Seeds of Growth - Business Ideas

Refreshing...

Joe Free — Wed, 18 Jun 2008 14:02:06 -0600

Today, according to predictions, we will hit 112 degrees in Mesa, Arizona. The AC units are running, the kids are out of school, and the streets look like a ghost town. "Winter" is officially here. (you know that time when everyone stays indoors because of inclement weather?)

At this time of year the word "refreshing" is particularly meaningful. Whether it is a tall cool glass of lemonade or dip in a cool pool. Both bring relief from the ongoing stress of the heat.

It occurred to me recently that some people are "refreshing" as well. Just like the lemonade, they bring relief from the ongoing stress of making a business work.

These are people that just "get it". You know the ones? They seem to know what you know and you find yourself talking excitedly together and sharing ideas and experiences and just enjoying the conversation.

That's what happened when I met Adam Toren. We got together to discuss Promoterz, our online service that helps businesses give a megaphone to their happy customers, become aware of unhappy customers, and increase the happiness of all customers. As we talked it was as if we were partners working out how to help other businesses succeed. Turns out that is what Adam does.

Adam and his brother Matthew are serial entrepreneurs. Among the impressive list of their ventures is a website, YoungEntrepreneur.com. They initially created this site to help youth become entrepreneurs but over the years it has become more to mean those that are young or new at being an entrepreneur.

The site has tens of thousands of members actively participating in its forums (http://www.youngentrepreneur.com). They also have a "refreshing" blog (http://www.youngentrepreneur.com/blog) as well.

If you are a business owner sometimes what you need, besides more hours in every day, is just to be "refreshed" as you read of others shared experiences. Others who "get it". I guess it is a sort of therapy.

I enjoyed their "10 Mistakes People Make When Starting A Business" and an interview with an Ebay founder on persuing your passion. As you read you find yourself saying, yep, I remember how I learned that. But you also get reminded of things you might want to revisit and you feel more committed to succeeding.

In the end, just as you are refreshed and ready to go as you finish the last of the deliciously tart and cold lemonade, you will have some good ideas and the courage to succeed in this thing we call business.

Get customer feedback, generate referrals, and increase repeat sales for as little as $150 a month. Learn more

The Cannonball Business Plan

Dave Free — Fri, 30 Nov 2007 12:47:23 -0700

Remember that old Burt Reynold’s movie Cannonball Run? It was probably just my age but at the time I thought it was pretty cool--an illegal race across the country in some very nice cars. It turns out the Cannonball Run is not just fictional. Wired Magazine recently ran a story about a guy named Alex Roy whose passion has been to break the 32 hour and 7 minute record for a coast to coast drive.

This is of course completely illegal and let me clearly state that I am not encouraging participation in this kind of activity—though it sounds kinda fun. Having said that, I think we can learn something from their experience.

Their challenge was not unlike that of every small business owner—they needed to accomplish something complex with limited resources (Their limited resource was time. Most of us are limited by funds which of course limit our time). The "Driveplan" they created impressed me. On it they listed every key milestone, targeted time of arrival, potential hazards, weather forecasts etc. Because they had this plan and knew where they were supposed to be every moment, they could immediately tell if they were in trouble and if they needed to make adjustments—including backing out.

Now compare that to your business plan. When was the last time you took it out and checked where you are against it? If you are anything like me, your business plan was something you forced yourself to put together to raise funds. Once that task was done the document went in the drawer to gather dust. Maybe that is due to the way we write the things—all that useless wordiness (kind of like this post). What if we created business plans that looked more like Alex Roy’s driveplan? Imagine clear milestones, expected results, time required, potential hazards each step of the way. Seems like if we created something like that we'd be much more likely to use it and reach our destination.

You work hard to make sure your customers are happy. Don't waste happy customers. How easy is it for your customers to share with their friends? Learn more

The Customer/Employee is always right

Joe Free — Sat, 10 Nov 2007 11:05:18 -0700

A recent BusinessWeek article describes India's HCL Technologies unique management ratings program. In essence, each manager is ranked in several areas by those that report to them. Lot's of companies do these "360" types of reviews, but what is different about HCL is that they publish the results on their intranet for the employees to see.

CEO Vineet Nayar was rated 3.6 out of 5 for how well he keeps projects running on schedule by 81 managers that rated him, and everybody at HCL knows it.

According to Nayar "In our day and age, it's the employee who sucks up to the boss. We are trying, as much as possible, to get the manager to suck up to the employee."

In addition they have an online complaint system where anyone can voice concern over a particular issue ranging from the air conditioning to bonuses. Each of these concerns becomes a "ticket". What is unique is that these tickets can be "cleared" only by the employees, not management.

Imagine applying that to your small business. Your company is the "manager" and your customers are the "employees". What if companies posted online for all customers to see how they are ranked. What if noted problems remained listed until the company deals with them and the customer removes them.

Employee retention rates have increased at HCL. How would you like to have your customer retention rates increased? Have you asked your customers to rate you and your business? They are the only ones that know how they feel about your business.

Reicheld discovered the customer question that seems to track with the future growth of a business "Would you recommend us to your friends and colleagues?" Our service, Promoterz, helps you ask them that question with the addition of "Please provide specific comments to help us understand the rating you have assigned". You will know how your customers feel and have actionable data you can use to improve.

Perhaps small businesses should include Nayar's words in their business plan "We will try, as much as possible, to get the company to suck up to the customer!"

When you pass out a Promoterz bounce back card you automatically build an accurate customer list, increase repeat sales, increase referrals and prevent lost business. Pretty powerful little card. Learn more

Will Your Customers Carry a Cello?

Dave Free — Thu, 06 Jul 2006 16:59:20 -0600

I read recently about a musician--a cello player to be exact--that moved to New York City. She didn't know anyone in the city and was looking for opportunities to play her cello. Her solution? She carried her cello around the streets of New York with her wherever she went--whether she needed it or not. It didn't take long before other musicians introduced themselves and she was given opportunities to play.

That got me to thinking, what could I carry around to let people know what I do? Even more powerful, what would my promoting customers be willing to carry around to let others know how they feel about my business?

Customers who feel that you are listening to them are more likely to recommend you to a friend. How do your customers know that you are listening? Learn more

The Power of Staying in Touch

Dave Free — Thu, 22 Jun 2006 13:45:07 -0600

In the cluttered marketplace we compete in, I don't think the power (and necessity) of staying in touch can be overemphasized. I learned the lesson again last week--thankfully in a good way. It had been a while since I had heard from one of our clients at PromoterZ and so I sent him an email and invited him to go to lunch. We had a nice chat, I asked for feedback on our service and he had a few suggestions (I'm happy to note that we followed through on them). I ran a new idea we're working on past him. He liked the idea and agreed to let us test it with his customers. Then he mentioned that their franchising operation is taking off (looking for a good franchise opportunity? Check out Entrees Made Easy) and there might be an opportunity for me to tell some of their new franchisees about PromoterZ. Turns out the timing was perfect, and I'm scheduled to present to some of their new franchisees next week on how to turn customers into promoters.

So what did I get for my $30? Our product, PromoterZ, is now better thanks to his feedback, we have a place to test our new concept (more on that in future posts), and I have the opportunity to tell new franchise owners how much PromoterZ has helped Entrees Made Easy. Where else could I have got that kind of return on my money? Thanks Brandon!

They say it costs 5 to 10 times more to sell to new customers than it does to sell more to current customers, and yet what percent of our effort is spent looking for new customers vs. pleasing and staying in touch with our current customers? I was able to take Brandon to lunch, but that is not always geographically possible. A phone call works great. It can be as simple as, "how are things going?" Use technology where you can. Without exception, each time we send out our newsletter we get one or two phone calls from customers--they had been meaning to call but never got around to it until the newsletter arrived in their inbox. Here are a few other ideas:

• Send 1st timer customers a special thank you
• Send birthday greetings
• Send a newsletter
• Send Holiday greetings (Did you know today is Chocolate Eclair Day?)
• Send thank you notes

Finding new customers is tough and expensive. Once you've got a customer, hold on to them by staying in touch. I can guarantee you if you don't, somebody else will.

The average American consumer discusses brands 56 times a week. Are they discussing yours? Learn more

Hey dude, buy a belt!

Dave Free — Tue, 20 Jun 2006 16:06:56 -0600

Ok, with three teenage sons I couldn't pass this one up. Hysterical article today in the Wall Street Journal about baggy, low-slung pants tripping up would be thieves. Seems they perpetrate the crime and then as they try to run away holding on to their booty with one hand and their pants with the other things get all tangled up! Next thing they know both hands are in cuffs. One guy tried to jump a fence, most of his body made it over but his pants didn't. The cops found him dangling upside down with his pants around his ankles. Quote from the Police Chief: "He was wearing underwear, thank goodness."

So with the baggy-pants thieves as inspiration, here is the question of the day:

"What stupid things am I doing that keep my business from growing?"

Here are a few ideas to get you thinking. If you think of others, feel free to add to the list:

When was the last time you asked your customers what they thought about your service?
How often do you pro-actively communicate with your customers?
What would compel your customers to tell their friends about your business?

If you can't come up with good answers, you may as well be dangling there on the fence next to Mr. Baggy-pants.

Do you remember your customers on their birthday? On their anniversary? Do you give special notice to recently acquired customers? Promoterz does. Learn more

Real Small Business, Real Word-of-Mouth, Real Improvement.

Dave Free — Thu, 15 Jun 2006 12:22:54 -0600

I don’t mean to bite the hand that feeds me, but I’ve noticed that we of the small business/entrepreneur blogging world talk a lot about word-of-mouth and other great business principles, but rarely do we write about actual experiences from small businesses applying the stuff. My goal is to change that with some real case studies of real businesses applying great business principles and enjoying the benefits. Here is my first attempt.

Chuck & Joan Matheny own two Sport Clips locations in greater Phoenix. Sport Clips is a hair cut place that caters to guys. Every stylist chair has a TV tuned to sports, all the décor is sports related, and they have an “MVP” service that includes a hot towel and a neck massage. Their motto is “Guys win.” If you’ve never been comfortable in the fru-fru world of hair salons, this is the place for you.

Anyway, last September Chuck was looking for a way to improve the performance of one of his locations. It had a great staff and a good location but wasn't performing like he hoped it would. Rather than pay for traditional advertising, Chuck decided to focus on encouraging his existing clients to spread the word. Four months later, without spending a dime on advertising, Chuck’s weekly sales were up well over 20% and have continued to grow.

From the client's perspective, Chuck's program starts with a simple invitation received at the conclusion of their service. The invitation is the size of a business card. It includes the stylist's name and offers a free service upgrade in return for visiting a web site to provide feedback. "Our feedback survey is extremely short," says Chuck. "It literally takes our clients less than sixty seconds to complete. Our goal is not to get feedback on every little thing, but to learn if the client is happy with the service and start an ongoing dialogue."

The ongoing dialogue is initiated with the last question of the survey that asks if the client would like to receive additional information and specials from Sport Clips. Nearly 90 percent of those that provide feedback choose to receive additional information. That’s a pretty good “opt-in” rate. Once customers opt-in, Chuck uses technology to stay in touch with them. First-time customers automatically receive reminders via email, including a discount coupon, every three weeks to encourage loyalty. Every customer that signs up receives a birthday greeting from Chuck including a discount on their next hair cut and Chuck regularly sends out email specials associated with holidays or other events.

The Sport Clips client experience is remarkable and worth talking about in and of itself, but Chuck also takes extra steps to encourage his clients to tell others about their experience. Each time a client completes a survey or receives an email from Chuck they are given the opportunity to forward online discount coupons to their friends along with a personal message. Thirty percent of the clients that join Chuck’s program take advantage of the opportunity and send an invitation to their friends.

Chuck's efforts have paid off in many ways. His stylists love the customer feedback and take greater pride in their work. He knows who his most loyal customers are and can contact them without paying for advertising. And, most importantly, his customers are actively telling their friends to try Sport Clips. All of which have lead to healthy growth.

Time, effort, and money required? The invitation cards that Chuck’s stylists hand out are business cards ordered from Vistaprint. They run about 4 cents a piece--four color both sides. Chuck uses PromoterZ for his online survey, opt-in list management, outgoing email and online referral generation needs. Cost: $50 a month. In terms of time required, Chuck spends a few minutes each day responding to customer feedback. Once a week he shares feedback with his managers as part of his manager meeting. He also spends some time each month deciding on a special offer to send out to his loyal customers. This month? Fathers and Sons that come in together get a Free MVP upgrade for Dad and a half price haircut for son.

You work hard to make sure your customers are happy. Don't waste happy customers. How easy is it for your customers to share with their friends? Learn more

Are You Holding Your Bathroom for Ransom?

Dave Free — Mon, 12 Jun 2006 14:38:35 -0600

I was on the road over the weekend and found the stupid business idea of the week--no make that century. Driving on the interstate to Flagstaff, Arizona (beautiful place if you have never been there) and needed to stop for a bio break. Sign on the business establishment's front door: "Our Bathrooms are for Paying Customers Only!"

Now I know exactly where that sign came from. An employee, maybe the manager, maybe even the owner got tired of trying to keep the bathroom clean and seeing people walk in and out without buying anything. Simple conclusion and solution: "No more free loaders! The bathroom is a benefit reserved only for those people that buy! Toilet paper doesn't grow on trees! Let's get a sign up, that will save us some money and some time!" So up goes the sign telling potential customers that they are an annoyance and if they want relief, they've got to pay.

I would love to compete with the guy that made that decision. I'd make my bathrooms glisten and smell of sweet things. I'd hire a teenager to stand outside the bathroom door and hand road-weary travelers a warm towelette to refresh themselves. I'd invest in some big signs on the interstate that say "Come use our sweet smelling bathrooms--absolutely free!" Then I'd sit back and watch my suppliers try to keep up with the demand.

Would some travelers come and go without buying anything? Sure, but I would smile and thank them for using my bathroom. Why? Because I know there is no way they are going to be able to keep my remarkable bathroom a secret. When a person asks how their trip went, they are going to say, "It was long, but we found the greatest place to stop. They actually give you a warm towlette and then they thanked us for using their bathroom--and we didn't even buy anything!" And when it is time to make the return trip, where do you think they are going to stop? At my remarkable sweet-smelling bathroom and chances are this time they are going to buy a tank of gas, a bag of jerky, and a 32 oz soda!

Here is the point, whether your business is on the interstate, the internet or any location in between, the name of the game is traffic. The more people that walk through your door, the more you are going to sell. The best way to build traffic is not to hold free services for ransom. Have you ever seen anyone happy after paying a ransom--even if they get what was promised? No! More likely they feel violated and manipulated. So don't do it! Be the good guy and make more money at the same time. If you've got something free and remarkable you can offer, don't hold it ransom, get it out in front and use it to get more customers to walk through your door then make sure they have a remarkable experience. Soon your sweet-smelling bathroom will be world famous...

Unhappy customers tell on average 22 other people. If you ticket price is $50 that is $1100 in revenue. How would you like to know before they tell 22 others? Learn more

Listen and Grow!

Dave Free — Wed, 07 Jun 2006 14:57:05 -0600

Jackie Huba from Church of the Customer, cites a study that concludes that customers that feel listened to are more likely to spread positive and unsolicited word of mouth. The study was done by Communispace, a company that creates and manages online communities. Key findings:

•82% of community members said they were more likely to recommend the company's product's than before joining the community.

•54% said they were more inclined to purchase the company's products since joining the community.

Though we've done no studies to prove it, we find the same thing to be true with our PromoterZ clients. Those companies that use the service to ask for customer feedback consistently generate more referrals than those that don't.

So do your customers feel like you are listening? Asking is certainly the first step, but I have personally completed a number of customer surveys and never felt like anyone was listening.

In my mind, the critical step to show you are listening is to respond. Simply acknowledging that you have received their feedback and are considering it will let your customers know that someone really is listening--and they in turn will start talking to others....