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by Rick Baker
On Jan 14, 2010
This is blog #8 in an 8-blog series about Powerful Answers to 7 important business questions. The series is intended to be an introduction to strategic intuition and planning.
Preamble: As we have talked with hundreds of businesses, from time to time, we have come across situations where unnecessary disasters happened. I mean disasters that took companies to bankruptcy. Three examples of company-killers come vividly to mind: (1) partner dysfunction, (2) faulty raw materials, and (3) foreign exchange volatility. While it is not possible to foresee every company-killer risk, it is possible to foresee things/risks like the 3 company-killers I just mentioned.
A group of advisors with a range of experience in different business sectors can help, for example, at the Board of Directors level. This is an underlying premise at our company…a role of our Activestors™ . [ Activestor™ definition]
Question 7: How do you manage your CRITICAL risk factors every day?
Powerful Answer:
'We do a SWOT analysis at least once a year. We identify Critical Failure Factors. And we place those CFFs into our Vital Signs plans and action. That ensures we keep them in mind. Here, let me show you on my BLackBerry'
Postamble:
SWOT - analysis of Strengths, Weaknesses, Opportunities, & Threats has been around for 5 decades.
CFF - analysis of Critical Failure Factors is a more-recent activity, however, it is well established.
We can and should anticipate the worst-case scenarios. CFFs are not something we should be agonizing over. Well, actually, we do have to agonize over them a bit at the planning and training stage.
Business CFF tests will not be life-threatening like Navy SEAL tests. [ U.S. Navy SEAL metaphor] However, some business challenges will cause us to stall and some will cause us to panic. Thinking about such situations, planning around them, and writing plans down reduces the likelihood of surprise-stall and surprise-panic. [And, we don't have to go under water to do it.]
This is the last blog in the 7 Powerful Answers series.
The next blog will be the first of a series titled - Good Habits, Bad Habits, & New Things
by Rick Baker
On Jan 7, 2010
This is blog #6 in an 8-blog series about Powerful Answers to 7 important business questions. The series is intended to be an introduction to strategic intuition and planning.
Preamble: I created a word to cover the last 2 questions, Question 4 and Question 5. That word is Tarmarvalproda©.
Tarmar: Target Market, also known as Market Niche
valpro: Value Proposition, as seen by the Client
da: Differential Advantage, also known as Unique Selling Proposition, as seen by Client
Tarmarvalproda© is the heart of Marketing.
Question 5 is aimed at What? - What Marketing & Sales work must be done? Many experts have influenced my thinking…to name just a few: Jay Abraham, Tony Parinello, Jeffrey Gitomer, and Malcolm Gladwell.
Some introductory thoughts about Marketing & Sales plans:
- Think before doing
- Think about how best to use multi-pronged actions
- Measure and test…everything…be selective
- Network well
- Use pictures
- Use video testimonials
- Be creative
- Inject humour…just the right amount, with the right timing
Question 5: How do you PLAN to connect with those people who care?
Powerful Answer:
Let me show you. My written plan is here in my briefcase.
Postamble: About 15 years ago, I created a template for strategic marketing planning programs. I called it SMP Programs©…here's a link to a sample of that template [ SMP Template]. Putting the plan in writing: that's a good start. Using plans as benchmark-tools - so useful and so important to us they are in our briefcases and in our BlackBerrys - that's proof of a deep-rooted motivation to succeed.
The next blog will consider Question 6:
How do you prove your people do the RIGHT things EVERY day?
by Rick Baker
On Dec 22, 2009
We found 7 fundamental building blocks linked to 7 business questions awaiting 7 Powerful Answers.
This is the first in a series of 8 blogs, exploring the 7 fundamental building blocks…and 7 Powerful Answers.
As a starting point, Spirited poses 7 business questions:
- What will your business look like when you are finished building it?
- What HUMAN strengths will you use to build your business?
- What do you do BETTER and DIFFERENT than anyone else?
- Who REALLY CARES about what you do best?
- How do you PLAN to connect with those people who care?
- How do you prove your people do the RIGHT things EVERY day?
- How do you manage your CRITICAL risk factors every day?
In the blog-series I will describe our thinking behind the 7 Questions and share thoughts about 7 Powerful Answers.
I am going to use a presentation format adapted from a sales book I wrote a few years ago.
The format will look like this:
Preamble: where I will talk about the things that caused us to create each question.
Question: the seven business questions will be presented in the same order as above
Powerful Answer: where an example will be presented
Postamble: where I will provide some thoughts about the Powerful Answer
Footnotes: references and tools will be provided
If you would like to share your Powerful Answer to any of the 7 Questions then please send it via email to me. I will include it in the applicable blog. Please let me know if you would like your name mentioned with your Powerful Answer.
The next blog will consider Question 1:
What will your business look like when you are finished building it?
by Rick Baker
On Dec 10, 2009
There are simple ways to ensure profitable business.
One way is Leading With Revenue, which I have talked about in my last 3 blogs.
In the last blog, we looked at a couple of examples of how a Leading With Revenue approach can help businesses succeed. I am going to provide another example and some comments about the hands-on application of the philosophy I call Leading With Revenue.
Angel investors have an interesting relationship with Leading With Revenue.
This is important when new products/services are invented and the entrepreneurial process is under way. In a similar way it should also be important when a company wishes to obtain funding, say an equity injection, to cover an expansion into new products, new services, or new territories.
Angel investors, and equity investors in general, ought to contribute to Leading With Revenue rather than replace the need for Leading With Revenue.
The Road Map:
I view strategic planning as the elite business function. The drive to business growth can follow several routes. One avenue is Leading With Revenue. It is not the only avenue. However, it is an avenue that will get us to the destination – financial success. Business people can drive alone or they can drive with partners. If they choose to have equity partners then they and their equity partners should be in synch…working from the same map, using the same compass, etc. Including a discussion of Leading With Revenue at the strategic planning stage is a good way to prepare to start your engines. Leading With Revenue is a strategic philosophy and a strategic-thinking tool.
Hair-Pin Turns In The Road:
When we drive at selling, from time to time, we encounter rough weather and troubling road conditions. If we have no guidelines – no maps, no road signs, no shoulders, no medians, no bumper blocks, no danger signs – then sooner or later we find ourselves off the road and in the ditch, or worse. The step-by-step process of Leading With Revenue provides a solution. Leading With Revenue is a tactical tool, for testing everything from product development to sales efforts.
I hope Leading With Revenue provides to you the comfortable feeling it has provided to me.
This is the last blog in this Leading With Revenue series.
In the next blog will begin to explore eCRMine…
by Rick Baker
On Dec 3, 2009
There are simple ways to ensure profitable business.
One way is Leading With Revenue, which was summarized in my last blog.
From the last blog we know Leading With Revenueis not easy. While it is simple [straightforward] to describe, it is not easy – it requires work and disci
pline. It requires some thinking followed by set action steps. The most important part of the work is – Listening to Clients [starting as early as possible in the process].
In the summary, at the last blog, the Leading With Revenue process started with a product or service Idea, backed by Specialized Knowledge. That happens when an inventor comes up with a new mousetrap. Leading With Revenue should definitely happen then. It also should happen when one of our sales people comes to work tomorrow morning and wonders – What shall I do today?
Leading With Revenue will add tremendous Value in both situations. That Value includes:
- Higher profit
- Lower stress
- Higher work satisfaction
- Lower staff turnover
Here are a couple of real-life examples I have experienced during the last year. I have changed the names of people and companies and been vague about products to ensure confidentiality.
Example 1:
Joe invented a tool. He spent hundreds of thousands of dollars and years of time de-bugging the product, creating top-notch packaging, creating a good sales presentation, and manufacturing samples. He visited numerous prospective buyers, distributors who could serve as future buyers. These folks said, ‘the product looks great’. Joe gave hundreds of samples away so the distributors could display them and promote them to consumers. The result was - very few sales and very little feedback about ‘why so few sales?’.
Example 2:
Jane had a well-established, profitable business with hundreds of clients. Jane felt changes were required to improve sales. A new CRM system seemed to be the right answer so steps were taken to select a new CRM and a company to install, de-bug, and get it operational. After many months and tens of thousands of dollars, the CRM is almost operational. The results – zero increase in sales.
Obviously, those were not the Leading With Revenue success stories.
Leading With Revenue success stories will be presented in the next blog…
by Rick Baker
On Dec 1, 2009
There are simple ways to ensure profitable business.
WARNING TO READER
I did not write – There are easy ways to ensure profitable business. [Work is required]
There are simple ways to ensure profitable business. I call one of those simple processes Leading With Revenue.
ANOTHER WARNING TO READER
I am assuming here, money is an issue. If you have no issue with money – if you have more than plenty – this blog may not be of any Value.
Leading With Revenue summarized:
- Start with a product or service Idea, backed by Specialized Knowledge
- Test your thinking – This Idea Should Work! [if that’s what you think then go to next step]
- Do a little product/service development work [to proof your Idea]
- Come up with a Value Proposition, which answers – Why will Clients want to buy this?
- Start with a suspicion of what you think Clients may want to buy
- Select some trusted best-prospect Clients [real people, not paper-demographics]
- Meet, talk, but mostly Listen as these Clients tell you if this Idea will work for them
- If these Clients give concrete positive signals - Yes, I will buy - then go to the next step
- Fine-tune the Value Proposition to align with what Clients have told you they want to buy
- Set Pricing to cover cost/benefit and risk/reward [for all parties]
- If problems arise at that last step – from your or the Clients’ perspective - then go back to at least step #4
- Ensure everything meshes with your company’s Unique Selling Proposition…or go back to at least step #4
- Quickly, set simple marketing & sales action plans
- Quickly, take action to sell to those Clients whom you have been told [or you believe] want to buy
- Watch, Listen, and Monitor sales results…the Clients’ actions will tell you what you need to know
- Fine-tune the product/service as required to match what Clients show you they want to buy
- If product/service fine-tuning is not possible or practical then go back to at least step #4
Over the last two years, we have seen some folks Leading With Revenue.
And, we have seen lots of folks not Leading With Revenue.
I will provide examples of each at the next blog…
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