By Steve Strauss
Recently, I was chatting with my friend Rieva Lesonsky about what a challenge it is to own and run a small business in this economy. The topic was especially salient because , as we are both small business owners as well as writers and speakers on the subject, the Great Recession is effecting us in numerous ways.
You may have heard of Rieva. She is one of the top small business experts out there, but even if you have not, you have no doubt seen her work – for many years she was the editorial director of Entrepreneur Magazine and she wrote the bestselling book Start Your Own Business. When I look at her resume – being on The Today Show, Oprah, etc. – I get jealous. These days she is the CEO of GrowBiz Media, a content and consulting company specializing in covering small businesses and entrepreneurship.
So Rieva is someone who really knows her stuff and that is why I was happy to hear that she is conducting an online chat at Bank of America’s online small business community on the subject Navigating Your Small Business Through the Great Recession. The chat will be on Friday, July 16th at 2:00 p.m. est.
Sensing an opportunity to share her insights with my readers, I asked Rieva what she is telling people these days with regard to staying afloat and even getting ahead. She mentioned four things that she thinks can really make a difference right now:
1. Work smart: “Do not waste your time doing things you don’t have to do. Use your time wisely and concentrate your efforts on getting the biggest return on your investment of time,” Rieva counsels. “So, to the extent you can avoid it, avoid getting caught up in minutiae, especially minutiae that does nothing to help you grow your business.”
Rieva echoed the point made by Michael Gerber in his great book, The E- Myth. “Don’t spend your time working in your business,” she said, “work on your business.” As such, she thinks one of the smartest things you can do is to “use your time on things that make you money, and to the extent possible outsource or automate the other stuff.”
For example, she noted that something like doing payroll is probably not the best use of your time in times like these. (more)
Monday, July 13, 2009
FT: Self-made man who rescued Saatchi & Saatchi
By Simon Kuper
He conducted business meetings unshaven, tieless, smoking a cigar, with his stockinged feet on the table. Robert Louis-Dreyfus, who exuded charisma, died of leukaemia on July 4, aged 63, and could have gone through life as an heir of the family conglomerate.
Instead, the Franco-Swiss entrepreneur made his own fortune, and then another by rescuing Saatchi & Saatchi and Adidas. When he finally returned to the family business, it was as a self-made billionaire. His one failure in business was his football club, Olympique Marseille.
Louis-Dreyfus was born in Paris in 1946 into great wealth. The family business, founded in 1851 by his great-grandfather Leopold, had become a thriving conglomerate dealing largely in cereals, ships and weapons.
But Louis-Dreyfus did not want to be a mere heir. He was always his own man, and for many years a black sheep. He never passed his final school exams, something he liked to recall after graduating from Harvard Business School. He spent time on an Israeli kibbutz, and worked for family businesses in Brazil and the US.
In the early 1980s he joined IMS Health, a small American company that did market research in pharmaceuticals. When Dun & Bradstreet bought it for $1.7bn in 1988, he had made his own fortune. Louis-Dreyfus relaxed on Swiss ski slopes, but got bored. (more)
He conducted business meetings unshaven, tieless, smoking a cigar, with his stockinged feet on the table. Robert Louis-Dreyfus, who exuded charisma, died of leukaemia on July 4, aged 63, and could have gone through life as an heir of the family conglomerate.
Instead, the Franco-Swiss entrepreneur made his own fortune, and then another by rescuing Saatchi & Saatchi and Adidas. When he finally returned to the family business, it was as a self-made billionaire. His one failure in business was his football club, Olympique Marseille.
Louis-Dreyfus was born in Paris in 1946 into great wealth. The family business, founded in 1851 by his great-grandfather Leopold, had become a thriving conglomerate dealing largely in cereals, ships and weapons.
But Louis-Dreyfus did not want to be a mere heir. He was always his own man, and for many years a black sheep. He never passed his final school exams, something he liked to recall after graduating from Harvard Business School. He spent time on an Israeli kibbutz, and worked for family businesses in Brazil and the US.
In the early 1980s he joined IMS Health, a small American company that did market research in pharmaceuticals. When Dun & Bradstreet bought it for $1.7bn in 1988, he had made his own fortune. Louis-Dreyfus relaxed on Swiss ski slopes, but got bored. (more)
Sunday, July 12, 2009
Construction Week Online: US $1 Billion Water Project Brings Hope to Jordan
A new US $1 billion (JOD709.4 million) project is being set up in Jordan to help alleviate a sewer water shortage in the country’s capital city, Amman.
The Disi Water Conveyance Project includes the construction of a 325km pipeline that will drive water from the Disi aquifer in Mudawarra to the capital.
The project will be constructed thanks to funds that came from Gama Energy, a joint venture between Gama Holding and GE Energy Financial Services.The investment will create jobs and promote private sector participation in Jordan’s development. (link)
The Disi Water Conveyance Project includes the construction of a 325km pipeline that will drive water from the Disi aquifer in Mudawarra to the capital.
The project will be constructed thanks to funds that came from Gama Energy, a joint venture between Gama Holding and GE Energy Financial Services.The investment will create jobs and promote private sector participation in Jordan’s development. (link)
Small Business Trends: YouTube: Where Customers Get The Last Word
By Anita Campbell
Professional musician Dave Carroll spent nine months trying to get compensation from United Airlines to fix his $3,500 Taylor guitar after it was damaged by baggage handlers at O’Hare Airport. After getting the final “no” from United, he composed a 4-minute video called “United Breaks Guitars.”
He posted the video on YouTube. As of this writing it has had over 2.2 million views — and climbing. That’s in just 4 days’ time.
On his website Carroll describes what happened with his guitar in detail. Here’s the short summary in his own words:
“In the spring of 2008, Sons of Maxwell were traveling to Nebraska for a one-week tour and my Taylor guitar was witnessed being thrown by United Airlines baggage handlers in Chicago. I discovered later that the $3500 guitar was severely damaged. They didn’t deny the experience occurred but for nine months the various people I communicated with put the responsibility for dealing with the damage on everyone other than themselves and finally said they would do nothing to compensate me for my loss. So I promised the last person to finally say “no” to compensation (Ms. Irlweg) that I would write and produce three songs about my experience with United Airlines and make videos for each to be viewed online by anyone in the world. United: Song 1 is the first of those songs. United: Song 2 has been written and video production is underway. United: Song 3 is coming. I promise.”
Even consumers who don’t fly much or have a guitar identify with his plight. The lyrics of the country song capture the level of frustration that many customers feel when their complaint lands on deaf ears: (more)
Professional musician Dave Carroll spent nine months trying to get compensation from United Airlines to fix his $3,500 Taylor guitar after it was damaged by baggage handlers at O’Hare Airport. After getting the final “no” from United, he composed a 4-minute video called “United Breaks Guitars.”
He posted the video on YouTube. As of this writing it has had over 2.2 million views — and climbing. That’s in just 4 days’ time.
On his website Carroll describes what happened with his guitar in detail. Here’s the short summary in his own words:
“In the spring of 2008, Sons of Maxwell were traveling to Nebraska for a one-week tour and my Taylor guitar was witnessed being thrown by United Airlines baggage handlers in Chicago. I discovered later that the $3500 guitar was severely damaged. They didn’t deny the experience occurred but for nine months the various people I communicated with put the responsibility for dealing with the damage on everyone other than themselves and finally said they would do nothing to compensate me for my loss. So I promised the last person to finally say “no” to compensation (Ms. Irlweg) that I would write and produce three songs about my experience with United Airlines and make videos for each to be viewed online by anyone in the world. United: Song 1 is the first of those songs. United: Song 2 has been written and video production is underway. United: Song 3 is coming. I promise.”
Even consumers who don’t fly much or have a guitar identify with his plight. The lyrics of the country song capture the level of frustration that many customers feel when their complaint lands on deaf ears: (more)
BusinessWeek: The Pros and Cons of Co-Branding
By Steve McKee
The moment Roger Penske announced his planned acquisition of the Saturn brand from GM, Saturn dealerships around the country initiated a spontaneous and organic co-branding campaign, erecting banners and billboards to celebrate the alliance.
Saturn of Wichita's advertising proudly proclaimed: "Finally, a car guy owns a car company." Scott Davies, owner of the dealership, explained the resulting traffic increase by saying: "People want to buy from someone they like. A lot of customers won't buy a car from GM, but they will buy a car from Roger Penske." That's why Davies—and many other dealers like him—were so
eager to associate Saturn with Penske.
It was an odd and unintentional (at least from GM's perspective) co-branding effort, but it paid off. Saturn's marketing director, Kim McGill, said the Penske announcement led to a 35% sales jump in June over the prior year. (more)
The moment Roger Penske announced his planned acquisition of the Saturn brand from GM, Saturn dealerships around the country initiated a spontaneous and organic co-branding campaign, erecting banners and billboards to celebrate the alliance.
Saturn of Wichita's advertising proudly proclaimed: "Finally, a car guy owns a car company." Scott Davies, owner of the dealership, explained the resulting traffic increase by saying: "People want to buy from someone they like. A lot of customers won't buy a car from GM, but they will buy a car from Roger Penske." That's why Davies—and many other dealers like him—were so
eager to associate Saturn with Penske.
It was an odd and unintentional (at least from GM's perspective) co-branding effort, but it paid off. Saturn's marketing director, Kim McGill, said the Penske announcement led to a 35% sales jump in June over the prior year. (more)
BusinessWeek: The Anatomy of an Entrepreneur
By Nick Leiber
When Ken Rapp was 16 years old, his mom died of malignant melanoma. Her death made him wonder why, with all the advances in science, there was no cure for the disease. So 10 years ago, at the age of 37, Rapp used his 14 years working as an engineer and sales manager for laboratory automation and robotics maker Zymark (CALP), to start his own company to facilitate pharmaceutical breakthroughs. Today his Hopkinton, Mass.-based company, VelQuest, sells software and other products designed to streamline the recording process and increase the speed by which medicines go to market. Clients include Pfizer (PFE) and Eli Lilly (LLY). Rapp says the company’s 2008 revenue was up 50% from 2007.
But it was not just his heartfelt idea that played a role in his decision to pursue entrepreneurship, a new study released by the Kauffman Foundation on July 8 suggests: his family background also improved the odds. Indeed, the study, similar to another Kauffman report released in June, found that the makeup of entrepreneurs running high-growth companies goes against the stereotype of a young college dropout (think Bill Gates and Steve Jobs).
The study, titled “The Anatomy of an Entrepreneur,” led by co-authors Vivek Wadhwa, Raj Aggarwal, Krisztina “Z” Holly, and former BusinessWeek tech editor Alex Salkever is an attempt to get a feel for the background and motivation of American entrepreneurs, including their level of education, socioeconomic status, and work experience. The team set out to uncover what makes entrepreneurs across high-growth industries tick, surveying 549 successful business founders between August 2008 and March 2009. The study found they were 40 years old on average when they started their first companies. About 90% were well-educated and came from middle-class or upper-lower-class backgrounds. (more)
When Ken Rapp was 16 years old, his mom died of malignant melanoma. Her death made him wonder why, with all the advances in science, there was no cure for the disease. So 10 years ago, at the age of 37, Rapp used his 14 years working as an engineer and sales manager for laboratory automation and robotics maker Zymark (CALP), to start his own company to facilitate pharmaceutical breakthroughs. Today his Hopkinton, Mass.-based company, VelQuest, sells software and other products designed to streamline the recording process and increase the speed by which medicines go to market. Clients include Pfizer (PFE) and Eli Lilly (LLY). Rapp says the company’s 2008 revenue was up 50% from 2007.
But it was not just his heartfelt idea that played a role in his decision to pursue entrepreneurship, a new study released by the Kauffman Foundation on July 8 suggests: his family background also improved the odds. Indeed, the study, similar to another Kauffman report released in June, found that the makeup of entrepreneurs running high-growth companies goes against the stereotype of a young college dropout (think Bill Gates and Steve Jobs).
The study, titled “The Anatomy of an Entrepreneur,” led by co-authors Vivek Wadhwa, Raj Aggarwal, Krisztina “Z” Holly, and former BusinessWeek tech editor Alex Salkever is an attempt to get a feel for the background and motivation of American entrepreneurs, including their level of education, socioeconomic status, and work experience. The team set out to uncover what makes entrepreneurs across high-growth industries tick, surveying 549 successful business founders between August 2008 and March 2009. The study found they were 40 years old on average when they started their first companies. About 90% were well-educated and came from middle-class or upper-lower-class backgrounds. (more)
The Entrepreneurial Mind: Young Entrepreneurs Award Nominations Open
By Jeff Cornwall
Business Week is taking nominations for their annual America's Best Young Entrepreneurs roundup through Aug. 16. If you know of companies run by entrepreneurs age 25 or younger, you can nominate them at http://bit.ly/BWYoung.
They are looking for ventures that are fully operational - not just idea stage - and all of the founders must be 25 or under at the time of nomination. Feel free to nominate more than one company, and there's no need to submit the same firm more than once.
Business Week is taking nominations for their annual America's Best Young Entrepreneurs roundup through Aug. 16. If you know of companies run by entrepreneurs age 25 or younger, you can nominate them at http://bit.ly/BWYoung.
They are looking for ventures that are fully operational - not just idea stage - and all of the founders must be 25 or under at the time of nomination. Feel free to nominate more than one company, and there's no need to submit the same firm more than once.
London South East: Jordan central bank says is running Capital Bank
By Suleiman al-Khalidi
AMMAN, July 10 (Reuters) - Jordan's central bank has taken over the management of Capital Bank after disputes within its board that would have threatened the bank's solid financial position, the central bank governor said on Friday.
Umayya Toukan said in a statement the monetary authorities decided to dissolve the current board of the bank and set up a temporary management committee under his supervision to run its operations for six months.
'The bank's financial position is good. The matter relates to administrative violations. Dissolving the board is a precautionary move as fears had grown of the negative impact of continued divisions within the bank's board that would affect the bank's performance,' Toukan said.
Jordan's monetary authorities would not hesitate to act decisively and adopt any measures to preserve the financial soundness of the banking sector, Toukan said. 'This is especially so at this phase of the global financial crisis. This move will help the economy to continue to effectively handle the repercussions of the global crisis,' Toukan said.
The bank's shares will be suspended from trading as of next Sunday, when weekly trading at the Amman bourse begins. An Iraqi investor, Hassan Kubah, a scion of an old merchant family which owns Basra International Bank for Investment, along with a group of Arab investors last January took 49 percent of the bank after buying out leading Jordanian investors. (more)
AMMAN, July 10 (Reuters) - Jordan's central bank has taken over the management of Capital Bank after disputes within its board that would have threatened the bank's solid financial position, the central bank governor said on Friday.
Umayya Toukan said in a statement the monetary authorities decided to dissolve the current board of the bank and set up a temporary management committee under his supervision to run its operations for six months.
'The bank's financial position is good. The matter relates to administrative violations. Dissolving the board is a precautionary move as fears had grown of the negative impact of continued divisions within the bank's board that would affect the bank's performance,' Toukan said.
Jordan's monetary authorities would not hesitate to act decisively and adopt any measures to preserve the financial soundness of the banking sector, Toukan said. 'This is especially so at this phase of the global financial crisis. This move will help the economy to continue to effectively handle the repercussions of the global crisis,' Toukan said.
The bank's shares will be suspended from trading as of next Sunday, when weekly trading at the Amman bourse begins. An Iraqi investor, Hassan Kubah, a scion of an old merchant family which owns Basra International Bank for Investment, along with a group of Arab investors last January took 49 percent of the bank after buying out leading Jordanian investors. (more)
Inc.: Seniors Starting Most Businesses
By Keaton Gray
An increasing amount of older Americans are staring their own businesses, reveals a recent survey by the Bureau of Labor Statistics, which found that the largest group of newly self-employed individuals are those age 65 and up.
Between November of 2007 and May of 2009, the percentage of Americans age 65 or older who are self-employed rose from 16 percent to 18 percent. Following at a distant second were those age 16 to19, growing from 1 percent to 2 percent.
Although the oldest segment of the population has long been the most likely to be self-employed, some might find it surprising that it is also the fastest growing segment of entrepreneurs. (more)
An increasing amount of older Americans are staring their own businesses, reveals a recent survey by the Bureau of Labor Statistics, which found that the largest group of newly self-employed individuals are those age 65 and up.
Between November of 2007 and May of 2009, the percentage of Americans age 65 or older who are self-employed rose from 16 percent to 18 percent. Following at a distant second were those age 16 to19, growing from 1 percent to 2 percent.
Although the oldest segment of the population has long been the most likely to be self-employed, some might find it surprising that it is also the fastest growing segment of entrepreneurs. (more)
Inc.: A Father's Cause Aids Disabled Entrepreneurs
By Meredith Maines
Peter Schoemann, a practicing lawyer in Orlando, often works late nights, early mornings and weekends, but he's not just hunting down evidentiary support. Because his two sons are diagnosed as high-functioning autistic, Schoemann's been toiling away for the Advocacy Board for Persons with Disabilities. It was on this board that he formulated the idea to launch a chamber of commerce geared toward entrepreneurially-inclined people with disabilities.
"With my background, I thought I could help make a difference, certainly one that could be available to my children [when they're older]," he said.
Now two years in the making, Schoemann's Chamber of Commerce for Persons with Disabilities has provided a place where business owners and their direct caregivers can network. In March, it partnered with the Disney Entrepreneur Center, and relocated its offices to Disney's downtown-Orlando facility. But Schoemann doesn't want to settle for only a regional influence. He plans to take the Chamber to a national level, rolling out other offices by the end of the summer.
"I want the national organization to be the true umbrella for the local chambers so they can [compete] for the national sponsorships and national grants," Schoemann said. (more)
Peter Schoemann, a practicing lawyer in Orlando, often works late nights, early mornings and weekends, but he's not just hunting down evidentiary support. Because his two sons are diagnosed as high-functioning autistic, Schoemann's been toiling away for the Advocacy Board for Persons with Disabilities. It was on this board that he formulated the idea to launch a chamber of commerce geared toward entrepreneurially-inclined people with disabilities.
"With my background, I thought I could help make a difference, certainly one that could be available to my children [when they're older]," he said.
Now two years in the making, Schoemann's Chamber of Commerce for Persons with Disabilities has provided a place where business owners and their direct caregivers can network. In March, it partnered with the Disney Entrepreneur Center, and relocated its offices to Disney's downtown-Orlando facility. But Schoemann doesn't want to settle for only a regional influence. He plans to take the Chamber to a national level, rolling out other offices by the end of the summer.
"I want the national organization to be the true umbrella for the local chambers so they can [compete] for the national sponsorships and national grants," Schoemann said. (more)
Entrepreneur: Cultivate Your Online Reputation
By Jennifer Wang
If you haven't been paying attention to your online reviews, it's probably time to start. This morning, RatePoint, a firm that provides businesses with online reputation management tools, revealed the results of a survey illustrating the importance of customer feedback.
Nearly 25 percent of respondents said online reviews benefited their businesses, and only four percent indicated a negative impact. And not only are reviews six times more likely to help a business, but the numbers also imply a correlation between good testimonials and business growth: 71 percent of small-business owners who said they didn't know the impact of an online review reported a decline in business; but 55 percent who stated reviews had a positive effect perceived either no change or positive growth.
So in plain-speak, what's the significance of a business's online reputation? I asked RatePoint CEO Neal Creighton to explain.
Why are customer reviews so important?
It's the No. 1 customer retention and acquisition tool you can use on the internet today. The statistic is that more than 70 percent of consumers look for reviews, and the number should probably be higher than that. (more)
If you haven't been paying attention to your online reviews, it's probably time to start. This morning, RatePoint, a firm that provides businesses with online reputation management tools, revealed the results of a survey illustrating the importance of customer feedback.
Nearly 25 percent of respondents said online reviews benefited their businesses, and only four percent indicated a negative impact. And not only are reviews six times more likely to help a business, but the numbers also imply a correlation between good testimonials and business growth: 71 percent of small-business owners who said they didn't know the impact of an online review reported a decline in business; but 55 percent who stated reviews had a positive effect perceived either no change or positive growth.
So in plain-speak, what's the significance of a business's online reputation? I asked RatePoint CEO Neal Creighton to explain.
Why are customer reviews so important?
It's the No. 1 customer retention and acquisition tool you can use on the internet today. The statistic is that more than 70 percent of consumers look for reviews, and the number should probably be higher than that. (more)
Mixergy: Don’t Be Bullied By Your Board And Other Lessons From A Funded Startup. – With Brandon Watson
By Andrew Warner
Have you noticed how some entrepreneurs look at getting funding as the ultimate sign of success? Not only is funding not the finish line, but the mistakes you make when you get investors can cost you when you finally do get to the finish line and are ready to sell your company.
Brandon Watson came to Mixergy to talk about how he raised money for his startup, how he grew it, and why he had to sell it. The two most powerful points of this program for me was when he told us how his investors made money from his internet business, but he didn’t, and how having investors led him to decisions he wouldn’t have made otherwise.
Edited excerpts from the IMSafer story
The vision was to keep kids safe
IMSafer is a product to keep kids safe online. It’s designed for parents, by parents and it was meant to tackle the problem of kids building relationships online. Parents didn’t really have any tools to understand what their kids were doing on MySpace or chat rooms. Most of the product controls on the market were targeted at keeping kids away from pornography and they really weren’t focused on helping parents understand what their kids were doing online in chat rooms.
They were told the business won’t work
Parents like to talk about security products but they don’t want to pay for them. So we were told over and over again “No one’s making money here. No one can make money here. It’s a segment that’s languished forever, forget about it, walk away.”
Sure enough, after doing some research, we saw that no one had made any money. And so as a truly analytical business guy, I had to look at this and say, “Wow, no one’s making money. The market’s really hard to size. Kids are much more savvy about the products than their parents.
So they can install the things and the kids can turn it off. It’s kind of a useless product.” That creates challenges.
But they thought there was an opportunity
My VP of Engineering, Tommy, he looked at me and said “Well I’m not really sure I buy that thesis. I would argue that if there’s no money to be made there, then the IQ isn’t there, and if it’s been ten years that this market’s been around, call it ten years since NetNanny got bought, no new IQ has come into this space in a very long time, so I think we can run this place over.”
And so it was kind of that old statement, that bravado, that said, you know, I think we can make some real progress here. Let’s go see what problem we want to solve and see if we can do something new here.
They decided they needed investors
From the start we knew we needed to pay salaries. We looked at our wives dead in the eyes and said, “Yeah, we’re making money somehow.” We need to raise some money. And before Tommy and Jason and David would join they kind of required that I be able to pay salaries. So we knew I’d go out and do some capital raising. (more)
Have you noticed how some entrepreneurs look at getting funding as the ultimate sign of success? Not only is funding not the finish line, but the mistakes you make when you get investors can cost you when you finally do get to the finish line and are ready to sell your company.
Brandon Watson came to Mixergy to talk about how he raised money for his startup, how he grew it, and why he had to sell it. The two most powerful points of this program for me was when he told us how his investors made money from his internet business, but he didn’t, and how having investors led him to decisions he wouldn’t have made otherwise.
Edited excerpts from the IMSafer story
The vision was to keep kids safe
IMSafer is a product to keep kids safe online. It’s designed for parents, by parents and it was meant to tackle the problem of kids building relationships online. Parents didn’t really have any tools to understand what their kids were doing on MySpace or chat rooms. Most of the product controls on the market were targeted at keeping kids away from pornography and they really weren’t focused on helping parents understand what their kids were doing online in chat rooms.
They were told the business won’t work
Parents like to talk about security products but they don’t want to pay for them. So we were told over and over again “No one’s making money here. No one can make money here. It’s a segment that’s languished forever, forget about it, walk away.”
Sure enough, after doing some research, we saw that no one had made any money. And so as a truly analytical business guy, I had to look at this and say, “Wow, no one’s making money. The market’s really hard to size. Kids are much more savvy about the products than their parents.
So they can install the things and the kids can turn it off. It’s kind of a useless product.” That creates challenges.
But they thought there was an opportunity
My VP of Engineering, Tommy, he looked at me and said “Well I’m not really sure I buy that thesis. I would argue that if there’s no money to be made there, then the IQ isn’t there, and if it’s been ten years that this market’s been around, call it ten years since NetNanny got bought, no new IQ has come into this space in a very long time, so I think we can run this place over.”
And so it was kind of that old statement, that bravado, that said, you know, I think we can make some real progress here. Let’s go see what problem we want to solve and see if we can do something new here.
They decided they needed investors
From the start we knew we needed to pay salaries. We looked at our wives dead in the eyes and said, “Yeah, we’re making money somehow.” We need to raise some money. And before Tommy and Jason and David would join they kind of required that I be able to pay salaries. So we knew I’d go out and do some capital raising. (more)
Small Biz Bee: 5 Reasons Why Your Email Marketing Is Not Working
As Smallbizbee.com has grown over the past 10 months, so has the number of emails in my inbox.
A good number of those emails are forms of marketing, and almost all of them miss the mark with me.
Email marketing can be an extremely powerful and effective way to reach your customers - if done correctly.
Reasons Your Email Marketing Isn't Working
Now, while I'm not claiming to be an email marketing expert, I can tell you why those who have marketed to me have nothing to show for their efforts. Here are the top five mistakes I see them making
1. No Relationship Built
Email marketing works best when the person recieving the email feels like they know you, trust you, and you have a relationship built with them to some degree
We read email from people we know, and skim or delete email from people we don't. Simple as that.
Business is built around relationships, with relationships come trust, and with trust comes sales. For some reason email marketers, and business using email to communicate with their target market forget this.
2. No "Pull"
There has to be a reason to keep reading, a pull for the reader to continue.
Unless you are sending me an email at the exact moment I am looking to buy what you're selling, just saying "Hey you - buy my stuff", isn't going to work. There's no pull.
The worst offenders will not only be lacking a pull, but will go on for 1000 words without one, essentially repeating over and over again why I should buy their stuff.
Give me a reason to keep reading, tell me a story, give me value, show me how you'll solve my problems, keep me interested in what you have to say. (more)
A good number of those emails are forms of marketing, and almost all of them miss the mark with me.
Email marketing can be an extremely powerful and effective way to reach your customers - if done correctly.
Reasons Your Email Marketing Isn't Working
Now, while I'm not claiming to be an email marketing expert, I can tell you why those who have marketed to me have nothing to show for their efforts. Here are the top five mistakes I see them making
1. No Relationship Built
Email marketing works best when the person recieving the email feels like they know you, trust you, and you have a relationship built with them to some degree
We read email from people we know, and skim or delete email from people we don't. Simple as that.
Business is built around relationships, with relationships come trust, and with trust comes sales. For some reason email marketers, and business using email to communicate with their target market forget this.
2. No "Pull"
There has to be a reason to keep reading, a pull for the reader to continue.
Unless you are sending me an email at the exact moment I am looking to buy what you're selling, just saying "Hey you - buy my stuff", isn't going to work. There's no pull.
The worst offenders will not only be lacking a pull, but will go on for 1000 words without one, essentially repeating over and over again why I should buy their stuff.
Give me a reason to keep reading, tell me a story, give me value, show me how you'll solve my problems, keep me interested in what you have to say. (more)
Entrepreneur: Seven common errors when writing a business plan
By Adam Toren
Compiling a formal business plan can be a daunting task for an entrepreneur.
The reality, of course, is that these documents are a necessity for any company. And, to be honest, they’re not as hard to put together as you might think. (There are plenty of good books on the subject and some really great software packages, such as Business Plan Pro.)
Still, there are some common errors entrepreneurs face when writing a business plan.
Procrastination. It’s easy to find distractions (such as your busy schedule) to prevent you from creating a plan. Resist them. And realize that without a document detailing plans for the future, your company is likely to become a rudderless ship at some point.
Financial focus. Think in terms of cash rather than profits. Initially, your profit and loss statement should be secondary to your cash flow statement. You’ll need to initially ensure you have enough cash on hand on a day-by-day basis to survive.
Cover your bases. Don’t focus too much on your grand idea, but make sure that you have all the fundamentals covered. Bold ideas are hard to sell. Rather, stress that you have the available time, common sense and business smarts to succeed. If you are looking for investors, they will be more interested in you and your people than the idea. (more)
Compiling a formal business plan can be a daunting task for an entrepreneur.
The reality, of course, is that these documents are a necessity for any company. And, to be honest, they’re not as hard to put together as you might think. (There are plenty of good books on the subject and some really great software packages, such as Business Plan Pro.)
Still, there are some common errors entrepreneurs face when writing a business plan.
Procrastination. It’s easy to find distractions (such as your busy schedule) to prevent you from creating a plan. Resist them. And realize that without a document detailing plans for the future, your company is likely to become a rudderless ship at some point.
Financial focus. Think in terms of cash rather than profits. Initially, your profit and loss statement should be secondary to your cash flow statement. You’ll need to initially ensure you have enough cash on hand on a day-by-day basis to survive.
Cover your bases. Don’t focus too much on your grand idea, but make sure that you have all the fundamentals covered. Bold ideas are hard to sell. Rather, stress that you have the available time, common sense and business smarts to succeed. If you are looking for investors, they will be more interested in you and your people than the idea. (more)
MArketing Profs Daily Fix: Guest Post: A Brand's Largest Social Media Obstacle
By Samir Balwani
Would you believe me if I told you that most of the time the reason a social media campaign fails is because of a single obstacle? What if I told you the brand itself was the reason?
Interestingly enough, a brand's point of view, and culture can be sabotaging their online marketing.
Why It Happens?I've made a pretty bold statement, saying that brands shoot themselves in the foot, but why?
The first is the stereotypical follower brand. These brands enter the social space because their competitors are. Without a real reason for connecting with consumers, the brand has no drive to foster their relationships. Most of these campaigns are lackluster and fall apart after a few months.
Many brands know they should be in the social space but their culture prohibits them from taking risks. An aura of fear permeates every decision, and the tried and true wins out over innovation.
These brands introduce a host of problems. Most importantly they don't invest in innovation. Since it's difficult to directly assign or forecast ROI in social media, money is never spent on it. (more)
Would you believe me if I told you that most of the time the reason a social media campaign fails is because of a single obstacle? What if I told you the brand itself was the reason?
Interestingly enough, a brand's point of view, and culture can be sabotaging their online marketing.
Why It Happens?I've made a pretty bold statement, saying that brands shoot themselves in the foot, but why?
The first is the stereotypical follower brand. These brands enter the social space because their competitors are. Without a real reason for connecting with consumers, the brand has no drive to foster their relationships. Most of these campaigns are lackluster and fall apart after a few months.
Many brands know they should be in the social space but their culture prohibits them from taking risks. An aura of fear permeates every decision, and the tried and true wins out over innovation.
These brands introduce a host of problems. Most importantly they don't invest in innovation. Since it's difficult to directly assign or forecast ROI in social media, money is never spent on it. (more)
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