Business building – add a club to your business

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FOR BUSINESS BUILDING CALL GARY DIRECT ON 0408 756 531

Business building is no different to starting a club.  After all, a club is nothing a group of people who come together to enjoy a common interest.  It is not very different from a group of customers who like all like your product or service.

Increasing membership is the name of the game.  However, members don’t necessarily have to be customers in the first instance.  Although a sale is the desired outcome, people still like to poke around a bit before becoming customers.

The noticeable difference between a business and a club is that members don’t all turn up to your clubhouse every Tuesday night to enjoy the common interest.  But they could!  If you let them do so.

Think about these seven (7) business combinations:

  • A financial planner who holds a free educational seminar (or uploads an online podcast) for existing clients each month or each quarter
  • A home interior decorator or renovator who provides customer online access to a 360-virtual tour of an exclusive ‘house of the month’
  • A restaurant that provides customers with a weekly online ‘sneak peak in the kitchen’ and simple home recipes
  • A real estate agent who sends his or her investor customers the details of the latest property listings that fall inside each investor’s stated criteria
  • A nursery that uploads seasonal instructional videos about how, when and where to position and maintain the plants that they sell
  • A business coach who writes an original and instructional blog and uploads it as a free educational resource for both existing and potential business owners
  • A natural therapist who provides history and benefits about their products and services as well as education about the natural treatment of other health conditions

If you run your business like a club, people will go where they are invited if they are made to feel special.  So no longer will your customers simply try your offering and leave, they can now stick around as a member of your club, so long as you continue to deliver and hold their interest.

Building a club around your business also gives you ample opportunity to up-sell other products.  There is nothing like a little free education and a few more reasons for customers to buy some of your other products and services.

Until next time!

Gary

gary@garyweigh.com

Want to read more? Check out my article Online business building at http://garyweigh.com/online-business-building-%e2%80%93-limitless-potential.html

Business building by telling stories

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According to Howard Bloom, author of The Lucifer Principle, the success of memes and those who propagate them is due in part to their clever use of the invisible world.  This is the world of story, legend and belief.   He refers to the invisible world that plays on our desires and fears.  Business building is no different!

Broadly speaking, the aim of marketing is to satisfy a need, allay a fear, or create a desire.  Here is an example of each:

  • Buying food to have a full stomach is satisfying the basic human need of hunger
  • Installing a home security system is allaying the fear of loss of safety and / or possessions
  • Joining a weight loss service is the result of creating the desire to look and feel good

Marketers know that all of these products and services are all best sold by use of stories.  People love stories.  Most of us have been ‘message conditioned’ by stories ever since we were small children.  People remember stories.  People repeat stories.  The take-home marketing message is in the story.

Three (3) everyday examples found recently on Australian TV are:

  1. A large supermarket chain tells the story of the ‘fruit & vegie’ manager visiting the farms to hand pick the freshest food for their stores.  By doing so, they enhance the value part of the ‘value for money’ proposition and avoid having to reduce the price.
  2. A home security supplier tells a story of thieves breaking into houses by kicking in the security screen door.  It creates fear and then proceeds with the story to allay that fear by offering their particular security door solution.
  3. A weight loss service provider tells story of an overweight celebrity who has used their products to achieve his or her dream of looking good and feeling good, with all the accompanying health and lifestyle benefits.  It is an autobiographical testimonial style story with ‘before’ and ‘after’ images as supporting evidence.

In all cases, it is very clever story telling.  Stories convey messages so much better than simply listing benefits.  Why?  Because no one is interested in what is logical!  Logic alone sells very little.  Marketers know that they have to drill down further than that and tap into feelings and emotions. 

For instance, the weight loss service provider knows that presenting the logical health benefits alone would sway no one.  However, if they appeal to vanity and desire first and then justify it later with the obvious health benefits, customers will come in droves. 

So logic does have a place.  It is second place!  Logic is used by a customer after the fact to justify and support emotional buying decisions.  But logic alone just doesn’t cut it.  For the initial grab, emotion outsells logic every time.

for more on business building read Dream Income Stream at http://garyweigh.com/business-building-%e2%80%93-a-dream-income-stream.html

Until next time!

Gary

gary@garyweigh.com

Lucifer’s Business building strategy

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Looking for business building ideas?  If you want to take a leaf out of Howard Bloom’s book ‘The Lucifer Principle, a Scientific Expedition into the Forces of History”, imagine that building a business is like propagating an appropriate meme, drawing together an ever increasing interest / buying group who, in turn attract others by word of mouth. 

As the leader of this group you are then able to start climbing to the top of the business pecking order.  With popularity come riches, fame and power; until such time as you lose popularity and slide right back down again.

So what is a meme?  It begins with an idea that leaps from mind to mind.  It is the social glue that is communicated by the founder and binds the believers.  Eventually, a meme turns into a set of beliefs and behaviours that distinguishes one social group from another.  According to Bloom “It drives us to coagulate in cooperative masses of family, culture, tribe and nation.”

Bloom points out that ”the memes that count the most are the ones that assemble vast arrays of resources in startling new forms.  They are the memes that construct social superorganisms.”  Historical examples are the ideologies of Karl Marx, Adolf Hitler and the world’s major religions. 

I would cite Facebook as a recent business example – millions of people interacting with each other via a startling new form of social media.

So building business is not so different.  It relies on the same survival and competitive pecking order needs of human beings.  You see, competition in business is not restricted to rival businesses.  Much more competitive activity takes place between the collective billions of customers.

Some of the more obvious every day examples include:

  • People fight and trample each other in the annual department store sales;
  • People fight over the last item on a supermarket shelf;
  • Fads start because people want what others have; and
  • People camp out overnight in a queue to be the first to get the latest IPad or IPhone.

You only have to strike a chord or hit a nerve with a small group of people to attract a following, and for life to be breathed into your idea.  Transmission of that idea from mind to mind can occur at a phenomenal speed.  Just think about how many people have become overnight sensations on YouTube?

More “Lucifer style’ business building next time!

Gary

gary@garyweigh.com

For more on Howard Bloom and his brilliant books, including The Lucifer Principle visit http://howardbloom.net/

Building business relationships – conflict resolution

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Once upon a time there was a successful sports car designer who had a weekender in the mountains and a sleek Maserati for the ride. Whenever he could take a break from his business, he would recharge in his mountain retreat. He drove the twisting road, pot holed in patches and unguarded in sections. He never worried though. He relished the drive. After all he had a great car, he was an excellent driver, and he knew that road like the back of his hand.

One summery morning he was driving to his weekender, invigorated by the mountain air breezing into his face. He approached one of his favourite hairpin bends he slowed, shifted gears, and braked.  And then like a bolt from the blue, hurtling around that bend spun a car almost out of control! It lurched menacingly into his lane.

Grief, he thought, it’s going to hit me for sure! The oncoming car swerved again, but at the last moment swung back into its own lane.  As it passed by him a woman stuck her head out of her car window and screamed at him, “PIG!”

Incensed at her gall, he blasted the horn and bellowed back “YOU ….. SOW!”

“I was in my lane! She was driving like a lunatic. Should be put away” he muttered indignantly. And self-satisfied he mused “at least she didn’t get away without me putting her in her place!”

And with that, he put his foot down, accelerated around that bend   ………. and ran right into the pig! [1] 

 What does this story tell us about conflict in business building relationships? We often react, urged unthinkingly by that primitive and irrational part of the brain, known as the limbic system.  We can become emotionally charged,  one-eyed and closed minded, assuming the worst in others, blaming everyone but ourselves, wasting energy, distracting attention, souring  business building relationships, and costing us financially.

Until next time!

Gary

gary@garyweigh.com

[1] Story adapted from Barker J. Paradigms. Understand the Future in Business and Life. The Business Library Melbourne 1992

YOU NEED TO READ THIS!

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You have come to a crossroad! 

It's time to act!

FOR BUSINESS PLANNING AUSTRALIA CALL GARY DIRECT 0408 756 531

You are sick of being someone else’s lackey and pursuing someone else’s dream.

You wish for change in your life!

It seems that everyone around you has more money, a bigger house, a nicer car and a better relationship.

Your job sucks!

You are tired of the daily commute and the weekly drudgery of work.  You only do it to pay the bills, but there is never enough time for yourself. 

You feel like you are on a treadmill and that you will never get ahead in life!

The boss expects perfection 24/7 but is far from perfect himself!  You bust your hump with honest, loyal service.  But you know it means nothing on corporate judgment day!

You want another shot at life!

This time you know what you want.  You see what others have!   A good life!

The desire for change has been growing inside.  You are frustrated and dissatisfied!

You know you can do better and you know deep down you can make it!

You just need a chance to realise your potential!

If dummies can do it, then you can do it in half the time!

Why? Because you have stood by and watched so many dummies around you become wealthy, buy nice things and have a lifestyle of pleasure!

So why is it difficult to change?

Because you are comfortable in your routine!  You hate it but it is a comfort zone.  You know that your daily routine of long hours, stress on the road, stress in the office, little leisure time, is all to build someone else’s dream, but you can’t quite crack the inertia.

You are a little fearful that if you go out on a limb, the branch will break and you will fall.  You fear something will go wrong and you will be worse off!

Relax!  You need someone to watch over you!

I have done it and it’s not that hard.  All it takes is self belief and a can-do attitude.

If you take a little time to plan, the risk is quite low. 

Let me assure you that your fear and self doubt is all in your head.

Do something for yourself! 

Write to me (gary@garyweigh.com) and tell me the following!

  • 3 things you most hate about your life

  • Your 3 greatest passions

  • The barriers you believe are stopping you from moving up in life

EMAIL NOW gary@garyweigh.com

I will respond to every email personally.  I will show you how to take your first business planning steps towards financial independence!

Business planning – a template is only half the story!

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Most business plans simply follow a template that ensures all the boxes are ticked and every aspect of the new venture has been addressed, e.g. structure, people, product, manufacture, marketing, etc.

However, the business planning template alone fails to match the person to the business; it fails to develop and grow the owner into the business; and it fails to show a person how to grow the business into a valuable asset.

You can have the best business plan in the world but still be at a complete loss to know how to successfully operate a business.  People who are new to business must consider more than just the words on the pages of a business plan. 

Here is what people really struggle with in business planning:

1.      Being in the right business head space

Some people have a mind for business and others don’t.  Coming from an employee background into business is a big leap because there is more to business than showing up for work each day and doing routine tasks.  It is important to approach business with an attitude of self belief and self reliance, with a willingness to do whatever it takes.  For most people, it means loneliness, difficult decisions, and being stretched a long way out of their comfort zone.

2.      Having sufficient business skills

The most common profile of the new business starter is someone who is skilled in a trade, a profession or other personal service and decides to become self employed.  The other common profile is the person who has a skill in making something.  What they all have in common is the technical skills to perform a service or make a product.  Many have no selling skills and most lack the wide range of other skills (including financial management) required to grow their business and build a valuable long term asset.

3.      How to take the first step

You only have to visit the ‘Starting a Business’ forum on Flying Solo to see the inordinate number of questions people ask about getting an ABN, registering a business name, being a sole trader, setting up a company, trademarks, registering for GST, employing a person on PAYG, and getting a website.   For many it is a struggle just to get through that part; and the real business hasn’t even begun yet.

4.      How to be action-oriented

A lot of people struggle when the theorising stops and decisive action is required.  As an owner, ‘action’ usually means contacting people, forming relationships and performing those tasks that directly relate to building sales and profit.  Initial enthusiasm can quickly turn to disheartenment after a few knock-backs or when thing don’t go as planned.  It can be a difficult challenge to keep moving forward under pressure of dwindling cash flow.

For more reading on business planning check out my Business Planning 101 Introduction at  http://garyweigh.com/business-planning-101-introduction.html

Until next time!

Gary

gary@garyweigh.com

Business building – so you don’t need a business plan?

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There are many business building newbies who believe that they don’t need a business plan.  They believe it is only necessary when starting up a new business.  They see no reason for a business plan when buying an existing business which is all set up and running well.  They simply view themselves as the new operator.

The point they fail to grasp is that they are not only a new operator with no runs on the board but they are also the navigator of a directionless investment once the departing owner leaves.

In business, things rarely stay the same for too long!

Solution

If you don’t think you need a business plan then put together an action list of things you might need to address to run the business your way or continue building it.  For example:

Change of ownership – Never assume that the former owner’s way is the right way or the wrong way.  Keep an open mind and learn from everyone.  Start jotting down ways in which you can improve what has gone before.  Staff members are looking for direction, so if you do nothing, you may find your staff managing your business their way – the only way they know how!  If you want to change things you need to start leading from the front and ensure everyone starts singing from the same songbook.

Your customers – Firstly, you need to get to know them.  Unless you do this quickly, some will use it as the trigger to leave you.  If they are happy with your present products and services, what else might they want that you can provide?   Can you improve the service?  You need to start building your personal capital and goodwill.

Your products & services – is obsolescence likely to be a factor in the future?  Demand changes all the time.  What can you do bring to the mix?  How can you to stay up to date and keep it fresh?  Can technology add a new dimension to e.g. the product itself or its distribution?  What are your competitors doing?

Your sales system – if sales simply fall into your lap, what can you do to replicate and build sales even further?  Would customers who hardly know you refer you to friends and colleagues?  Are you building a useful sales / communication database?

Manage the process – you need to take the wheel and keep control of your business or it will run off the road.  That means staying on top of pricing, margins, income, expenses, cash flow, breakeven, hiring and firing, human performance, the cost and quality of the product / service creation process – just to name a few.  There is also some admin to do such as compliance, accounts, paying bills, collecting money, BAS, PAYG etc.

Your personal time – if the business needs nothing but a new driver how can you minimize your time behind the wheel, or even replace yourself?

For more reading on business building check out http://garyweigh.com/business-plan-strategy-%e2%80%93-control-in-small-business.html

Until next time!

Gary

gary@garyweigh.com

Business planning – buying a business with no financials available!!

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FOR BUSINESS PLANNING AUSTRALIA CALL GARY DIRECT ON 0408 756 531

If as a result of my business planning I was buying a business from someone who insisted that their business was a good buy but refused to hand over any financial statements or supporting information, I would run a mile.

It is always hard to know the reason for the reluctance but experience suggests it is either a rubbish business or else it could be this!  

It is easy for owners in cash-based businesses to take cash from the cash register and never bank it or record it.  Many owners confuse the concepts of revenue and profit.  They believe that all money that is generated from sales is theirs.

Uhmm … no … big mistake!

There is that small matter of paying suppliers and all business overheads.  What is then left over is available to be drawn by the owner and pocketed.

‘Living out of the cash register’ is a dangerous practice for the following reasons: 

  • It leads to cash flow problems because creditors can remain unpaid as a result of short-banked revenue
  • If the pocketed cash is not accounted for as sales revenue and then as owner’s wages / drawings, there is going to be some false statements made on a tax return.  Not declaring income taxable amounts to tax fraud.  This will bring the ATO down on the owners head like a ton of bricks.
  • When it comes to selling the business, the true value of the business can’t be substantiated because part of the sales revenue was pocketed instead of banked.  If a subsequent ‘bank reconciliation’ is to balance then the temptation arises not to record the sales either.  However, the cost of sales must still be paid and harder to hide.  Therefore the business looks like it has low sales, low margins and low profit- and its value becomes diminished. 
  • The practice often leads to keeping a two sets of books – one for the tax office (ATO) and one for a prospective buyer
  • If the business owes money to a bank manager or if a loan is being applied for, it is common that the bank wants to see regular financial statements (often monthly).  Problems will arise if the bank can’t reconcile true sales figures with actual short-banked receipts (which the bank can plainly see).  Lying to the bank can also have dire consequences including loan refusal or a demand for full and immediate repayment of an existing loan.
  • Even if two sets of books are secretly kept for a long period of time without discovery, there will come a day when the secret has to be revealed to a prospective buyer. 

So who wants to admit fraud to a perfect stranger?  It is easier to refuse to hand over the financials.  If you encounter this – walk away!   It is odds on that the owner is living out of the cash register and keeping two sets of books.

For more on business planning check out Famous Failures of the Most Successful People In The World at http://garyweigh.com/starting-up-your-own-business.html

Until next time!

Gary

gary@garyweigh.com

Business building – Is a cafe-takeaway a dream or a nightmare?

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Make no mistake!  Business building in a cafe-takeaway shop is hard work.  I’m not knocking hard work but it is often a 6-7 days a week commitment with early morning preparation; which means that you can have little or no life outside the business.  If you are not used to it, tiredness can turn you into a zombie.

It is usually very competitive!  Competition generally comes from similar independent businesses, coffee shops, franchise chains and mobile vans (particularly in industrial areas).  Competition keeps margins generally low which requires high volume of customers.

Customer flow is not evenly distributed.  There are chaotic rush hours which impact on staffing and preparation.  You may only need a casual for 2 hours at lunchtime but awards can stipulate minimum periods that can be longer.

Like most food service businesses a cafe-takeaway is labour intensive.  It can be difficult to find and retain good staff, particularly casuals.  Food costs, portions & wastage must to be closely controlled.  It can be the devil’s own job to train staff in correct portioning and minimal wastage.

It all gets worse when you are frantically busy.  It is extra frustrating when you run out of something and have to run to the nearest shop and pay retail price for it.

There are some heavy duty local authority food licensing conditions to meet, not the least of which is installing a grease trap.  Refrigeration, cooking and warming means some hefty power bills.

I am not meaning to be critical or pessimistic.  I’m just being realistic!  Know what you are getting into because I have seen passion for food repeatedly dampened in cafe-takeaway businesses.

Until next time

Gary

Want to learn more about business building?  Check out our business coaching and business planning services

Protect your business and your family’s future 

Business planning – Think before you leap!

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Gary Weigh

FOR BUSINESS PLANNING AUSTRALIA CALL GARY ON 0408 756 531

If you are business planning a great idea that you think will make you money; or if you simply want to turn your passion or vocation into a business, stop and think before you leap.

The world is a constantly changing place and there are a few boxes to tick when you are planning a new business venture.  Here are 9 business planning must-haves to think about:

ONLINE!

No business will be able to survive in the future without an interactive online presence.

WOW FACTOR!

People (not computers) are gifted with creativity and insight; be an innovator not a ‘me-too’

GLOBAL!

The world market is only a click away, and so are the related international challenges to address.

INSTANT!

Time is the consumer’s scarcest resource, making convenience always in high demand.  Consumers won’t wait for you or abide by your inflexible structure.  They want products and services now.  Baby boomers were taught to wait but even they are changing their attitudes.

FREE!

The internet business community is developing as a “cheap or free” economy.  So you will have to be innovative in the way you generate revenue.

COLLABORATION!

New concepts are evolved by combining ideas; by building upon what’s gone before.  Similarly, concepts are implemented by sharing resources (i.e. human, intellectual and technological capital).

SOCIAL!

Instant communication, online social networking, information sharing and fan-base dynamics will play an ever increasing role in making and breaking businesses.

DIFFERENCES!

Businesses survive and grow on their differences, not their sameness.  Also look past your operating difference and your bottom line to making a social difference and an environmental difference.

CONNECTIVITY!

You are not a disconnected being; you are a descendant of about 300,000 years of human life, and a couple of billion years of evolving life form before that.  You are the latest product of the environment and the universe.  So make the most of your shelf life; be open to making positive connections with everything and everyone around you.  Don’t resist and do your best not to get in the way of natural connectivity.

For more on business planning in australia, check out First Rule of Planning at http://garyweigh.com/the-first-rule-of-planning.html

Until next time!

Gary

Don’t put your family at risk.  Your business is your future; your retirement; your jewel in the crown.  Protect it!

Learn how to build a powerful presence.  Visit my Aikido Secrets blog site