The Bad Economy Can’t Kill the Beast

December 18th, 2008 Chris

We run a 1 Oct to 1 Oct fiscal year. That means that we are about to wrap up our first quarter of the new fiscal year. We’ve been nervous for the last couple of months – concerned about all the economic turmoil and its impact on the business.

We’ll the results are in and there is good and bad news, and an important lesson.

First the bad. In the biggest lines of income, year over year, sales are a bit down. We’re not particularly surprised as the biggest bucket, custom training, is one of the first places that organizations cut when they are concerned about their numbers. Relatively big ticket discretionary spending is usually the first to go.

The good news? Over the last year we’ve leaned into (aka invested) in additional lines of income. Coaching, events, web class are areas that we put some sales and marketing behind. Heck – even I got off my ass and did some training (however, that was a mistake, ad passim).

The results – we’re up year over year, met our targets and will be closing one of our best quarters.

Now, let me knock on wood and hope it’s not just luck – but I don’t think it was… It was a direct result of creating additional revenue streams so that if our mainstays are impacted, it’s more than compensated for by others.

Now – anyone that worked with me in my former life knows that there is a huge concern when people start to talk about doing multiple things. What’s the word – Focus! The old adage that you can’t do anything well if you do too many things.

I still agree with that – hence why I feel my own forays into training were a mistake. That didn’t leverage our existing assets and distracted me. But that’s different than creating new streams of revenue by new creating products and services that leverage common assets. In other words, stuff that doesn’t take that much work to tailor or modify and deliver in a different way that will be valuable to customers.

Now – just because it doesn’t take a lot of new product or service “development” doesn’t mean that you can skimp on sales and marketing. That’s the resource that you have to manage and ensure you’re giving each of your “lines” an opportunity to succeed.

Oddly enough – it’s a very different constraint than I’m used to dealing with. In the technology world – the conversation on resource constraints is often about development resources. Here, at least in our micro business, we work hard to make sure that’s not the case. And ultimately that is our way of ensuring focus.

Here’s a challenge: grab a beer or glass of wine over the holidays, put your feet up and think of one additional way you could generate additional revenue next year – without creating a new product or service from scratch. Then, repeat – at least the first bit…

C.

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I have seen the future…

December 11th, 2008 Chris

I’ve been itching to update our web page. Trying to make it more interactive, more engaging. Generally to help people get to the information they need faster and take the next step in engaging…

I’m a big proponent of seeking inspiration from industry leaders (surely not blatant copying…). The other day I came across one of the most brilliant ways of helping your prospects find what they need and get engaged with you on a personal level…

It was done by a guy named Ford Saeks who is one of the leading internet marketing guys for small business and entrepreneurs. His home page treatment is brilliant: http://www.profitrichresults.com.

Every one’s using flash but I thought the marriage of video, engaging graphics and a clear call to action was unique.

You want a good test: go to Ford’s home page, then go to your home page. When I did it I was blown away by how unintuitive it was without the video and clear “do this now” direction.

We must copy his approach. In fact, I pledge to have something done like this within three months. Feel free to keep me honest!

C.

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Back from the Grave…and Ready to Party!

December 3rd, 2008 Chris

I know it’s been a couple of weeks. My life is slowly getting back to normalcy. At least my special version of it. I re-read my last blog posting and it was depressing. Now that I can see light at the end of the tunnel, all is better…

I did learn a good lesson: focus. I know that everyone is different and there are uber-entrepreneurs who can manage multiple businesses at once. I am not one of them and when there are only two of you in charge – it’s really hard to take your eye off the ball without it blowing up. I’m actually surprised that Colleen didn’t fire me.

But I’m back now and we’re planning for January – typically a good month for us to update our product and services. With the general economic climate – it really is time to make sure that you’re compelling and competitive (without giving up on your revenue targets):

1. Re-confirm your value proposition. If you are selling with the same messages that you were using a year ago – you could be in big trouble. A year ago, helping customers to sell more, to go faster, to build team spirit, etc… was fine. Now – it’s a train-wreck. It takes a different value to get those increasingly scarce dollars to be liberated from the buyer’s iron grip. Today, messages around cost savings, increased efficiencies, reducing headcount (gasp) is what resonates with business buyers. They are trying to control costs – just like you are – and you need to align with what they care about.
2. Focus on the ascension model by buyer. Here’s a great exercise: sit back and think about your ideal customers – who are they, what do they want, how do they buy. Think to your products and services – what is the first logical thing to offer a customer for purchase (perhaps a particular $ value or product type). What would you do next to step up the value (a product of greater value? a different product/service type). Think about that ascension model of what makes sense for the ideal buyer to purchase in the different phases as they engage with you. Map that back to your sales and marketing programs so you can focus your efforts and move prospects through their lifecycle in a way that maximizes results by delivering the right value to your customers at the right time.
3. Focus on products and services that are the key revenue drivers. Over the last few years, Colleen (due to her prolific nature) has assembled quite a collection of coaching programs, study kits, CDs, web classes, events, etc…  Some of these are key for revenue and profit, some have a negligible impact. Given my love of spreadsheets, we know which are really key to meeting objectives versus those that are nice to have. Given you’ve got a limited number of opportunities to engage a prospect and turn them into a customer, focus on the stuff that makes money! And with the other stuff – instead of actively marketing and selling it, why not include it as a bonus or add-on to incent the sale of those key products/services you need to make your numbers.
4. Deliver more value with current programs & services. Note that I’m not saying drop prices – I’m saying figure out how to provide customers with more value. For example, we’re going to be announcing additional member benefits to Colleen’s coaching programs. These will be benefits that will make our programs even more attractive without increasing our costs. As I’ve written before (here and here), we’ve done a lot to establish a cost structure that has minimal variable components.

These are four quick processes that are designed to make sure you focus in on what is going to make you successful in 2009 – despite what is happening in the economy. Why not sit down in a pub or favourite restaurant with your business partner (or friend who will listen to you as long as you buy the beer) and run through each of these. It’s a couple of hours that can make the difference between blowing away your targets next year and just blowing.

C.

P. S. The title of this blog is from one of my favourite movies from the 80s, “Return of the Living Dead“.

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