Networking and participation

Posted on July 18, 2011 by Jon Stow

I have been involved with referral networking groups over a number of years. Generally they have been the breakfast meeting organizations which only one member for each category of business is permitted to join. Mostly they work well and a good number of referrals is passed,

Occasionally we get grumbling both from members and from visitors who are reluctant to join.

Often the visitors will say “It just seems to be the same people there every week”. Well, of course it is. That’s the whole point; to have a close-knit group of people working together to find business for each other. Also, if you do have that relationship with other business people it can survive in friendship long after other factors have meant that you or they have moved on.

If people don’t get that it is about working they probably don’t get networking.  If they cannot be recruited and educated it is no use worrying about them.

I was rather surprised once when talking to a member whose attendance had fallen off dramatically. When I asked him why he wasn’t coming he said he was bored with the “same old”. Well, a referral group is about working together, not having a meeting served on a plate with breakfast. What had he given? How many referrals had he passed? If he thought the group was stale, why hadn’t he invited any new blood along?

The leadership of a referral networking group or any networking meeting is not there to provide entertainment. Of course it is useful to sometimes have a speaker who can educate about networking or about their business so that members can better refer them. Networking groups are about business and while they ought to be a lot of fun, that comes from members’ participation

It is up to the members to make the group successful; to work together fro the common good. It is their responsibility to make a success of their opportunity having been able to join. It is for them to contribute and to give their enthusiasm as well as their referrals. The business will come to them when they are committed to contribute. Don’t you agree?

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Telephone blues

Posted on July 14, 2011 by Jon Stow
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As some of you may remember I think it is very important that the published telephone number of any business is answered in person by a human being. I tried to contact a couple of sole trader business advisers last week and both of them were using answering machines or voice-mail on their land lines. One I later contacted via his mobile (cell) while he was driving.

I don’t speak to my clients on my mobile. I can’t give them proper attention. If you telephone my office I cannot guarantee that you will be able to speak to me. I might be with a client, out at another meeting or working on something and not wanting to be disturbed. What I can guarantee is that if you call in reasonable office hours you will speak to my PA who will take a message very courteously. I also guarantee that I will call you back.

What do you do if you telephone a potential supplier of goods or services and you either get voice-mail or worse still, no reply at all? You probably hang up and the odds are that you will phone someone else. Prospective business lost by the non-answerer.

I was watching with my wife a television programme called The Restaurant Inspector. Fernando Peire who presents the show is a famous restauranteur and from my brief viewing I could see that he was excellent not only at food matters but also at branding and marketing. He was helping a small fish restaurant on the South Coast.

The last task after a successful re-launch was to change business name on the message on the restaurant ‘s telephone answering machine: “We’ll call you when we get back”. I was rather shocked. Imagine you want to book for a Friday or Saturday night and you get that when trying to book. You are going to call another restaurant to make sure you have a table to go to. I would employ a telephone answering company or a PA to take the call; someone who had access to an on-line booking system. The bookings could be filling up while you were still out in the fish market or wine merchant.

In the restaurant business as in my tax and business advice consultancies, if people take the trouble to inquire by telephone they are almost certainly going to buy. Please don’t let them be put off.

The bottom line is, if you don’t want to be seen as unprofessional have a real person answer your phone and take a message or make a booking.

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How to get the right result in your service purchasing

Posted on July 11, 2011 by Jon Stow
A Roman denarius, a standardized silver coin.

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We know what we want?

It is easy to think we know what we want when buying in services, but we do need to check what our supplier thinks we have asked for. After all, if we buy a new TV or dishwasher, we need to know it fits our requirements; whether it is the right quality or has enough capacity. We need to make sure that the item is of a suitable specification.

I am sure we have all made mistakes with our purchasing. If it is not a high value item we can shrug our shoulders and learn. If we have spent a lot of money we need to make sure we are getting what we expect.

Often in business we do spend quite a lot when buying in services. It might be on marketing, it might be on our telecoms purchasing, or finance or accounting services. It is vital that we give our suppliers all the information they need to know that they can fulfil our requirements.

From the other end

As a supplier I have on occasion found that I have not been told what I needed to know. Once I had a very detailed brief from a client, and asked the questions that seemed obvious from the instructions. I started work on the project and then found out something that changed everything. I did not learn of this additional factor from the client. I won’t say I found out completely by accident. Sometimes we can make an educated guess based on not much. However from where I started I could not have known about something which was so left field and which for legal reasons meant I could not complete the project as originally instructed.

Looking back, the client had no excuse not to tell me. It would be akin to forgetting to tell the builder putting up an extension to your house that there was a disused mine shaft underneath.

Lay it bare

The moral of the story is that if you are buying in services, whether it is website design, accountancy, financial advice or re-fitting of your shop you need to specify exactly what you want and tell your supplier everything. It is always better to tell them too much than too little, and use common sense to decide what they might need to know but couldn’t guess. Otherwise everyone ends up with egg on their face. I prefer my egg in an omelette and I cook a decent one. I don’t like wasted money, wasted time or wasted eggs.

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Wrapped-up people

Posted on July 7, 2011 by Jon Stow

Have you noticed how some people carry on in their own little world oblivious of their surroundings. They don’t see the sights and hear the sounds around them, or rather they see and don’t observe, and they hear but don’t listen.

A few weeks ago I passed a guy walking quite fast along a path beside a cornfield; the one in the photo below. The birds were singing, there were flowers in the hedgerow, the sun was out and the sky was blue. Yet there he was trotting along looking straight ahead with headphones connected to his MP3 player (couldn’t tell you the brand).

It is the same with some using or trying to use social media for business. They haven’t looked round to see what might be successful. They haven’t learned what could work for them. They broadcast their sales message on Twitter and don’t converse, or they think they can increase their “influence” by recycling banal quotations from famous people. Not all quotations are banal of course, but the banality comes from those who repeat them without thought, but with auto-feed.

It is not so difficult to observe and to listen. I was trying to think how I learned to do that and I came to think that it must have been from my old biology teacher. Actually for some reason I think he never liked me much. However I do remember that he would interrupt a lesson in the summer, exclaiming “hear that?” There would be a bird singing or tweeting outside.

It was the same teacher (or master as they were called at our school) who made us get up at three in the morning (and our parents of course) to take us to the woods to hear the mid-summer dawn chorus. Certainly I have always noticed bird song since then and listened to all the other sounds many others hear but don’t listen to. I am lucky to have the habit.

Early summer cornfield

Still, I bet the auto-tweeters of their wares and repeaters of quotations don’t hear the birds and very probably bump into lampposts while listening to their iPods. How do they fare with their businesses and with their marketing? They are the people doing the same old thing and wondering why it doesn’t work.

I wonder if those who don’t notice their surroundings learn from their business experiences at all, or whether they are so wrapped up in themselves that they are doomed to failure by not taking the proper action to remedy problems or to advance their businesses.

Do you know any of these wrapped-up people? If you do, see if you can bring them to me and we will unwrap them and help them see what others see by looking and observing. That way they might start to earn some money.

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The Water Margin guide to business

Posted on July 5, 2011 by Jon Stow

 

The Water Margin

The expression “small business” has many meanings. There is no way of knowing whether we mean a business with fifty employees or just one person on her or his own. What I am going to say apples to the smaller small businesses although slightly bigger businesses may benefit too from that magic word “cooperation”.

I believe in sub-contracting what I don’t like doing and maybe don’t do well. I believe we can benefit others through channeling work to them while making a profit in their contribution as well.

Sometimes there are some quite large projects that we may baulk on taking on on our own. As a tax practitioner and business adviser, I might with a large project such as a share scheme introduce to a client one of my tax adviser friends, perhaps also a solicitor or lawyer, and perhaps a financial planner.

In the past with a large project I have engaged a franchise expert, a lawyer and a health and safety specialist to work on a project for me. In fact aside from a little project management I did little of the work, and I could not have done any part of the project on my own.

Many people are afraid to take on what sounds a large project if they are a very small business. I think that if you have a good network around you and can get the right team together, you can do a better job than much larger businesses.

The only real issue is the level of risk just in case something goes wrong. If the worst case scenario occurred, would everyone’s insurance cover it? Remember that you don’t have to have done anything wrong to get sued because some people have an eye for the main chance.

Given that proviso, though, and if we use sound judgment we can deliver premium work and exceptional service because we can give the attention of a small business and small business people as against somebody else’s managers and employees with other distractions.

It’s not just joint ventures, though. We can impress all our clients by bringing in specialists in our network without any formal agreement. If someone needs a financial adviser, I know several and would pick the most suitable one. If they need health and safety I know just the people. If they need sales and marketing… We can deliver just what our clients require much better than large corporations.

Do you remember the 1970s TV series (based on ancient tales from China) called The Water Margin? It started with a quotation:

“The ancient sages said “do not despise the snake for having no horns, for who is to say it will not become a dragon? So may one just man become an army.”

That is true for all of us in business because even when we are small. One just woman or man can become an army and deal with very profitable large projects. It is all about who you know and can enlist to help you.

 

 

Here is the opening sequence of a vintage TV show.

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Content marketing – it really works!

Posted on June 30, 2011 by Jon Stow

The marketers

I am not a marketing guy. I am always keen on picking up new ideas of course, but I defer to others in advising businesses on marketing, and as you know, I know a lot of people who have different niches in business advice.

I write from my own experience here. There are many people who will tell you that content marketing is a real winner including some I respect greatly . I just know that it is absolutely true. The more you give your readers, the more they will be attracted.

My bit

A large chunk of my business is tax-related, and I have been dealing with tax issues for a long time. Of course experience is not all we need, and certainly I never stop learning either through general reading in my area, or because I am getting my hands dirty with a new problem.

I have been developing a particular niche in tax, which is related to property, or real estate if you prefer. I have written a number of articles which I hope are very informative to the many property investors and small-time developers out there, quite a few of which have despaired having had their pensions ruined and decided to make an effort to take control of their own destiny. That’s just like all of us, running a small business.

The tax articles do not cover every aspect of each subject of course. How could they? However they do give a lot of useful information for the lay person. Of course people may read my material and go away armed with it somewhere else. Very often, though, they will inquire as to whether I can help them, which of course I can.

The niche aspect is important. People may click through from the titles in the sidebar on this blog, and they do. Writing in a particular niche, though, does make my material available more immediately though searches on Google and the other engines. That is because people with a particular issue will be quite specific in their searches, and will be drawn to my quite specific articles.

No tricks needed?

SEO people call the niche searches the “long tail” but my take is that there is no need to think about your key words in the article itself. They will occur naturally as you write. Of course you can put in your tags etc. (I am certainly not an SEO expert), but mostly the traffic seems to be organic from the article.

You don’t have to write articles every day or even every week. You need to keep your site updated regularly and a slow stream of informative material that will interest your potential clients enough to come to you is all you need. They are already aware that you know what you are talking about and they are willing to buy that expertise. That’s great news, isn’t it?

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We can’t micro-manage our network or you can’t please all the people

Posted on June 27, 2011 by Jon Stow

As you all know I care very much about reputation – not just mine but those who I like and think should be more careful. So as far as I am concerned, I don’t like open criticism of other individuals, any sort of abuse, and definitely no swearing.

That’s my opinion and how I feel about my network, and how people see me. I accept that some people do swear on-line and for some it is important to their reputation if they wish to appear (how shall I put this?) robust and combative and perhaps with their culture, by which I mean the people they mix with in a heavy or even heavy metal sort of way. So, if I go to a blog where there is a lot of swearing, I accept it. “When in Rome…” etc. but I can then leave and very likely will. It’s a bit like complaining about a TV programme when we have the off-switch or the zapper to change the channel. If we don’t like it, leave.

Just the same, I don’t work in that sort of edgy medium, and prefer to concentrate on business and on my business network. I have unfollowed people on Twitter because they used the “f” word all the time, and instantly when someone typed something even worse.

We don’t have to be boring just because we don’t swear and we don’t abuse others. As long as we add value, we should keep our connections. Well, mostly…

Sometimes we are seen to hang with a person whom another networker really doesn’t like. That other networker may take against us because of it. The dislike may be mainly about the personality of our friend, or their on-line or off-line way of doing business or promoting themselves.

For me, maintaining relationships with my business colleagues on-line is important, especially if we are really doing business together. However, recently someone whom I greatly respect, indeed like, told me he had unfollowed me on Twitter because I RTed (odd verb) someone he really didn’t like. Apparently I do it (RT the person) quite often too. I don’t know who he means and it would be silly to speculate. Fortunately my unfollower and I are still connected on Facebook for which I am thankful.

I can’t control absolutely everything people think about me. Nor can anyone else. Chris Brogan (but I am sure I don’t have to explain who he is) has apparently upset someone who thinks that he has changed his blogging approach towards selling more stuff. Other people don’t like it either.

I like Chris and have learned a lot from him. I think he has shifted his business model a bit, but who hasn’t? I have in the nearly nine years I have been running my independent businesses. We adapt to our market and for Goodness’ Sake, we are in business to make money. Free stuff is fine and you can find plenty of it on my other site and here.

You will still get free stuff from me and I know you will get it from Chris. I will still follow him and read his blog. I will learn from seeing how he adapts to his needs in a changing market. I will actually contribute to his income through Third Tribe of which I am a member. What I won’t learn there or anywhere else is how to manage what individual people think of me.

You can’t please all the people all of the time. Can you?

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Don’t follow your dream? You can if you plan it.

Posted on June 23, 2011 by Jon Stow

 

Life by the sea

I am all in favour of dreams. I have them myself. The trouble is that as a tax and business adviser, I have come across a lot of shattered dreams.

 

Life by the sea

I was reminded of this again the other day when watching a re-run of a Relocation, Relocation programme. If you haven’t seen it or don’t live in the UK, it’s all about people moving from one part of the country to another, as the title suggests.

A couple were looking not only for a new home in the South-West of England, but also for a cafe-bistro to run. It sounded a lovely idea.

As regards the cafe they were looking at, the owners wanted about £70,000 for the business, which might be roughly what their profit was, plus about £200K for the premises. £70K sounds great doesn’t it? However, the couple would have to borrow the money. It struck me that they could well end up paying about £20K in interest. Had they thought about their children’s childcare? Running a cafe is pretty full-time. If they weren’t going to be on the premises all the time wouldn’t they need more employees to cover the childcare times?

The thing is, the idea of running a cafe in a seaside location does sound idyllic, doesn’t it? It just needs planning and adjusting not only lifestyle in terms of time, but in terms of costs of living. Do they want their luxuries or do they want a comfortable life without pressure to spend on extras? These are questions that have to be asked.

Déjà vu

Some years ago, I saw another couple who had started a cafe in a seaside town, because it had been their dream. They really hadn’t thought it through. Yes, there was plenty of trade passing, but not so much coming in, because there was a cafe in every other shop along the main drag. The rent was extortionate, and they were trying to supply full short-order hot food. That meant more electricity and gas, but the few times they were full up, they had simply not enough covers. In small premises a cafe-type business is better supplying cold food, sandwiches, rolls and cakes with a choice of eat-in or takeaway (or carry-out). The turnover and therefore profit would be much higher. This couple went out of business and lost their savings because they had not done their homework.

Planning the dream

I am all for following the dream. It’s just that the dream needs a plan which involves adding up the costs including the rent, the utilities, the business rates to the local authority and also employee costs. Then think about how much you need or expect to draw out of the business to have a good life. Then look at the expected takings. See if you find out how other similar businesses in the area do.

Ask the previous owner about takings and profits if it was a similar business and check that the accounts they show you make sense. Get a second opinion from a professional. I have been asked to check the accounts produced by a vendor and could see that they were complete fiction. Don’t take it all on trust.

Do follow your dream. Just plan it first. Take advice. Write down the plan. You might have to write one for the bank when you need a loan, but write a proper plan for yourself. One that makes sense. Not one to try to convince yourself it will work if you know in your heart it won’t.

If after you have thought it all through properly and taken the advice you need you know your dream is there for the taking, grab it and hang on to it.

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Let another brain take the strain

Posted on June 20, 2011 by Jon Stow
Local businesses

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Are you good at everything? I’m not. I doubt many people are.

Do you like having to do everything in running your business: both the creative and the mundane?

Of course what is mundane to some is interesting grist to the mill for others. My business started very small and once upon a time I did everything myself. Now I only do the things I enjoy doing and which I find most rewarding, and the things I am best at.

It took me a while to realise that there were some tasks that were no fun at all, and that I wasn’t very good at some of the work my business was expected to produce. Also, I didn’t have time to do everything, so it seemed a good idea to concentrate on doing the fun stuff, the premium higher work. That didn’t mean that I stopped supplying the other services. It seemed logical to me to subcontract work to those who were better at it than me and who enjoyed doing what I didn’t.

Subcontracting has been great for my business. My subcontractors are good people, otherwise I wouldn’t use them. They deliver to me on time so that I can deliver to my clients, and I can negotiate a rate which gives them a steady income, but allows me to sell on a great service at a margin. That way everyone is happy and my business makes money without my having to do all the work.

You might ask why this system differs from having employees. Well, that would be a commitment, and in a small and growing business, I would not always have enough work to keep them on. They supply other businesses too and they have their own customers, so we are not tied to each other, but what we have between us is trust.

The business model I have suits a supplier of services. If my business made anything or was in retail, the concept wouldn’t work.

It is just no good trying to do everything yourself. I think all small businesses should use their networks (and build a network if they haven’t got one) because there is someone out there who can do for you what you think of as the boring bits, and you can profit from their expertise while concentrating on your favourite most profitable and valuable stuff. Your subcontractors can be your best referrers too.

Do you subcontract? If not, should you?

 

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Telephone warning for start-ups and all small businesses

Posted on June 16, 2011 by Jon Stow
Sumerian contract: selling of a field and a ho...

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When we start our shiny new businesses we are eager to get all the basic services in place, and these days that includes our telephone and broadband services.

Read the small print

It is tempting to choose the best price over recommendations from others. After all, cash flow is important. What you need to know is that the telecoms giants may expect you to agree a contract for twelve months or longer. You might say that is fair enough. After all, most business customers would expect to be tied for a reasonable term to make it worthwhile. Make sure you don’t find yourself or your business being billed for a penalty charge when you give notice that you wish to change provider.

Unfair competition

You may find that your business is supposedly on a twelve month rolling contract, which probably means that you have to give twelve months notice of termination, especially if you are within the first two years or so of your contract. If you don’t, the telecoms company will expect to make a penalty charge for taking your services away. Yet how can you give twelve months’ notice in the expectation of shopping around in nearly a year’s time? Would you not worry about continuation of service? A loss of service is every business’s nightmare.

Hope on the horizon

Fortunately, the rules may be about to change. The UK regulator, OFCOM, stated via press release on 3rd March this year:

“Ofcom is concerned that rollover contracts make it harder for customers to switch providers and consequently reduce the benefits of competitive choice.
For individual customers, this can mean that switching is made unattractive as the costs involved are unexpectedly high.

For the market generally, it means less competition as it is harder for competing providers to attract customers on rollover contracts and therefore their ability and incentive to create lower cost and higher quality services is reduced.

Ofcom is proposing to amend its existing rules in relation to contract terms to prohibit opt-out contract renewals in any form in the land-line and broadband sectors.”

Caveat emptor

The messages to take are:

  • Be very careful of the conditions of any contract with a telecoms provider.
  • Complain to OFTEL if you find yourself in a rolling contract with a penalty clause if you don’t give a long period of notice.
  • As with all purchases, take care. Buyer beware!

I would be very interested to know if you have had this sort of problem with a telecoms company and how you managed to resolve it. Is this a problem in countries other than the UK?

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