It may be a simplistic view of start ups but I think there are two types. In no particular order, the first is the ‘big hit’ business. A ‘big hit’ is an exciting business where you expend the same amount of effort trying to attract one client as you would to attract hundreds. Examples include photographers with libraries, actors, authors and people who have developed a piece of software that can be sold on the internet. With these types of businesses you can make money whilst you sleep. It’s easy to add zeros to your income with no extra effort, you are not restricted by time in the day.

The downside is this kind of start up is only good if you are fundamentally successful. They are tougher to crack and could take a long time to be realised. They are extremely competitive and terribly hard. A few people will take a large share of the pie, leaving the rest in the shadows, contemplating their navel very often through no fault of their own. Ever seen a friend struggling with a business idea for years and years?

The ‘predictable’ business however, is quite the opposite. These types of businesses can only do so much in the day. Typically mediocre, these businesses are consultancies, restaurants, car mechanics, designers. You are paid by the day, or the hour, and you need to be present to deliver your service. Your income depends on your time and effort. It’s largely predictable work and you can only earn so much.

However, in this ‘predictable’ business, we start it expecting a ‘big hit’ scenario, an exciting event that will catapult us towards millionaire status and/or stardom. When, in fact, it probably ain’t going to happen. For most of us, if you have to be present to do your job, it’s unlikely to transpire and if it does, it will be after years of hard graft and continuous effort, driven by mundane and predictable work.

Which business should you start up? Well the ‘predictable’ one. Surprised? The ‘big hit’ start up is not the best thing to do, unless, of course, you are one of the lucky/fortunate ones who are successful but it’s extremely rare. It’s better to earn £30k/£40k/£50k per annum or whatever you do over five years with the odd mildy exciting event rather then hit the big time and earn £150k plus in the fifth year! It’s a hell of a lot less stressful too….

We spend our time on dull things, working on small tasks and small talk. We remain with the comfortable and those elements that are repeatable, even predictable. It’s what us humans are very good at. We rarely ‘push the boat out’ seemingly focused on doing more of what we already do. Perhaps I’m being a little unfair?

However, there is a gap, a gap between what we know and what we think we know. Customer service is a classic example. We believe we are giving a great service, in reality, it’s probably mediocre. It’s important to be realistic about it, even brutal, because what we know can’t hurt us.

In a small business, amongst the plethora of other items, we need to concentrate just as much on what we don’t know as on what we do. Perhaps then we can manage expectations better, avoid catastrophes and those major impacts that can damage our business significantly.

Especially at the start up phase.

The only thing we can truly predict is that we do not know what the future holds so why do we write business plans and forecast financial returns when they are usually no more than fiction. It’s always fascinated me….and I’m prepared for the backlash from my financial and bank friends on this one. It really is a question meant to stimulate debate.

History, we know, does not give us a good indication of the future. Forecasting is usually no more than a finger in the air to see which way the winds blowing or a guesstimate (seriously it’s nothing more.) Pulling financial forecasting together for a bank, venture capital funding or whatever is, at worst fantasy, and at best, a load of b*!!*&cks. Previous performance tells you that, what happened in the past, not what you are going to experience in the future. And if you’re a start up what’s the past? Just because you performed in the comfort of a proper job as an employee, doesn’t guarantee success in your own business. It’s amazingly different, considerably challenging and you start all over again on the curve of learning.

Often the more information we give people at our start up stage, the more they read into it. You give people ‘noise’ and, unfortunately, they and you mistake it for informed data. Now I’m not saying we shouldn’t be setting targets, I’m a great advocate of purpose. But goals have to be tangible with clear added value attached to them. There needs to be a significant dose of realism so those starting up businesses beware.

Those forecasts about numbers of customers, profits, turnover, cash flow can make you resistant. They can make you vulnerable because, at this critical stage, you are too focused, too narrow and we often don’t build in improbable factors. Recognise the limitations of forecasting, don’t concern yourself if you don’t hit them. At start up, the most important factor is being able to have the courage to change, reflect new conditions and react to competition and innovation. It’s about having the guts to just go out and do it!

Hit the link below to see an interesting video Malcolm Gladwell presented in 2004 (yes I know it’s 4 years ago) but it’s fascinating. Malcolm is the author of the ‘Tipping Point’ and ‘Blink’ both fascinating books. He is always worthwhile watching. Hope you enjoy it!

www.ted.com/index.php/talks/malcolm_gladwell_on_spaghetti_sauce.html

Coherence in marketing is important, consistency is boring. Being creative and reinventing your messaging/story/tune every so often is critical. Sparking ideas and doing things your market place has never done before delivers that differential advantage. 

Few companies can afford to coast nowadays and, at their peril should they choose that particular strategy. Consistency is about delivering similarity, it’s a result of messaging and selling, it’s about being tidy. Coherent is about clear communication, variety in what you have to say and clarity in all the marketing approaches you adopt. You’re ability to be creative when being consistent is severely inhibited but being coherent can allow the ideas to flow.

New ideas compel, they captivate, old ideas simply fade into the distance. Grabbing peoples attention with new information has always worked and if it’s done coherently it can lift you apart and take you to the next level of communicating those important marketing messages. Change isn’t an option, it’s safer to create and execute new ideas now than wait for your competitor to do it first.

He doesn’t disappoint does he? And, as usual, gets you thinking beyond the norm. Go to it at:

http://sethgodin.typepad.com/seths_blog/2008/10/pithy-quotes.html

It’s as important as ever to see your customers as a community of people/individuals who have a relationship with you, not a database or group of people who just buy from you. Traditional client to supplier transactions are just that, transactions. 

Cultivating participation in your brand is critical, Lego have done it with thousands of subscribers on its website. Oddbins are teaching it’s customers about wine and holding wine tasting evenings. Apple hold workshops in their stores to educate people about their new purchase. Big brands, I know, but perhaps we could learn a thing or two about how sophisticated the customer relationship has become.

It’s not just about selling product anymore nor, is it just about making the sale. In a world where it costs ten times more to go out and get a new customer, getting people to buy into your brand, feel part of the customer experience and be provided with services that add value is fundamental.

Static messaging to customers and prospects is so obvious these days and unfortunately all too common. The second shift we need to make is away from bland fantasy to dynamic, involving communications were the emphasis is on the tangible customer experience not just looking pretty!

Thankfully some people are asking questions. One of my clients recently did a little research with their main customer base (those they had a strong, close relationship with.) They asked how many of them opened the direct mail they sent through. Not one opened it and they went straight into the recycling bin. No wonder it wasn’t working, all it was doing was messaging…telling people rather than involving. 

Now they send emailers as newsletters with interactive video content and podcasts as an alternative. Increase in sales…..on average 15%. Cost literally £’s.

Just an idea!

In a competitive environment and in a market place scrabbling for business to survive, now is the right time to review our approach to marketing. Not in a complex, sophisticated way, just a shift to a different level. Timing is fundamental but a long hard look at what you’re doing and answering a few key questions wouldn’t go amiss. I suspect one of the most crucial points is how do we create a tangible difference to our customer experience? And, what is holding us back?

Over the next six days I’ll talk about a shift we need to be considering. Lets start with the first one;

Marketing initiated by targeted messages to a passive prospect and customer list isn’t sustainable anymore. A movement to new ideas being adopted or created together with customers is the way forward. Encouraging your customers/prospects to be actively involved in your business is a far more interactive, engaging experience than being told what they can have, when and where. It just doesn’t wash with them anymore.

It involves getting up close and personal with customers, something that could be extremely uncomfortable for some of us. Marketing is a creative process, your customers could be more creative than you but suddenly we are in a place where such things are being demanded. It is possible to throw the old marketing rule book out and use ideas that are different, personal, disrupting and just boldly bizarre. 

Being in touch, jointly designing new products/solutions/services with customers seems to be a ‘no brainer’ and is critical to not just developing great businesses but is crucial to pulling a business out of the ‘bog’ of despair, ritual and dullness. 

Try it, it could provide you with an opportunity to do things now that you have only previously talked about!

I know I’ve been banging on about customer service recently but it really bugs me when companies get the basics wrong. Sometime ago we humans created the internet. About ten years ago, mainstream companies started to really build sites for their customers so they’ve been around a while now. We should understand that around 72% of people looking for new products and services use the internet to search for suppliers, that’s why we all have contact pages; so people can make email enquiries and as switched on business people we can respond.

Not so solicitors it seems. It’s really passed them by or perhaps it’s just here in Exeter! I’ve contacted two major solicitors firms recently via their contacts page and have received sod all! Yep, nothing apart from one automated response.

Not responding is the equivalent of letting your phone ring over and over again. What is the point of spending thousands of pounds on a website when you can’t even do the basics of returning enquiries from your contacts page?

Hartnell’s and Michelmore’s you should be ashamed of your customer service. As usual the business went elsewhere. I could go on about competitive advantage and lost business but I think I’ve made the point…get the basics wrong and it won’t be long before business is seriously affected in the long term.

Rant and rave over…..