Grow Your Business By Turning Away Customers
In the Indianapolis metropolitan area, there are 65,000 companies with sales under $1 million. 65,000! The reality is I can’t serve all these small businesses.
To use my time well, and do the right thing for my clients, sometimes the best thing to do is to turn the project over to a competitor. I know that sounds crazy, giving up a project especially, in a tough economy, but when it isn’t a fit, I have learned it is better to walk away.
Seth Godin had a great post recently on this topic. He argued passing a project to someone else better prepared to handle it will actually raise your image with that client. He said:
This is when you earn the right to be seen as a trusted adviser, not a self-interested shill. Two months or two years from now, when you interact with that person or organization again, he’ll remember that you were the one who spoke up on behalf of the competition, the one who helped us find a better fit, the clearly disinterested adviser who helped us choose between the two remaining good choices.
To make good suggestions, I work hard to get to know my competitors. I understand their weakness and their strengths so I can pick the best candidate for my client. I have good working relationships with companies like SpinWeb, Miles Design, and Deep Ripples. Each of these companies are best in class, and beyond their skills, I know they will treat my prospect the way I would have .
I am in this business for the long haul. So if I miss one sale, but in doing so, I establish my self as a trusted adviser I know it will be worth it in the long run.
Want to Boost Sales? Give Stuff Away!
Whenever I go to the mall, and walk by the food court, there is always that guy, handing out samples of the Chinese chicken. Why? Because if you don’t know what you are hungry for, very often a little taste is enough to convince you to buy an entire plate.
That same try before you buy strategy works in many industries, particularly when the product or service is really unique or radically different from competing products.
For example networking: Today, after more than eight years in the market place, most people are familiar with Rainmakers. That was not the case, eight years ago. Our model was so different, it was almost impossible to explain on paper or on-line. It is one of those things you had to experience to understand. To overcome the low understanding of our model, we started offering “free passes” to our events.
The result of our free trial program – We lost some revenue at the door, since guests no longer had to pay the first time they attended, but we had significantly more guests. the average event had an increase in guest count from 5 to 15. Since our closing percentage (guests who became members) remained the same, we tripled the number of new members each month.
That’s the key.. use free trials to introduce the product, build a loyal fan base, and offer an option for more services of a reasonable fee. It the value is there, you wil have no trouble earning the fee.
FREE TRIALS! Have you figured out how to use them in your business?
Warm Up Cold Calls with Power Teams
I have been a student of Matt Nettleton’s at TrustPointe for almost a year now. Almost every week he mentions, suggests, or commands that we make phone calls. While I have never learned to love them, I have learned to make to them.
But whenever possible, I try to make warm calls instead. I try to rely on my referral network, and power team to make connections to the people I need to meet.
Who are my Power Team? This is a loose group of business professionals who offer complementary services to my target customers. I schedule one-on-one conversations over coffee and lunch. As we talk about projects and customers, opportunities arise: without directly soliciting a referral directly, things happen!
Do you have a your own Power Team? Here are a few tips on how to build one.
Start with your customer.
Regardless of whether your product or service is for an individual or a business, your target customer has needs beyond what you can provide. Think about other products and services your customers could or would purchase on a regular basis. For example if you are an electrician, then a plumber, roofer, or landscape company would be a potential Power Team members.
As you attend networking events, be on the look out for great Power Team members. While customers are always nice, a great Power Team member will create more opportunities for you in the long run!
Be Selective
It takes time to build an effective partnership, one which brings value to both companies. Don’t rush the process. The closer you work with this strategic partner, the more your image and theirs become entwined together in the mind of potential clients. Carefully evaluate potential partners; selecting companies which will they treat your clients the way you do. Build relationships with companies you will be proud to send your best customer to.
Leading Questions, Part 2 – Presentations and Networking
Mason King from the IBJ and I covered so much ground in our interview for the Leading Questions series that they wound up releasing a “bonus” video. Check it out for some tips on approaching everyone’s favorite chore: networking.
Roundpeg On-Line Education for Small Business Owners
Most small business owners will admit they have a lot to learn about business planning, marketing, web design, social media, pr and networking. However, with the day in, day out challenges of running a business, there isn’t really time to take off for a seminar. And when you do, there is always so much information to digest and act upon.
I know this is true, because I run a small business.
So I have developed a series of FREE on-line courses on Marketing, Business Planning, Web design, and PR/Social Media Each program includes emails, blog posts, worksheets and the occasional podcast or video.
Episode 18 – Robby Slaughter and Productive Networking
Robby Slaughter of Slaughter Development, an Indianapolis based productivity firm stopped by and shared some networking productivity strategies for small business owners. We talked about how to decide if you are in the right room, open a conversation, and make networking a part of your ongoing marketing activities.
To hear our short conversation check out the podcast now.
Click here to listen to the interview.
What Makes Someone Attractive?
No today’s post is not about makeovers or dating advice. It is about being attractive on line!
About a year ago, I read a post by Jim Connolly. In it he talked about Equality and Attraction. Essentially he was talking about what makes people attractive. While he was focused on internet marketing, I think his comments are relevant in many areas of marketing. He said:
You attract sales, leads and referrals by being attractive. In the online world, this means making your site or blog as valuable to your ideal profile of client / customer as possible. You do this by focusing on delivering quality and quantity.
What do you think? I think many of the same qualities which make people attractive off line make them attractive on line as well. For example -When you go to a cocktail party or networking event, take a minute and look around the room. The interesting, confident people are usually the center of attention. How does this translate to your on-line? Write interesting content and share it with confidence. – A simple post on Twitter or FriendFeed to let your followers know you have something new, then let your readers find you.
In addition to really dynamic and interesting people, the other very popular folks at any party are the good listeners. So spend some time listening as well by asking good questions if you want to be more attractive on line!
Episode 16 – Team-Building Activities for Small Businesses with Deseri Garcia
Deseri Garcia of Vida Aventura is a coach, trainer, motivator, leader, and most of all, Des is my friend. When the weather is nice, we have walking one-on-ones. Instead of sitting in a coffee shop or office, we put on our walking shoes and hit the Monon for an hour. The experience is productive in so many ways.
But the weather has turned cold, and so we had to move our conversations indoors. So when Des stopped by recently, I thought it would be fun to record our conversation for my podcast More than a Few Words.
In this segment, Deseri talks about Team Building, and what small business owners can do to improve the performance of their team!
Click here to listen the interview.
Everyone is Not My Customer!
Everyone is not my customer. While I know that intellectually, sometimes it is hard to embrace that fact emotionally, especially in a tough economy. But the truth is, if I want to use my time well and do the right thing for my clients, sometimes the best thing to do is to turn the project over to a competitor.
This quote is from a post by Seth Godin on this topic. He argued that passing a project to someone else better prepared to handle it will actually raise your image with that client. He said:
This is when you earn the right to be seen as a trusted advisor, not a self-interested shill. Two months or two years from now, when you interact with that person or organization again, he’ll remember that you were the one who spoke up on behalf of the competition, the one who helped us find a better fit, the clearly disinterested advisor who helped us choose between the two remaining good choices.
I know he is right. So to help me make good recommendations I spend time getting to know my competitors. I know areas in which each one excels, so I can pick the best candidate for my client.
Roundpeg is going to be around for a long time. If we miss one sale, but in doing so, establish our position as trusted advisors it will be worth it in the long run.
Talk Less and Listen More
There was once a very impatient young man who went to visit a bible scholar. He demanded the scholar tell him everything he needed to know about the bible standing on one foot.
The scholar, who was a very old man smiled, stood on one foot and said, “Do unto others, as you would have them do unto you! All the rest is commentary”
Regardless of what you believe about the origin of the bible, almost everyone will agree this is an extraordinary piece of literature, with many complex themes. And yet, I would argue, the contents of the entire book can be summed up in the simple explanation the old man gave.
What Would You Say?
If that same impatient young man about your business could you meet his challenge? Could you boil down the description of your business to a simple message, deliverable standing on one foot?
Try This Next Time
The next time someone at a networking event asks “What do you do?” Treat the listener like an impatient young man. Avoid a long, detailed description of your products and services.
Instead, give a brief, but compelling description that leaves the listener wanting more … and watch what happens!
What to Say?
If you have caught their attention, the listener will ask a follow up question. Keep your response short as well. The goal is not to be vague, but to provide information in manageable bites for the listener.
Think of a networking conversation like a tennis match. Your goal is to make contact with the ball and knock it back over the net. Remember to ask questions about their business as well.
