Archive for the ‘Business Philosophy’ Category


Understanding the Financials of Your Business

Thursday, July 14th, 2011

George WashingtonFrom reading P&Ls to understanding cash flow, it’s critical to understand your small business financials…so why are so many of us so bad at it?

Hello. My name is Rich and I don’t understand my business’s financial statements.

Sounds like an introduction at a 12-step program, doesn’t it? I’m not sure how I stayed in business for 14 years and counting with such a tenuous grasp on the finances of running a business.

I’m easily stumped by such accounting questions as:

  • Why is it a debit when a client gives us a down payment?
  • Are we cash or accrual?
  • Does it really impact our business if clients pay us late…as long as they pay us?

It was because of these questions (and others) that I attended “Financials for the Math Challenged” yesterday, presented by Don Gooding of the Maine Center for Enterprise Development. Although not all of my questions were answered, it did start me down the path of getting a better grasp on the numbers of running flyte. If you struggle with understanding the concepts of your own financials, read on.

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What Do Customers Want? Product, Service or Experience?

Wednesday, May 18th, 2011

Pabst Blue Ribbon, aka PBR, aka PabstWhen people buy from us, they buy more than our products, our services or our labor; they’re buying an experience. With some purchases that’s more obvious–say, a Disney vacation or a shopping trip to Nordstrom–than others–say, a new printer for the office or bookkeeping services. But the desire for an experience is still there.

When we forget about the experience, and focus solely on our product, we often strip away why people buy from us in the first place.

Here are two examples I recently experienced:

Dark Star Orchestra, or DSO, is a Grateful Dead cover band, but not just any Dead cover band. Their claim to fame is that they recreate a specific set, such as the 11/30/73 show from the Boston Music Hall, song-for-song, in the style of the Dead from that period of time. In other words, they’re more than a cover band, they replicate a specific moment in time.

I had never seen them, so when a bunch of friends bought tickets for their recent House of Blues show in Boston, I made the trip down there. At dinner before the show I was told that they have recently been playing some “original” set lists, which was a bit disappointing. Unfortunately, that night was an original set list, with songs from the 70′s through the 90′s.

Now, I can understand that if you’re a creative musician, that playing in a group-specific cover band can be, well, restrictive. So playing in a cover band where you don’t even get to choose the set list could be soul crushing. But that’s what side projects are for. Or, say that Tuesdays are “original” set nights, so people know what to expect when they come in.

If I want to see live Dead performed, I can just go down to the nearest college bar on a Saturday night; I was looking for a specific experience which I didn’t get.

Pabst Blue Ribbon, or PBR, or Pabst, is a good, cheap beer. It’s better than Bud, better than Miller, and it’s cheap. (Did I mention that already?) In fact, nothing follows a glass of single-malt scotch better than a 16oz can of Pabst, aka the PBR Pounder (IMHO). However, as I listened to National Public Radio, or NPR, the other day, I heard a story about how PBR was moving their headquarters to LA.

El-freaking-Ay!

Not that I have anything against LA per se, but as I’m hanging out in my favorite hipster joint and I reach down for my PBR Pounder I don’t want to have images in my head of Hollywood, palm trees, or worse: Kobe Bryant.

Now, as far as I know it’s not the brewing or bottling that’s moving to LA, just the corporate headquarters. It won’t change the taste of the beer, but it will change the experience of the beer for me and many others who like it’s blue collar vibe. Let’s face it: a lot of PBR is consumed because of its cult status…something that may well be lost when they relocate.

What’s the Takeaway?

I feel too many of us–especially those of us in the B2B space–focus too much on the physical product or the exact service that we bring to market, and not how our customers will experience our offerings. We need to remember that even in B2B, it’s people who are making the buying decisions, and we need to know what experiences they’re expecting and deliver on those expectations.

Have you had a good or bad experience recently with a product or service? Would love to hear about it in the comments below.

Rich Brooks
Are You Experienced?

Photo Credit: Jeff Ruane


Get Thousands of Worthless Followers on Twitter Overnight!

Thursday, April 28th, 2011

Zombie FollowersDear Rich,

I am attempting to increase my Internet Presence by increasing the number of followers I have on Twitter. I will follow everyone who follows me. We will both gain by this simple social media concept.

My twitter account is @######. Thanks in advance for your support.

–Follow Back in Farmington

Dear Follow Back,

Thanks for reaching out.

The problem with that simple social media concept is that it’s completely wrong. By autofollowing everyone (and everybot) that follows you, you’ll be following plenty of porn bots before the week is out. You’ll also have thousands or even tens of thousands of new followers…none of whom will be paying any attention to you because they’re too busy finding other people who will autofollow them back.

You should worry less about the number of followers you have on Twitter. You should put out great quality content via Twitter that’s of interest to your audience, and then the right people will start to follow you.

Whatever your area of expertise, I’m sure there’s plenty of great content you could create and your audience will find you. Whether your best platform is Twitter, Facebook, LinkedIn, YouTube or your own blog, depends on who your audience is and where they like to hang out online.

Recently I saw a presentation by C.C. Chapman and he had a great line: pay more attention who you’re following, and less attention to who’s following you.

See you on the Twitter!

Rich Brooks
I Autofollow Interesting People on Twitter

Photo Credit: Jerekeys


How to Lead Meetings That Get Something Done

Tuesday, April 26th, 2011

Endless Journey: Meetings Without EndWhen was the last time you heard the two words, “great meeting?” If you’re like most business professionals, most of the meetings you attend are frustrating, lack focus, start late and run long.

But meetings don’t have to be painful. There are three sure-fire ways to distinguish the meetings you run.

  1. Identify and communicate your desired outcomes and agenda for the meeting
  2. Break through meeting clutter with active facilitation
  3. Prepare in advance and follow-through on commitments made during the meeting

Desired Outcomes and Agendas:

You wouldn’t get in your car, drive without knowing where you want to go and expect to arrive somewhere. Similarly, successful meeting leaders need to think through what they want their meeting to achieve (desired outcomes) and how they can lead the meeting to achieve those outcomes (their agenda).

Helpful desired outcomes are specific, for example, “three options for solving a major problem” or “an action plan including next steps, areas of responsibility and a timeline to move forward on a plan.”

Often meeting leaders have an agenda (great!) and they’ve outlined the sixteen items they want to discuss (not so great!).  Meeting leaders and participants can’t get their heads around a super-sized, laundry-list agenda and know from years of experience that the meeting will wrap up long before it’s covered everything on the agenda.

The human brain remembers things in threes so outline just three items for discussion. For example if a team is meeting about an upcoming product launch, the three-part agenda might look like this: milestone dates in our launch plan; short-term deadlines; and team member roles and responsibilities.

Really smart meeting facilitators distribute the agenda and desired outcomes in advance of the meeting and jumpstart the meeting by restating what everyone’s there to accomplish together.

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Santa’s Not the Only One Who Needs to Make a List

Tuesday, April 12th, 2011

Santa ClausDear Rich,

I’m a mental health professional and I have a website. I’ve been told that I should be building a list of contacts, but I don’t really see the point. Outside of my sessions I don’t really have anything to sell, so what’s the point of building a list of contacts that I’ll never do business with?

–Listless in Lisbon

Dear Listless (heh-heh),

While it’s true you may not have anything to sell to people now, that may change in the future. You’re probably a specialist in something–maybe dealing with children with ADHD, or adults with OCD, or helping repair relationships. Over times, your experience will grow, and so will your ability to help people.

But, you’re still only going to have 24 hours a day, and 7 days a week.

Imagine if you had a free download, such as 10 Tips for Helping Your Kids Manage Their ADHD, or 5 Surefire Ways to Stop OCD from Ruining Your Life, or 3 Strategies to Try Before Calling the Divorce Lawyer, and tied that to an email newsletter signup. Any one of those might be a valuable enough offer to get people to subscribe.

Then you publish a monthly ezine on your topic of choice, archiving each article on your website or blog (for SEO benefits, ‘natch.) Over time, you’re going to develop quite a list of interested people.

So, in two, five or ten years from now, when you’re ready to publish that book (or ebook, or put on that webinar, or develop that online course), you’ll have a ready list of opt-in, interested people who want to learn from you and buy from you, and who will likely share your good name with their networks.

Just be sure to include me in the acknowledgements.

If you’d like to learn more, but sure to check out this month’s flyte log article, List Building: How to Build a List of Contacts at Your Website.

Rich Brooks
Listing

Photo Credit: Bart Fields


Employee Incentive Programs: When Reward Programs Attack!

Wednesday, April 6th, 2011

Employee Incentive ProgramsHave you ever tried to create an employee incentive program and had it backfire on you? If so, you may appreciate this story:

A man was out fishing on a quiet lake, surrounded by a large number of lily pads. He noticed a big bullfrog sitting on one of the lily pads right next to his boat. Suddenly, a water snake slithered up and snapped up the bullfrog in his mouth. The man, reminded of his childhood pet frog, reached out quickly and grabbed the snake by the neck, preventing it from swallowing the bullfrog. He removed the frog from the snake’s mouth and watched it hop away to safety.

He now looked at the snake and felt bad; he had robbed it of its supper. He looked around his boat and noticed the bottle of Jack Daniels he had brought along. He unscrewed the cap and poured a shot down the snake’s throat. He then released the snake who slithered away.

The man went back to fishing. Five minutes later the snake returned; he now had two frogs in his mouth.

I wish I remembered where I first heard this story so I could give proper credit. If you know, please let me know in the comments section below.

I share this story because I told it the other day to my friend Chantal Young over lunch who thought it was funny. I was sharing some lessons I had learned from reading Influencer: The Power to Change Anything. In the book they talk about the Japanese tradition of rewarding behavior over results, because by rewarding results you may be training your employees to use tactics can actually harm your business.

One example was the Russian drilling company that rewarded employees based on how many feet they drilled. Well, it turns out that shallow drilling is a lot easier than drilling deeper. So, employees drilled plenty of shallow holes that would never hit oil because it was easier to get bonuses that way.

It’s something I’ve struggled with over the years, especially as I try to reward behaviors that help our clients as well as those that make us more profitable; sometimes the results are not what I expected. In these cases I have no one but myself to blame.

When you’re looking to reward employees, be very careful of exactly what you’re rewarding.

Rich Brooks
Now, Where’s that Bottle of Jack?

Photo credit: Bryce Turner


Are You Ready for Business Comic Books?

Sunday, March 20th, 2011

Overachievement Comic BookRecently I was approached to see if I wanted to check out a new type of business book: the business comic book.

Now, for those of you who hear “comic book” and can only think of grown men in spandex fighting crime for free, or whether Archie will choose Veronica or Betty (he went for the money,) then the idea of a comic book about business may seem ridiculous.

But if you’re like me, and you appreciate the medium of “graphic novels,” or, if you’re feeling highfalutin, “sequential art,” than the idea of a business book in graphic format makes a whole lot of sense…depending on the book.

Since most comics are story driven, business books that use story telling to illustrate (pun intended) a point will probably be a better match for this medium. I got to choose from a small number of titles, some which I had read (or listened to), some which were brand new to me. I decided to go with a title I hadn’t heard of before, John Eliot’s Overachievement: The REAL Story Behind What It Takes to be Exceptional.

Having never read the book book, it’s hard for me to review it after reading the comic. The message that Eliot constructs is that “overachievement” is something that’s attainable for just about anyone with the right mindset. Overachievers start with a “trusting mindset” that allows them to perform under pressure as if there was no pressure at all. The book separates “dreams” from “goals” and talks about the correlation between commitment and confidence. Playing in the present, pre-performance routines, and overachievers’ philosophies are all discussed.

One of my favorite sections of the book was how we often misinterpret the messages our body sends us in high-pressure situations. Eliot argues that the butterflies we feel in our stomach happen when our body is redirecting the remaining food in our system to our muscles, while that sweat on our brow is just a safety mechanism so we don’t overheat during “battle.”

That being said, I feel that there are probably more adaptable business books than Overachievement. While the comic uses visuals to backup the themes of the book, I’m not convinced that they are necessary. Here’s an example from the book:

Overachievers Sample

Did that help to explain the concept? I’m not sure…what do you think?

As I said, this is not a complaint about the book or the format. I can imagine many recent business books that I’ve read as great options for comic adaption, including Influencer: The Power to Change Anything, Switch: How to Change Things When Change is Hard, or Tell to Win: Connect, Persuade and Triumph with the Hidden Power of Story. Hmmm…anyone sensing a trend here?

I also saw that The Art of War was coming to SmarterComics, the publisher of Overachievement. That could be very cool. (Hint, hint.)

If you’re like me, and you believe that the graphic novel is just another medium in which to tell a story, or make a point, than you may want to check out these new business book titles. If, however, you feel comics are for kids and guys who live above their mom’s garage, can I please recommend you pick up one of the following titles with an open mind:

Rich Brooks
Excelsior!


How to Exploit Japanese Quake Victims for Inexpensive Advertising

Monday, March 14th, 2011

Aerial of Sendai, Japan, following earthquake.The other day I wrote about the lame Wendy’s text marketing campaign that I observed in Augusta. A substandard reward–requiring a purchase–for texting while driving.

It reminded me of the lame Pepsi giveaway they often run at Gillette Stadium during Patriots’ home games. Sometime during the game they announce that one lucky row will be selected in the Pepsi giveaway. Although I don’t know the exact number of rows at Gillette, there’s about 66,000 non-suite seats, and let’s guess 30 seats per row, and we’re looking at about 2,200 rows. That means that your odds of winning are 1 in 2,200. And what is the reward for being one in 2,200? Each person in that row gets a coupon good for one two-liter bottle of Pepsi. Not an actual Pepsi, mind you, but a coupon, handed out to thirty drunks who will undoubtedly lose said coupon before they get to their local Cumby’s.

Still, those pale in comparison to a campaign I saw on Twitter today run by Samsung. There’s a Twitter hashtag going on right now called #sxswcares which is rallying to raise awareness for the Japanese Quake victims. As I write this over $24,000 has been raised. That’s great, right?

Well, Samsung has announced that if you tweet that hashtag to their @samsungtweets account they’ll donate a dollar, up to $5,000. Outside of the fact that $5K more may be going to the quake victims, everything else in this campaign has me feeling all skeevy. For a company as big as Samsung, is $5K even a big donation, or their coffee budget for one day? All they’ve done is inserted themselves in the donation process.

It’s as if we’re all on bucket brigade and someone from marketing has jumped in the line and slapped a “Samsung” sticker on every bucket going to put out the fire.

There’s nothing wrong with charity, but corporate charity that’s dependent on a community injecting your brand into the conversation is repulsive. For a mere $5,000 investment they’ll get their name associated with an act of charity, no matter how many tweets they get. Do you think that Samsung will tweet out, “We reached 5K tweets, so u can stop pimping us out now?”

The best thing Samsung could do now is up the donation to $50,000 or $500,000 without any requirement from the Twitter community.

If you want to help, you can donate to the American Red Cross for Japan Earthquake Relief, by texting REDCROSS to 90999. Each text will provide $10 towards the Red Cross’s humanitarian efforts.

Not a texter? Mashable has six other simple ways to make a difference. And none of them make you promote a corporation to do so.

If I’m missing something here, if I jumped in half-cocked and half-informed, please let me know either by leaving a comment or abusing me on Twitter.

Rich Brooks

Photo Credit: US Navy


When Texts Go Bad: Marketing Lessons from the Fail File

Monday, March 7th, 2011

For your business, it’s critical to deliver on your promises. When you use a marketing tactic to gain a follower, a customer or build your list, there’s usually some promise, explicit or implicit, that it will be worth the person’s time and effort.

This is especially true when there’s a certain amount “what’s behind door number two” in the offer–such as a QR code (where does it lead?) or white paper (is it worth my time to download and read it?) There’s a leap of faith–some might call it a suspension of disbelief–that is required of the recipient of this type of offer. If we ask our prospects to trust us, we better be ready to deliver on that trust.

So, the other day, as we drove to Sugarloaf for a weekend of skiing and riding, we passed the Wendy’s in Augusta displaying this offer:

TEXT WENDYS TO 77077 AND RECEIVE GREAT DISCOUNTS NOW

“You’re not really texting them, are you?” my wife Cybele asked me incredulously.

“I’ve never really done anything like this and I’m curious to see how it works,” I responded. I’m always interested in how companies–big and small–are doing their marketing, especially mobile marketing. So I texted WENDYS to 77007 and instantaneously I received the following text:

Show this to the cashier at Wendy's and get a free 6 ounce frosty with any purchase! FISH IS BACK! Offer expires 2/28/2011.

As my daughter would say, “Really, Wendy’s? Really? There’s a couple of issues that I have with this offer.

  • First, after offering me a “Great Discount” they offer me a Frosty at a size smaller than the one on the 99¢ menu…and only after I’ve purchased something else.
  • Secondly, it was  March 4th when I saw this offer. It was still there the following day when I drove back south. I wonder if it will still be up when we go up next weekend.

Congratulations, Wendy’s: you’ve trained me to not engage with your marketing again and taught me that your word isn’t to be trusted.

Now, nobody’s perfect and I’d be lying if I said I’ve successfully delivered on every customers’ expectation over the past fourteen years. But if you don’t want to damage your brand, you’ll need to make sure that when it comes to list building and customer acquisition, that you deliver on all your promises, be they delivered by web, text, or carrier pigeon.

Rich Brooks
FISH IS BACK!


Introduction to LinkedIn: What is LinkedIn?

Thursday, December 9th, 2010

While putting together a webinar on LinkedIn for AADMM (the American Association of Daily Money Managers, as if you didn’t know) I came across this video from LinkedIn about what LI is all about.

I thought it was pretty easy to follow, and if you haven’t yet joined LinkedIn, this is a good primer of what you can expect to find there.

If you are interested, the LinkedIn webinar is available to AADMM members and non-members alike. It’s from 11am – noon ET on 12/15/2010. You can learn more and sign up at the AADMM home page.

If you can’t make it, or missed the date, you can check the flyte web marketing seminar page and see if there’s another one coming up.

Rich Brooks
As Seen on LinkedIn