I recently wrote a book called Why People Fail.
It examines the 16 biggest obstacles to success and how we can overcome them. Many readers asked me whether I had similar theories about why businesses fail. Of course, there are a myriad of reasons that cause corporate failure, but here are six of the biggest:
NO CLEAR MARKETING FUNNEL.
People usually don’t just discover great products. Contrary to the famous saying, if you build a better mouse trap the world will not beat a path to your door.
You need to develop a way to efficiently attract leads, then convert some of them. This seems so basic, but hundreds of thousands of busineses start with no clear marketing funnel and then have to rely on luck or referrals to get customers in through the door.
What’s your marketing funnel? Will you start with print ads? Google ads? A free offer? Direct mail? Unless you develop a system for marketing, your chances of making money consistently are minuscule.
NO FOLLOW UP OF CUSTOMERS.
Once you’ve got an enquiry from a potential customer, you have to stay in contact with them.
For how long? Well as the great marketer Dan Kennedy likes to say, “Until they buy or die.”
So many business owners are unaware of the importance of this. They get hundreds of phone enquiries or street walk ins, then let them leave without leaving any follow up details. Crazy.
Give them a reason to leave you their email address (a free report, a discount, a newsletter) then keep reminding them that you exist and that you sell some good stuff. You’d be amazed how well this works. This doesn’t just work for potential customers it works just as nicely for people who’ve already bought from you. Just stay in touch and many will buy from you again.
NO BUSINESS SYSTEM.
There are two types of businesses you can run. A talent based business and a systems based business.
A talent based business relies on the talents of a few key people. It can make money, but it’s precarious, because that talent may decide to leave. Or ask for too much money. Or get sick for a few months. Far better is a systems based biz.
It doesn’t just rely on talented people, it’s also got clear, organised systems and rules that staff have to follow. Creating a systems based business can be a bit of a hassle initially. But when you do the place will run much more smoothly and definitely more profitably.
NO PERSISTENCE.
Some people just give up too easily. They encounter a year of obstacles and just lose hope that things can change. Believe me, the corporate world is full of examples of companies doing it tough, then emerging triumphant.
In the early days Boeing was so strapped for cash they started producing furniture! True story.
The Marriott hotel chain started as a root beer stand.
Good companies take time. Sometimes lots of time. But so many entrepreneurs get depressed that they haven’t made a hundred million in their first three years. And give up soon after.
Don’t make this mistake. Extend your timelines, commit yourself to your company for the long term. It makes a world of difference to your results.
NO SELF BELIEF.
Closely allied to persistence, self belief is vitally important to the success of a business. When you have strong self belief you think better, sell better and lead better.
Potential clients sense it and are attracted to people who possess it. Almost every area of a Chief Executive’s performance lifts when they believe in themselves. Yet so few corporate leaders work on their beliefs. It seems a bit too touchy feely, too intangible, compared to say working on next quarter’s figures.
Yet focusing daily on your self talk, choosing empowering beliefs, refusing to give negativity substantial time in your head, will help you make more progress than working on almost any traditional business skill.
You tend to become what you think, so for goodness sake be careful what you think. As Henry Ford put it, “Whether you think you can or can’t, you’re right.”
NO MARGIN FOR ERROR.
The final reason businesses fail is simply that they sail too close to the wind. All they need is a little bit of bad luck- a tough six months, a key client who pulls their account, a senior staff member who leaves for a rival firm, and they find that they simply don’t have enough cash to survive.
This year alone I’ve mentored two CEO’s of online businesses who had fabulous sales, but just didn’t have enough cash in reserve. The result? They went under.
Warren Buffett likes to call this ‘Margin Of Safety’. When he invests in a business he makes sure the deal makes sense even if the company performs well below expectations. He doesn’t just depend on things going right, he builds in the chance that things will go very wrong. We all need to do the same.
A guy I know said that the most common phrase Richard Branson used when they were talking was ‘protect the downside’.
So take a look at these six causes of business failure. Ask yourself whether any of them apply to you. If you’re weak in even one of these areas your entire business could be in peril.
Make a plan today to fix that weakness and set a deadline by which you’ll do it. None are hard to fix, but all could become a nightmare if they are allowed to grow.
Sunday, December 16, 2012
Wednesday, December 05, 2012
Marketing Lessons from Obama’s Victory -- Siimon Reynolds
Most of us enjoyed watching the spectacle of the Romney/Obama war from a human and political point of view. But there are also some important marketing lessons that can be learned by analysing their battle.
1. ENTHUSIASM MATTERS.
When Obama turned up at the first debate as a seemingly unenthusiastic, quiet, taciturn leader he endangered his chances of staying President.
The next day the polls showed a substantial shift in public sentiment against him.
Why? It wasn’t the brilliance of Romney’s suggestions for the country’s future that damaged Obama, it was that nobody likes a leader without passion, energy and verve. Many were shocked by Obama’s unspirited performance and began to wonder if he was the right man to lead in these dire economic times. His lack of emotional energy cost him plenty.
The same is true when you’re trying to sell your product or service.
People buy enthusiasm, as much as they buy the product itself. If customers don’t feel that you’re totally comitted to and excited by what you sell, why should they be?
Are you showing total enthusiasm in your presentations? Or only going through the motions? The difference can be worth a fortune.
2. DETAILS AREN’T REMEMBERED.
I assert that the average voter found the endless statistics and facts of both part leaders totally befuddling. They not only didn’t understand the ramifications of much of the data proffered by Romney and Obama, but had very little memory of it anyway soon afterward.
It’s the same with your brand. Unless you keep your message really, really simple (then endlessly repeat it) then it’s unlikely you’ll make a memorable dent in your audience’s consciousness.
Most of us do the opposite. We say too many things about our company, so few are remembered.We list endless features of our products rather than talk in depth about the one or two that really matter .
As a result our brand doesn’t stand out amongst the countless other competitors who are all doing the same. There’s money in simplicity.
3. COMMUNITY IS PRICELESS.
Anyone who was on Obama’s email list couldn’t help but marvel at the deep sense of community his team created with it. Several times a day for months, emails were sent asking for donations, keeping supporters in touch with the latest news and taking every opportunity to make those on the list feel like they were playing a major role in the re-election of the President.
I remember that even on the election day itself, an email went out asking for 750 volunteers in my state (California) to leave what they were doing and lend a hand down at the polling booths. (I assume every state got their own email with this extraordinary request.)
Because millions of people were brought into Obama’s ‘inner circle’ by these emails, they not only helped him raise over a billion dollars, they felt a deepening sense of comradeship and loyalty to his cause.
Which inevitably led to increased votes.
What about you? Have you developed a community of customers that believe in what you’re doing, what you’re selling and what you stand for?
Do they feel that you are about more than making the sale? The more powerfully you make a stand for something the more customers will get behind you.
To his audience, Richard Branson isn’t about selling airline seats. He’s about making flying fun.
Steve Jobs didn’t strive to be number one in computer or music sales, he stood for an intense drive for product excellence.
Ralph Lauren doesn’t get up in the morning purely to make more money, he’s inspired to create a more beautiful life for his customers.
As a result, in all three cases these people created a community of millions of people who believed in them- and therefore the products they sold.
In your own way, you can do the same.
4. THE MESSAGE MUST BE CONSISTENT.
One of the key differences between Obama and Romney was their consistency of message.
One month out from election day Romney fundamentally changed many of his positions on important issues .
So much so, that Obama mocked him by saying there was a new disease of forgetfulness, known as ‘Romnesia’.
In contrast, Obama stuck with his core campaign tenets right throughout the election campaign. Yes, he adapted what he said about them, in response to Romney’s attacks, but he did not change his stance in any significant way.
It was tough to do, but was a crucial component of his ultimate victory.
How consistent are you?
With your company’s message and brand positioning? Your standards of service? Your follow through? Your operational systems? It’s not what you do or say occasionally, it’s what you deliver and how you come across day after day, year after year, that creates your reputation and engenders deep loyalty amongst your customers.
Consistency builds trust. Trust creates long term customers.Long term customers are the crucial element in building business wealth. In summary, while politics may seem a long way from business, it’s easy to see that many of the same elements generate success:
Enthusiastic delivery of message. Not getting too complex with the details. Building a community of followers. Maintaining consistency.
It pays to focus on them.
Whether you want to become President.
Or the President of your company.
1. ENTHUSIASM MATTERS.
When Obama turned up at the first debate as a seemingly unenthusiastic, quiet, taciturn leader he endangered his chances of staying President.
The next day the polls showed a substantial shift in public sentiment against him.
Why? It wasn’t the brilliance of Romney’s suggestions for the country’s future that damaged Obama, it was that nobody likes a leader without passion, energy and verve. Many were shocked by Obama’s unspirited performance and began to wonder if he was the right man to lead in these dire economic times. His lack of emotional energy cost him plenty.
The same is true when you’re trying to sell your product or service.
People buy enthusiasm, as much as they buy the product itself. If customers don’t feel that you’re totally comitted to and excited by what you sell, why should they be?
Are you showing total enthusiasm in your presentations? Or only going through the motions? The difference can be worth a fortune.
2. DETAILS AREN’T REMEMBERED.
I assert that the average voter found the endless statistics and facts of both part leaders totally befuddling. They not only didn’t understand the ramifications of much of the data proffered by Romney and Obama, but had very little memory of it anyway soon afterward.
It’s the same with your brand. Unless you keep your message really, really simple (then endlessly repeat it) then it’s unlikely you’ll make a memorable dent in your audience’s consciousness.
Most of us do the opposite. We say too many things about our company, so few are remembered.We list endless features of our products rather than talk in depth about the one or two that really matter .
As a result our brand doesn’t stand out amongst the countless other competitors who are all doing the same. There’s money in simplicity.
3. COMMUNITY IS PRICELESS.
Anyone who was on Obama’s email list couldn’t help but marvel at the deep sense of community his team created with it. Several times a day for months, emails were sent asking for donations, keeping supporters in touch with the latest news and taking every opportunity to make those on the list feel like they were playing a major role in the re-election of the President.
I remember that even on the election day itself, an email went out asking for 750 volunteers in my state (California) to leave what they were doing and lend a hand down at the polling booths. (I assume every state got their own email with this extraordinary request.)
Because millions of people were brought into Obama’s ‘inner circle’ by these emails, they not only helped him raise over a billion dollars, they felt a deepening sense of comradeship and loyalty to his cause.
Which inevitably led to increased votes.
What about you? Have you developed a community of customers that believe in what you’re doing, what you’re selling and what you stand for?
Do they feel that you are about more than making the sale? The more powerfully you make a stand for something the more customers will get behind you.
To his audience, Richard Branson isn’t about selling airline seats. He’s about making flying fun.
Steve Jobs didn’t strive to be number one in computer or music sales, he stood for an intense drive for product excellence.
Ralph Lauren doesn’t get up in the morning purely to make more money, he’s inspired to create a more beautiful life for his customers.
As a result, in all three cases these people created a community of millions of people who believed in them- and therefore the products they sold.
In your own way, you can do the same.
4. THE MESSAGE MUST BE CONSISTENT.
One of the key differences between Obama and Romney was their consistency of message.
One month out from election day Romney fundamentally changed many of his positions on important issues .
So much so, that Obama mocked him by saying there was a new disease of forgetfulness, known as ‘Romnesia’.
In contrast, Obama stuck with his core campaign tenets right throughout the election campaign. Yes, he adapted what he said about them, in response to Romney’s attacks, but he did not change his stance in any significant way.
It was tough to do, but was a crucial component of his ultimate victory.
How consistent are you?
With your company’s message and brand positioning? Your standards of service? Your follow through? Your operational systems? It’s not what you do or say occasionally, it’s what you deliver and how you come across day after day, year after year, that creates your reputation and engenders deep loyalty amongst your customers.
Consistency builds trust. Trust creates long term customers.Long term customers are the crucial element in building business wealth. In summary, while politics may seem a long way from business, it’s easy to see that many of the same elements generate success:
Enthusiastic delivery of message. Not getting too complex with the details. Building a community of followers. Maintaining consistency.
It pays to focus on them.
Whether you want to become President.
Or the President of your company.
Ways to Stay Motivated - Siimon Reynolds
Other than war, it’s hard to think of an occupation tougher than business. Anyone aiming high in the corporate arena is almost incessantly hit by obstacles, disappointments and failures. It can be hard on the mind.
In the future, I believe that every executive will work on their mental fitness every bit as much as their physical fitness.
After all, we all know that when our mind is sharp, focused and motivated our performance is usually superb.
With that in mind I’d like to present you with 3 ways to uplift your motivation. If you’re feeling a little depleted or defeated, use these techniques to lift your mood and your inspiration.
1. REMEMBER WHERE YOU CAME FROM.
Ambitious people all seem to have the same problem: they only think of where they’re going, not where they’ve come from. While this keeps them moving forward it often makes them also feel they have not achieved much- there’s always so much more to be done.
So take a moment every evening to look back on what you’ve achieved during the day. It’s almost always more than you thought. Then spend a minute remembering how far you’ve come in your career – what you’ve learn’t, how much wiser you’ve become, and all the progress you’ve made financially since you left school.
Just reminding yourself of your achievements lifts your morale and your self image, two critical components of high performance. Giving yourself a little pat on the back won’t make you soft, it will make you strong. You’ll feel ready to take on the world again.
2. THINK ABOUT YOUR BIGGER VISION.
It’s easy to get immersed and bogged down in the endless deadlines we all have each day. But concentrating on the immediate and urgent in our lives all the
time can be disheartening. Not to mention exhausting.
Yes we need to address the here and now, but we also must balance short term action with long term visioning. If you feel inundated with life’s activities the answer is almost always to take a step back and re-focus on your vision for your life.
What kind of person do you aspire to being? What kind of life do you want to have lived? What do you want your legacy to be?
Thinking about these big picture issues re-plants your mind in solid ground. It centers you, relaxes you, increases your confidence and sense of self. Each and every day we should devote at least a few minutes to remembering and clarifying our ultimate life vision.
It’s one of the most motivating exercises you can do.
3. SHORTEN YOUR DEADLINES.
If you’re feeling unmotivated, it’s usually because you feel you’re not making enough progress on your key goals.
Yes, you’re working hard, who isn’t, but the results aren’t coming as fast as you’d like.
When I’m coaching executives in situations like this I urge them to make the deadlines on all their tasks much shorter.
Instead of taking an hour to do something, aim to do it in 20 minutes. Instead of taking 5 days to finish that report, see if you can knock it over in one. As esteemed Harvard professor John Kotter has clearly showed, a lack of urgency is often at the heart of low achievement. Reducing the time you have to work on jobs engenders that urgency – you quickly break any feelings of lethargy. Short deadlines energise, inspire, captivate and get you back to working at your full capacity.
Pretty soon you start to see momentum and tangible results, which motivates you even further. Try it today. Cut the time you allocate to every task at least in half.
You’ll be surprised what an effect just this one technique has on your life.
Each of these techniques is easy to do, but can make a real difference to your motivation.
Together they can improve both how you feel and how you perform. If you do them once you’ll feel a bit better, but if you make them into a daily ritual you’ll find your confidence and effectiveness sky rocket.
In the future, I believe that every executive will work on their mental fitness every bit as much as their physical fitness.
After all, we all know that when our mind is sharp, focused and motivated our performance is usually superb.
With that in mind I’d like to present you with 3 ways to uplift your motivation. If you’re feeling a little depleted or defeated, use these techniques to lift your mood and your inspiration.
1. REMEMBER WHERE YOU CAME FROM.
Ambitious people all seem to have the same problem: they only think of where they’re going, not where they’ve come from. While this keeps them moving forward it often makes them also feel they have not achieved much- there’s always so much more to be done.
So take a moment every evening to look back on what you’ve achieved during the day. It’s almost always more than you thought. Then spend a minute remembering how far you’ve come in your career – what you’ve learn’t, how much wiser you’ve become, and all the progress you’ve made financially since you left school.
Just reminding yourself of your achievements lifts your morale and your self image, two critical components of high performance. Giving yourself a little pat on the back won’t make you soft, it will make you strong. You’ll feel ready to take on the world again.
2. THINK ABOUT YOUR BIGGER VISION.
It’s easy to get immersed and bogged down in the endless deadlines we all have each day. But concentrating on the immediate and urgent in our lives all the
time can be disheartening. Not to mention exhausting.
Yes we need to address the here and now, but we also must balance short term action with long term visioning. If you feel inundated with life’s activities the answer is almost always to take a step back and re-focus on your vision for your life.
What kind of person do you aspire to being? What kind of life do you want to have lived? What do you want your legacy to be?
Thinking about these big picture issues re-plants your mind in solid ground. It centers you, relaxes you, increases your confidence and sense of self. Each and every day we should devote at least a few minutes to remembering and clarifying our ultimate life vision.
It’s one of the most motivating exercises you can do.
3. SHORTEN YOUR DEADLINES.
If you’re feeling unmotivated, it’s usually because you feel you’re not making enough progress on your key goals.
Yes, you’re working hard, who isn’t, but the results aren’t coming as fast as you’d like.
When I’m coaching executives in situations like this I urge them to make the deadlines on all their tasks much shorter.
Instead of taking an hour to do something, aim to do it in 20 minutes. Instead of taking 5 days to finish that report, see if you can knock it over in one. As esteemed Harvard professor John Kotter has clearly showed, a lack of urgency is often at the heart of low achievement. Reducing the time you have to work on jobs engenders that urgency – you quickly break any feelings of lethargy. Short deadlines energise, inspire, captivate and get you back to working at your full capacity.
Pretty soon you start to see momentum and tangible results, which motivates you even further. Try it today. Cut the time you allocate to every task at least in half.
You’ll be surprised what an effect just this one technique has on your life.
Each of these techniques is easy to do, but can make a real difference to your motivation.
Together they can improve both how you feel and how you perform. If you do them once you’ll feel a bit better, but if you make them into a daily ritual you’ll find your confidence and effectiveness sky rocket.
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