It’s Small Business Week in Canada.
So why does that mean so little to anybody?
See my column in today’s Post: http://www.financialpost.com/news/week+entrepreneur/5559637/story.html
“If we're serious about creating a robust economy for the 21st century, we should transform Small Business Week from a calendar date into a crusade…”
Monday, October 17, 2011
RiM shows some class
Great to see that Research In Motion is offering its frustrated clients free premium apps worth more than $100 each as an apology for last week's service outages.
A customer-service problem like that demanded a grand, serious gesture on the company's part (see my National Post blogpost here), and RiM has delivered.
The complete selection of premium apps will become available from BlackBerry App World for four weeks beginning Oct. 19. Enterprise customers will also receive a month of free technical support.
Good to see strong statements like these from RiM's embattled management:
“We’ve worked hard to earn [customers’] trust over the past 12 years and we’re committed to providing the high standard of reliability they expect,” says RiM co-CEO Mike Lazaridis. “We are taking immediate and aggressive steps to help prevent something like this from happening again.”
Industry analyst Francisco Jeronimo at IDC said the decision could be good for RIM, if it helps more customers to discover BlackBerry app services. He said RiM has likely struck deals with app developers to keep costs down. Even so, he says, “More important than the offer itself, is that RIM is showing goodwill and being humble. They recognized the problem, apologized and now they are compensating their users.”
In my Oct. 14 NatPost blog, "overcompensate" was the phrase I used to describe how companies can rebuild trust following customer-service breakdowns. You have to prove you learned your lessons, and that you value your customers' time and loyalty.
Here is my list of 7 Steps to take when faced with a company or customer-service breakdown.
• Acknowledge the problem quickly.
• Identify the magnitude of the breakdown as soon as possible.
• Tell customers what outcome you are working toward. (e.g., How soon will power be restored?)
• Don’t just say you’re working on the problem – show it. (Make sure they see you sweat.)
• Take steps to shut-out customers as comfortable as possible.
• Acknowledge customers’ confusion and frustration.
• Overcompensate. Once the emergency is over, find creative, memorable ways to apologize for the inconvenience and thank customers for their tolerance.
You can read that complete column here.
A customer-service problem like that demanded a grand, serious gesture on the company's part (see my National Post blogpost here), and RiM has delivered.
The complete selection of premium apps will become available from BlackBerry App World for four weeks beginning Oct. 19. Enterprise customers will also receive a month of free technical support.
Good to see strong statements like these from RiM's embattled management:
“We’ve worked hard to earn [customers’] trust over the past 12 years and we’re committed to providing the high standard of reliability they expect,” says RiM co-CEO Mike Lazaridis. “We are taking immediate and aggressive steps to help prevent something like this from happening again.”
Industry analyst Francisco Jeronimo at IDC said the decision could be good for RIM, if it helps more customers to discover BlackBerry app services. He said RiM has likely struck deals with app developers to keep costs down. Even so, he says, “More important than the offer itself, is that RIM is showing goodwill and being humble. They recognized the problem, apologized and now they are compensating their users.”
In my Oct. 14 NatPost blog, "overcompensate" was the phrase I used to describe how companies can rebuild trust following customer-service breakdowns. You have to prove you learned your lessons, and that you value your customers' time and loyalty.
Here is my list of 7 Steps to take when faced with a company or customer-service breakdown.
• Acknowledge the problem quickly.
• Identify the magnitude of the breakdown as soon as possible.
• Tell customers what outcome you are working toward. (e.g., How soon will power be restored?)
• Don’t just say you’re working on the problem – show it. (Make sure they see you sweat.)
• Take steps to shut-out customers as comfortable as possible.
• Acknowledge customers’ confusion and frustration.
• Overcompensate. Once the emergency is over, find creative, memorable ways to apologize for the inconvenience and thank customers for their tolerance.
You can read that complete column here.
Friday, October 14, 2011
How Steve Jobs worked his magic
I've noticed a lot of traffic on this blog lately leading to a post I wrote in January 2010, "How to Speak like Steve Jobs." Given the recent revival of interest in the late Apple co-founder, I have reposted the story below.
Yesterday's release of the iPad reminds me that I forgot to point you to last week's Financial Post column, which looked at Steve Jobs' secrets of public speaking.
The starting point was a book I just read called The Presentation Secrets of Steve Jobs: How to be Insanely Great in Front of Any Audience.
The book is a useful review of standard speaking practices, with a dollop of passion and personality from the iconoclastic co-founder of Apple Computer. Author Carmine Gallo isn't a great writer, so the book rarely soars, but the general principles are worthwhile:
* "Answer the one question that matters most." Reduce complex situations to simple solutions.
* "Sell the benefit." Don't just describe your solution, explain why people should care (e.g., "Apple's Genius tool creates playlists from songs in your library that go great together, with just one click").
* "Create Twitter-like headlines." Examples: "Today Apple reinvents the phone!" "Keynote was built for me!"
* "One theme per slide." Focus on single images, not bullet points.
I was particularly pleased to see Gallo identify a story-telling device that I have seen Jobs use, but could never put a name to: “Introduce the Antagonist.” To make you see the world his way, Jobs sets out what’s wrong with the status quo before introducing his solution.
You can detect the same technique in many Jobs quotes. He forces you to buy his arguments by painting a dismal picture of the alternatives.
We can all learn from this. Consider Job's famous pitch in wooing Pepsi executive John Sculley to join Apple: “Do you want to sell sugar water for the rest of your life, or do you want to come with me and change the world?” Same device exactly.
To learn more about demolishing the status quo, read the full story here: http://www.financialpost.com/news/Jobs+cool/2454771/story.html
Thursday, October 13, 2011
"A magazine is an iPad that does not work"
As a former magazine publisher, I am very interested in the future of publishing in the digital age. Magazines will never go away - they're too attractive, fun and convenient - but lately I've come to see that the future of magazines is to publish on interactive digital devices that deliver a rich media experience. Basically, the iPad.
Here's the appeal. You want to know more about a story you're reading? Click (oops, I mean, just point with your finger) here. Want to see more photos that go with the story? Tap here. Want more information on an advertised product? Just touch it. You'll get a great reading experience, plus all the depth you like.
So this YouTube video sums it all up. A one-year-old who plays on the iPad encounters a stapled paper magazine - and wants to know what's wrong with it. Why doesn't her finger work any more? (She even taps her leg to make sure her finger's still there.)
This is priceless. And possibly the future.
Here's the appeal. You want to know more about a story you're reading? Click (oops, I mean, just point with your finger) here. Want to see more photos that go with the story? Tap here. Want more information on an advertised product? Just touch it. You'll get a great reading experience, plus all the depth you like.
So this YouTube video sums it all up. A one-year-old who plays on the iPad encounters a stapled paper magazine - and wants to know what's wrong with it. Why doesn't her finger work any more? (She even taps her leg to make sure her finger's still there.)
This is priceless. And possibly the future.
Wednesday, October 05, 2011
Steve Jobs, 1955-2011
In the 1980s and 1990s, when success was about flooding the world with confusing, proprietary systems, Bill Gates was the icon of the computer industry and of entrepreneurship. In the 2000s, this leadership passed to Steve Jobs. His vision of personal computer systems that served people – rather than the other way around – won out. And it created love, joy and unsurpassed loyalty.
Visionary, uncompromising, a born communicator, and a detail-oriented product manager who demanded the very best in his products and systems, Steve Jobs represented entrepreneurship at its best.
Those who would follow in his footsteps must insist on the best user interface, the coolest designs, an obsession with customer needs – and the never-ending need to “Think Different.”
And one more thing - a flair for drama never hurts.
Rest in Peace, Steve. You made a difference.
Apple.com's home page tonight
Tuesday, October 04, 2011
Seven cost-cutting strategies you may not have considered
As the economy continues to stumble, businesses are looking for more ways to cut costs. Sure, they’ve been running lean for years, but as the recovery stalls, the pressure is growing to save even more.
There are many resources out there to help entrepreneurs run more efficient businesses. But here are a few unconventional ideas you may not have considered.
1. Use the Internet to find more motivated suppliers: The Web is perfect for finding alternative sources of supplies and services.
• GroupPrice.com is a Groupon-like site aimed at finding standout deals for business owners. Its weekly offers provide hefty discounts on services such as search-engine optimization, public relations, legal work, debt collection and e-commerce. Suppliers are mainly U.S.-based, but are usually happy to work with Canadians.
• HiretheWorld.com is a Canadian site that offers big savings to companies looking for creative services. Instead of paying one local contractor to create a logo or website, you can hold a design contest through HiretheWorld that could attract hundreds of designers. You select the prize and pick the winner, giving you complete control over the outcome.
2. Solicit employee suggestions: Your employees know many ways to save money on front-line activities such as procurement, production, maintenance and mail-outs but they’ve probably never been asked. Why not establish a cost-saving committee or offer a monthly prize for the best money-saving suggestions? Salute employees who join you in stamping out costs.
3. Help employees who seek flexible work: Some of your staff likely have trouble balancing work and home responsibilities. In a recent survey of U.S. adults aged 33 to 46, the Center for Work-Life Policy found that 59% of men and 65% of women feel guilty about time spent away from their children. Why not find an option that can reduce their guilt and save you money? Ask your employees if any would like to work fewer hours, or fewer hours in the office. Studies show many employees are more productive working at home, and they’ll certainly appreciate your flexibility.
4. Share the risk: Your staff understand that the company is facing tough markets. Now is a good time to ask for their flexibility in ensuring your company succeeds. Where appropriate, challenge your employees to share the risk and rewards that you face as an owner. For instance, employees might accept a pay freeze (or even a pay cut?) for 2012 if they are offered a share of the year-end profits in return. Maybe you can offer “phantom stock” (units that are priced like real shares of company, but convey no ownership rights) in lieu of some salary. Don't play hardball; in return for deferring costs now, offer employees a legitimate chance to make more money if you have a good year.
5. Look for more productive advertising and promotional channels: In tough times, the marketing budget always gets cut. But you can save even more if you divert your resources into new, cheaper marketing channels. Try pay-per-click services such as Google AdWords, which lets you narrowly focus your promotional spend and provides detailed data on your results. Experiment with employee-made videos on YouTube. Or look at sponsoring relevant industry or community events – in today’s economy, many sponsorship opportunities are going begging.
6. You get what you negotiate: Next time you get a quote from a supplier, push back. If they quote $1,000 for a piece of equipment, tell them you've only budgeted $700. Let them know you really want to do the deal, but you need their help. In tough times, many companies would rather save the deal than get list price.
7. Bring on the pros: If you feel you've exhausted all possible home-grown efforts to cut costs, why not call in a professional cost-cutting consultant? They work with many companies and know where to look for waste and duplication. Many also know how to get you better discounts from suppliers of commodities such as freight, communications services and office supplies. Some may also be able to help you cut costs by pitting rival suppliers against each other. Ask your peers if they can recommend any expense-reduction consultants, or contact local bankers or accountants for referrals.
Like sales, marketing and promotion, the business of job-cutting never ends. And the more you share the accountability, the more successful you’ll be.
This special post has been brought to you by American Express Canada. See how YOUR business can soar to new heights in the Take Off with American Express contest. Check out the new Amex for Business Canada Page here.
There are many resources out there to help entrepreneurs run more efficient businesses. But here are a few unconventional ideas you may not have considered.
1. Use the Internet to find more motivated suppliers: The Web is perfect for finding alternative sources of supplies and services.
• GroupPrice.com is a Groupon-like site aimed at finding standout deals for business owners. Its weekly offers provide hefty discounts on services such as search-engine optimization, public relations, legal work, debt collection and e-commerce. Suppliers are mainly U.S.-based, but are usually happy to work with Canadians.
• HiretheWorld.com is a Canadian site that offers big savings to companies looking for creative services. Instead of paying one local contractor to create a logo or website, you can hold a design contest through HiretheWorld that could attract hundreds of designers. You select the prize and pick the winner, giving you complete control over the outcome.
2. Solicit employee suggestions: Your employees know many ways to save money on front-line activities such as procurement, production, maintenance and mail-outs but they’ve probably never been asked. Why not establish a cost-saving committee or offer a monthly prize for the best money-saving suggestions? Salute employees who join you in stamping out costs.
3. Help employees who seek flexible work: Some of your staff likely have trouble balancing work and home responsibilities. In a recent survey of U.S. adults aged 33 to 46, the Center for Work-Life Policy found that 59% of men and 65% of women feel guilty about time spent away from their children. Why not find an option that can reduce their guilt and save you money? Ask your employees if any would like to work fewer hours, or fewer hours in the office. Studies show many employees are more productive working at home, and they’ll certainly appreciate your flexibility.
4. Share the risk: Your staff understand that the company is facing tough markets. Now is a good time to ask for their flexibility in ensuring your company succeeds. Where appropriate, challenge your employees to share the risk and rewards that you face as an owner. For instance, employees might accept a pay freeze (or even a pay cut?) for 2012 if they are offered a share of the year-end profits in return. Maybe you can offer “phantom stock” (units that are priced like real shares of company, but convey no ownership rights) in lieu of some salary. Don't play hardball; in return for deferring costs now, offer employees a legitimate chance to make more money if you have a good year.
5. Look for more productive advertising and promotional channels: In tough times, the marketing budget always gets cut. But you can save even more if you divert your resources into new, cheaper marketing channels. Try pay-per-click services such as Google AdWords, which lets you narrowly focus your promotional spend and provides detailed data on your results. Experiment with employee-made videos on YouTube. Or look at sponsoring relevant industry or community events – in today’s economy, many sponsorship opportunities are going begging.
6. You get what you negotiate: Next time you get a quote from a supplier, push back. If they quote $1,000 for a piece of equipment, tell them you've only budgeted $700. Let them know you really want to do the deal, but you need their help. In tough times, many companies would rather save the deal than get list price.
7. Bring on the pros: If you feel you've exhausted all possible home-grown efforts to cut costs, why not call in a professional cost-cutting consultant? They work with many companies and know where to look for waste and duplication. Many also know how to get you better discounts from suppliers of commodities such as freight, communications services and office supplies. Some may also be able to help you cut costs by pitting rival suppliers against each other. Ask your peers if they can recommend any expense-reduction consultants, or contact local bankers or accountants for referrals.
Like sales, marketing and promotion, the business of job-cutting never ends. And the more you share the accountability, the more successful you’ll be.
This special post has been brought to you by American Express Canada. See how YOUR business can soar to new heights in the Take Off with American Express contest. Check out the new Amex for Business Canada Page here.
Wednesday, September 28, 2011
Get motivated! Get found! Get more business!
Time to recharge your batteries and get new business ideas you can take right back to work and implement! The Vancouver-based SOHO Business Group is presenting its annual SOHO/SME business conference in Vancouver this Friday, Sept. 30, and in Toronto on Wed., Oct. 26.
SOHO is the Canadian champion at putting on these shows. They always provide great guest speakers, relevant and timely topics, and the best conference content around. And the price is right!
Here’s the lineup of the Vancouver show:
OPENING KEYNOTE: Get Motivated! Developing Million-Dollar Habits For Success
with the matchless Peter Legge, author and speaker,
CEO of Canada Wide Media Ltd.
with the matchless Peter Legge, author and speaker,
CEO of Canada Wide Media Ltd.
7 Proven Strategies for Getting and Keeping More Money in Your Business
Tracey Lundell, Small Business Banking, TD Canada Trust
Tracey Lundell, Small Business Banking, TD Canada Trust
Design Your Business To Get The Performance and Life You Want
Anurag Gupta, Founder, The Difference Engine
Anurag Gupta, Founder, The Difference Engine
Google Demystified - Tips for Better Rankings
Jeff Quipp, Founder & CEO, Search Engine People
Jeff Quipp, Founder & CEO, Search Engine People
Your Roadmap to Success: An interactive interview with 2010 Ernst & Young Entrepreneur of the Year Award winner Emad Yacoub, owner of The Glowbal Restaurant Group
How to Do Business with the Federal Government
Ravinder Rakhra, Regional Director, Public Works and Government Services, Canada
Ravinder Rakhra, Regional Director, Public Works and Government Services, Canada
Blogging, SEO and Social Media Tips
John Koetsier, Senior Manager, Online Media for Canpages
John Koetsier, Senior Manager, Online Media for Canpages
The Art of Networking!
Sue Clement, President, Success Coaching
Sue Clement, President, Success Coaching
Expert Panel Session: Proven Social Media Strategies for Business
Facebook? Twitter? LinkedIn? What Else? Learn from industry experts on how to maximize your online presence in a growing and competitive social media world
Chris Breikss, Co-Founder, 6S Marketing
Rajan Sodhi, Vice President Marketing & Communications, Peer 1 Hosting
Facebook? Twitter? LinkedIn? What Else? Learn from industry experts on how to maximize your online presence in a growing and competitive social media world
Chris Breikss, Co-Founder, 6S Marketing
Rajan Sodhi, Vice President Marketing & Communications, Peer 1 Hosting
So what are you waiting for? Click here to register for the Vancouver show Sept. 30. It's at the Hyatt Regency, 655 Burrard.The Toronto show (Oct. 26) will be held at the Sheraton Centre Hotel, 123 Queen Street W. I’ll post the lineup soon. And hopefully I'll give you a bit more notice.
Monday, September 26, 2011
Just a great quote
We all have two choices in life: to live consciously and purposefully, or not.
Which is summed up by this great quote I found on Twitter from twitterer @KeltieZubko, who describes herself as a writer and publisher in Western Canada. She posted today:
"There are two ways to sleep well at night -- be ignorant or be prepared." (Simon Black)
Entrepreneurs know that preparation is the key to success. I am always striving to prepare more. I made a rule once to always prepare for a meeting two days in advance. It's a good rule that I wish I could abide by more often.
While we're here, Keltie offers a few other choice quotes on her intermittent Twitter feed.
"Free speech is the gift you give to your worst enemies so you can keep it for yourself." (Douglas Christie, Cdn lawyer)
"Is it just me or are brains today suffocating in information and starving for wisdom?" (Terry Small)
John McPhee on writing a lead: It should “shine like a flashlight down through the piece.” http://tpr.ly/9zzr6r
"It's never too late to be what you might have been." (George Eliot)
"Write every day. Regaining momentum takes three times as much energy as sustaining momentum." (Daniel Pink)
"Sure I am of this, that you have only to endure to conquer." (Winston Churchill)
And finally, a great quote that seems to be from Keltie herself:
"Those who make the most mistakes will go far, as long as they don't give up."
Which is summed up by this great quote I found on Twitter from twitterer @KeltieZubko, who describes herself as a writer and publisher in Western Canada. She posted today:
"There are two ways to sleep well at night -- be ignorant or be prepared." (Simon Black)
Entrepreneurs know that preparation is the key to success. I am always striving to prepare more. I made a rule once to always prepare for a meeting two days in advance. It's a good rule that I wish I could abide by more often.
While we're here, Keltie offers a few other choice quotes on her intermittent Twitter feed.
"Free speech is the gift you give to your worst enemies so you can keep it for yourself." (Douglas Christie, Cdn lawyer)
"Is it just me or are brains today suffocating in information and starving for wisdom?" (Terry Small)
John McPhee on writing a lead: It should “shine like a flashlight down through the piece.” http://tpr.ly/9zzr6r
"It's never too late to be what you might have been." (George Eliot)
"Write every day. Regaining momentum takes three times as much energy as sustaining momentum." (Daniel Pink)
"Sure I am of this, that you have only to endure to conquer." (Winston Churchill)
And finally, a great quote that seems to be from Keltie herself:
"Those who make the most mistakes will go far, as long as they don't give up."
Wednesday, September 14, 2011
Dragons' Den returns Tonight
Just a reminder that Dragons' Den returns tonight at 8 pm in most parts of Canada.
I think DD has become the most important show in Canada's history in terms of promoting entrepreneurship and, more importantly, entrepreneurial values (things like understanding opportunity, identifying how you create value, testing your plans by talking to customers, and collaborating with mentors, investors and other stakeholders). It's quite ironic that it took a Crown corporation to do this. We're seeing more business-oriented shows creeping on to our TV listings this year, but none has the dynamic and built-in audience identification of Dragons' Den.
Note that there's a new Dragon in the den this season: Bruce Croxon of Lavalife has replaced W. Brett Wilson. Brett certainly became a viewer favourite during his time on the show, for his unique personality as well as his personal commitment to supporting good people and socially beneficial businesses. But truth to tell, I thought he spoiled the dynamic of the show a bit; when the other Dragons cynically passed on investing in companies that didn't meet their investment objectives, he would often find ways to bend the rules in order to support the unloved entrepreneur anyway. It was good business for the pitchers, but seemed to violate the show's own rules about "You either get all the money you ask for, or you get nothing."
I had a chance to watch some of the tapings last spring, and I can assure you that Bruce Croxon is a good guy, but a hard-nosed investor. No free rides this year!
I think DD has become the most important show in Canada's history in terms of promoting entrepreneurship and, more importantly, entrepreneurial values (things like understanding opportunity, identifying how you create value, testing your plans by talking to customers, and collaborating with mentors, investors and other stakeholders). It's quite ironic that it took a Crown corporation to do this. We're seeing more business-oriented shows creeping on to our TV listings this year, but none has the dynamic and built-in audience identification of Dragons' Den.
Note that there's a new Dragon in the den this season: Bruce Croxon of Lavalife has replaced W. Brett Wilson. Brett certainly became a viewer favourite during his time on the show, for his unique personality as well as his personal commitment to supporting good people and socially beneficial businesses. But truth to tell, I thought he spoiled the dynamic of the show a bit; when the other Dragons cynically passed on investing in companies that didn't meet their investment objectives, he would often find ways to bend the rules in order to support the unloved entrepreneur anyway. It was good business for the pitchers, but seemed to violate the show's own rules about "You either get all the money you ask for, or you get nothing."
I had a chance to watch some of the tapings last spring, and I can assure you that Bruce Croxon is a good guy, but a hard-nosed investor. No free rides this year!
Friday, September 09, 2011
Business owners ready to take risks, but not to raise prices
The squeeze is on Canada’s entrepreneurs, as costs are rising but most lack the confidence to raise prices in return. Yet, as the economic slowdown grinds on, more of them are saying they are willing to take risks to grow their businesses.
These are the paradoxical findings of the latest quarterly American Express Small Business Monitor poll, conducted in late July-early August 2011. According to the poll of 720 Canadian entrepreneurs, 47% of small business owners are protecting their customers and employees against rising prices, hoping that the resulting loyalty benefit will offset the immediate financial hit.
Of course, they have other choices. Some 52% of business owners say they’d rather reduce overhead costs in general than raise prices, while 48% say they're cracking down on accounts receivable in order to improve cash flow (48%). Some 36% are balancing the books by cutting travel and entertainment budgets.
Only 20% of Canadian entrepreneurs said they were willing to reduce perks for customers, and just 18% per cent were willing to reduce perks for employees. Only 12% said they were willing to reduce staff wages or benefits.
When they’ve had to raise prices, 78% of entrepreneurs say they’ve taken steps to make those increases more palatable. That includes explaining the reason for the increase (61% of entrepreneurs), extending payment terms (18%) and offering discounts to customers who pay early (16%).
But here’s the rub. According to the survey, 54% of the business owners who have raised prices say they experienced little or no customer resistance.
It’s often been said that business owners are more reluctant to raise prices than their customers are to pay higher rates – and this could be one of those times.
Eric Nielsen, VP and general manager of Small Business Services for American Express Canada, says the survey findings point to a positive strategy for business owners feeling squeezed. “The most uncertain of times can create the opportunity to be innovative and adopt new pricing strategies,” he said in a release. “Business owners are having success when they support the new price points with tactical customer communications explaining the rationale for change, or strategic enhancements to their service experience.”
(You might also try a trick I learned from a friend in retail. When margins are tight, raise the prices on just a few of your offerings. Choose those that are hardest for customers to compare – say, on custom packages or unique services that your closest competitors don't offer. Be prepared to offer a compensatory discount if customers complain – but experience suggests they’ll barely notice.)
Why are so many businesses feeling the pinch? According to the Amex survey, during the past year business owner have struggled with above-normal price increases in motor fuel (78%), heating oil/natural gas/electricity (40%), travel (37%) and insurance (34%).
A full 68% of business owners say they’ve also been hurt by suppliers’ price increases. In fact, 51% have switched to competing suppliers with lower prices as a way to mitigate the impact.
The goods news overall: 74% of entrepreneurs believe their companies are financially strong enough to weather another recession. Nearly half (47%) report an improvement in their business’ current financial position, which is a 14-points improvement over last quarter (33%).
Finally, more (28%) say they are willing to take risks today than they were three months ago (22%). And 37% indicate that growing their business is their No. 1 priority, up six points from last quarter (31%).
So go ahead and raise those prices. Respectfully, of course.
These are the paradoxical findings of the latest quarterly American Express Small Business Monitor poll, conducted in late July-early August 2011. According to the poll of 720 Canadian entrepreneurs, 47% of small business owners are protecting their customers and employees against rising prices, hoping that the resulting loyalty benefit will offset the immediate financial hit.
Of course, they have other choices. Some 52% of business owners say they’d rather reduce overhead costs in general than raise prices, while 48% say they're cracking down on accounts receivable in order to improve cash flow (48%). Some 36% are balancing the books by cutting travel and entertainment budgets.
Only 20% of Canadian entrepreneurs said they were willing to reduce perks for customers, and just 18% per cent were willing to reduce perks for employees. Only 12% said they were willing to reduce staff wages or benefits.
When they’ve had to raise prices, 78% of entrepreneurs say they’ve taken steps to make those increases more palatable. That includes explaining the reason for the increase (61% of entrepreneurs), extending payment terms (18%) and offering discounts to customers who pay early (16%).
But here’s the rub. According to the survey, 54% of the business owners who have raised prices say they experienced little or no customer resistance.
It’s often been said that business owners are more reluctant to raise prices than their customers are to pay higher rates – and this could be one of those times.
Eric Nielsen, VP and general manager of Small Business Services for American Express Canada, says the survey findings point to a positive strategy for business owners feeling squeezed. “The most uncertain of times can create the opportunity to be innovative and adopt new pricing strategies,” he said in a release. “Business owners are having success when they support the new price points with tactical customer communications explaining the rationale for change, or strategic enhancements to their service experience.”
(You might also try a trick I learned from a friend in retail. When margins are tight, raise the prices on just a few of your offerings. Choose those that are hardest for customers to compare – say, on custom packages or unique services that your closest competitors don't offer. Be prepared to offer a compensatory discount if customers complain – but experience suggests they’ll barely notice.)
Why are so many businesses feeling the pinch? According to the Amex survey, during the past year business owner have struggled with above-normal price increases in motor fuel (78%), heating oil/natural gas/electricity (40%), travel (37%) and insurance (34%).
A full 68% of business owners say they’ve also been hurt by suppliers’ price increases. In fact, 51% have switched to competing suppliers with lower prices as a way to mitigate the impact.
The goods news overall: 74% of entrepreneurs believe their companies are financially strong enough to weather another recession. Nearly half (47%) report an improvement in their business’ current financial position, which is a 14-points improvement over last quarter (33%).
Finally, more (28%) say they are willing to take risks today than they were three months ago (22%). And 37% indicate that growing their business is their No. 1 priority, up six points from last quarter (31%).
So go ahead and raise those prices. Respectfully, of course.
Thursday, September 01, 2011
Four Resolutions for the New Business Year
With summer fading and Labour Day roaring 'round the bend, I want to wish you a safe and fun long weekend. Next week, there will be a new renewed sizzle in the air as everyone's minds turn back to business, mastering that all-important fourth quarter, and planning for 2012. Forget New Year’s Eve and the ball dropping in Times Square. With Labour Day coming and pucks dropping in towns and cities across Canada, this week marks the start of the real New Year, especially in business, where entrepreneurs and executives are now shifting their mindset from managing vacation schedules to executing freshly minted budgets.
Here are four New Year’s resolutions to help you get your business in better shape.
• Take a fresh look at your business, through the eyes of a customer. Hire a mystery shopper to walk through the customer experience at your business and report back, or just think through all your processes and systems that touch clients. Either way, you must identify and root out any discordant element that prevents prospects and customers from experiencing your company the way you would like them to.
Here are just a few things drive customers crazy: old brochures, out-of-date (or tired) websites, or client-facing employees who don't share your passion for your products and customers. You also have to blow up the roadblocks that prevent people from doing business with you, whether they’re stringent credit policies, delivery delays, or tedious online registration systems.
Forward-looking companies track and measure the customer experience, then set standards to ensure that everyone receives consistent quality service throughout the journey from curious stranger to valued client. Even the smallest business can set customer-response standards (e.g., phones answered within three rings; messages returned within one business day), or track conversion rates to see how many inquiries become genuine leads, and how long it takes to complete the sales cycle.
• Invest more in training your people for this tougher new economy. All your staff must be miracle workers (and not in the sense that if they're working, it’s a miracle). It’s their job to turn raw resources (time, money, or metal and plastic) into value-creating products and services, or to transform ordinary customers into raving fans.
If some staffers aren't big on miracles, reorient them or invite them to seek fulfillment elsewhere. Most people can be salvaged with a consistent application of entrepreneurial zest: help them understand how dependent your company is on their actions, and give them the training they need to perform their jobs right.
If your training budget is tight, pair up underperforming employees with mentors or “change buddies” within the company. This gives troubled employees a chance to recharge their batteries, learn new skills, and ask questions they might feel embarrassed to ask their boss. It may also revitalize older or superior performers, who will benefit from learning to put into words the skills and attitudes that have made them successful.
• Cull the herd. If training and retraining don't work, get rid of underperformers. This is a great time to find motivated new staff: there are many unemployed and underemployed people eager to work for a leading-edge company such as yours. (No idle flattery: if you weren’t a sophisticated, results-oriented leader, you wouldn’t have read this far.) Plus, with the gradual return of economic confidence, good performers who are already employed will be less wary about leaving secure jobs for new opportunities.
Be a wolf. At the Brookfield Zoo in Chicago, I learned that the recent reintroduction of wolves into Yellowstone Park has helped other species, including prey, in the region. With wolves back in the picture, sick and diseased deer are now culled early, before they can infect the herd. Result: the remaining animals are healthier and breeding more successfully. (In business, we call that productivity.)
• Say “thank you” every day. This simple resolution won't require trips to the gym or costly consultants. It simply reflects your dependence on other people’s good will for your success – and the karmic benefits that result when you thank others for the differences they make in your life.
You may still have the first thank-you note you ever got from your boss. All your staff want to hear from you more often, to know that they're on the right track, that they're recognized, and that their efforts are appreciated.
Written notes, especially in this email era, can have a lasting effect. But they're not just for employees. Make sure your industry partners – customers, suppliers, bankers – know how much they mean to you. Post them a thank-you note, invite them to lunch, send them a little gift. No strings attached.
You’ll not only bolster a relationship. You’ll restart dialogues that could result in valuable business tips, new opportunities, repeat business and referrals. Your colleagues and staff already know how important they are to your business. They're just waiting to see if you do.
Friday, August 26, 2011
Catching up
New posts on this blog have been ascarce this month. But that doesn't mean I haven't been busy. Here are some links to catch you up.
"Seven new ways to lead," from the June issue of PROFIT Magazine. http://www.profitguide.com/article/28400--the-new-way-to-lead
"Vision leads the leader" - a blogpost at PROFITguide
http://www.profitguide.com/blog/rickspence/40288--vision-leads-the-leader
Win anyone's attention attention with three sound-byte steps
http://www.profitguide.com/blog/rickspence/39737--three-sound-bites-that-win-attention
The growing role of angel investor groups
http://www.profitguide.com/blog/rickspence/37537--canada-s-angel-investor-groups-take-flight
“Businesses that want to improve performance need to improve their performance management"
http://www.profitguide.com/blog/rickspence/35522--managing-employee-performance-is-key-to-outperforming-the-economy
Monitoring your staff performance without making them nervous
http://www.profitguide.com/article/9946--monitoring-staff-performance
Can founders be leaders?
http://www.profitguide.com/article/30678
"Seven new ways to lead," from the June issue of PROFIT Magazine. http://www.profitguide.com/article/28400--the-new-way-to-lead
"Vision leads the leader" - a blogpost at PROFITguide
http://www.profitguide.com/blog/rickspence/40288--vision-leads-the-leader
Win anyone's attention attention with three sound-byte steps
http://www.profitguide.com/blog/rickspence/39737--three-sound-bites-that-win-attention
The growing role of angel investor groups
http://www.profitguide.com/blog/rickspence/37537--canada-s-angel-investor-groups-take-flight
“Businesses that want to improve performance need to improve their performance management"
http://www.profitguide.com/blog/rickspence/35522--managing-employee-performance-is-key-to-outperforming-the-economy
Monitoring your staff performance without making them nervous
http://www.profitguide.com/article/9946--monitoring-staff-performance
Can founders be leaders?
http://www.profitguide.com/article/30678
Wednesday, August 10, 2011
Counting down till GROW 2011
As summer continues its sunny way south, entrepreneurs in British Columbia have a terrrific conference to look forward to next week: GROW 2011.
It's a comprehensive look at next-generation web companies and innovative business models, with oodles of successful Silicon Valley entrepreneurs and a very creative framework that includes a day of mentoring and an outdoor activity day for serious networking, BC-style.
You can read more about it in my column today in the Financial Post.
Excerpt:
It has been 10 years since Wikipedia began, and 20 years since Gopher became the first common Web browser. The Internet domain name system was established in 1984, and in 1976 Queen Elizabeth II became the first head of state to send an email – a mere 35 years ago.
Clearly, the Internet isn’t new any more. Yet, as Google Canada recently pointed out, nearly half of Canadian businesses still don’t even have a website.
For more and more, however, the Internet isn’t about mere “websites” any more than the post office is about delivering personal letters. The Internet is transforming businesses and entire industries, turning product and services producers into communications and logistics innovators...
For the rest of the story, click here.
It's a comprehensive look at next-generation web companies and innovative business models, with oodles of successful Silicon Valley entrepreneurs and a very creative framework that includes a day of mentoring and an outdoor activity day for serious networking, BC-style.
You can read more about it in my column today in the Financial Post.
Excerpt:
It has been 10 years since Wikipedia began, and 20 years since Gopher became the first common Web browser. The Internet domain name system was established in 1984, and in 1976 Queen Elizabeth II became the first head of state to send an email – a mere 35 years ago.
Clearly, the Internet isn’t new any more. Yet, as Google Canada recently pointed out, nearly half of Canadian businesses still don’t even have a website.
For more and more, however, the Internet isn’t about mere “websites” any more than the post office is about delivering personal letters. The Internet is transforming businesses and entire industries, turning product and services producers into communications and logistics innovators...
For the rest of the story, click here.
Wednesday, July 20, 2011
Blogging for billions
This is exciting because it took us 4.5 years to get to the first 100,000, and just 21 months to double that. And the latest 50,000 came in just 8 months, for an average of more than 6,000 visitors a month, or more than 200 a day.
Pretty good for a blog that never mentions Justin Bieber.
Of course, all this comes against the inevitable background that I've been posting less often on this blog lately. This inspires me to do more, but realistically, you should also follow me on Twitter. That's how business junkies get their news today!
Thank you for your support.
Note to a Young Entrepreneur
Here is my response:
"Institutional capital is rare for new service businesses. Friends and family is the usual solution to startup capital in situations like yours.
Your best bet would be to look into the Canada Youth Business Foundation, which offers low-rate loans to entrepreneurs under 35. Better still, each loan comes with a mentor and mentoring process to help guide you along the way.
Marketing yours services is all about measuring the benefit you have created for other people, and communicating that information to more people like them. So it's in two parts:
1. Gather testimonials from all of your satisfied clients - get them to specify how you helped them, how great your service was, how much money you saved them or how you directed them to the best solution, etc. (The more detailed, the better.)
2. Communicate the message of how you help people. Start by identifying your target market and finding the best way to reach them (posters, brochures, ads, e-mail, Google ads, press releases, website?). Then start hammering home the message in a helpful, over-the-top, eyecatching way.
Rinse and Repeat.
Does this help?
Rick
What other advice might you offer?
Monday, July 11, 2011
The Market Research Dilemma
Yesterday I got an inquiry from an entrepreneur I'll call Ruth. She is setting out to start an upscale health-services business in Toronto, and was looking for industry-specific market research to help her pick the best locations to target.
Sadly, her request was too specific for me to offer any immediate help. But I tried to steer her in the right direction with some general advice, which I'm happy to share with you, too. Here's what I told her.
Hi, Ruth. I wish you luck in your venture, but I am afraid I am not an expert in market-research sources for specific industries. I would think, however, that any neighborhood in the city with larger, more expensive homes (e.g., Bayview Village, Rosedale, North Toronto, York Mills, the Kingsway, etc.) would fit your target market, and that information is readily available through the press or the Toronto Real Estate Board.
For specific industry stats, you might consult sources like StatsCan or Scott's Directories. My suggestion is that you call a reference librarian at the Toronto Reference Library and tell them what you are looking for; they are very helpful and can probably point you to sources that you and I have never heard of.
Here are some ideas on sources to get you started: http://torontopubliclibrary.typepad.com/business_personal_finance/market-research-statistics/
And don't forget the potential of doing your own market research. There are lots of cheap ways to gain market intelligence using personal polltakers or online surveys. You could even look for friends or locals who live in target areas and ask them to hold a focus group for you to pick their friends' brains regarding demand for your business idea. Most entrepreneurs skip this step, even though it could save them so much grief (and money!).
Best of luck! Let me know how things go.
Rick
Sadly, her request was too specific for me to offer any immediate help. But I tried to steer her in the right direction with some general advice, which I'm happy to share with you, too. Here's what I told her.
Hi, Ruth. I wish you luck in your venture, but I am afraid I am not an expert in market-research sources for specific industries. I would think, however, that any neighborhood in the city with larger, more expensive homes (e.g., Bayview Village, Rosedale, North Toronto, York Mills, the Kingsway, etc.) would fit your target market, and that information is readily available through the press or the Toronto Real Estate Board.
For specific industry stats, you might consult sources like StatsCan or Scott's Directories. My suggestion is that you call a reference librarian at the Toronto Reference Library and tell them what you are looking for; they are very helpful and can probably point you to sources that you and I have never heard of.
Here are some ideas on sources to get you started: http://torontopubliclibrary.typepad.com/business_personal_finance/market-research-statistics/
And don't forget the potential of doing your own market research. There are lots of cheap ways to gain market intelligence using personal polltakers or online surveys. You could even look for friends or locals who live in target areas and ask them to hold a focus group for you to pick their friends' brains regarding demand for your business idea. Most entrepreneurs skip this step, even though it could save them so much grief (and money!).
Best of luck! Let me know how things go.
Rick
Friday, July 01, 2011
July 1, 2011
Just a note to wish the readers of this blog a Happy Canada Day!
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144 years ago, on July 1, 1867, four small, scared, and suspicious British colonies in North America formed a Confederation to provide for more secure trade, defence and economic growth. The fruit of that visionary decision is today’s Canada, a confident, well intentioned nation that stands as a beacon to peace-loving people around the world.
144 years ago, on July 1, 1867, four small, scared, and suspicious British colonies in North America formed a Confederation to provide for more secure trade, defence and economic growth. The fruit of that visionary decision is today’s Canada, a confident, well intentioned nation that stands as a beacon to peace-loving people around the world. While not as well known or prosperous as our neighbour the United States, Canada shows that national purpose and success can be found by different paths – whether it be violent revolution against a vexatious mother country, or gradual disengagement through diplomacy and good will. Together, Canada and the U.S. are a magnet for goods, ideas and people throughout the globe, and the most successful economic partnership in history.
A salute to all things Canadian. Shut off your Blackberry, bite into a Macintosh apple, enjoy some maple butter, grab a Molson, or finish your painting chores this week with a paint roller – all of them products of Canadian ingenuity and commerce. Have a safe and sunny weekend!
And all best wishes to our U.S. friends and family for a glorious Fourth of July!
Friday, June 17, 2011
This will change the way we use the Internet
The National Post seems to have liked my column this week on ICANN's next-generation domain names. It's promoted three times this morning on the "NP Entrepreneur" home page (see photo).
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There are a few catches. One, the regime has yet to be approved by ICANN, the world's top domain decision-maker. (But the betting is it will be approved next week.) Secondly, simply applying for one of these "generic top-level domains" will set you back $200,000 or more.
But as Javed points out, once you own one of these gTLDs, the opportunity to become your own domain-name registrar by selling lower-level URLS to other businesses (music.vancouver, police.vancouver, hockey.vancouver, plateglass.vancouver) could be huge.
As the story says:
"Up for grabs are some of the world's most valuable names and words: dot-hockey, dot-travel, dot-music, dotmontreal, dot-toronto. No suffix (i.e., dot-com, dot-ca) required. This will change the way businesses and people use the Internet; and although ICANN has been planning this change for three years, it's still mainly just the geeks who know about it."
Click here to read the complete story.
The story suggestion came from Naseem Javed, corporate-naming expert and founder of ABC Namebank. He's really excited about the new opportunities that will emerge out of the creation of a whole new set of domain names: instead of dot-com, you can have dot-blog, dot-Kodak, dot-Calgary, dot-anythingyouwant.
There are a few catches. One, the regime has yet to be approved by ICANN, the world's top domain decision-maker. (But the betting is it will be approved next week.) Secondly, simply applying for one of these "generic top-level domains" will set you back $200,000 or more.
But as Javed points out, once you own one of these gTLDs, the opportunity to become your own domain-name registrar by selling lower-level URLS to other businesses (music.vancouver, police.vancouver, hockey.vancouver, plateglass.vancouver) could be huge.
As the story says:
"Up for grabs are some of the world's most valuable names and words: dot-hockey, dot-travel, dot-music, dotmontreal, dot-toronto. No suffix (i.e., dot-com, dot-ca) required. This will change the way businesses and people use the Internet; and although ICANN has been planning this change for three years, it's still mainly just the geeks who know about it."
Click here to read the complete story.
Wednesday, May 25, 2011
The Myth-Busters of Startups
Some interesting myth-busting from the results of a bank survey released today:
One-third (32%) of Canadians who don’t own a business like the idea of being their own boss and one-fifth (20%) are thinking about starting up their own business within five years, according to the most recent RBC Canadian Consumer Outlook.
“Considering 12 per cent of Canadians are currently self-employed, seeing another 20 per cent interested in being their own boss is indeed significant,” said Mike Michell, national director, Small Business, RBC.
When it comes to starting a business, the top two challenges identified by those who don’t own a business are getting enough money to start or expand (28%) and finding clients (14%).
However, existing business owners say different. According to the latest RBC Small Business Survey, 66% of business owners said finding enough clients was a key challenge. Only 15% felt that getting enough money to start or expand their business was a key challenge.
The experience of existing business owners also contradicts the perception of 40% of Canadians who think it takes up to three years for a new business to start making money. In fact, 41% of business owners surveyed said it took less than a year for their business to break even.
Here is RBC's list of top business-building tips, as expressed by its survey of Canadian business owners:
Focus more time on networking – develop alliances, join industry associations, attend as many events and seminars as possible.
Aggressively solicit clients – spend more time marketing your business. Understand the clients’ needs and how your business will meet those needs.
Seek as much help or advice as possible – find a mentor or look to other business owners to draw on their experience.
Develop a comprehensive business plan and review it regularly, especially in growth phases.
Obtain financial advice early in your planning to secure financing in advance.
Know your competition well and research the market.
One-third (32%) of Canadians who don’t own a business like the idea of being their own boss and one-fifth (20%) are thinking about starting up their own business within five years, according to the most recent RBC Canadian Consumer Outlook.
“Considering 12 per cent of Canadians are currently self-employed, seeing another 20 per cent interested in being their own boss is indeed significant,” said Mike Michell, national director, Small Business, RBC.
When it comes to starting a business, the top two challenges identified by those who don’t own a business are getting enough money to start or expand (28%) and finding clients (14%).
However, existing business owners say different. According to the latest RBC Small Business Survey, 66% of business owners said finding enough clients was a key challenge. Only 15% felt that getting enough money to start or expand their business was a key challenge.
The experience of existing business owners also contradicts the perception of 40% of Canadians who think it takes up to three years for a new business to start making money. In fact, 41% of business owners surveyed said it took less than a year for their business to break even.
Here is RBC's list of top business-building tips, as expressed by its survey of Canadian business owners:
Focus more time on networking – develop alliances, join industry associations, attend as many events and seminars as possible.
Aggressively solicit clients – spend more time marketing your business. Understand the clients’ needs and how your business will meet those needs.
Seek as much help or advice as possible – find a mentor or look to other business owners to draw on their experience.
Develop a comprehensive business plan and review it regularly, especially in growth phases.
Obtain financial advice early in your planning to secure financing in advance.
Know your competition well and research the market.
Wednesday, May 04, 2011
Best bosses, your next video, perfect pitch and Having It All
Here are some links to a few of the subjects I've been blogging about recently for PROFITguide, the online home of PROFIT Magazine.Just click on any title to be instantly transported to the story.
Ten tasks great bosses love to do
* Do's and don’ts of your corporate video
Why and how you need to become more adept at using digital video as a communications and marketing channel.
* Serving up a perfect pitch
Entrepreneur Neil Raj's formula for winning firends and influencing investors
Karen Stewart's eight tips for the next entrepreneurial generation
You’ll find lots of other great resources at www.profitguide.com, including editor Ian Portsmouth’s Business Coach Podcast and Peer-to-Peer, the feature in which real-life entrepreneurs answer each other’s most nagging business questions. Check 'em out.
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