CofeBuz - The Marketing and Business Blog

I am convinced that some people have an knack for memorizing people’s names, and that I am not one of them. As a result of this belief, I used to be terrible at remembering people’s names. Then, several years ago I commented as much to a good friend who told me about the $15,000 question:

“It is not that you can’t memorize people’s names, it is that you don’t think peoples names are worth memorizing. If I introduced you to someone and offered you $15,000 if you could remember their name a week from now you would not only remember their name, but also their mothers name, middle name, correct spelling, and several interesting facts about the person.”

I was quickly put in my place… he was right! I am still not the best at memorizing names, but I have been shocked over the past several years at how I have improved. I just needed to realize that memorizing a name is not just important to the people I meet, it is also important to me.

I believe that the best way to succeed in life, and business, is to help other people.  A life built around helping others will yield not just the joys of relationships, but also the sweet success of achieving your own goals.  Here are just four of the reasons I choose to live my life by focusing on helping other people:

1. The Principle of Give and Take - The best way to motivate someone to help you has always been to help them first. Help someone 20 times and they will have a healthy desire to return the favor. This basic principal allows us to understand the power of living a life centered on helping others.
2. The Power of Friendship and a Strong Network - Most people recognize that it is people (both personal and professional) that lead to the greatest successes in life. Helping others builds a foundation for new relationships and opens the door of communication that can lead to mutually beneficial relationships.
3. A Historic Perspective - Without question an individual that has left one of the greatest impacts on the world was a carpenter’s son from 2000+ years ago who lived his life to help other people. While many people differ on who Jesus was, everyone agrees that his life has had unprecedented impact. He spoke about this philosophy by stating that you should “love your neighbor as yourself.”
4. A Life Worth Living - Finally, even if I am wrong I note that I will have lived a life worth living, with a legacy that I will be proud of. We will all know when I turn 80 how successful this approach is, but till then I figure I am living a life that has purpose, meaning, and one that my three children will be proud of when I am gone.

As always, I welcome your thoughts and comments.  Please feel free to send me an e-mail or to contact me though the ‘About the Author’ Tab. 

Tim Klabunde

Randy Pollock of Walter P. Moore wrote a great article in the April edition of SMPS Marketer on “Making the Most of an Economic Downturn.”  Specifically, Randy identifies five strategies that you can take now to respond to the changing market conditions.  Here is a summary of those strategy recommendations:

1. Client Care - A strategy that positions your clients - and the depth and quality of your relationship with them.
2. Focus/Targeting - A strategy that positions your firm - with its singular focus on targeted clients, markets, and projects.
3. Fundamentals - A strategy that positions your marketing operations, procedures, and processes and revisits your fundamentals.
4. Internal Marketing - A strategy for growing a firm from the inside out, internal marketing focuses on the people inside a firm.
5. Diversification - A strategy that intentionally broadens your services, markets, and/or geographical locations.

Randy also provides quotes on survival approaches from top marketers on how they are responding to the changing market conditions.  Here are some of my favorites:

“In my experience the only cure is to get out of the office and meet someone, every day if possible.  It starts with our existing customers.” - Harlan Hallquist - J.E. Dunn Construction

 ”Now is a good time to meet with your best clients, one on one.  Discuss their problems and how they intend to weather the storm.  Discuss working together to solve problems.  Provide seminars with subjects and speakers that address the client’s problems as well as serve our business for insight into future opportunities.” - Dianne Schachner - LEO A. DALY

“Internal marketing is a strategy for growing a firm from the inside out, focusing on the people inside a firm.  A continuous, participative process, it fosters communication, training, and motivation of employees - principally those with client contact, but support employees as well.  It requires leadership, direction, planning, and constant focus.  Its sole focus is inside a firm, targeted to the people who perform the work - mobilizing their energies and motivation their pursuit of shared goals - and shared rewards.” - Randy Pollock, Walter P. Moore

 ”Become even closer to them (your clients) in lean times.  See if you can create a project that provides intensive value-added return to the client organization.”  Dennis Schrag - The Longview Group

I posted recently about Chapter 3 of the book Rain Making by Ford Harding.  It was great to hear directly from Ford (see the comments to that blog) about the second edition of Rain Making.  After a thorough read let me first emphasize that the revised chapter on networking (now chapter 8 ) is in-and-of itself worth the purchase of the book.  Below is a review of Rain Making - 2^nd Edition I wrote for the SMPS DC book club:

Rain Making
Attract New Clients No Matter What Your Field - 2nd Edition

Rain Making is a book for professionals who are interested in learning how to develop their career. Its easy to understand focus on marketing tactics and strategies makes it an excellent tool for developing successful marketing strategies for an individual or company.

The term “Rain Maker” has been around for years. It is often used, rarely understood, and almost never implemented properly. Rain Making addresses the fundamentals of what makes a rain maker, from building business and developing relationships, to creating new jobs. The focus is not simply on understanding how to become a rain maker, but how to clearly identify a path for implementation.

The 2nd edition of Rain Making is divided into four sections: Marketing Tactics: How Professionals Build Reputations and Generate Leads; Building a Network: How Professionals Develop a Sustainable Source of Leads; Sales Tactics: How Professionals Advance and Close a Sale; and From Tactics to Strategy: What Works and What Doesn’t.

The first section on Marketing Tactics is a ‘must read’ for individuals looking for a fresh and relevant perspective on building business. It clearly articulates the various types of marketing tactics, their purpose, and their proper use.

The second section on Building a Network contains simply the best chapter I have read on Networking. If you have time to read only one chapter in a book this next year, this is the chapter I would recommend. It provides an easy-to-use approach to networking that is worth the purchase of the book in and of itself.

The third section on Sales Tactics gives a great review of the basics of sealing the deal, including presentations, writing a proposal, and quoting a fee.

The final section, Strategy: What Works and What Doesn’t, carefully articulates plans for both individuals and corporations that are intertwined with a sense of purpose and strategy. The section is written towards what can be done today, not simply lofty plans for the future that will be forgotten in a week.

So, if you are looking for a book that will motivate and educate you on the tactics and strategy for becoming a Rain Maker, and provide you with useful tidbits that you can start the day you finish reading, I highly recommend Rain Making by Ford Harding.

I just read a great article by Ellen Talley of The New Parcraft and Designweave in Building Long Island entitled “Network? Of Course.  But Try it Without the Net.”

In her article Ellen tells this story:

I’d made an appointment to meet with an interior designer who had recently switched to a firm located in Long Island City and was looking forward to getting reacquainted.  I dragged my wares through the rain and up a long flight of stares to her office, in an old warehouse building.  Drenches and exhausted I was greeted at the top by a young man looking at me quizzically.  While I waited for my friend, he explained he was the principal of the firm and said, “You look familiar.”  And so ensued a where-are-you-from game.

An exchange of bios didn’t uncover a connection so I gave a brief recap:  “You are from Jersey, I’m from Long Island, you went to school in Philly, I went to Boston…”  “Where in Boston?” “Tufts,” I said.  “That’s it!” he announced.  I’d thought he’d gone to Penn, but it turned out that was for his architecture degree, and he had graduated from Tufts a year after me.  That established, we discovered that one of my housemates was his best friend.  My new friend’s excitement was contagious-he even sent our mutual acquaintance an e-mail on the spot.  I was equally excited: I had a new business relationship!”

What I like about Ellen’s story is her focus on the development of a new relationship.  Notice that Ellen didn’t start by giving an elevator pitch or trading business cards with the principal, rather she focused on making a connection.  Good networkers know that when you start by making a connection, rather than a sales pitch, the rest will follow.

If you would like to connect with Ellen she can be reached at:

Ellen Talley
The New Patcraft & Designweave
PO Box 2128
Dalton, GA 30722
800.713.6997 x5188

ellen.talley(at)patcraftdesignweave.com
TheNewPatcraftDesignweave.com

The phrase “It’s Just Business” has become an accepted way to dehumanize important decisions. The reality is that it is simply not wise to devalue the importance of relationships even when faced with difficult business decisions. We cannot suddenly stop making important business decisions, but neither should we selectively disregard the importance of relationships when making those decisions. To succeed in the long run we need to make people, not business, the primary focus of our decision-making process.

It is a small world
This past year our company celebrated its 30-year anniversary with an open house to which we invited back as many of our previous employees as we could track down. We were surprised by what we found. Most of our previous employees were still in the industry; many were leaders of change affecting our business every day; and dozens were now our clients.

Sound Business Decisions
Looking at how these former employees impact our company reinforces the importance of these relationships. Sound business decisions should consider not only immediate needs of the company, but also the company’s future, which largely depends on a culture of trusted relationships. Business decisions made with the “it’s just business” philosophy embrace the faulty premise that the company is more important than people. By making decisions that are best for people we strengthen our companies and build teams that believe in our decisions and leadership even after individual team members depart.

“Over two-thirds (72 per cent) of small and medium-sized enterprises (SMEs) are now expecting a recession. However, under one third (28 per cent) have rewritten or adapted their marketing plan to prepare for it, according to research from marketing company New Brand Vision.

Ben Harris, MD of New Brand Vision, says: ‘Many SMEs were not in business during the last recession and won’t anticipate how they could be affected. It’s worrying that, with so many firms expecting a downturn, so few are actually taking steps to plan for it.’”

 Growth Business

How is it that so many firms believe we are headed for (or are currently in) a recession, yet so few are willing to adapt their marketing plans to effectively manage their future?  The reality is that most firms choose to “hold on tight” through a recession rather than proactively adapt to the changing market.  In my last post on Marketing in a Recession we discussed the ways that a firm can refine and reshape their marketing program.  I received numerous e-mails and calls from many of you discussing how you have effectively refined and reshaped your business (or plan to now) to meet the changing market.  Based on these discussions I wanted to pass along some additional resources that I hope you will find helpful: 

Marketing in a Recession: Additional Resources

The Canadian Marketing Association has a great post entitled: Recession-Proof Your Business: Focus on Current Customers

Ivan Misner in his blog Networking Now has a must read post entitled I Refuse to Participate in a Recession.

I like Wendi McGowan’s 5-steps in her post on Recession Proof Your Business

Mark Riffey has a post from this morning on his blog Business is Personal relating to developing a plan for your business

For those of you in the A/E/C industry, let me refer you to Construction Marketing Ideas where Mark Buckshon continues to post relevant posts everyday on marketing

How we respond to a recession dictates our success (or failure) not only during, but more importantly after, the market downturn. Companies that can hold their ground through a downturn often become market leaders afterward.

In hard times businesses often look to eliminate expenses, but what about marketing expenses? If a marketing department is properly functioning there should be a direct correlation between our marketing budget and our accounts receivable. Based on this we would all agree that cutting the marketing budget would be a poor idea in a recession. What recessions often remind us, however, is that the expenses of many marketing departments do not have a direct correlation to our accounts receivable. Often marketing departments focus on producing glossy brochures and professional websites that do not necessarily function to support the bottom line.

Refining and Reshaping Marketing
This said, down turns in the economy are not the time to cut our marketing budgets; rather it is the time to refine and reshape our marketing expenditures to truly focus on bringing work in the door. This refining and reshaping should yield an increase in the return on our marketing investment dollars, increasing the correlation between those expenditures and our accounts receivable.  Here are some common changes that you can evaluate to achieve this goal:

1. Increase your advertising dollars instead of giving your website a facelift.
2. Incentivize your sales staff instead of getting more mugs with your logo on them.
3. Cross-train a key person your marketing staff to provide business development support instead of redesigning your company logo.
4. Target some new relationships before RFPs and proposals come out instead of using the shotgun approach to pursue proposals (pursing RFPs and proposals that you have no business pursuing).

The Common Recession Mistake
Some functions/expenses of marketing can, and should, be put aside during a recession so that those funds can be spent on marketing functions that are more effective at bringing work in the door. A common mistake during a market downturn is to eliminate the ‘extra’ marketing expenses, but failing to redirect the money towards marketing that will enable you to compete in the highly competitive recession market.

What to do
A recession is the perfect time to sit down with the head of your marketing department to reshape your marketing approach.  Focusing on the marketing functions and expenses can help support your bottom line.

A Last Note
So, why are firms that market heavily during a recession positioned to succeed post-recession? Because people are our most valuable assets, and providing them a place of security during a recession ensures that your best employees will be around as the market picks up momentum. Also, a recession provides a great opportunity to hire the best and brightest from your competition if you are able to keep your bottom line intact. After the recession you then have a foundation for growth and the ability to become a market leader.

“60% of small-business start-ups fail in their first six years. Large companies … divest or close 44% of their internally generated start-ups and 50% of their joint ventures in the first six years.”   – Harvard Business Review

There is a right way and a wrong way to establish a new business line. In a recent post I identified three keys that lead to success when Developing and Introducing a New Business Line. After much research I have also found it interesting that the most common approach to developing a new business line is also the most common factor leading to the failure of that service line. The reason is that the ‘most common approach’ is to identify a new service or product prior to identifying the problem that it solves. This approach often looks like this:

The ‘most common’ approach to developing a new Business Line
1. Identify a solution
2. Identify a problem
3. Identify a potential client that may need the solution
4. Sell the solution to the client
5. Define and refine the solution
6. Package the solution

Let me again note that, while this is the most common approach, it is not the most successful approach. Given the shocking statistics related to the failure of new service offerings, it is important to pursue new offerings utilizing the most effective means possible in order to mitigate the potential losses from the failure of that new business line. Because of this I would state that the proper approach is to identify a problem that needs to be solved, then identify a solution to that problem which your new business line can provide. This approach should look like this:

The most effective approach to develop a new Business Line:
1. Identify a problem that your existing clients have
2. Identify a solution to that problem
3. Define and refine the solution, ensuring that it is the most efficient solution
4. Package the solution
5. Market the solution

As you look to expand your company evaluate your approach to ensure that you are not just coming up with new ideas, but that you are first identifying the problems that your clients have and working to develop ways to solve those problems.

This weekend, as I prepared for a seminar I will be giving at the SMPS Build Business 2008 national conference on “Building a Company of Rain Makers”, I ran across a number of blogs and articles that clearly articulated the path to success in networking.

If you are a regular on my blog you already know that I believe Networking is about helping other people.  Most people aren’t successful at networking simply because they don’t understand how to effectively network. (Network Like and Introvert and Rethink Networking are two articles I have published on the topic that clearly articulate these thoughts).

It was great to see several experts getting networking so right. Here is what they are saying:

Business Networking Advise
Author: Josh Hinds interviewing Steve Harper, author of The Ripple Effect

“In my opinion a lot of people have the wrong idea about business networking. They think it all begins and ends with a snazzy business card and a creative “elevator pitch” about what they do…  My definition of networking is different. I define it as connecting. Meeting people based on who they are and what they are about not what product or service they sell, represent of simply work for. Though I agree networking is important, I believe people need to do it better and that means setting aside their professional agendas first to really connect with people as people first. In my opinion, if you do that, huge Ripples and often business will come back to you.”

Networking for Introverts on Slaw.ca
Author: Allison Wolf

“Relationships develop over time. Finding the opening for meaningful follow-up is the crucial first step. The ask don’t tell approach allows you to uncover meaningful reasons for staying in touch. Sometimes you will find the next step is simply to continue the conversation over lunch or coffee. Other times it is to send an email or to introduce the person to someone you know. Uncovering the follow-up allows you to continue building the relationship with people who you are interested in getting to know.”

Networking Insight
Author: Jason Jacobsohn interviewing Lillian Bjorseth, Author of Breakthrough Networking

“I define business networking as an active, dynamic process that links people into mutually beneficial relationships. Most people do not know that to be effective you have to network strategically, i.e. they don’t take time to create a relationship-building plan. They often attend events that don’t focus on their target markets… Secondly, I know that large companies have yet to embrace the relationship-building concepts that small businesses have long used successfully.”

Let me just add that I love how Lillian defined Networking as linking people into “Mutually Beneficial Relationships.” I couldn’t summarize it better…