Tuesday, December 15, 2009
Your Mindset: Friend or Foe?
How’s your mindset right now? Do you see your future as a glass half empty or a glass half full? Is your mind a portal to what you want from your business or a reminder of what you have not been able to accomplish?
2009 has been brutal for many small business owners and a real challenge for just about everyone who has to earn their own way in business. And while we all tend to rely on the more tangible of business building resources; money, time, know-how, plans and support to name a few, the biggest asset any of us has is our ability to control our mindset.
Your mindset influences your thinking, your perceptions, your beliefs and behaviors. It’s the little voice in the back of your head that seems to have an opinion on everything you do or want to do that determines how you feel about your current situation. As a small business advisor, I frequently encounter small business owners that are questioning their ability to move forward and figure out how to do business in a market that has thrown out all the rules to the game.
The reality is; we have a tough economic situation. Many businesses will not survive this protracted belt tightening because they could not see a successful outcome. It’s difficult to watch fellow business owners fade away, especially if they were enjoying robust growth a few years ago. The fact is, some businesses will survive and even grow stronger once the marketplace returns. Will you be among the ones who dominate their markets in 2010?
Right now, I’m watching the Biggest Loser. There are some unbelievable accomplishments from people who were so disparaged, they had lost all hope. What they all have in common is they reached out and learned how to improve their mental and physical situations. They got the support and accountability to stay the course until the results came. They believed in what they once were unable to see. This same transformation can happen for business owners and is being enjoyed by the clients of my business coaching program.
The difficult part of creating a successful business mindset is learning how to control the automatic negative thoughts that are triggered whenever you expose yourself to something that your subconscious mind has remembered from the past. It can happen without warning. Suddenly, the little voice becomes a chorus! Your head may become light. You might even experience physical disorientations. This is your mind trying to protect you from an experience it recognizes from your past.
Take a look around you. What are you watching and reading? Who are you listening too? Do you have the support and encouragement to push through it or are you letting the ‘little voice’ remind you of what your past has produced?
Getting control of your thought patterns and overcoming the limiting beliefs that tend to keep you in a holding pattern is the greatest benefit you can give yourself. A positive mindset will enable you to get much greater returns out of just about everything you do or invest money in. It’s the best friend you’ll ever have!
Having a successful business mindset starts with changing your thinking and connecting with your passion for the business you work so hard to grow. If you think you can, amazing things can happen. If you think you can’t, you are already there.
Thursday, December 3, 2009
Addressing the ‘Price’ Question: Sell, Don’t Defend
A few years ago, consumers were buying all kinds of products and services, many without much thought to cost. After all, money was plentiful, available, cheap and easy! That was then but today is a much different story. Today’s consumers are much more consciences of what they are paying for products and services.
So what do you say when the first question a prospective customers asks is, “How much do you charge?” Pricing questions will eventually come up during the course of a purchasing transaction. If they are first on the list, however, this is a clear indication that the consumer has little idea of what you provide that’s different than their idea of the basic service provided by anyone in your type of business.
As a California business growth advisor, I’m consulting with companies in a state that saw more than its fair share of run-away consumer purchasing. Now, most business owners struggle to get past the dreaded questions about their prices and why they aren’t cheaper than the company that the consumer called before them.
Pricing questions are an opportunity to differentiate your business. A full 70% of consumers make purchasing decisions based on the value they perceive vs. the price of the purchase they are considering. These value decisions don’t change over time. The only thing that changes is the availability of money. If you receive a call and the first question is about your price, its likely the consumer doesn’t really know about you or what you do that’s different.
If you are experiencing an increase in ‘Price Calls’, here are some things to do to overcome them:
1. Review all your marketing materials. What message are you sending? Are you leading with price? Do you base your entire ad on discounts or ‘lowest rates around’? Does your website convey a quality service or a price service? Do you have particular ways of delivering your service that your existing customers like, but is not mentioned anywhere in your marketing? If so, change your message.
2. Check your top 3 competitors marketing message. What are they promoting? Are their services in line with yours or are they focused on other services? Are there any areas that they are missing that could provide an opportunity for you? Find a way to differentiate your business from the competition in an area that you know is important to your customers.
3. Have a script for the folks who answer the phone. When someone asks about price before they understand how you do what you do, simply mention that you can provide accurate quotes once you understand what they need. Then, immediately ask them if you could ask a few questions. The questions you ask should strive to understand exactly what they want and what’s important to them so you can sell them on the benefits of your service. If they persist in wanting to know what your price is before knowing any more, give them a range to work with. Don’t defend your prices. This usually has little effect on their willingness to pay the price you ask. Don’t volunteer to drop your price right out of the gate. This only adds suspicion to your entire business. If you feel the need to match a competitor, do so only after you’ve had a chance to understand exactly what they want and what their other price was based on.
4. Be prepared to let the business go. This is extremely hard for businesses that need the sales to stay in business. The danger of accepting low prices from consumers who want to negotiate your prices down is doing work that may cost you. If this goings on long enough, your businesses reputation will be hooked to the low price service you can’t afford to continue with.
The bottom line is; if you’re getting too many people who want your product or service cheap, they are either not your ideal client or there’s something in your advertising that leads them to believe your service is not worth what your prices suggest. In either case, continuing without getting help from a business growth advisor to fix the problem could be the express lane to going out of business.
Successful businesses build their brand images on distinctive, unique or quality approaches, not price. Effective sales and marketing strategies that focus on unique positioning, identifying the right customers and creating compelling messages are the tools that will reduce the ‘Price questions’ and make you more confident about holding the line on price concessions.
So what do you say when the first question a prospective customers asks is, “How much do you charge?” Pricing questions will eventually come up during the course of a purchasing transaction. If they are first on the list, however, this is a clear indication that the consumer has little idea of what you provide that’s different than their idea of the basic service provided by anyone in your type of business.
As a California business growth advisor, I’m consulting with companies in a state that saw more than its fair share of run-away consumer purchasing. Now, most business owners struggle to get past the dreaded questions about their prices and why they aren’t cheaper than the company that the consumer called before them.
Pricing questions are an opportunity to differentiate your business. A full 70% of consumers make purchasing decisions based on the value they perceive vs. the price of the purchase they are considering. These value decisions don’t change over time. The only thing that changes is the availability of money. If you receive a call and the first question is about your price, its likely the consumer doesn’t really know about you or what you do that’s different.
If you are experiencing an increase in ‘Price Calls’, here are some things to do to overcome them:
1. Review all your marketing materials. What message are you sending? Are you leading with price? Do you base your entire ad on discounts or ‘lowest rates around’? Does your website convey a quality service or a price service? Do you have particular ways of delivering your service that your existing customers like, but is not mentioned anywhere in your marketing? If so, change your message.
2. Check your top 3 competitors marketing message. What are they promoting? Are their services in line with yours or are they focused on other services? Are there any areas that they are missing that could provide an opportunity for you? Find a way to differentiate your business from the competition in an area that you know is important to your customers.
3. Have a script for the folks who answer the phone. When someone asks about price before they understand how you do what you do, simply mention that you can provide accurate quotes once you understand what they need. Then, immediately ask them if you could ask a few questions. The questions you ask should strive to understand exactly what they want and what’s important to them so you can sell them on the benefits of your service. If they persist in wanting to know what your price is before knowing any more, give them a range to work with. Don’t defend your prices. This usually has little effect on their willingness to pay the price you ask. Don’t volunteer to drop your price right out of the gate. This only adds suspicion to your entire business. If you feel the need to match a competitor, do so only after you’ve had a chance to understand exactly what they want and what their other price was based on.
4. Be prepared to let the business go. This is extremely hard for businesses that need the sales to stay in business. The danger of accepting low prices from consumers who want to negotiate your prices down is doing work that may cost you. If this goings on long enough, your businesses reputation will be hooked to the low price service you can’t afford to continue with.
The bottom line is; if you’re getting too many people who want your product or service cheap, they are either not your ideal client or there’s something in your advertising that leads them to believe your service is not worth what your prices suggest. In either case, continuing without getting help from a business growth advisor to fix the problem could be the express lane to going out of business.
Successful businesses build their brand images on distinctive, unique or quality approaches, not price. Effective sales and marketing strategies that focus on unique positioning, identifying the right customers and creating compelling messages are the tools that will reduce the ‘Price questions’ and make you more confident about holding the line on price concessions.
Tuesday, December 1, 2009
Is a Seasonal Business Right for You?
What do Christmas trees and campgrounds have in common? They are both products of a seasonal business! And while they share a common trait of generating revenue during a specific time during the year, they differ in that the Christmas tree lots can be closed after Christmas while the campground has operating costs throughout the year. If you’re thinking of running a seasonal business to take advantage of short term revenue opportunities, make sure it’s more the ‘Christmas tree’ kind of business.
Seasonal businesses have been around for years and encompass all sorts of immediately recognizable ventures from pumpkin stands and fire works stands to ski resorts. Each has a particular reason for being and a defined time of year to generate sales. With the exception of the ski resort, which has to be maintained year round, many seasonal businesses take advantage of limited time opportunities and have little long term obligations once the season is over.
If you’re the entrepreneurial ‘purist’ and like to make money without being tied to ongoing established operations, finding a seasonal business maybe a good direction for you.
Seasonal businesses have their challenges which include having enough cash, advanced planning and getting through the maize of municipal approvals and paperwork. So, if you have the design to try a seasonal business, make innovation the cornerstone of your business plan. As a small business advisor, I can’t emphasize enough the need to thoroughly work through the business idea to insure it’s viable.
Most seasonal business opportunities rely on some holiday period, major event or recreational activity to create demand. Many major seasonal event hosts don’t have the bandwidth to provide a product or service for every ancillary sales opportunity. As long as the product or service is legitimate and adds value to the event in question, you stand a good chance of getting support.
Seasonal businesses also provide a great way to test drive your business building skills or a small business marketing strategy without incurring long term commitments should the venture not be a good idea. If you think the idea through, plan well in advance and create a system that will optimize the day to day running, you will insure the greatest degree of success.
If you have a small business success story, tune into blogtalkradio this Friday where Cash Miller from SmallBusinessDelivered.com and Steve Smith, Orange County Business Coach for OneCoach will discuss what it takes to be successful running a seasonal business.
Seasonal businesses have been around for years and encompass all sorts of immediately recognizable ventures from pumpkin stands and fire works stands to ski resorts. Each has a particular reason for being and a defined time of year to generate sales. With the exception of the ski resort, which has to be maintained year round, many seasonal businesses take advantage of limited time opportunities and have little long term obligations once the season is over.
If you’re the entrepreneurial ‘purist’ and like to make money without being tied to ongoing established operations, finding a seasonal business maybe a good direction for you.
Seasonal businesses have their challenges which include having enough cash, advanced planning and getting through the maize of municipal approvals and paperwork. So, if you have the design to try a seasonal business, make innovation the cornerstone of your business plan. As a small business advisor, I can’t emphasize enough the need to thoroughly work through the business idea to insure it’s viable.
Most seasonal business opportunities rely on some holiday period, major event or recreational activity to create demand. Many major seasonal event hosts don’t have the bandwidth to provide a product or service for every ancillary sales opportunity. As long as the product or service is legitimate and adds value to the event in question, you stand a good chance of getting support.
Seasonal businesses also provide a great way to test drive your business building skills or a small business marketing strategy without incurring long term commitments should the venture not be a good idea. If you think the idea through, plan well in advance and create a system that will optimize the day to day running, you will insure the greatest degree of success.
If you have a small business success story, tune into blogtalkradio this Friday where Cash Miller from SmallBusinessDelivered.com and Steve Smith, Orange County Business Coach for OneCoach will discuss what it takes to be successful running a seasonal business.
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