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Competitive intelligence

27 Jul

Competitive intelligence is the gathering of information about a business’s competitors to make one’s own business more competitive.

Competitive intelligence, then, is the kind of market research designed and carried out to find and keep a business’s market share.

Gathering information about the competition and analyzing it is an important part of working through a business plan, but competitive intelligence is just as important to established businesses. New competitors may move into a market; existing competitors may change their practices.

For successful small businesses, competitive intelligence is regular and ongoing. Without it, you won’t be able to make the marketing decisions that will keep or draw customers and/or clients.

What sorts of information might a small business building competitive intelligence gather? Information about a competitor’s products and/or services and the prices they’re charging for them, of course, but also information such as who their suppliers are, what their customer or clients say about them, what their company policies are, what sorts of communications they send out… In short, any information that’s going to help you know more about them.

Competitive intelligence sources for small businesses include media such as newspapers, television and the Internet, other business people, your competitors’ staff and your competitors’ customers or clients. If you are a bricks-and-mortar business, you will certainly want to visit your competitors’ stores.

 
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Definition of Multilevel Marketing

23 Jul

Multilevel Marketing, or MLM, is a system for selling goods or services through a network of distributors.

The typical Multilevel Marketing program works through recruitment. You are invited to become a distributor, sometimes through another distributor of the Multilevel Marketing company’s products and sometimes through a generally advertised meeting.

If you choose to become a distributor with the Multilevel Marketing company, you’ll earn money both through the sales of the MLM’s products and through recruiting other distributors, by receiving a portion of the income these distributors generate.

The distributors that you sign up with your Multilevel Marketing plan are called your downline. The distributor that originally recruited you is called your upline. Often he or she will give you some help getting started, including training.

Multilevel Marketing plans are legal in Canada, as long as they do not contravene the Competition Act. However, if you are considering becoming part of an MLM company, you need to investigate the opportunity thoroughly, just as you would with any other proposed business venture. Not all Multilevel Marketing plans are created equal, and some may not be MLM at all, but pyramid schemes, which are illegal.

 
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5 Customer Service Tips

20 Jul

1. Remember there is no way that the quality of customer service can exceed the quality of the people who provide it. Think you can get by paying the lowest wage, giving the fewest of benefits, doing the least training for your employees? It will show.Companies don’t help customers… people do.

2. Realize that your people will treat your customer the way they are treated. Employees take their cue from management. Do you greet your employees enthusiastically each day; are you polite in your dealings with them; do you try to accommodate their requests; do you listen to them when they speak? Consistent rude customer service is a reflection not as much on the employee as on management.

3. Do you know who your customers are? If a regular customer came in to your facility, would you recognize them? Could you call them by name? All of us like to feel important; calling someone by name is a simple way to do it and lets them know you value them as customers.

Recently I signed on with a new fitness center. I had been a member of another one for the past ten years, renewing my membership every six months when the notice arrived. I had been thinking about changing, joining the one nearer my home and with more state-of-the-art equipment. So when the renewal notice came, I didn’t renew. That was eight months ago. Was I contacted by the fitness center and asked why I did not renew? Did anyone telephone me to find out why an established customer was no longer a member or to tell me they missed me? No and No. My guess is they don’t even know they lost a long-time customer, and apparently wouldn’t care.

4. Do your customers know who you are? If they see you, would they recognize you? Could they call you by name? A visible management is an asset. At the Piccadilly Cafeteria chain, the pictures of the manager and the assistant manager are posted on a wall at the food selection line and it is a policy that the manager’s office is placed only a few feet from the cashier’s stand at the end of that line, in full view of the customers, and with the door kept open. The manager is easily accessible and there is no doubt about “who’s in charge here”. You have only to beckon to get a manager at your table to talk with you.

5. For good customer service, go the extra mile. Include a thank-you note in a customer’s package; send a birthday card; clip the article when you see their name or photo in print; write a congratulatory note when they get a promotion. There are all sorts of ways for you to keep in touch with your customers and bring them closer to you.

 
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Benefits of Marketing Online

16 Jul
Marketing Online Benefit #1 – You can make changes on the fly.
One benefit of marketing online versus offline marketing such as placing traditional advertisements in magazines, newspapers or on television is that you can change them on the fly. By monitoring and tracking how your advertisements and marketing efforts are doing you can make the decision to change a graphic or wording and do it without any problems. This is not the case with traditional marketing and advertising.

    Marketing Online Benefit #2 – You can track real-time results.
    Marketing online allows you to track real-time results using online analytics to make a determination on how your marketing campaign is performing. There are ways to track traditional marketing efforts, but most the time it cannot be done in real-time. This can mean success or failure to your campaign.

      Marketing Online Benefit #3 – You can target specific demographics in your advertising.
      Marketing online allows you to target specific demographics such as gender, age and location. You can even target specific income levels, education levels and occupation. You can do this in traditional marketing, but it’s not as easy and is often a guessing game.

        Marketing Online Benefit #4 – Variety of methods in marketing online including email, audio, video, blog, social media and newsletters.
        There are so many options when marketing online. You can use audio, video, blogging, email, social media and ongoing newsletters. If you were to do the same thing in traditional marketing you would need to select several media outlets to cover your bases, not so when it comes to marketing online.

         
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        Starting a Business Based on Your Wants

        13 Jul

        There are two paths to starting a business and while both paths may end up at the same place, with you running a successful established small business, one of the paths is a lot harder traveling than the other.

        If you choose to travel the first path to starting a business, you’ve decided to start a business based on your wants. That is, you’ve decided that you want to do a particular thing, such as open a book store or provide Web site design services, and/or that you want to do this thing in a particular place.

        Often people have very good reasons for choosing to go this route when starting a business. They have regular jobs or family obligations that tie them to a place, or possess a set of skills that they want to capitalize on. Many successful small businesses have been started because someone became passionate about a particular product or service (including mine)!

        But if you decide to take this path to starting a business, you need to be aware that your path to business success may be much more circuitous and rock-strewn than if you had chosen the other path to starting a business.

        If you choose this first path, you will be starting a business based entirely on your desires, rather than on the realities of the business environment. Wanting to do a particular thing in a particular place can be an especially troubling complication that can add years to your journey of successfully starting a business and even make success impossible.

        What if, for instance, you insist on starting a book store in a town with a population of only 25,000 that already has seven book stores? Or decide that you are going to open a bed and breakfast in a place that’s only accessible by air? Don’t laugh; both of these are real-life starting a business examples – and both of these are businesses that failed.

        Following the first path to starting a business can be very dangerous if you insist on following your dream without looking around to see who else has already implemented that dream. It can also be a bit like starting a business with blinders on; because you’re so intent on doing what you want to do, you may not see other opportunities for starting a business that could be even more profitable.

        If the first three rules of real estate are “Location! Location! Location!”, then the first three rules of starting and running a successful small business are “Customers! Customers! Customers!” The true danger of following the first path to starting a business is that you ignore these three rules. Your idea of starting a business is based entirely on what you want to do or what you want to sell or on where you want to live, potentially ignoring your customers’ wants and desires.

         
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        How to present a professional image?

        09 Jul

        Here are a few strategies that I have implemented to continually present a professional image while operating a home-based business.

        The phone is the most important feature. It is usually the initial form of contact between you and a client. Answer your phone in a professional, clear tone. Never say, “Yeah, hold on. I’ll check my appointment book.”

        Also, to present a professional image, make sure there are no noisy kids playing, or TV or radio playing too loudly in the background. Don’t let your kids answer the phone (unless they are trained to do so properly). Any credibility you have may quickly diminish if a child shouts, “MOM! PHONE!”, and then drops the receiver to go and play.

        I’ll harp about the phone and your professional image one last time. Take the time to prepare a new voice mail message daily. It demonstrates that you take your business seriously by preparing a new message daily, indicating today’s date.

        Mention that your business is by appointment only. This indicates that you are busy with other commitments and clients – a good impression for your professional image. Nobody would just show up at his or her lawyer’s or accountant’s office. The same applies to your home-based business. Mention this somehow during the initial contact. People may assume otherwise unless they are told.

        Also, when clients book, mention that you have reserved the time and date of the appointment for them. If they cannot make it, you require 24 hours notice. You do not want clients thinking that your time can be taken for granted. Get their name, address and phone number and call them if they are “no shows”. Some of my colleagues bill for “no shows”. I do not because I rarely have any. Say, “Mr. Smith, I have reserved 2:00 p.m. on Thursday for you. If you cannot make it, I require a minimum of 24 hours notice. Are you in agreement with this?” Then I wait for the response. It takes some people by surprise when I say this, but they always comply.

        If you have credentials, diplomas, or certificates, display them in your home-based business space. You have worked hard for your skills, and they’re an important part of your professional image, so showcase them. I have two university degrees hanging in my office. I have my credentials from the Professional Résumé Writing And Research Association sitting right on my desk. I take the time to point out to clients that I am one of only six professionals in Canada to take the time, money and effort to belong to this international, professional organization.

         
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        Business Networking Essentials

        06 Jul

        Networking is a lot of fun! Business networking is when a group of like minded business people gather and help each other. If you check, you will surely find a networking group in your area. The networking group can meet as often as they wish, as is convenient for the participants.

        Regretably, most people start with a networking group by looking for immediate gains…. that is, for favorable results for themselves. If this is what you are trying to achieve, you are networking for the wrong reasons and will be sticking out like a sore thumb.

        Many people think that the size of a networking group makes the difference in networking. When groups start falling in size, members will say, “we have to build up our numbers.” Now, what numbers are they referring to? Is it the number of participants? I would rather belong to a networking group of two people who can help each other on a regular basis then have a large group of business people not following the Ten Commandments of Networking. It is not the quantity, it is the quality.

        “I haven’t got any leads yet!” Well excuse me, have you given one, ever? Or, have you made a suggestion that might help a fellow member? Did you call anyone with a compliment and say, “Just wanted you to know, Jim, that your comments on the XYZ expansion was right on the money.” One must be willing to put in time waiting also. It might take a while before people feel comfortable with offering you a referral.

        Networking groups will come and go. To get the most out of your networking experience, you need to build a relationship with people who you want to have contact with. Not all members will be able to help you, nor will you be able to help them. That doesn’t mean you should snub them! I still have strong relationships with my networking friends from groups that are long gone.

        When networking, spend most of your time and effort on people who can help each other out, for the long term. That is right. This is a long term project. Countless times I have been to business networking events and have seen people actually run from person to person, with the expectations of first giving away their card and hoping to gather the other person’s. How can you possibly build a relationship with a person when your objective is to get out there, and collect cards? Some networking groups make a game out of it to see who can collect the most in a certain time. What a waste of business cards!

        You will find that a highly effective networker will “work the net”. What I mean is that they will go into a function with a goal in mind. My usual goal when business networking is to have the expectation that I will “meet” and “understand” only three people per event. I know what kind of person that I can help and expect that this person will be able to do the same for me. A win/win situation is what I am talking about. The highly effective networker will take the time to cultivate a rapport.

        After the business networking event is when the real work begins. After all, you are only at the networking event to meet and build rapport. Follow up ASAP. Now is the time to send a nice customized card, and call a few days after to arrange a time to meet for a coffee or to have lunch. That is when you can listen to the details of what your new “friend” requires. You might even have the chance to offer your goods and services, only after listening.

        If you want to gain the most out of business networking, follow the Ten Commandments of Networking!

        • 1) Thou shalt drop the “what is in it for me?” attitude.
        • 2) Thou shalt listen.
        • 3) Thou shalt build a relationship.
        • 4) Thou shalt give the first referral.
        • 5) Thou shalt not tell others of the referral you require; thou shalt “show them” with a story.
        • 6) Thou shalt be specific of the type of referral.
        • 7) Thou shalt reciprocate when appropriate.
        • 8) Thou shalt participate in the network executive, functions, and network time.
        • 9) Thou shalt thank the person who gave a referral.
        • 10) Thou shalt follow up on the referral within 24 hours.
         
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        Defining Your Niche Market

        29 Jun
        There are some business owners that have defined their niche market and have a clear picture of whom it is they are marketing to and there are others that tend to waiver or be unsure.Often business owners view a niche market as narrowing their sales or cutting into a profit margin, so they fear it. The truth is, a niche market could be defined as a component that gives your business power. A niche market allows you to define who you are marketing to.

        When you know who are you are marketing to it’s easy to determine where your marketing energy and dollars should be spent.

        Take for example a car dealership. A car dealership calls and tells me they want me to help them develop an internet marketing strategy. My first question as always is “Who is your target audience?” They answer by telling me that their audience is everyone. They want to market to anyone interested in buying a car. Now, let’s keep in mind that this car dealership is located in New York. I approach the process by working with the client and explaining to them that, although they market to a person in Seattle, because that “person is interested in buying a car” the chances of that person coming from Seattle to New York to purchase that car is a very unlikely. Therefore, they’ve wasted time and money and will more than likely see no return on either. By the time our conversation is finished, I’ve helped them see why narrowing their niche market down to be “anyone interested in buying a car within a 50 mile radius” makes really good sense. They now have power. They know where to spend time and money to market and their vision is clear. They are now 10 steps ahead of the other car dealership located 20 miles away who is marketing to “anyone interested in buying a car.”

        There is even greater importance in having a well-defined niche market when planning your internet marketing strategy to achieve marketing success online. The most common misconception about online marketing is that if you build it they will come or that having an online business will make you wealthy. The reality is that you have to find your niche market, offer a product or service that they re demanding and get them to come to you, in order reach a level of financial success via the internet.

        Defining your niche market before you embark on your Internet marketing strategy is important for the following 5 reasons.

        1. You have the ability to maximize your marketing budget by targeting your defined niche market. You’ll know exactly where to advertise. You’ll know where to look to find blogs and related sites that are catering to your market. This gives you a starting point.
        2. Your website can then be optimized for search engines so that your niche market can easily find you.
        3. You are able to cater your website to your niche market. You can develop your site to guide your viewers and help them find solutions or products that you offer that are specific to the problems that your niche market encounters.
        4. A defined niche market makes it easier to develop ideas for new products or services that inherently appeal to your specific niche.
        5. You have an upper-hand in establishing yourself as a leader in your industry.

        Do you now see the importance of having a niche market? Are you struggling with who your niche market is? If you answered “yes,” spend some time asking yourself the following questions:

        • What is it that my current clients have in common?
        • How do I set myself apart from the competition?
        • What is different about the services or products that I offer?
        • What are the “extras” that I bring to the market?

        The best way to answer these questions is without analyzing them too much. Just write down whatever first comes to mind. Once you’ve completed them, analyze the answer and it will be easy to define your niche market.

         
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        Niche Market tips

        25 Jun

        One common path to success for many small businesses is establishing themselves in aniche market. Because no matter how hard they try, no large retailer can be all things to all people, there are always going to be segments of the population whose needs for particular products and/or services are going unmet – leaving room for the small business to succeed by meeting those needs.

        So how can your small business capitalize on these unmet needs and find and dominate your own niche market? Concentrate on these four basic concepts for niche marketing success:

        1. A unique product or service.

        For starters, if you’re going to master a niche market, you need to have a unique product or service. Ideally, you want to be the only one selling what you’re selling.

        The trick to coming up with such a product or service is to “look on the fringes” for unmet needs. For example, one East Coast entrepreneur’s business consists of creating hand-made medieval outfits. Large retailers and even shops specializing in costumes don’t supply these types of garments.

        Don’t forget that processes can be products as well. They’re ubiquitous now, but someone once looked at an inkjet printer cartridge and came up with the idea and the process for refilling them. Need help getting started with this sort of idea spotting? 7 Sources of Business Ideas will spark your thinking.

        2. A marketable product or service.

        You can create all kinds of wonderful and wonky products and/or services but if no one wants what you’ve produced, what’s the point? Maybe there’s no one selling fried insects from a vending cart on your street, but that doesn’t mean it’s a good idea. The niche market of people who enjoy eating fried insects in this country is so small they wouldn’t even fill a phone booth.

        There has to be enough of a demand for your product or service for your business to make a profit. How do you find out? By trial and error or by conducting extensive market research.

        I, of course, recommend the latter. If you want to know if there’s a market for dog coats, bamboo flooring or counseling for the Blackberry addicted, the best way to find out is to get out there and ask. Making or buying a lot of something and throwing up a Web site to see if there’s any interest in what you’re doing is for people who don’t want to make money.

        3. Choose a niche market that’s available.

        Remember, niche markets tend to be smaller so there’s only room for so many players. When it comes to niche marketing, if you try to jump on a bandwagon, you’re only going to fall off the back. For instance, I mentioned the niche market for gay marriages in Best Business Opportunities 2005.

        Before you started such a business yourself, you would certainly need to carefully research the competition and the size of the market to see if a new business in this niche would be viable. It might well be better to find a different niche in the marriage or gay markets and make that niche your own.

        4. Market, market, market.

        Marketing is perhaps more important for niche market businesses than for any other kind, because the niche market business is by definition, unknown and succeeds or fails on making the connection with exactly the right kind of customer/client. If I open a Starbucks, for example, people know right away what that business is about and what kinds of products to expect. And because Starbuck’s market is “anybody who likes coffee”, they really don’t have to worry much about advertising at this point in the game.

        But if I open a business providing naturopathic treatments for pets, selling tub/shower conversions for the elderly or providing virtual assistant services to professional speakers, to give just three examples, people won’t know what to expect or even that my niche business exists at all unless I make the effort to reach and educate them. So market, market, market – and once you have a customer or client, make contact on a regular basis.

        A unique product or service that will fulfill the unmet needs of a specific group of people – that’s niche marketing in a nutshell. If you apply all of the four concepts above, your small business will enjoy the powerful competitive advantage that mastering a niche market provides.

         
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        Advertising Ideas for Small Businesses

        22 Jun

        Word of mouth is excellent small business advertising – but it’s slow, and may be practically non-existent for new businesses. If you want to grow your customer base more quickly, you have to advertise.

        This collection of small business advertising ideas presents both the tried and true and advertising ideas you may not have tried yet – advertising ideas for your small business to effectively reach your target market and attract new customers.

        Tried and True Small Business Advertising Ideas

        1. The Yellow Pages.

        There’s still a lot of people who use the yellow pages to find the businesses they’re looking for – and they won’t find you if your small business isn’t listed there. Get the biggest yellow page ad you can afford; the more visibility the better.

        2. Newspaper advertising.

        Besides box ads and advertising inserts, local newspapers also often offer special advertising features showcasing particular businesses – all powerful small business advertising opportunities. Don’t overlook special interest newspapers as an advertising idea if they exist in your area. They may be delivered to exactly the audience you want to reach.

        3. Direct mail.

        Direct mail can be very effective small business advertising – and is much more favourably received than other direct marketing media, such as email or telemarketing. And even if you don’t have a mailing list, you can still geographically target your mail.

        4. Magazine advertising.

        This advertising idea can be a very effective way of reaching a target market. The trick is to choose the magazines or e-zines that best match the market you’re targeting.

        5. Business cards.

        Sure, they’re advertising. Every time you hand one out to a prospective client or customer, you’re advertising your small business. But why not take this advertising idea further and Make Your Business Card a Marketing Vehicle?

        6. Joining professional/business organizations.

        Every professional or business organization offers exclusive advertising opportunities for their members, ranging from free promotion on the organization’s website through special section newspaper advertising. And being a member can be good small business advertising in itself.

        7. Vehicle advertising.

        The reason you see so many vehicles emblazoned with advertising is that it works; vehicle advertising is very visible small business advertising. If you’re not ready for custom graphics or a magnet quad sign that sit atop your vehicle, go for a magnetic sign that you can take off when you want.

         
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