Godin

11. “The most valuable thing you can make is a mistake- you can’t learn anything from being perfect.”


Adam Osborne

 

How to Treat Employees

Even though we may expend a lot of our time and energy hiring and retaining our staff, there a few things that we should always keep in mind.

12. “The way to get things done is not to mind who gets the credit for doing them.”

Benjamin Jowett

13. “You don’t lie to your own doctor. You don’t lie to your own attorney, and you don’t lie to your employees.”

Gordon Bethune

14. “Start with good people, lay out the rules, communicate with your employees, motivate them and reward them. If you do all those things effectively, you can’t miss.”

Lee Iacocca

15. “People are definitely a company’s greatest asset. It doesn’t make any difference whether the product is cars or cosmetics. A company is only as good as the people it keeps.”

Mary Kay Ash

16. “Hire character. Train skill.”

Peter Schutz

And because it helps to have a sense of humor:

17. “Employees make the best dates. You don’t have to pick them up and they’re always tax-deductible.”

Andy Warhol

 

The Nature of the Successful Entrepreneur

What qualities differentiate the successful entrepreneurs from everyone else?

Originality:

18. “The secret of business is to know something that nobody else knows.”

Aristotle Onassis

Direction:

19. “If one does not know to which port one is sailing, no wind is favorable.”

Lucius Annaeus Seneca

Independence and Focus:

20. “Hell, there are no rules here – we’re trying to accomplish something.”

Thomas A. Edison

Vision:

21. “The entrepreneur always searches for change, responds to it, and exploits it as an opportunity.”

Peter Drucker

Thirst for knowledge:

22. “What we actually learn, from any given set of circumstances, determines whether we become increasingly powerless or more powerful.”

Blaine Lee

Drive:

23. “The critical ingredient is getting off your butt and doing something. It’s as simple as that. A lot of people have ideas, but there are few who decide to do something about them now. Not tomorrow. Not next week. But today. The true entrepreneur is a doer, not a dreamer. “

Nolan Bushnell

Flexibility:

24. “It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change. “

Charles Darwin

Dedication:

25. “Good business leaders create a vision, articulate the vision, passionately own the vision, and relentlessly drive it to completion.”

Jack Welch

I don’t think that memorable quotes are a panacea, but I know for sure that I’ve found it heartening to know that giants of business and captains of industry have struggled with the same issues that I face as an entrepreneur.

Provide A Solution For What Will Be Needed

Wayne Gretsky is famous for saying, “I skate to where the puck is going to be, not where it is.”

Successful entrepreneurs know to deliver a solution for where the client is going, not where they are.

Episode 27: Business Growth and Profitability With Jill Salzman

Also Available On

 

 

Show Summary

Jill Salzman, founder of “The Founding Moms” joins us for Episode 27 of the Profit First Podcast. Jill shares her secrets to growing and maintaining a successful business.

 

Our Guest

Jill Salzman is currently growing her third entrepreneurial venture, The Founding Moms, the world’s first and only collective of offline meetups and online resources for mom entrepreneurs that was just named a  Top 10 Website for Women Entrepreneurs in 2013 by Forbes. She recently launched her fourth, The Founding Kit, which helps startups get started. A graduate of Brown University and law school, she started a music management firm and then launched a baby jewelry company before creating her current venture. She’s the author of Found It: A Field Guide for Mom Entrepreneurs, one of the Best Chicago Marketing Speakers in 2014, a co-host of the entertaining business podcast, Breaking Down Your Business,host of the Tip Top Tips for Entrepreneurs video series, gave her own TED talk on 11/11/11, and most recently was dubbed a “mommy mogul” by CNNMoney. In her spare time, Jill enjoys kloofing, baking, and erasing her daughters’ crayon artwork from the kitchen walls.

 

Show Quotes

There is power in labels. Assign a label for your community that makes them feel and realize they are distinct, and they will be attracted to your business.

Never assume you have it right. Tweak certain things about your business to appease your customers, but always be in alignment with what you want for yourself.

Never ask a question just once; ask a question many times and many ways.

Share your ideas more often! Networking is essential.

 

Show Links

Website: www.foundingmoms.com

Podcast: www.breakingdownyourbusiness.com

Twitter: @foundingmom and/or @bdybiz

Linked In: www.linkedin.com/in/foundingmom

 

Corporate Partners

Nextiva – voip phone providers for small businesses.

Fundera – Single source online funding for entrepreneurs. Also offers an adviser program for CPAs, bookkeepers and business coaches.

TSheets – The #1 customer rated time tracking solution!