Author Archives: Kim Clark

Marketing , 2 Comments

Key Words, Long Tails and DIY SEO

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Let’s take a look at what the average Freelancer may want to consider before taking on a do-it-yourself search optimization project.  The hard part is to identify the key words that will cause your business name to appear in an internet search.  The easy part is to embed those beneficial key words into your website, newsletter or social media.

We know that key words are popular search terms and that they are often general: shoes–hotels–flowers–books.  General,  single,  key words are dominated by the corporate whales and they do not favor the Freelancer or small business owner.  When such key words are used,  the little fish land on something like page 32 of a search,  drowned by the likes of J.C. Penney,  Barnes & Noble,  FTD and Sheraton.  Little fish need key words with long tails,  that will help us swim to the top of the page.

Long tail key words are actually phrases,  ideally 3–4 words in length.  The term was coined in 2004 by Chris Anderson of Wired Magazine.  Long tail key words tend not to be dominated by the big guys and using them sometimes allows little guys to appear on the first page of a search.  They are less popular because they are more specific and those who embed those phrases will attain a more favorable page rank.  Think quality over quantity.

The trick is to figure out which long tail key words generate adequate search volume.  You need that tail to be long enough to pull in prospects who are searching for what you sell and so they’re typing in those key words.  ComScore reports that in the month of April 2010 alone,  Americans conducted 15.5 billion internet searches.  At least a few of them are your target customers.

Google data shows that the top five names listed in a search receive 75% of the clicks.  Page one listings in total receive 98% of the clicks.  But how might your prospective clients express what they want when searching for your product or service?  To find out,  check out two free Google tools: Key Word Tool and Wonder Wheel.

To begin,  bring up Google,  search key word tool and click on Adwords Key Word Tool.  Scroll down,  type in a phrase that describes your business and click search.  You will receive perhaps 50-100 variations on your description,  each one a potential long tail key word.

On the right,  see two columns of numbers.  The inner column gives the number of monthly searches  for each phrase done globally and the outer column gives the number of monthly searches for each done locally.  It’s the local column that you want.  Do the math.  If a phrase gets 2000 searches each month,  I recommend that you avoid it.  If a phrase gets 200 searches each month,  I recommend that you give it some thought.

You’re looking for your sweet spot: long tails that get adequate action,  but for which there is not competition that will overwhelm your page rank.  BTW,  if you’re thinking of adding a new service or product to your line,  this is a good way to measure the demand in your locale,  because you’ll learn how many prospects are searching for it.

To access the Wonder Wheel,  bring up Google and type in your proposed long tail key word phrase.  When you get the results,  look to the left column and see the Google name.  Scroll down, see “Wonder Wheel” and click.

You will then see a graphic shaped like a sun with rays.  Your phrase will be in the sun and the rays will contain your variations.  Click on a variation and that will become the sun and you’ll get more variations. 

Once you’ve chosen your preferred long tail key word,  own it.  Incorporate that phrase into your elevator pitch,  advertising,  LinkedIn page,  website,  blog and newsletter.  But always remember that good content rules,  so think sprinkle and not slather.

What will identifying and embedding a long tail key word actually do for your page rank?  No one knows until it’s done,  not you and not the SEO experts for hire.  If nothing else,  you’ll find a better way to describe your services and that’s a plus.  So if you have the time and inclination,  why not DIY and find out?

Thanks for reading and good luck,

Kim

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The SEO Algorithm Rhythm

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Maybe you’ve heard about the Google page rank scandal that venerable retailer J.C. Penney perpetrated over the past Christmas season?  The company hired search engine optimization experts to put Penney’s first in nearly all Google searches in the apparel and retail categories,  for everything from athletic wear to little black dresses.

The SEO company certainly earned its consulting fee,  because Penney’s had excellent online sales over the Christmas 2010 season as compared to competitors and its own 4Q 2009 online sales.

The fly in the ointment was that the SEO company allegedly used what are called  “black hat”  techniques that unfairly manipulated the algorithm that Google uses to determine the page rank that businesses in a given search category will receive.  The algorithm is quite mysterious,  has been reported to contain 200+ factors and is said to change frequently.

What is known about the algorithm is that Google counts the number of web pages that link to a particular site.  Links to a website are treated like votes.  The links reflect what the online community at large views as the most relevant websites associated with a search category.  Penney’s SEO consultants managed to create 2000+ links to dubious sites and that allowed the retailer to be the king of all searches in numerous apparel and retail categories.

The function of SEO is to massage Google’s algorithm so that a business will land on page one of a search and as close to the top as possible.  The quest to obtain a number one,  or at least a top ten (10 listings = 1 page),  page rank placement is very intense.

Businesses that reach number one page rank are positioned to rake in the most dollars.  For internet retail searches,  several studies have shown that one-third of searchers click only on the first business listed.  Another third will also click on the second through fifth listings.  If a business does not appear on the first page,  it is literally out of the picture and may as well not be listed at all.

Hence,  a plethora of SEO experts have come to the rescue,  to scoop billable hours from nervous business owners who are scrambling to remain competitive in a troubled economy.  Bringing prospects to your website is the name of the game and with some luck,  a few of them will become your clients.  But should you pay someone to do this for your website?  Maybe,  maybe not.

To sort this out,  think about how those in your industry usually get clients.  Is it standard for prospects to conduct searches,  peruse the websites of those with whom they are not familiar and make inquiries that sometimes create the trust level that leads to a sale?  Or do clients usually come in as the result of face to face meetings and recommendations?  Or all of the above?

Of course,  whether or not online business is significant,  a strong page rank can only make your business look more substantial,  no matter how clients find you.  Even those who come in through referrals may do a search to find out how you rank,  just for the heck of it.

But the question remains about paying someone to put your business on page one.  If you’re holding a few extra dollars,  then why not,  I suppose ?  However,  hiring an SEO expert does not necessarily mean that your page rank objective will be achieved.  There is no shortage of SEO practitioners,  but there is a significant body of anecdotal evidence that suggests the outcome of their work can be underwhelming.  Caveat emptor.

My big question is,  if it is true that Google changes the algorithm frequently,  then what is the shelf-life of prime SEO placement for the average Freelancer,  whose budget for the project is likely to be less than $1000.00?  How long will that keep me on page one? Also,  can I do my own SEO work by using key words and phrases that will capture the attention of Google?  More on this topic next week.

N.B.–Because the February – March session sold out,  I have been invited to reprise  “Become Your own Boss: Effective Business Plan Writing”  at Boston Center for Adult Education 122 Arlington Street in Boston on three successive Mondays,  May 9, 16 & 23 from 5:30 PM – 7:30 PM.  For more information or to register please visit http://bcae.org or call 617.267.4430.

Thanks for reading,

Kim

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Press Release Primer

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What you need is a media event.   Along with positive word of mouth generated by satisfied customers,  there’s nothing that will enhance your business cred like a nice mention in print,  online,  social,  radio or television media.  Even if your phone doesn’t ring immediately,  you are guaranteed to take that good publicity straight to the bank.

You must get the ball rolling.   Keep your eyes and ears open for a newsworthy event to which you can attach yourself.   School boy or girl sports events,   health fairs,   neighborhood clean-up and flower planting initiatives or art fairs  are potential publicity opportunities.  

Or brainstorm a way that you can turn a spotlight onto something interesting that you will do.  Maybe you can nominate yourself for a professional or volunteer service award and figure out a way to win?  You must get creative and get involved.

You will send a press release.   A press release is a standard way of communicating with journalists.  Providing content is the most important function of the press release,  in addition to grabbing attention.  If written well,  your press release will pique the interest of the target journalists at your chosen media outlets.  Your press release will convey the essentials of your story.  It will make things easy for the journalist and increase the chance that you will receive coverage. 

You must identify the appropriate media outlets.   Get familiar with local business oriented radio and television programs,  bloggers and community and business newspapers and magazines.  Watch the programs,  listen to broadcasts,  follow the blogs and read the magazines and newspapers.  Learn which journalists cover stories like yours.  Take notes on stories they’ve written or reported on.  Obtain their email and phone contacts from the media outlet website,  or call and ask the receptionist.  Make special note of issue deadlines.

Send press releases 4-5 weeks in advance of your event.   Give target journalists adequate time to evaluate and plan to cover your story. 

Send the press release in the body of the email.   If there will be a good photo opportunity at the event,  inform  the journalist.  If you have an event press kit photo, attach to the email.  In your introduction,  mention that you’ve listened to or read certain of his/her stories and that you wonder if there could be some interest in yours.

You must follow up with a phone call.   Ask the receptionist for the best call times,  or ask the journalist in your voicemail.  Confirm that the press release was received.  Ask if your story merits coverage.  Ask if additional information would be helpful.

  • Your email subject line should read FOR IMMEDIATE RELEASE,  so the journalist will know that a press release has arrived.
  • In the upper left corner,  the press release sender gives contact info: name,  title,  company name and address,  email,  telephone and fax.  If you are alerting journalists to a particular event,  provide the organization name,  address,  website and other contact info in the upper right corner.
  • In BOLD CAPS,  state your press release headline.  Make it straight to the point,  a title for your story.  Above that give the press release date,  also in bold.
  • Below the title,  you may also provide a 3-4 sentence summary overview of the press release subject.
  • Next,  provide the body of the press release.  Write in the third person and include the relevant who,  what,  when,  where and why of your story or event.  Give an unbiased and factual account that communicates why the journalist and his/her audience will find your story newsworthy.
  • If your press release is longer than one page,  you may choose to include bullet points to detail key story elements.
  • Conclude with 2-3 sentences about your company,  your product/service and website link.  Also include links to any related or relevant articles in which you have been mentioned or profiled,  as well as applicable video links.

Persuading the media to publicize you,  your work or your community involvement is always much more compelling to current and prospective clients than any advertising you could ever buy.  Third party endorsement is always perceived as more credible.

If packaged correctly,  what you do in your professional and/or personal life could be considered newsworthy by any number of local (or national) media outlets.  Put on your thinking cap and identify how you can contribute a story that will pay dividends for your professional reputation. 

Thanks for reading,

Kim

Sales , 2 Comments

Use Case Studies and Make More Sales

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If you read last week’s posting (and I hope you did),  you probably figured out which selling style you tend to use.  I’m the Consultative type and I hope to catapult myself into that invincible Expert group sometime soon.

However,  as the description of my selling style accurately points out,  I’ve got some remedial work to do.  I am not a natural when it comes to either telling a good story or rolling out a case study when in a sales conversation.  My strength really is to function as a problem solver,  describing to the client how my expertise will ensure that their objectives will be achieved.  So I wondered if perhaps readers of this column might also appreciate a primer on how to introduce case studies or useful stories when trying to sell a prospect?

Think of a case study as a formal and more detailed version of a good story.  Case studies examine how clients have successfully used your product or service.  While a story is an informal telling of what motivated the client to use your product/service and the outcome of that decision,  the story can be just as compelling and persuasive.

Consulting firms make excellent use of case studies and they are often featured on company websites.  Cases detail the challenge a particular client faced,  how that challenge impacted business,  how it was identified,  how the decision to address it was made,  who made that decision and (most importantly) how the consulting firm’s services were implemented to effect a successful resolution.

You can do that,  too,  by documenting your own successful projects.  You can write up a couple of cases to feature on your website or in your newsletter.  If you choose to give actual client names,  remember to obtain written permission.

The beauty of case studies is that they encourage prospective clients who read them (and there’s a fairly good chance that they will) to envision themselves hiring you to meet the need or solve the problem.  Write your case studies so that they paint a clear and compelling picture of the project or dilemma that the organization faced and how the situation was resolved,  with your expert intervention.

Case studies and stories engage prospects because they add flesh and blood to your sales pitch.  Now the two of you have something to talk about and you can speak not merely in the abstract,  but in the sometimes messy reality of how business really gets done.  The sale becomes personal.

The features and benefits that you discuss have life in them.  The prospective client  identifies with what you offer and how that fits into his/her agenda.  Your perhaps nebulous sounding array of services appear tangible and useful.  Now that prospect is much more likely to join your client roster.

Thanks for reading,

Kim

Sales , , , 6 Comments

What’s Your Selling Style?

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I will teach  “Become Your Own Boss:  Effective Business Plan Writing”,  a three part workshop  (total 6 hours)  held at Boston Center for Adult Education 122 Arlington Street Boston MA on three consecutive Thursdays 5:30 PM – 7:30 PM February 17 – March 3.  Register at http://bcae.org, course #420174 or use the direct link:

http://tinyurl.com/BCAE-business-plan

Like it or not,  every business owner and self-employed professional is in sales.  Selling skills are survival skills and they play a pivotal role in keeping one in business.

A Freelancer’s sale has two discrete parts.  In the first part of the sale,  it is necessary to sell oneself: credibility,  expertise,  dependability and agreeability.  We must convince prospects that we are capable professionals who are trustworthy and therefore eligible to be considered for hire.  In the second part of the sale,  our objective is to persuade said prospect to actually hire us for a specific project and award the contract (and pay on time, too!).

Selling skills are quite individual and each of us has a signature style.  Experts claim that only three selling styles consistently produce successful sales.  In fact,  based on observations of 800 sales professionals engaged in various types of selling situations,  63% of selling styles are prone to undermine the sales process and result in fewer successful sales.  Ouch!  Let’s take a look at some typical sales approaches,  some top-notch and some deadly:

THE BEST

The Expert

These pros know how to make selling seem effortless.  They have superior product knowledge.  They are on top of what is happening in the marketplace.  They know how their product stacks up against the competition.  They know the customer they’re selling to and they understand that customer’s objectives and concerns when using their product.  As a result,  they know which features and benefits to highlight,  how to best answer questions and objections and how to generate more sales.

The Closer

Depend on the Closer to snatch victory from the jaws of defeat.  They’ve got the magic words that can salvage a sale that is in danger of going down the tubes,  because they are particularly adept at finessing objections.  On the flip side,  their smooth-talking style can sometimes turn off clients.

The Consultant

Salespeople who employ this style are known for their superior listening and problem solving skills.  Consultants excel at positioning their product as a solution that will meet client needs.  Their shortcoming is that they tend to neglect valuable case studies and client success stories that can help clinch still more sales.  This type has the greatest potential to ascend to the Expert group.

THE REST

The Storyteller

Storytellers love to provide case studies because they are talkers and they love a good story!  Problem is,  they often talk past the sale and waste much valuable time in unproductive sales calls.

The Focuser

Members of this group are earnest,  enthusiastic,  know their product inside-out and believe in it deeply.  Typically,  Focusers are new to sales and therefore lack the experience that promotes confidence.  Focusers often exhaustively detail every product feature and benefit,  because they haven’ t yet learned to ask the customer questions about his/her priorities.

The Narrator

Narrators know the product cold and they’re well-versed in the nuances of the competitive landscape,  but they are overly dependent upon a sales  script,  so they deliver  the dreaded  “canned”  presentation.  Many (but by no means all) Narrators are new to sales.  They,  too,  lack confidence and cling tenaciously to marketing materials as they present.  Members of this group do not respond well to challenging questions or objections.

The Socializer

Socializers may initially charm clients with friendly banter about various interesting and amusing subjects,  but these folks forget their objective and don’t know how to get down to business.  They make few sales.

The Aggressor

As far as practitioners of this selling style are concerned,  a sales call is primarily a price negotiation.  They are sometimes able to score big wins and they rarely concede much.  Unsurprisingly,  clients can be turned off  by their often combative approach.

So how can you join the Best Salesperson group?  Incorporate these strategies into your next sales presentation:

  • Stay on message.  Every sales presentation should convey a single major theme.
  • While conveying that key product message,  limit yourself to three main points that focus on customer priorities and preferences.  Let your words paint the picture of how your product/service can deliver what the client values most.
  • Use case studies or a story that illustrates how a client with a similar profile and objectives successfully uses your product/service.  Present a case study that is clear,  concise and compelling.  Use the story to encourage the client to envision building a successful business relationship with you.

Thanks for reading,

Kim

Business Plan , , , 1 Comment

Business Model Guideposts

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I will teach “Become Your Own Boss:  Effective Business Plan Writing” , a three part workshop (total 6 hours) held at Boston Center for Adult Education 122 Arlington Street Boston MA on three consecutive Thursdays 5:30 PM – 7:30 PM February 17 – March 3.  Register at http://bcae.org, course #420174 or use the direct link:

http://bcae.org/index.cfm?method=ClassInfo.ClassInformation_class_id=4967&int_category_id=48&int_sub_category_id=13&int_catalog_id=0

The business model defines the method by which an organization creates and delivers value through products and services offered and the way in which it persuades customers to pay for that value.  The business model encompasses the manufacture and marketplace delivery of products/services,  how best to access prospective customers,  where and how business transactions take place and customer service.  The business model is the blueprint for how the venture operates in real time and makes a profit.

The business model reflects what the business owner/management team believe about what customers value,  the way in which customers want that value delivered and what they will pay to obtain it.  The business model can also function as an analytical tool. 

 Its examination can help the business owner effectively address challenges such as client retention problems,  insufficient new business development,  or persistent customer service snafus.  It can urge the management team to find a way to lower the cost of goods sold,  add or delete services, or  rethink sales distribution channels.

How’s your business engine running these days?  Might a tune-up be in order? Here are some questions to ask yourself and guideposts to follow as you build or refresh your business model:

  • Who are the target customers?
  • How can your organization best attract,  acquire and retain the target customers?
  • What need does your product/service fulfill or what problem does it solve?
  • What perceived value does your product/service provide?
  • How can you differentiate your product/service in ways that resonate with the target customers?
  • How will you generate revenue?
  • Where will business take place,  how and when will customers pay?
  • Identify and locate customers with sufficient money and motive to do business with you,  preferably on a regular basis.
  • Verify that there will be enough paying customers to allow the business to make a profit.
  • Identify which product/service features and benefits that target customers value most highly.
  • Identify the least costly source location and manufacturing process for your products/services.
  • Use the most cost-effective product/service delivery system that customers will accept.
  • Identify product/service add-ons and upgrades that are easy and inexpensive to provide and for which customers will pay a premium to obtain.

Thanks for reading,

Kim

Business Plan , , , 7 Comments

Business Model Nitty-Gritty

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Business experts view the development of a strong business model as an essential component of business planning and I would agree.  The business model ranks near the top of the list of business planning responsibilities.  I teach business plan writing for an SBA affiliated organization and I’ll place the business model fourth in line,  after one gauges demand for the product/service,  defines the primary customer and evaluates the competitive landscape.

The business model is the roadmap within the roadmap that is your business plan.  It is the blueprint for the process by which a company will make and sustain a profit.  It is therefore necessary to do thorough market research and put the pieces together carefully.  If you expect to make any real money,  you had better get your business model right.  Unfortunately,  too many aspiring entrepreneurs do not roll up their sleeves and hash out the gory details that are the building blocks of a viable business model.

The business model shows you how to make your business work efficiently.  The first big question the business model asks you to examine is,  how will you and the clients connect?  Will they find you via your website?  If so,  how will they know that your website exists?  What should you do to drive them to your site and what do you want them to find and do when they get there?  The type of website that you design and your call to action are business model issues.

Or maybe you will connect with clients and prospects via referral.  Who, then, will refer to you and what will motivate that behavior?  Do you have,  or can you create,  referral relationships that will feed you a steady supply of prospective clients? 

For example,  if you are a florist,  do you have relationships with wedding and other event planners? Perhaps you worked in a busy floral shop and know a few people who will send brides and others to you.  Or do you think you can depend on networking to connect you with enough prospects to get the ball rolling on sales?  Who knows,  maybe you are that lucky.

Where business will actually be conducted is another business model issue.  Will customers visit you at your floral shop,  or will you operate as a Freelancer and go to them, toting a binder or iPad that shows examples of arrangements you can create?

For those who sell other types of products,  will you sell from a physical location,  will you place items into the  stores of others on consignment,  or will all be sold via your website?

Providers of intangible services must first know how clients expect to engage in the type of transaction offered and whether you should open an office  (accounting or law),  or go to the client’s location  (PR services or business consulting).  Your business model will explain it all and tell the reader (and you) why it makes good business sense to sell in the way you’ve chosen.  As your business grows,  the business model will change accordingly,  to accomodate increased demands on resources and client expectations.

Remember also to address customer service issues,  like your return/replacement policy,  in the event that a few customers are not satisfied with a product,  or if something breaks while being shipped.  If you will sell from your website,  the shipping process will be addressed in your business model.

So the business model impacts many facets of your business plan and its fine points deserve careful consideration before you take the plunge and start spending time and money on a concept that you cannot make work.  Next week,  we’ll take a look at questions to ask yourself and some guideposts to assist you as you develop a business model for a new enterprise,  or revamp the one you’re in now.

Thanks for reading,

Kim

Business Plan , , Leave a comment

The Best Business Plan for Your Business

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A well-conceived business plan does much more than merely describe what will become your business.  Your business plan must sell you first and foremost,  along with the products or services you’ll offer,  the business model you will follow,  the marketplace in which you’ll compete,  plus reasonable estimates of start-up and monthly operating expenses.  If outside funding is required,  then the plan must convince lenders or investors that you are prepared and qualified to build a significantly profitable enterprise.  A good business plan will do the following:

  • Define the business mission
  • Describe the products and services
  • Identify target customers
  • Identify and evaluate major competitors
  • Describe the business environment
  • Detail the business model
  • Describe the business strategy
  • Detail the marketing plan
  • Demonstrate how a profit will be made
  • Provide an exit strategy

Here are business plan options for three scenarios:

The Executive Summary

An Executive Summary is a condensed version of a full-dress business plan and often runs to about 5-10 pages in length.  When written well,  the Executive Summary nevertheless functions as effectively as a traditional business plan.

It is a useful tool for Freelancers who will open a consultancy and will have relatively modest start-up costs and monthly operating expenses and are savvy enough to appreciate the value of a road map to launch their venture.  It is not a business plan option for those who will approach lending institutions or investors.

The Executive Summary states the business mission,  describes the products/services,  describes the primary clients and competitors and details the business strategy,  business model,  marketing plan and relevant financial data.  To be useful,  the document must fully integrate that information and demonstrate how the business will become profitable.

The Operational Business Plan

An Operational Business Plan is produced by an existing business with several years’ performance history,  usually with a goal to either apply for business expansion capital or prepare for the sale of the company.  Operational Business Plans may also be used to upgrade and streamline how a business runs,  functioning as a guide for the management team.

The Operational Business Plan delves into great detail about production,  customers,  competitors,  the marketplace and business environment,  sales distribution channels,  management and staffing.  Historical data are available and five years of financial statements are typically included,  along with financial projections that forecast the company’s expected performance over the next three years.

The business plan to attract investors

When outside investment is sought,  it goes without saying that the potential for strong profits must be demonstrated.  The more money that is requested,  the bigger the promised profits must be and the more quickly realized.  The break-even statement,  which shows at what point in time the business will go into the black,  along with credible financial assumptions and projections,  are critical in this scenario.

If the business is an existing one,  the financial projections must appear to be attainable,  based on the five year financial history given.  Make sure that your business and personal credit scores are 700+,  or you won’t see a dime from a bank.

Venture capitalists and angel investors may be somewhat more forgiving of a less than perfect credit rating if your business concept and model are extraordinary.  Beta test the product/service and business model with target customers to verify demand for what you intend to sell and your ability to efficiently deliver the goods to the marketplace.

For VCs, the potential for big profits is king.  They are in it for the pot of gold that comes when the company goes public and stock is offered.  Angels are not totally dissimilar to VCs,  but they are drawn to an entrepreneur’s vision and passion in addition to the pay-off.  That’s why they’re called angels!

Thanks for reading,

Kim

Business Strategy , Leave a comment

What’s Up With Your Strategy?

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“The most serious mistakes are not made as a result of wrong answers.  The truly dangerous thing is asking the wrong questions”.

–Peter Drucker

Freelancer Friend,  if you are not familiar with Peter Drucker (1909-2005),  please allow me to introduce you to but a small serving of his genius.  Peter Drucker was considered the father of modern management.  In 1971,  he launched one of the nation’s first executive MBA programs for working professionals,  located at Claremont Graduate University in Claremont, CA.  From the 1940s until about 2002,  Drucker produced groundbreaking work on business practice and strategy.  He was the Big Kahuna and he wrote several Holy Grails. 

Drucker was also known to be a serious skeptic of macroeconomic theory,  believing that economists of all stripes failed to explain significant aspects of modern economies (housing bubble, anyone?).  In other words,  if the folks at the Federal Reserve had followed Drucker’s wisdom and reined in the Wall Street masters of the universe,  the world’s economy would be in much better shape today.

Recently,  I found the above quotation plus a list of reality-checking questions that every Freelancer and business owner is advised to ponder and answer at least once a year.  The questions are quite simple and would appear to be no-brainers,  yet they are surprisingly effective at revealing the business strategies that your management team would be wise to develop and implement.

The first two questions require your team to set priorities and the last two require that you assess the organization’s ability to focus on those priorities by choosing meaningful performance measurements.

1.   Who is your primary customer?

It always comes around to identifying the customer,  does it not?  Identifying the natural customers for your products and services is the ultimate make-or-break realization for all business entities,  whether one makes a few hundred dollars during winter by shoveling snow from front stairs and driveways,  or a few million dollars from running a multinational corporation.  Only when the ideal customers have been identified is it possible to develop a marketing strategy that is a guide for resource allocation (e.g., equipment or PR campaigns),  sales distribution channels,  product positioning and branding strategies,  pricing,  creation of a sales pitch,  the networking strategy,  and so on.

2.   What business performance variables are you tracking?

Whatever yardsticks you select to measure business performance,  make sure they provide an accurate assessment of what is happening.  A sharp bookkeeper or accountant,  one with a background in financial analysis,  can tell you which numbers on your profit & loss statement and balance sheet make sense for you to watch and why that is so.  Freelancers probably want to pay attention to net revenue generated,  new business,  repeat business and the number of projects contracted.

3.   What strategic boundaries have you set?

Implementing a strategy involves risk.  Any strategy could lead the business to a place where you’d rather not go.  Know your core values,  priorities and preferences.  Think about what your customers expect and will accept from your organization.  It may be that you decide to take a pass on a golden opportunity because you just don’t want to offer that service or work that hard.  As the late,  great fashion arbiter Diana Vreeland said,  elegance is refusal.

4.   What strategic uncertainties are keeping you awake at night?

The game is all about whether your strategies work and for how many quarters will they work.  Unfortunately,  there is no silver bullet that can zero in on the weaknesses of your business strategies.  At some point,  customer needs and preferences change,  technology marches forward,  or some other event compels you and your management team to reboot dearly held business assumptions and approaches.  In order to adapt successfully,  it is necessary to constantly monitor the yardsticks established in Question 2.

Thanks for reading,

Kim

Business Strategy , , , Leave a comment

Seven Resolutions for 2011 Part 2 of 2

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Here are the remaining four resolutions that should help you construct the framework for a prosperous year.  Nothing especially novel or profound is being suggested.  To the contrary,  I’ve presented nothing that you don’t already know.  Consider these resolutions to be  a gentle reminder.  You decide which deserve follow-up. 

4.   Revisit your networking  strategy

Get the most out of networking by following a basic agenda,  one that keeps you focused on the real purpose for being there and takes the experience beyond just a random meet & greet.  This agenda works best face to face,  but it can also be used when engaging in online social networking.  The recipe is:  Get a client.  Get a referral.  Get educated.  In other words,  when you’re out there networking,  do your best to get something tangible.  At the very least,  get some information that might help you land a client or receive a referral.  Sweeten the pot for those whom you’d like to know better by offering them something of similar value,  to make helping you worth their while.  Networking flows best on a two-way street.  With this criteria  as a guide,  consider which social networking platforms you use and why you use them.  Is the ROI worth the time spent to keep up?  Next,  consider if you are participating in the right amount of face to face networking and assess the quality of your usual haunts.  How much time and money have you spent at these events and how has being in those rooms impacted your billable hours?

5.   Review your client list

Which clients pay you the most money?  Can you make that happen again this year?  From which clients might you be able to get more money?  Can you dare to raise your hourly rate or project fee for any of them?  Conversely,  which clients are more trouble than they are worth,  high maintenance headaches who do not pay enough to make up for the misery incurred?  Are there clients you should fire?

6.   Develop a prospect list

Who is your dream client?  It’s time to devise a strategy to reel in that big fish.  Identify your decision maker,  or key influencers who might get you in the door.  Maybe you know a colleague who can either make an introduction to the right person or tell you at which networking activities you could meet whom you need to meet?  Make a plan.

7.   Review professional development needs

Will enrolling in graduate school,  taking a seminar or earning a certification increase your credibility and make your services more marketable?  Is there a professional organization that would benefit you,  one that offers good peer networking and useful skills updates? Ask around.

Thanks for reading,

Kim