What the....?

Baby Boomer Business Owners May Have to Choose Time Over Cash

With Grant Thornton's latest gobal business survey identifying that 69% of NZ businesses may be up for sale in the next 10 years two burning questions that will only become more apparent with time would have to be "Are there enough buyers? If so is there enough funding out there to actually make this happen?"

The vast majority of people have the dream of both financial and personal freedom when they go into business but very few actually realise the dream. In most cases all that ends up happening is people buy themselves a job they are tied to with more hours, greater responsibility and financial risk. There are many positives that outweigh the negatives however, especially for those that can gain the financial freedom - but do they have the time to enjoy it?

One of the most common themes I find when speaking business owners (even those that are very successful) is that while they may have a nice house and car and in many cases the boat and holiday home, they personally see it as an investment into their family to get the benefits from now and for their own personal benefit in the future when the business sells.

It would also be fair to say that most business owners are very passionate about what they do and although they like the idea of a big wad of cash one day when they decide to retire and sell up there is always the question of "What then?".

The glut of businesses potentially coming onto the market over the next 10 years will potentially lead to an increase in business owners stepping back from their businesses rather than selling up. Making a partial exit or developing systems processes and structures in their businesses to allow them to reduce their hours to a well deserved "semi-retired" status while still receiving substantial percentages of profits will become much more common and desireable. This is an option many owners don't readily think of and while it has huge benefits many will find hard to do without the right support and guidance. A well thought out plan needs to be impletmented to ensure the businesses will continue to be profitable and the right people need to be identified and groomed to take on more active and senior roles but it can be done and very succesfully.

The earlier a plan is developed the greater the likelyhood of success and it also will help mitigate the risk of the "hit by a bus" or "had a heart attack" scenario where a business owner may have to exit the business at short notice. No issue for the business owner if they ahve the appropriate insurances however it can lead to major issues for the business itself and staff that rely on it.

Where will this lead? I think in a very positive direction where smart business owners wanting to retain an interest in their business, focus more on a personal goal of company governance rather than hands on management and they will also invest more the growth and developement of their staff.

The Amazing $6.2million USD Advert

This ad for the Honda Accord in 2008 apparently cost an astounding $6.2million USD to make and 606 takes!

 

Effective?

US sales figures show that in 2008 there were 372,789 sold a drop of nearly 20,000 on 2007 (392,321) and overall numbers dropped a further 85,000 in 2009 (287,492) however there was s little thing many called the GFC around and in April 2009 it was the best selling vehicle in the US outselling Ford for the first time. Where it may have dropped in volume the Honda market share increased dramatically. As amazing as this advert was and the relative success of Honda in the US  is as much an indication of the price point  and fuel efficiency as anything else. Using the 2008 figures the ad cost nearly $17USD per vehicle sold to produce before it even went to air!

Back in the real world there are hundreds of low cost marketing strategies you can use to help drive business growth. Books I would recommend for SME businesses are Street Fighter Marketing and also anything by Seth Godin (in fact check out Seth's Blog for all sorts of great advice).

Flipboard Review - Another Nail in the Print Media Coffin?

One of the great attractions of magazines and newspapers over the internet has always been the ability to take them with you where ever you are and flip through the pages at your leisure.

With the release of the iPad and now the Flipboard app this freedom is now available in a fantastic electronic form.

Flipboard is a social magazine that brings to life the stories, photos, news and updates being shared across Twitter and Facebook. Released lat week and already one of the top free downloads for iPad users.

Users have the ability to flip through the pages of the magazine that is always updating and has fresh stories sourced from the millions of links shared on facebook and twitter. Navigation is very intuitive and having the ability to browse thorugh the magazine, "zoom in" on pictures and articles and of interest and link through to full articles and posts on the originating websites gives users an experience that can not be rivalled in print media.

 

A Look at Flipboard

Interest has been so great that Flipboard has been unable to keep up with the demand of users wanting linking through to their facebook and twitter accounts. The public content is still fairly raw and currently has limited categories to browse through however by sourcing articles, blogs, links that your friends and followers are looking at it will be able to intuitively have content available to you that will be of interest and you can update, like and share again the posts, blogs etc that have been promoted by your friends. For me that would be a logical track and the acquisition of Ellerdale will no doubt increase content relevency over time and yes I am one of the millions waiting for my facebook and twitter accounts to be linked which no doubt will make a huge difference as that is where the intellegent sharing really comes to the fore.

For me, an avid magazine reader and traditionalist in many ways this could just be the thing that gets me to move my page flipping fetish from print to pad. 

This has to be one of my favourite blog posts of all time -highlighting why there can never be "forced equality" in society. THE EXPERINMENT: Human Nature and Socialism http://bit.ly/9PQt3p

Five Must-Read Posts - with Two Top 100 Lists and more

For marketing genius David Berkowitz fans here is the link to one of his latest posts detailing some other fantastic blogposts to check out!

Five Must-Read Posts - with Two Top 100 Lists and more

COLD CALLING IS DEAD!

Well that seems to be the latest consensus on the most popular sales website on the planet SalesGravy.com and the associated Linkedin discussion threads and I have to agree!

I am a salesman at heart and I have always relished a challenge - back in the day I always rose to the occasion and outperformed pretty much everyone in my teams at the time whenever we had our weekly cold calling sessions to see who could generate the most leads. Yes it was a real rush and I thrived in the environment, learning the art of selling rapidly pitted against a bunch of other hungry sales stars. The crazy thing was we all knew it was a numbers game and we were more concerned about getting the numbers on the board rather than the customer and perceived value and credibility of our business and products in the market. When you see salespeople "burn" prospects that don't qualify or they can't seem to make any traction against, it should almost be a criminal offense and at least a sacking one.

What is the path of least resistance in selling?

REFERRALS!!!!!!!

Referrals always have been and always will be the best form of introduction and in this modern age of the internet and social media we have such a fantastic opportunity to build large and strong networks rapidly. The key is in how we utilise them.

Here are just a few tips on how to grow your referral based business:

1. First and foremost if you have a happy customer ask them for the names of anyone they know who may also be in the market in the future (and when). Even better get them to introduce you personally or by email. This automatically gives you credibility and turns what could have been a cold call into a warm or hot lead.
2. VISIBILITY & CREDIBILITY leads to PROFITABILITY - Be active in your market. Engage in social media, join in discussion threads in forums and sites such as Linkedin, write and submit articles for trade publications and if you are confident enough put yourself out there as a speaker at industry events. Become the "go to guy" or expert or at least the most visible/vocal person in your market giving credible advice and commentary on issues and points of interest. THIS WILL ATTRACT CUSTOMERS TO YOU!
3. Host charity events donating all profits to a nominated charity. You can then work with the charity and they can do most of the promotion reducing costs and attracting potential new customers. It also increases your profile and credibility in the market as per point 2 above and allows you to engage with clients in a non threatening social environment strengthening your relationships.
4. Offer existing customers incentives for making referrals. This can be done via an email newsletter as well further reducing the fear factor for salespeople not wanting to ask face to face.
5. Actually thank people who give referrals preferably with a handwritten note followed by a phone call to show them you value their input and also increases the probability they will continue to refer customers through dramatically.
6. Create strategic alliances with other non competing businesses and offer them discounts on your services or rebates for a reciprocal referral arrangement (even share databases or combine marketing material in mail-outs to reduce costs if you can).

These are just a few of the techniques you can use in your business to kill off the prehistoric tactic of cold calling and grow your business in any market while also improving your credibility, closure rates and perceived value.

Abandon ship or all hands on deck? Are your staff lining up to leave?

Over the last 2 years the global trend has been to batten down the hatches, reduce costs, improve efficienceis and numerous rounds of redundancies. The old saying that "change brings unrest" has a lot of truth behind it and in many businesses employees have been nervous about the safety of their roles and unhappy at the reduction in training they are getting accompanied with increased workloads.

With the recruitment market picking up and more new jobs being advertised it is inevitable that good staff that are not happy will move on.

What are three things can employers do to reduce the risk of losing their best staff?

1. Talk to them! Too many businesses are afraid of telling their staff how things really are and portray an image that things are much better than they really are. Engaging with your staff not only gives them the big picture and a better appreciation of why certain cuts and sacrifices have been made but also can give them the opportunity to come up with ideas to help the business move forward.
2. Identify your influencer - These may not just be your senior staff. Look to those who know what is going on in the organisation at every level and "bring them into the fold" as advisers. Talk to them about what is going on inside the company and listen to their opinions. By involving the infulencers at a strategy level they can become your champions and also your informants identifying who is at risk and helping you keep your finger on the pulse of the organisation.
3. Revisit training and personal development plans now! - Generally people don't look for work because they want more money it is because they are not happy or do not feel valued. By revisiting training and development plans and taking action you are once again letting your staff they are valued and that you are prepared to invest in them.

I come from a marketing background and a lot of what I do now is still marketing focused however I strongly believe that if it means reinvesting some of your marketing budget in training you will be better off. In most businesses the ROI you will get from training can get much greater results - better customer service, conversion rates, higher margins with the right closing techniques and staff that are not only feeling appreciated and valued but also are better at what they do.

A great little article on how NZ marketers are failing to see the value of social media in gaining global traction for their products ... well done NZ Herald and Adam Gifford http://bit.ly/9Zivt9

Lucy Lawless and Robyn Malcolm "Talking Dirty"

Gerry Brownlee eat your heart out.... Lucy Lawless and Robyn Malcolm have come up with a classic response to his "Sexy Coal" comment this week.

Yes it is a bit of a proverbial P!ss take but does Gerry Brownlee deserve anything else?..........

 

 

3 Billion Dollar Merger To Create the Worlds Biggest Airline

Seems like Airlines are all keen for closer economic relations. Air NZ and Pacific Blue announced today that they are looking to work together on the Trans Tasman route (pending commerce Commission approval) and the BIG story just coming out is United  Airlines and Continental Airlines agreed Sunday to a $3 billion merger that would create the world’s biggest airline, according to people briefed on the negotiations.

See Todays NY Times article

 

Classic Tweet about Kiwi Gossip "Queen" Rachel Glucina

For those that don't know Rachel Glucina is slightly larger than her media shots in the "Spy" section of the Herald on Sunday (to say the least). This Tweet I saw today is a classic case of Karma coming back and biting her in the big but and I couldn't help but have a laugh.

Note: Please start at the bottom and read up to top to get full enjoyment of multiple tweet narrative...