Archive for February, 2009

How to thrive in a contracting economy…

Friday, February 27th, 2009
Ringing the changes !

Ringing the changes !

While I don’t want to make light of the current economic situation, I do believe that there’s always something you can do ! Observing a few simple points will see significant rewards:

1.Manage costs – Look at the simple things that you maybe haven’t questioned for a long time. Do you really need 4 bins for your rubbish? Two telephone lines? As many staff ? Look again at all the contracts and subscriptions you currently have – Are they all necessary, what can you reduce or combine to save money?
Cut your stock down. Operate a little leaner. Can you trim 10 percent to 15 percent of your stock costs by carrying less of each item? If so, then do it. Not only does it mean you’ll have more working capital for this slower time period, but it means you’ll have important cash reserves should the storm last longer than expected or the banks continue their current shall we say “cold attitude” to SME’s
Shave staff hours. Labour is one of the biggest costs for any retail business. Standard accepted wisdom in the industry is that you want to get your payroll costs to be less than 15 percent of sales and ideally around 12 percent. If you can shave hours and still deliver excellent customer service, then make the cut. It’s more cash you can use for working capital or to save for later.

2. Reduce wastage :This sounds really obvious, but if you consider the thinking involved in investing to move a business forward you’ll get the dilemma. Understanding your customer in great detail will help you make better decisions, as you’ll base them on Return on Investment (ROI)

3. Clarify your brand message: Make sure that this is clear and concise, and shout about it at every opportunity. Make sure its on your business cards, your signage, your bags, your blog and your website – Tell everyone about your business and what’s so great about it at every opportunity. Don’t radically overhaul it - Just reinforce what’s great about it.

4. Avoid Knee jerk reactions: A reaction is a bad thing, its what you get when you’ve eaten bad shellfish ! Reacting is intuitive, instinctive and usually dangerous ! Responding is a much better alternative. You respond to external stimuli with thoughtful action. Response is always better than reaction. Don’t slash everything in a blind panic. Analyse all your options, and keep everything in perspective.

5. Take the Initiative – Both reaction and response pale in comparison to the third alternative – Initiative – taking the initiative and making something good out of any situation is always preferable to being a victim of a situation. Look at the situation as a game, how can you play the game better? What do you need to learn. How can you increase your public profile? How far can you stretch your advertising budget? How creative can you be with your budget?

6 Marketing: Trim your marketing expenses. Some argue that when times are tough, you need to market your business more. But, if consumers are in a hunker-down mode, no amount of marketing is going to get them to react. Market as you need to, for your sale and seasonal occasions. Pull an ad here or there to trim the costs. Test it. If you can do it and your business doesn’t change, the marketing isn’t working anyway. Remember to test and measure all marketing!

The only way is up ……!

The future’s bright, but its damn hard work !

Wednesday, February 25th, 2009

You've got to work hard

You've got to work hard

Every thing I read or see, tells me I should be working smarter not harder, and whilst I love the sentiment, I’ve got to ask the question?

Do you think Michael Phelps worked hard to get ready for the Olympics?

Do you think Girls aloud worked hard in the 7 years it took them to build up to winning a Brit award?

Do you think Steve Jobs or Tiger Woods work hard, or do you think they slack off most of the time?

Hmmm its kind of obvious really isn’t it? They work damn hard!

But maybe you think that people who’ve made it don’t need to work as hard? Somehow its all just coasting, once you’ve topped that first hill, its all just plain sailing from there on!

Ahem, I have news for you. When you’ve coasted down that first hill, and got safely to the bottom, you’re going to look around and guess what’s going to be in front of you? Yep, another hill, and if you climb that one, and you most probably will, the view from the top – will be of a whole damn mountain range….

It doesn’t get much easier. You just learn some tools along the way so that hopefully you won’t make the same mistakes again. But guess what? You’ll find new ones to make!

So is this supposed to make you feel depressed? No not really – But a good dose of telling it how it really is should make you feel a bit more sane in a crazy world. This is life, you have to work hard to get anything you want, and if you’re good at something, you can bet your bottom dollar you’ll be rubbish at something else to compensate, so you never get a full scorecard.

So, why am I telling you this?

At some point in time, you realise that if you want to move ahead, and I don’t just mean in monetary terms, then you’ll need to work harder, because lets face it, all the stuff that you do that’s easy to do, becomes boring. You want new challenges, because you already know how to do all that stuff. With every new challenge you’ll discover – as I have done, that hard work is just…. …. part of the ground rules.

But the good news, is that you will get faster at doing stuff, you will learn more, your brain will start to look for ways of doing it better, more efficiently, cheaper, or just delegating it to someone that you pay so you don’t have to do it. Through sheer hard work (and mistakes) you’ll find the efficiencies.

Its like learning to drive, first off, its terrifying, your eyes are glued to the road like two peas on sticks, you grip the steering wheel like its going to escape from your clutches and every road has the potential for disaster.

But now I bet you can drive while texting, eating your breakfast and simultaneously avoiding serious collision. You simply got better at it. You got more efficient – it no longer takes all your attention to stay between the white lines. It’s because you’ve put in the hours. You don’t achieve anything great without putting in the hours.

The best drivers in the world, drive a lot, the best artists, paint a lot, the best speakers, speak a lot – You have to hone your skills, and you can’t do that in a week or a month. The whole myth of working smarter not harder, is just that, a story. It’s always been a story – It’s just a case of how badly you want it? How far are you prepared to go? Coupled of course with, what will you do outside of your comfort zone to achieve your goals?

So the title of this should really have read: Working harder, faster & focused !

So while the future’s bright, it’s not orange, its full of more hard work, so best be prepared for it now. Don’t believe all the hype about working just 4 hours a week in your business and making millions – its just not true, all it does Is have you question your sanity and wonder what’s wrong with you?

Once you reach the top of your tree, the dizzy heights of success, you’ll find that “working harder” is the real truth of the situation, so resolve to keep working hard with a happy heart, in the knowledge that the future will be just as hard, and that’s fine with you.

Building a media profile - line by line

Sunday, February 22nd, 2009
one idea knocks onto another

one idea knocks onto another

I just came across the story of how the first bridge was built over Niagara falls and it struck me, for its simplicity and what we can learn from this about building a media profile, so here it is:

To build a bridge over the giant gorge, first you have to get a line over the canyon, from one side to the other, easier said than done at Niagara falls for all the obvious reasons.

The engineers couldn’t cross over in a boat because they’d have been swept over the falls, the aeroplane hadn’t been invented yet, so that was out, You couldn’t use a bow and arrow to get a line across as the distance was too great. The designing engineer, Charles Ellet puzzled over this quandary till he came up with a revolutionary idea, that was also fun and would also generate some publicity for the project – Even Niagara falls needs publicity !

He decided to sponsor a kite flying contest ! He offered $5 to the first person who could fly a kite across the gorge and let it go so low to the ground that someone on the other side could grab the string. In 1849 $5 was a huge amount of money, so the competition was intense, and was won by a small boy (in case you’re interested J )

Anyway, it all began with an idea and one thin kite string, the kite string was used to pull a cord across, then a line, then a rope, Next they pulled across an iron-wire cable and then steel cables until finally a structure strong enough to build a suspension bridge was in place.

When I read this story, I was struck by the realisation that everything begins with the pondering, the “I wonder how?” question, the single string across the gorge, is like the first article published about your business, which you can use to generate the next article, and the next and the next, until you’ll have a robust media profile, built up in stages, so its firm and trustable and a valued part of your brand.

Unlike the kite, there are no strings attached as to how high you can go, and how far your goals can take you. You’re only limited by the power of your imagination and the strength of your dreams !

New recession trends emerging for retailers…

Monday, February 16th, 2009

What's your USP?

What's your USP?

Now that the last of the snow is disappearing, and that distraction is finally melting away, its time to look ahead at what 2009 has to offer us. 

I can’t say that there are any hugely positive signs in the general economic outlook and with unemployment at its highest for 12 years, the increase in this sector will inevitably filter through to consumer spending. Adding to the woes are the recent epic weather conditions, which means February so far is not too cheerful, so whatever gains we had in January are slipping through retailers fingers. This coupled with the weakness of our sterling currency is really making for some very dull reading…

The knee jerk reaction to all this doom news seems to be : Expect an abrupt halt in consumer spending, with credit becoming harder to obtain and consumers being forced to live within their means.  While its clear that less will be spent overall, as there’s less available to spend, what are interesting to watch are the trends developing within consumer spending.

Initial trends emerging are:

  • At home, is preferred to going out, at least within certain demographics, the home will become more of a centre for entertaining and watching movies. Also in uncertain times the security of a home becomes more important, so people are more likely to paint or decorate as they’ll be spending more time at home than usual.
  • While shoppers are increasingly price conscious, they are more prepared to shop around on price and deals, convenience is becoming a luxury in itself.
  • The supermarkets are reporting consumers “trading down” eg a “finest” shopper might move down to an own brand range, but not necessarily jump ship to Aldi…
  • Treats and luxuries are still on the shopping list, but they’re of a lower value than in previous years.

So, what do these emerging trends mean for retailers?

Truthfully, there’s no glaringly simple right answer, the experts extol us to continue advertising in a recession, while managing costs, issues of branding and not panicing ! Which is easy for them to say !

So I’m advocating a more measured approach that’s more viable for a small business:

Concentrate on niche marketing,

Fabulous customer service

Highlight the VALUE in our products,

oh, that and having a word with him upstairs for some weather that doesn’t involve snowboots and balaclavas…