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Business You Can’t Afford to Do

September 8th, 2006

I know this seems unlikely, but an article I read today in a SitePoint Times newsletter brought this to mind.

Sometimes, there are clients you can’t afford to have, no matter how bad business has been. You can always tell these folks - they want to beat you down on price, seem overly picky, argue with you on every point, and seem to always “know best”.

Case in point: in my early days consulting, I landed a client about 80 miles from my home base. This was a small business wanting to grow; they had a good product but just hadn’t seemed to be able to get off the ground.

I went out to meet the client for the first time. She told me that she couldn’t afford to pay my price (which was only $200) for a business review and recommendations. She argued with my methodology, wanting considerable customization in the project. She wouldn’t share her financials with me. She wouldn’t make an initial payment, preferring to wait until the final report was presented.

These were all warning signs, but I had a reputation to make, so I took her on anyway.

During the project, it became obvious she already had her own ideas of what the recommendations should be, and tried to get me to change them. She disagreed with the analysis I had done, telling me that the results of the market research I had carried out (with existing and potential customers, all of which she identified) was wrong and that neither group knew what they were talking about.

You can guess the rest - she refused to pay for any of the work at all (even though I had reduced the price to $150 and offered to let her pay in two installments after delivery of the report). And she insisted that I travel to her site three times during the study.

Clearly, this was business I should have declined. My gut told me that during the first meeting, and repeated the message every time I had dealings with her. However, there is no teacher like experience, and I finally learned my lesson.

Now, I’m very attentive to any warning signs during early contacts. I avoid prospective clients who give off these signs. And I stick to my guns about the scope and pricing of work.

I encourage you to do the same. If, for some reason, you do take on such customers (which I don’t recommend), be very clear on why you are doing it and be very careful in your dealings with them.

I deal with clients who are a joy to know. They are helpful and cooperative. They let me do my job, respond constructively with feedback, ask intelligent questions and assist me in delivering the best work I can. I bend over backwards to help these clients.

There are always hiccoughs in business. Everyone has bad days from time to time. We all make mistakes. I don’t see any reason to add to the load by taking on difficult clients. Here’s a chance for you to learn from my experience.

Until next time, take care of yourself!

Free Web Authoring Tools

August 31st, 2006

If you don’t mind doing some work yourself, you can create your own website that is standards compliant using free WYSIWYG (What You See is What You Get) tools. Although I don’t use these myself (I like to hand code), I have used them on occasion in the past, and recommend them to clients.

In my last post, I talked about Linux as an operating system. There is a WYSIWYG editor available for Linux (as well as Windows and Mac’s OS X) - it’s called Amaya and is maintained by the World Wide Web Consortium (W3C). These folks develop the standards for web pages, and decided to create an editor that would provide a testbed demonstrate those standards. You can download it from www.w3.org/Amaya/Overview.html.

Another editor available for multiple operating systems is Nvu (pronounced n-view). I’ve recommended this one most often. It’s got some of the functionality of Dream Weaver (an excellent, if expensive, product) without the cost. You can get it at www.nvu.com/download.php.

As with the links from the last post, these will open in a new page.

Both programs will use Cascading Style Sheets (CSS), which is a way of controlling presentation separately from the content being presented. The benefit of a WYSIWYG editor, of course, is you get to see what you’re doing as you do it.

If you are more knowledgeable about HTML, XHTML and CSS, and haven’t picked an editor you really like yet, the one I use is HTML-kit. It, too, is free and you can get a number of plug-ins for it. It’s available from www.htmlkit.com/download/.

Take care until next time.

A Note About Software

August 29th, 2006

This is just a general note about some good software I’ve found and have used. I thought I’d share the information with you today. Please note that all the links in this post will open in a new window.

First, for those of you who blog but find logging in, entering your post, publishing your post, and dealing with your blogging software’s administrative overhead to be a pain, I’ve found a pretty cool program called “BlogDesk“. You can compose off-line, save your work, make changes, and, when you’re ready, publish without ever logging into your blog yourself. The program operates much like a basic word processor, and you don’t have to know any HTML to use it. Best of all, it’s free. Get it from www.blogdesk.org.

If you want to work on word processing documents on-line, or collaborate with others on a document, Google (I know, I know) has a free program called “Writely“. I tried this a few months ago, and it only worked in Firefox. Now, however, it will also work in Internet Explorer. You have to set up an account, and it is somewhat limited, but it will allow you to save documents in Microsoft Word format. Did I mention that it’s free? www.writely.com.

You’ve probably already heard about this. It’s a free office suite - word processor, spreadsheet, image editor and presentation editor - called “Open Office“. It will save your work in its own native format, or you can save in the corresponding Microsoft Office format. I don’t know how well it works with the latest and greatest in Office (XML), but it works fine with Office 2000. The interface is a little clunky, but you can get customize it so it’s closer to Office. It is also cross-platform, which is a plus. Go to www.openoffice.org. This is a fairly large download, and you will need a fairly recent Java (from www.java.com).

If you’re tired of Windows, and don’t mind a little tinkering with your operating system, you should give Linux a look. Linux is usually freely available for desktops, and also for some servers. The biggest name in Linux distributions is Redhat. They have a free version called “Fedora” (www.fedora.redhat.com) which is very stable. If it’s been years since you tried a Linux distribution, you may want to give this a whirl - it’s much easier to install and has drivers for most of the hardware you’re likely to run. I should warn you, though, that some printers and modems that are Windows based won’t work (at least, not easily), so be careful before you format your hard drive for this.

That’s it for today. Until next time, keep well.

Buzz - How to Get It, How to Use It … Although It Doesn’t Always Work

August 22nd, 2006

The last two weeks have given us a couple of good examples of buzz, and how it works (or doesn’t work, as the case may be).

The first example is the World AIDS Conference in Toronto. The Prime Minister of Canada, Mr. Harper, decided not to attend the Conference and also decided not to make a couple of scheduled funding announcements. This was not anything that the Conference Committee intended to have happen, nor anything of which they took conscious advantage. However, at least in Canada, it brought enormous attention to the Conference and to AIDS itself. This has to be a good thing, because, in addition to the buzz surrounding Mr. Harper’s non-appearance, it also brought a focus on some of the sessions. People who might otherwise not have heard anything about the progress being made (and still needed) in the battle against this terrible disease were exposed to some of this information. That, I have to conclude, is a good thing.

The second example is the film Snakes on a Plane. The producers and distributors worked very hard to create buzz around the movie. Apparently, you could even arrange to have Samuel L. Jackson “call” your home and encourage you to drop whatever you had planned for last Friday to go see the movie. Based on the box office figures for the opening weekend (it took in around $15 million, which isn’t much for something like this), the buzz really didn’t work. Even though the critics were okay with the movie, people stayed away in droves.

What can we learn from this that is usable?

First, if you are doing something newsworthy (the AIDS Conference), and an unintended event takes place around it (the snub by Mr. Harper), you will draw more attention. In this instance, I don’t believe Conference organizers did anything to capitalize on the event, but you do have that option. As an example, last year there were a great many product launches in the internet. Some of them took place around this time. You may remember that Hurricane Katrina hit New Orleans in late August. Smart marketers, rather than spending lots of money on affiliate programs, announced that a portion of their sales would go to Katrina relief efforts.

What I like about this is that it is public-spirited and still creates buzz. The originators of these products certainly did not intend that a disastrous hurricane would arrive when they launched. Unfortunately, however, it did happen. They were able to move quickly to help those hurt by Katrina and still generate sales. This is a classic example of a win-win situation. I applaud them for their sincere generosity as well as their creativity.

On the other hand, we have Snakes on a Plane. The execution of their marketing program was pretty good. However, the product itself is at fault for its dismal performance. First, they have made a movie about something that isn’t exactly near and dear to the hearts of many people - snakes. Then, they created a situation within the movie that would hype up the negative feelings many people have about snakes - you’re trapped on an airborne plane with a bunch of dangerous reptiles that have gotten loose. I’l admit I am repulsed by snakes, so this rated about a 12.5 on a scale of 10 in my avoid-o-meter. However, even for the average person, this had to rate high.

To top it off, the movie was “okay” - it didn’t get a lot of raves. While people might line up to see a great film about a phobic subject (think Oliver Stone’s World Trade Center), it is unlikely that they would do so for an average movie. In fact, they didn’t.

One last thing about Snakes on a Plane: the title. One of the first things I learned in sales was that mystery (or, at least, curiosity) creates interest. The title of the movie pretty well took care of any curiosity people might feel. If you’ve heard the title, you probably know enough about the movie to judge whether or not you want to see it. Death at 30,000 Feet might have been a better title if you wanted to create curiosity about the film. You know something bad will happen, but you don’t know what. Based on your curiosity, you might go to see it. This way, even if you walk out after the first twenty minutes, they have your money.

Until next time, here’s wishing you “good business”.

The DaVinci Code - an Exercise in Marketing?

May 23rd, 2006

Now, before anyone gets really excited and angry, let me just say that I’m not taking sides in this post, nor am I attempting to be critical of either side.  I have a personal opinion which I don’t propose to share (THERE’s a first!) because it’s irrelevant here.

The DaVinci Code is a text-book example of brilliant marketing, whatever else you may think about it.  While many people on both sides of the argument take it extremely seriously, I can’t help but think what a wonderful lesson in marketing it is for us all.

The book is reasonably well-written, and the movie is at least competent (opinions vary on this, too, but I’ll stay away for now).  In that, they are like many book/movie combinations we’ve seen before.  What is different is the controversy they have aroused, and the way each “side” in the debate seems, either consciously or not, to be taking this as a marketing opportunity.

Some Christian churches apparently view this as a chance to educate the public on their beliefs and activities, and to bring lapsed members back in.  Even Opus Dei, who are painted as the heavies in the film, have started some serious outreach.  While it might seem defensive in nature, these groups are actually taking the initiative to encourage discussion and getting people thinking about their faith.

The encouragement of boycotts of the film will serve to get people to go see it, so these groups are in fact doing marketing for the studio and the publisher.  Somehow, I doubt this is their intention, but it is the probable net effect.

Meantime, the author and publisher are sending mixed messages about the veracity of their claims, and we seem to be drowning in TV shows that say since it might possibly be true, it must have happened.  All of this will also sway the undecided to at least read the book or see the movie.

What is the take-away for us as marketers?  I suppose it goes to show that the old adage (there’s no such thing as bad publicity) still has some truth to it.  If it’s news, some people will at least be interested in finding out about it.  If it’s controversial, it would seem teven more of them are even more motivated.

A good example of someone who knew and used this is Anita Roddick of the Body Shop.  She was forced to take some shortcuts when she started her business, and those short cuts (re-usable bottles, etc.) were news.  She also took stances which were controversial - pro-environment, pro-development in Third World countries.  She made herself something of a lightning rod for controversy, in fact.  The result?  She has grown her business from a single store in theUK to over 1,900 outlets in 50 countries, and “cashed in” when she sold the business to l’Oreal of Paris.

So - what about your activities is news?

Have fun!

Updates - May 22, 2006

May 22nd, 2006

As part of the overall re-design of the site, I’m moving the blog away from blogger.com.  I’ve reposted three of the original four posts (the one about hockey seems a little dated now that the flowers are in bloom here in the Toronto area, so I won’t be moving it.  I’ll come up with something else about responsibility at some time in the future).

Please feel free to engage in discussion of any of the posts, ask questions, make comments or disagree with me.  It’s all input, and will help (I hope) to build a community of entrepreneurs, would-be entrepreneurs, and their supporters.

Cheers!

The Really, Really Short Course on Strategic Planning

February 27th, 2006

We’ve all heard the old adage about failing to plan is planning to fail. And the one about if you don’t know where you’re going, any road will take you there. The fact is, these are true statements. They may have become trite, but that doesn’t diminish their truth.

So, today, we’ll begin a series to take a look at part of the planning process. This is the “highest” level - strategic planning. And we’ll start with the highest level of the strategic planning process - vision and mission.

Definition

Strategic planning identifies what you or your business is all about, what your aspirations are, the tools you have to get you there, the blocks you may face on the road, and your over-arching approach to the journey. As with many things in life, it all starts with vision.

Vision

Your vision, whether for yourself or your company (or organization, if you are involved with a not-for-profit), entails an imagining of what you could be doing to benefit the world. I get a lot of disagreement on this; many think they are in business to make money. However, if you aren’t delivering something to make the world better, more convenient, smoother running, safer, etc., you won’t make much money.

As with everything else, there are levels here. A traditional automobile manufacturer may not be viewed as contributing much to the planet. Their product pollutes, it consumes a diminishing resource, and, at the end of its life, becomes junk. However, on the way, it makes life easier for human beings, allows them to be more efficient in many of their tasks, and provides employment, both directly and indirectly.

So, to begin, ask yourself how you will benefit the world, or a group of people, or even a single person. That’s your vision. I can give you only one example here: my own business. I want to help people get more of what they want from their businesses, or from their volunteer organizations; to help them realize the things they went into business for - money, yes, but also a better quality of life, fulfilling a higher societal purpose, having more family time, or whatever else it is they want.

Mission

The approach I use to develop a mission statement is three-fold. First, what problem do I solve? Next, for whom do I solve it? Third, what geographic scope do I set for myself? Optionally, I also ask what social benefit do I deliver?

I have found it useful to think in terms of problems solved because it gets us away from thinking in terms of products or services. Take Olivetti as an example. Originally, Olivetti made typewriters. They thought of themselves as a company that delivered that product. Then, in the late 70s or early 80s, along came the word processor. It wasn’t a typewriter, so Olivetti didn’t feel threatened by it. In the mid-80s, the computer arrived. It could process documents and output them on a printer. Still, it wasn’t a typewriter. Olivetti didn’t have a problem. The actual fact, of course, is that they had a huge problem. Word processors and computers could do everything a typewriter could do and more. Over time, they became as cheap as typewriters. Olivetti nearly went to the wall

The company tried to play catch-up by introducing a computer that was priced higher than the competition. That failed. Now, they have positioned themselves in the printer and telecommunications market. From my point of view, they have recognized that what they do is help people produce and communicate information. Their lives could have been much easier had they realised that about 25 years ago.

So, what problem do you solve?

Next, for whom do you solve it? In the broadest terms, do you work with individuals, companies, governments, or not-for-profits? This list is not mutually exclusive. Many businesses deal with all these markets, and there’s nothing wrong with that. Remember that, in answering this question, you aren’t dealing with your current client-base, but with your ultimate aspiration.

Next, what is your geographic scope? Once again, this is aspirational. You may be content to be a local or regional operator, or you might prefer to do business nationally or internationally. Do not be worried, at this stage, about “how” you will serve these areas. I work a lot with start-up businesses. These owners often have difficulty imagining how they will serve an international market when they are working out of a basement office, or building something in a workshop behind the house. Where they (or you) are now is irrelevant. Mission is about where you want to be. We have the rest of the planning process to deal with how you will grow to the point that you can operate globally.

At this point, you should be able to put together a single sentence that describes what your business will be. A couple of examples might be helpful. In my case, David Petrie Associates helps North American business owner/managers, and managers of not-for-profits, to operate their organizations more profitably and effectively.

On a larger scale (and working with deduction from what I can observe), Hewlett Packard/Compaq works to develop quality tools to help individuals, organizations and governments everywhere handle their information better and more efficiently. Toyota Motors helps individuals, organizations and governments across the globe transport themselves, their stakeholders, and their property easily, quickly, enjoyably and economically.

You get the idea.

Finally, what is the social benefit you provide? As I mentioned, this is optional, but many forward-looking organizations identify this. We’ve recently (February 2006) finished the Olympics. Many corporate sponsors are involved with the Olympic movement because they support the benefits that athletes gain - better health, increased enjoyment, achievement, etc. I had a client a number of years ago that was a reseller of used mid-range computer equipment. Their social purpose was to help the environment by recycling computers, keeping them out of the landfills and scrap yards.

Personally, I give away a lot of information on business, and spend a lot of time providing free or very low-cost training, to support entrepreneurs and thereby grow local and national economies, create jobs, and live more fulfilling lives.

Why?

What is the purpose of the vision and mission? Your vision sets the groundwork for your business activity. It provides the basis for your mission and everything that comes after. It’s the concrete and cement and rebar that holds your house together.

Your mission statement is the standard against which you measure any potential business opportunities. If you look at an idea, product or service, ask yourself “does this fit with our mission? Does it help solve the problem we set out to solve? Does it work with and for our target markets? Is it within our geographic scope?” If the answers to these questions are negative, then it represents an expansion of the business away from what you have identified as your core competence, and you should probably pass on it.

Next

In the next post in this series, we’ll talk about goals and objectives - things that build on and amplify the mission. Until then, best wishes for your success!

About the Links…

February 16th, 2006

At the moment, there are five links on the site:

  • Canada themovie - this is a major documentary being produced by John Thomson, an award-winning director.  It takes in innovative look at my home and native land.
  • The Only Option Mentoring - this group provides mentoring based on the brilliant three-step program developed by Al Diaz.  It deals with your attitudes towards money which, I have found, can have a significant impact on your business success (or lack thereof).
  • Google News Canada - most of the content here is the same as Google News USA, but there is some Canadian information as well.
  • Home - I’m finally making changes to my primary site.  The look has been drastically changed, and I’ve added a bookstore, an e-course and (of course) this blog.  Keep you eyes out for more changes as we go along.  Navigation is at the top.
  • Annie Anderson - an excellent writer, real estate expert and life coach.  Annie brings impressive talent to her activities, and a personal approach that helps her clients achieve their objectives in their communications and in their lives.

If you think there are other links that may be relevant to entrepreneurship, e-mail me the information at david @ davidpetrieassociates . com (remove the spaces first) and I’ll take a look at them.

 

Welcome

February 16th, 2006

Welcome to Management Bits and Bites. As time goes on, I will comment on business issues with a decided slant towards independent business owners. Occasionally, I will also rant a bit about other concerns. I may even tell you about myself - you just never know, unless you take a look periodically.