From the monthly archives:

February 2009

A Little Margin, Please…

by Steve Buelow

margin

Ten years ago or so, I was waiting for a flight from… I think it was probably Chicago or Minneapolis to Denver or Phoenix.

Oh well, I guess it’s not that important… but, it was from someplace to somewhere anyway… and I happened to pick up a book by Harvey MacKay called “Dig Your Well Before You’re Thirsty.”

The basic premise of the book was… well, to dig your well before you’re thirsty. And if you’ve ever dug a well… you know that’s some pretty sound advice. I believe the dust jacket said something to the effect that it was the only networking book you’ll ever need.

That’s fine… but I took it a lot further than that. See… digging your well before you need it gives you margin… in your career, in your family, in your finances, and in your relationships. It gives you advantages when life gets crazy… when the economy stumbles… when people let you down.

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So, take two individuals… they both earned about eighty-seven thousand dollars a year in their careers before they were downsized this afternoon. Neither one says they saw it coming.

Whatever.

Also, they both lost 47% of their retirement account in the sixteen months since October of 2007, and their home equity fell to near zero as the market in their area collapsed by almost 38%. Now in their late forties, it is likely they will never make up what they’ve lost.

Oh, I almost forgot… one of the individuals happened to dig a well a few years ago. He is carrying no debt outside of his mortgage, and has three additional part-time income streams from his own small businesses that add up to about eighty-four hundred dollars a month like clockwork.

Stress is more prevalent in one of these homes than in the other.

Takeaways:

Digging a well five years ago would have been a very good idea.

Starting today is better than five years from now.

Some of us will help you dig.

I look forward to speaking with you.

Photo Credit:

Picture Perfect Pose

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Is It Time For A Change…? Part III

by Steve Buelow

change

Okay… so one other thought that I had while reading my last post (yes, I admit it… sometimes when I’m not reading your posts… I re-read my own!).

Now, I know I made the point that, in speaking with an insurance agent I had met, there was no change at his office in response to some pretty heavy market pressure… everything stayed the same. Same… same… same… I think I said.

But as I reflect on the conversation, there was one thing that was different… the results.

I believe it was Albert Einstein… or Abe Lincoln… or Ben Franklin… who said that the definition of insanity was to do the same thing… but expect different results.

But that’s just it… they were doing exactly the same thing, and getting different results… worse results. Significantly worse results.

So I asked him, “if you were going to start a business today… would you start the one you’ve got?”

“Absolutely not.”

Yeah… it’s probably time.

I look forward to speaking with you.

Photo Credit:

foundphotoslj

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Is It Time For A Change…? Part II

by Steve Buelow

change

Return with me now to those thrilling thoughts of yesterday…

You will remember that I had met an independent insurance agent who once had a dominating presence in his local west-coast market, but lately was getting his tail kicked by various online services.

Yeah, that friendly gecko is a lovable little guy… isn’t he?

That is, I suppose, until he removes your ability to pay your mortgage or put food on the table, right? That is what this agent was experiencing.

So, I asked what I thought were two pretty basic questions. The first, “How have you reorganized to compete?”

Answer… they haven’t.

Same business model… same revenue model… same marketing budget… same marketing plan… same mass-advertising… same local channels… same operations… same employees… same tasks… same sales process… same commission schedules… same service lines… same hours… same availability… same routines… same… same…same.

And they’re getting clobbered… why?

The second question, “So, what exactly are you offering your customers that they cannot get from the lizard?”

Silence…

Yes, it’s time for a change.

Photo Credit:

foundphotoslj

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Is It Time For A Change…? Part I

by Steve Buelow

change

Recently, I was speaking with an independent insurance agent who is feeling the effects of the
self-serve internet age.

They have traditionally carried a fairly significant mass-advertising budget, but now seem to be having their lunch handed to them on radio and television by the likes of cavemen and talking reptiles and even a cartoon character or two.

Will they survive?

Possibly… But will they thrive?

Probably not… at least not with their current business, revenue, or marketing models.

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There is a time for everything… but nowhere does it say that the time will last forever.

When I was in college, one of the quickest ways to make a small fortune in business (not to mention a ton of perks), was to start a travel agency. If you’re under 30, we can talk about it some time.

No one had ever heard of the former Vice President’s invention yet, and that allowed the agent to pocket up to a thousand dollars an hour for essentially scrolling around on what would become Hotwire or Expedia or a host of others.

Sweet deal… but history.

Imagine someone telling you today that they will book a flight and make car and hotel arrangements for you… and all it will cost is twice the price your ten year old could get in five minutes online… plus a 15% commission.

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This should all be very exciting news, of course… even for the insurance agent or travel exec. Unless, of course… they believe they were born for the insurance or travel business.

I look forward to speaking with you soon.

Questions:

How has technology changed the intrinsic nature of your business offering?

Have other factors such as globalization, competition, commoditization, or capitalization impacted you? Positively or negatively?

If you were opening a business six months from now… what business would it be? Are you making plans to do it? Why or why not?

Photo Credit:

foundphotoslj

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Better Networking… Part V

by Steve Buelow

Networking

Want to eliminate the ‘waste of time’ and ‘weak ROI’ issues from your next trade show or networking event?

Well, of course… we all do.

May I suggest that in the future, you pay very close attention to what everyone else is doing at these events…

…and then do something else.

Why…? Because most of them are wasting their time selling to people that are neither qualified nor authorized to buy.

Yes… instead of following the crowd, do something unique and remarkable. Separate yourself from the usual… the mediocre… the average.

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Here is a sure bet.

Rather than running into whomever and passing out cards by the dozen… target three or four potential players… and arrange beforehand to meet them at the function.

That’s right… don’t go to an event to see who you can meet; go to meet your pre-arranged contacts at the event. Give them a reason to meet you… stand out from the crowd… and bring something to the table.

Then learn from them whatever you need to learn, so that you can refer business to them the following week. Remember, as a leader… it’s up to you to give first… it’s up to you to prime the pump.

I look forward to speaking with you.

Questions:

Have you ever attended a trade show or networking event that seemed like a complete waste of time? More than one?

What are the chances that there were individuals also in a attendance, that had influence within your ideal market niche?

How will you prime the pump with them, and separate yourself from the crowd?

Takeaways:

You get what you give… you harvest what you plant.

If you want corn… plant corn. If you want referrals… start planting.

Photo Credit:

Scarleth White

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Better Networking… Part IV

by Steve Buelow

Networking

So, if the purpose of networking is to build a network, then what is the purpose of building a network?

The majority of the time that I ask this question of small business owners and service professionals, I get the same answer… sales. While this should be an indirect outcome, I have a different answer.

The purpose of building a network is to develop relationships… the best of which will ultimately make up your team. As a small business, it’s the influence of your team that positions you to capitalize on, among other things, your well-defined market niche.

How…? Because every member of your team, whether they are in your target market or not , knows people who would be ideal customers for your business.

So, we network to build relationships. We network to build a diverse team. We network to use our influence for the benefit of others… and we alternately receive the benefits of their influence.

Networking is about influence.

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In a recent discussion about credit, I asked several people if they had a banker on their team. The answer from each was a resounding ‘yes’! Then I asked if the banker knew he was on their team… and the response was less enthusiastic. Was he initiating discussions about short-term solutions… or was he hiding? Or, better yet… how many referrals did he recommend last month?

You see, the bank may or may not be a potential customer… however, they know tons… literally… tons of ideal customers for you. But first, three things must happen:

1) They must be on your team… and trust you completely
2) They must know exactly what your ideal client looks like
3) You must prime the pump… give referrals to them first

A referral from a respected source gives you the influence of that source. At sixteen, I received a job on the sole basis of a letter I carried from a trusted and well known businessman who said he could vouch for my character. That’s it… the word of a respected source.

Over the years, we’ve done tens of millions of dollars in business in the same fashion. If you find a better way… please send a link.

I look forward to speaking with you.

Questions:

What three people would you love to have on your team?

How are you going to get their attention?

What will you do to prime the pump?

Photo Credit:

llawliet

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Better Networking… Part III

by Steve Buelow

Networking

In my experience, the top three reasons small business owners cite in not wanting to attend networking events are:

1) They have other uses for their time, but feel an uncomfortable obligation to be there.

2) They believe there is an inadequate ROI associated with the event.

3) They often end up engaged in “selling” behavior with people who are not qualified buyers.

In the last several articles, we spoke about the concerns associated with the time and ROI issues. Today we’ll look at the third point, and expand my view that networking is really about influence… nothing more… nothing less.

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I can’t tell you how many times I’ve spoken with small business leaders who were trying to sort out their “elevator speech” ten minutes before an event. Let’s agree to move past that right now… and never worry about it again.

Next time you’re asked what you do, instead of giving your Job Title and Company Name, or launching into a commercial… simply frame your services with a question they will agree with, and then tell them specifically who you serve, and what benefit they receive.

That’s it… then turn the spotlight on them, and learn as much as you can. So, here’s how it sounds: Someone asks what I do, and I answer…

“You know how small business owners are having to do more with less these days?” Yes…

“Well, I help ‘em eliminate the most common and costly leadership and marketing challenges… the stuff that hangs everyone up. They get more business… usually without advertising… and they make more money.”

“So, what do you do?” And you’re into a conversation about them.

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Remember, more often than not, the person you meet cold is not likely to be your ideal customer… so do not sell to them. Instead, spend your few minutes together learning everything you can about their ideal customers.

Why?

Because you are now going to go out to your existing network and use your influence to get them an ideal prospect. As I said, networking is about influence… and as a leader… it starts with you.

Imagine the follow up call a few days later… rather than trying to sell them, you say “Hi Joe, this is Steve Buelow… I want to arrange for you to meet with an associate of mine… I think he would be a great customer for you.”

Sweet.

I’m not generally a gambling man, but I bet the next conversation will go something like “Tell me again, Steve, what exactly do you do…? I think I know several people that could use your services.” And your off to the races… carrying the full influence of the person that gave you the referral.

Takeaway:

This isn’t about building rockets… it about building relationships.

Question:

If I called your office tomorrow to offer the name of a qualified, ready to buy, ideal customer for your service… how difficult would it be to get past the front desk?

Photo Credit:

Peter Kaminski

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Better Networking… Part II

by Steve Buelow

As I mentioned yesterday, networking is one of your most powerful tools in creating influence for your business.

I find, however, that most small business leaders that I speak with have never thought of it that way.

Commonly, they tell me they have always thought of it in terms of lead generation… usually judging the success or failure on the basis of how much potential business they brought home from the event.

Of course, using that metric, most will judge the success very low. Inadequate ROI they say.

And it’s easy to see why… you have three hundred other people in attendance that are all trying to do the same thing.

And especially within service business, where I find market niches woefully under-defined… each person is trying to sell to every other person they meet. It can be like a bad class-reunion… no one listening… everyone talking… and each trying to one-up the other.

That’s the bad news.

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The good news is that it is really easy to separate ourselves from that crowd. And there’s more good news…

Please understand that if you have clearly and tightly defined your market, the chances are that the eight or ten people you meet at the event are not going to be your ideal customers.

“Wait, Steve, I thought you said there was more good news…”

There is. You see, every one of the eight or ten know two or three who are perfect for you… that’s sixteen to thirty potential customers that fit your ideal profile. And you will now approach them at the opportune moment, with the full weight and influence of the individuals you just met. Nice.

How’s the ROI looking now?

I look forward to speaking with you.

Photo Credit:

Burning Image

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Better Networking… Part I

by Steve Buelow

Networking

So I’m speaking with a small business owner when suddenly the subject of networking comes up.

“Oh, shoot… that reminds me…” he says. “I have a networking function that I have to attend tonight… man, I really hate those things.”

It’s amazing how many people, especially at the top, feel that way.

Having spent the majority of the last twenty-five years in either a President or Chief Executive role, I’ve heard many business owners express similar sentiments about networking meet and greets… the feelings of obligation, the lack of acceptable return on investment, the temptation or habit to fall into an obvious sales mode, and on and on.

So, back to my friend. Actually, there were two distinct parts to his statement… each of which raised questions from a leadership point of view. I asked both. First, I wondered why he felt compelled to invest time at an event which he clearly had no desire to attend. Second, I asked him why he “hated” something that could have such a profoundly positive impact on his business.

The conversation that followed really took the pressure off him, and I’d like to share those insights with you over the next day or two.

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Regarding the first question, as small business owners… as leaders… as those held accountable for the results of our actions or inactions… we must control our calendar. If you really think your time is better engaged elsewhere… then, by all means do it.

The decisions we make regarding our schedules should be driven by activities that move us toward the accomplishment of our priorities and responsibilities… not in achieving the many and varied expectations of others that compete for our time.

“I know, but that’s just it… they expect me to be there…” he said.

I asked him if he would fly back to attend this event if he were on business in Los Angeles, or on vacation in London.

“Well, no… of course not.”

So, there you go. At any one specific time, we can do anything we want… but we can’t do everything that there is to do. If we are here, then we are not there. I suggested that next time, he simply have another appointment… one that leads him toward a goal in another area of his life… one that has a higher priority than whatever it is he wants to avoid.

If nothing else, make an appointment with your spouse or children. They’ll love you for it.

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Now, all that said… we’re still left with the question as to why this gentleman… and so many others… have such an aversion to networking? After all, there is little else that can so quickly create influence for your small business.

“Influence…?! I thought networking was all about sales!”

Yeah, I know… and that’s why so many hate it. We’ll take this pressure off tomorrow.

I look forward to hearing from you.

Photo Credit:

katmere

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Hey… How Have You Been?

by Steve Buelow

relationships

Several weeks ago, I suddenly received an e-mail from a old friend that has spent most of the last two decades either on the west coast or in Europe. I can count on one hand the number of times we’ve seen each other during those years.

Randy’s back in the U.S., living less than thirty minutes from Chicago’s northwest suburbs… a piece of cake drive for me any day of the week. When we spoke by phone, it was as if no time had passed at all.

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Last week, I received a message from my college roommate. I haven’t seen him since he moved back to the Twin Cities twenty-eight years ago. Chris is looking to start a business (fire his boss, is how he described it), and was searching the web for resources when he ran across my site. We spoke a few days ago, and will get together at the beginning of next month.

Interesting… everything about our lives has changed since we last spoke… yet we grew in sync. We share the same views and values on family, politics, free enterprise, and a whole lot more. Incredible.

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Earlier today I spoke with a local businessman that I haven’t seen since 2001. He was a trusted part of my marketing team in the past… a man of high integrity who I have recommended countless times over the years.

For the first time in a long time, I am in need of the services that his firm offers, and have seventy-eight different ways I could go… actually seventy-eight million on the google search that I just did. The truth is, though, the only reason I went on the web this morning was to get his phone number and new address.

You see, Jim already has my business… he’s had it since the very first project we did together.

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Takeaways:

Relationships are everything… in business and in life.

If your products are good… and your sales are not… fix your relationships.

If you’re wealthy… but not happy… fix your relationships.

I look forward to speaking with you .

Photo Credit:

jonboy mitchell

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