Posts Tagged ‘Business’

Is “risk management” killing our productivity?

By Elaine Mah

I found myself wondering this week if our conservative Canadian approach to managing risk will have a negative impact on future productivity—and, ultimately, innovation—when I read a recent report from Deloitte Canada http://www.theglobeandmail.com/report-on-business/economy/canadians-score-lower-on-risk-tolerance/article2060767/ .

The report by Deloitte found that Canadian business leaders are not planning to invest in the types of activities required to improve productivity. “Our study substantiates—for the first time—that it’s true, not a hypothesis, that Canadians are indeed more risk-averse than Americans, despite our current positive economic climate,” said Bill Currie, Deloitte Canada’s vice-chair and America’s managing director of consulting.

Deloitte’s report comes on the heels of Stats Canada’s announcement http://www.bnn.ca/News/2011/6/10/First-quarter-productivity-up-04-below-forecast.aspx that Canadian productivity numbers, while up a little, were half the increase we were expecting. That’s not good news, considering our economy has been doing well.

The report identifies five key issues driving Canada’s productivity woes:
· chronic under-investment in machinery and equipment
· sheltering of the Canadian economy
· increasing competition for human capital
· inefficient and insufficient support for innovation
· lack of risk capital for start-up companies.

Many of these issues not only hamper productivity, but also limit our ability to innovate. And, let’s face it, it’s often SMBs that lead innovation; if there’s no support—financial or otherwise—it’s hard for them to make strides.

Let’s look at a company like PackSmart http://www.intel.com/Assets/PDF/general/Pack-Smart_CaseStudy.pdf. They use technology to build more effective machines to make packaging for the products we use every day. While the cost of the machines can be high, return is significant for the business. But if those same businesses can’t get financing to purchase new equipment, they lose out on that opportunity not only to innovate, but also to boost productivity gains.

To be competitive, we need to collectively open ourselves up to new ideas, new opportunities and new markets, while finding new ways to increase productivity, whether through technology and better collaboration or sharing of data (more on this in a later post).

As Deloitte’s report says:  We’re at a crossroads. Let’s choose the path to innovation.

What do you think? Do we need to give ourselves more credit? Are we more risk tolerant than we think and will that risk aversion hurt our innovation over the longer term?

ELAINE MAH joined Intel Canada in 2005 as Canadian Business Marketing Manager. She is responsible for Intel’s brand management, product positioning, product launch management and marketing research, as well as sales and integrated marketing communications, advertising and promotional campaigns designed to reach Canadian business customers. Prior to assuming this position, Elaine was Vice President at Sharpe Blackmore Euro RSCG, where she was responsible for planning and strategy on accounts including Direct Energy, Volvo, and Yahoo!, along with new business development. A marketing professional for over 20 years, Elaine received her Bachelor of Commerce degree from the University of Alberta.

Posted by Ashley in Getting Started, Growing Your Biz on February 3rd, 2012

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Is Franchising For You?

From the Canadian Franchising Association

With a mix of entrepreneurial opportunity and a tried-and-true formula for success, the franchise business model is an opportunity for people looking to be in business for themselves, but not by themselves.

When you think about a franchise, which well-known brands immediately come to mind: McDonald’s, KFC, or Subway, perhaps? “A lot of people think of franchising as ‘fast food,’” says Lorraine McLachlan, Canadian Franchise Association (CFA) president and CEO. “What most people don’t realize is that franchises can be found in nearly every industry, from quick service restaurants to automotive, education and retail, just to name a few.”

That’s because the franchise business model lends itself well to virtually any business sector. In franchising, the company that owns the brand (called the Franchisor) licenses its brand, product or services and way of doing business to an investor/business owner (called the Franchisee.) In return, the Franchisee provides a share of his or her income back to the franchisor. “Any business that can be exactly replicated in multiple locations can be a franchise,” McLachlan says.

There’s a wealth of franchises operating in Canada. A look at the CFA online member directory shows hundreds of franchise brands in a wide variety of categories. According to the CFA, there are an estimated 1,200 franchise systems and around 78,000 franchised locations across Canada.

Before you sign on to become a franchisee, you’ve got to do your homework. There are two things you need to assess: yourself and the franchise systems.

Knowing yourself and what motivates you is the first step to finding a great franchise fit. Think about how and where you’d like to operate your business and which industries or business sectors are most interesting to you. Look at your skills, talents and preferences and assess your financial situation.

Next, investigate the franchise brands that fit with your lifestyle and interests. Use all the research tools at your disposal, including franchise publications, websites and tradeshows. Speak with people from the franchise’s head office and talk to existing franchisees to get first-hand views on what it’s like to be a franchisee with their system.

As you research your options, what signs of a successful franchise system should you look for? “The success of a franchise system can be influenced by a number of factors,” says McLachlan, “so you will want to explore all aspects of the company as part of a proper due diligence process.”

Ask if the system is a CFA member. Members adhere to the Association’s Code of Ethics, which outlines ethical best practices for, among other things, disclosure of financial records and projections. The franchisor should provide you with full and accurate written disclosure about the franchise system in a timely fashion.

Look at the core of the franchise system concept: the products or services offered. The concept should be unique and differentiated from competitors, with a clearly defined market. There must also be consistency from location to location, an important hallmark of the franchise business model.

Ask how they select franchisees to operate their locations. “Just as you are investigating a system, the franchisor should be conducting their own due diligence about potential franchisees. They should be keen on ensuring any relationship entered into will be mutually beneficial,” McLachlan says. Beware if you feel hurried or pressured into a decision – a good franchise system will want to take the time to be certain that signing a franchise agreement would be in both parties’ best interests.

Consider the level of support, training and communication offered to the franchise system’s franchisees. You should receive information about this from the franchisor, but a great way to find out more is to speak with some of the system’s current franchisees. Ask them about what their initial and ongoing support and training entailed and their satisfaction with the amount of communication they have with head office. This can give you a clearer idea of what you can expect should you join the system.

Before signing on the dotted line, the more you can investigate and evaluate a franchise opportunity, the better, says McLachlan. “When you invest in a franchise, yes, you’re investing in a concept that has been developed and tested, but making an informed decision is a vital first step in realizing your franchise goals.”

For more information and to start your search, visit www.cfa.ca.

About the Canadian Franchise Association

With almost 500 corporate members nation-wide, representing many of Canada’s best-known brands, the Canadian Franchise Association is the national voice of franchising in Canada and works with all levels of government to develop industry-made solutions. CFA promotes excellence in franchising and educates Canadians about franchising, specific franchise opportunities and proper due diligence through its website (www.cfa.ca), programs, publications and events including The Franchise Show in Toronto, Vancouver and Montreal.

 

Posted by Ashley in Getting Started on January 25th, 2012

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Is your workplace as safe as it should be?

By Donna Marrin

John’s desk has an annoying network of device cables hanging loose beneath it, and he’s been meaning to address the issue… As John prepares to leave the office one day, his foot gets caught in a printer cable. He trips and falls hard, injuring his shoulder, while the printing unit that sits at the edge of his desk topples onto his arm, fracturing it near the elbow.

It’s hard to think about this sort of thing happening to you, but an incredible number of workplace accidents occur every day, with slips, trips and falls being the leading cause of office injuries. Most workplace accidents are completely preventable. Awareness is the first step in creating a safe environment. And a little common sense always goes a long way.

• Sure, stubbing a toe can be funny. Breaking a limb is not. Disabling falls can be prevented by making sure that all open spaces are clear of electrical, telephone and computer cables, boxes, and other clutter.

• Eat your pancakes—don’t be one. File cabinets frequently topple forward when drawer weight is unevenly distributed. Always close one drawer before opening another.

• Unless you’re setting up for a Saturday Night Live skit, close all desk and cabinet doors and drawers before you walk away to prevent “walk into” accidents.

• You can wear a helmet around the office… or you can make sure supplies are stored inside cabinets, not on top of them, and heavy items placed in lower drawers or on the lowest shelves.

• Unless your workspace is an ice rink, be aware of any slippery surfaces. Drinks spilled on floors or even a dripping umbrella can be hazardous and should be cleaned up or identified immediately.

• Pay attention when you’re on the move. Don’t carry loads that block your view ahead. Not only can you trip and fall, you also become a human battering ram to the distracted coworker who walks head on into you. With that said, don’t read while walking, either. I know someone who slammed into a concrete post and knocked himself out cold while reading and walking.

• Not a fan of concussions? Then don’t climb on chairs, desks or boxes when you want to access something that’s out of reach. Use a secure stepladder instead, and have a spotter nearby.

• Handrails are in stairwells for a reason. Hold onto them when you’re descending OR ascending a staircase.

• No butts about it—millions of dollars in damages are caused each year by carelessly discarded cigarette butts. Here’s where that common sense comes into play: don’t throw matches, ashes or cigarette butts into wastebaskets.

• Hilarious in Christmas Vacation, but not so hilarious if overloaded wall sockets and extension cords turn you into a hill of ash at work. And you’ll get more than a full head of corkscrew curls if you mix wet hands and electrical switches, sockets, plugs.

• Keep an eye open for unsafe conditions caused by defective equipment, loose stairs or floorboards, torn carpet, slippery doormats, burned-out lightbulbs, etc., and report them to your manager immediately.

• No matter how much they’ve dared you to do it, do not lean back as far as you can in your chair!

Here’s to a safe 2012.

Posted by Ashley in Getting Organized on January 20th, 2012

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Four Steps to a Successful M&A

By Mark Wardell

When it comes down to it, the success of a merger or acquisition is all in the planning. Bringing two distinct companies together means you end up with two of everything: two sets of corporate structures, two sets of company policies and two different and unique ways of doing business. Making the transition seamless requires some detailed planning. In other words, you need to get your aim right before you pull the trigger.

Here’s how.

1. Reevaluate your organizational structure.

Start by taking a careful look at the organizational chart of each company. Does it make sense for the two organizations to be combined as one or will they go on as two separate companies? Whatever you do, it’s best to do it early in the merger with careful consideration of the resources that can now be shared, such as reception, administration and accounting.

2. Develop and articulate new corporate branding.

You’ll want to consider how the existing brands will fit with the long-term marketing goals of the companies. Will both businesses fold into one brand? Which brand? Or will it be a new brand? Is the current brand worth retaining or is it time to develop something new? How you proceed will of course depend upon your unique situation.

For example, a distribution company I’ve been working with recently purchased a similar business in another city. The acquired business, while in a similar industry, has a totally different target market and significant brand value. In this case, it made the most sense for the acquired company to maintain its distinct brand, but to be folded into the organizational chart of the parent company. The parent company took over the finance and administrative responsibilities for both companies, while the acquired company continues to manage its own operations and marketing, with some new supports in place.

3. Consider your people.

We all know a business is only as successful as the people who make up the company. In times of change, it’s more important than ever to consider all of the people affected and to proceed with clear communications. As soon as the news of the M&A is made public, get everyone from both companies together and provide your people with clarity on the news. There is often nervousness around mergers so good communication is crucial at this point.

As you move ahead with restructuring, take the time to investigate how employees at each company feel about the merger and to appropriately mitigate any negative feelings or expectations while doing everything you can to promote the positives  (excitement/opportunities) that exist.

Some companies bring in a specialist for this purpose. One of my clients recently hired a Transition Specialist to help with its corporate merger. The job of this particular specialist was to identify the skill sets of key people at the acquired company in order to offer new career paths in the parent company. It worked brilliantly.

4. Redevelop corporate policies.

Last but not least, policies — otherwise known as the lifeblood of business operations. Sounds dramatic but your corporate documents are what keep your business running as efficiently as possible. What systems or policies currently exist (or don’t exist) in the parent and acquired companies? What policies will you need to develop to account for your future direction? Developing an effective set of corporate policies isn’t necessarily fast or simple, but I guarantee it’ll be well worth your time in the long run.

In fact, each of these four steps requires consideration and time on the part of the business owner. However, if you’ve come this far in your M&A you’ll be wise to go the extra distance to ensure success in these critical areas, and in your future enterprise as a whole.

Mark is President & Founder of Wardell Professional Development (www.wardell.biz), an advisory group that helps business owners plan and execute the growth of their companies. The author of seven business books, Mark also writes regularly for several national business publications, including Profit Magazine, the Globe and Mail, and CGA Magazine. Email him at mark@wardell.biz

Posted by Ashley in Growing Your Biz, New Posts on December 12th, 2011

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How many ways can you market your business?

By Neville Pokroy

Whenever I speak to people about marketing their businesses, the first question I always ask is: “How many ways are there to market your business?” Or, “How many marketing tactics are there?” My next question is: “How many have you tried?”

Inevitably, the number mentioned is approximately five to ten different tactics. And the number most people have tried is around four to six. If that is your experience, then you are part of the norm. If your experience is different with larger numbers, then you are part of a very unique, and very small, minority.

I recently spent some time documenting the number of marketing tactics I could identify. Some are traditional tactics, some are interactive tactics, while others are guerilla type tactics, and the last group is “just common sense tactics.” Believe it or not, so far, I have reached a count of over 150 tactics—mind boggling, isn’t it?

So, you may ask, if that is true, how on earth does the average business person decide which tactics to use? And more importantly, how many should be used in a single year of marketing effort?

Let’s deal with the first question: “How do you decide which marketing tactics to use?” If you can only think of a handful of tactics (and they are probably the most common ones used by most people), then you are probably competing with your competitors in almost all spheres of marketing. By doing that, you may find it difficult to stand out from the crowd.

The solution is to identify tactics that are not necessarily commonly used and to bolster your marketing campaign with a range of these tactics. But the challenge still remains—what are my marketing tactic options?

The best way to develop this list is to step back from looking for answers and try, instead, to ask more questions. The answers to those questions will often give rise to new and innovative tactics that you have never considered before. Finding the right questions to ask becomes the key to your success.

As far as the second question is concerned—“How many should be used in a single year of marketing effort?” —the answer to that question revolves around what is appropriate for the business and what is affordable. It is also addressed as part of the questioning and via setting proper goals and objectives for the organization.

This process of questioning can be considered “Strategic Marketing”—it is the key to the long-term health and success of your business, and it is not very complicated if you know how to go about it.

Unfortunately, if you don’t have a marketer with a strategic vision on your payroll, you may need some help. The process requires some handholding, but the benefits are far-reaching.

Think about this—If you feel that you have not maximized the marketing opportunities available to your company, you should start asking more questions. Relevant questions. Questions that will cause opportunities to reveal themselves in some mystical and magical way. Actually, it’s not really mystical or magical. Much of it is, in fact, just common-sense marketing.

Article by Neville Pokroy, Marketing Partner at Mastermind Solutions Inc. Mastermind Solutions Inc. is a company that delivers top line revenue growth, higher profits, satisfied customers, motivated staff and lower operating costs. As a full-service marketing company, our multifaceted and fully integrated marketing services deliver additional sales and sustainable business growth to clients of all sizes. Contact Neville at neville@mastermindsolutions.ca or visit the website at http://www.mastermindsolutions.ca/

Posted by Ashley in Growing Your Biz, Marketing on November 28th, 2011

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Improve your sales: Implement a sales system that works

By Mark Wardell

If you’re an entrepreneur, then you’re already familiar with the fact that a business needs to be structured around systems in order to operate as effectively and successfully as possible. If you’re like most entrepreneurs, chances are you arrived at this conclusion by ‘winging it’ to a certain extent at one time or another. That’s how many of us learn just how important systemization is. Systems introduce a necessary amount of consistency into an otherwise unpredictable environment.

In fact, systems are what make it possible for you, or any of your employees, to improve your business in a more permanent fashion. Without systems, your business can rise only to the level of the individuals involved. If someone improves their own performance, then the business improves in direct proportion to their efforts, but if someone decreases their performance, then the business will deteriorate in direct proportion to their lack of efforts. Systems don’t leave success to chance—they make sure that standards are maintained across the board.

I find it surprising that while most people can see the benefits of a systemized approach to running their business, many feel that Sales is the one area that cannot, or should not, be system­ized. The prevailing thought is that salespeople must be free from the confines of structure in order to do their best work. In other words, “Hire the best people and let them do their jobs.”

Yet, isn’t this the definition of “winging it?” The Sales department, like your other departments, can and will benefit from being systemized. Here’s how.

First, take a close look at the people in your sales department. Of course, if you’re setting out to improve your sales, your first task is to reduce the number of individu­als in your sales force who have no aptitude for selling, and to increase the number who do.

Like your other departments, you will end up with some superstars. But no matter how good your recruiting system is, you may not end up with a whole team of superstars. That’s ok. Developing a system will ensure that each of your salespeople is doing their job as effectively as possible.

Next step: shadow and document. If you followed your best salesperson around for a few days, do you think you would begin to notice any patterns to her approach? Would there be some consistencies in the way she organizes her time, looks for new business, asks for referrals, or explains the features of your products or services? How about if you followed the best salesperson around from a competitor’s company, or even a company from another industry? Could you identify any common patterns within their various approaches? Sure you could. And you will. You’ll want to shadow and document these important details when developing a system for your Sales department.

It’s all about consistency. Now imagine your worst salesperson. If he made a genuine effort to emulate those patterns, would he improve? Of course he would. From this perspective, it is easy to see the potential benefits of designing a sales system that helps improve your weaker salespeople, but what about your best salespeople? How will a sales system benefit them? The answer is consistency. Even your best salespeople will probably admit that they occasion­ally get sidetracked and make a mistake. They might forget to mention a special introductory offer on a new product, for example. We all make mistakes of course, but a good sales system will keep them to a minimum.

And the right amount of flexibility. Another argument against introducing systems into the sales process is that no two sales are exactly alike; after all, no two customers are exactly alike. But while this may be true, it doesn’t mean that sales can’t be systemized. It simply means that your sales systems must be designed with an appropriate amount of flexibility; how much flexibility will depend on your particular business. You’ll have to use your best judgment.

A sales system for a fast food restaurant, for example, will require less flexibility than a sales system for an architectural firm.

For instance, one of our Wardell clients sells office supplies to two distinct target markets. One requires the sale to be made to a C-level executive, while the other requires the sale to be made to a purchasing agent. The executive sale is more complex, depending on highly trained sales reps and interactive presentations, while the purchasing sale is more structured, incorporating significant scripting.

In the end, the most comprehensive approach to sales takes into account both peo­ple and process. In other words, you need to keep your salespeople and sales systems front of mind as you set forth to systemize your department. Do this, and you’ll be celebrating higher numbers in no time!

MARK WARDELL is president and founder of Wardell Professional Development, a business consulting firm, focused on the unique needs of private growth companies. You can reach him at info@wardell.biz or http://www.wardell.biz

Posted by Ashley in Getting Organized, Growing Your Biz on October 17th, 2011

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Can the subconscious drive business strategy? Part II

By Neville Pokroy

How the subconscious can drive success

The subconscious business reality will be identified by a specialized team that uses proprietary tools to uncover fresh subconscious insights. These tools highlight a combination of cultural and organizational drivers that detail how customers and prospects operate relative to your business issue at hand. It then uncovers and sequences a detailed strategic roadmap to the ideal solution for that issue.

Sounds crazy? Can you think of a really good practical reason why a company such as Starbucks even exists? They are, by far, the most expensive coffee shop around; their coffee and other products are a little weird, and they speak a really strange language. Yet, the growing customer base has a real affinity with the store, with the brand, with the image. The brand resonates with people because of an instinctive feeling, an association with something cool, and a gut feeling that it “just feels right for me.” They just love the idea of Starbucks.

By truly understanding these subconscious drivers and by allowing these drivers to positively collide with the conscious reality, a brand new set of creative ideas will be born. 

In real life, this process worked so well for a top paediatric hospital that the resulting marketing and fundraising campaigns broke records in the industry, and the $100MM annual fundraising target was met two years ahead of schedule. As a consequence, top paediatric hospitals from around the world have conducted extended site visits to this institution to study its stakeholder engagement and marketing practices.

Big Bang for Business is not for the faint of heart or for the complacent. If you are comfortable with the status quo, it is not for you. It’s for the bold and the driven. If you are launching something new or wish to put the past behind you and want to dominate your market, consider Big Bang for Business.

Neville Pokroy is a principal of Mastermind Solutions Inc. He runs the Marketing practice, which includes strategic marketing planning and execution, and now also includes the Digital Umbrella. Neville has over 25 years experience in corporate marketing and consulting in entrepreneurial businesses across an extensive range of industries. Neville’s special skills include the ability to translate his corporate marketing expertise into a disciplined set of marketing skills ideal for entrepreneurial businesses. If you have any questions, please contact neville@mastermindsolutions.ca or 905-886-2235

 

Posted by Ashley in Getting Organized, Growing Your Biz on August 31st, 2011

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Keeping customers when things go wrong: Five keys to turning upset customers into fans, PART II

By Jeff Mowat

(Continued from Monday)

3. Prove that you’re listening When a customer voices their dissatisfaction, stop whatever you’re doing, turn toward them and give them an expression of total concern. Listen without interrupting. Then prove that you’ve heard them. That means repeating and paraphrasing. IMPORTANT: make sure you tell them why you’re repeating what they’ve said. For example, you might say, “I want to make sure I’ve got this straight…” (then paraphrase and repeat). That ensures the customer knows that you truly understand the problem.

4. Express sincere empathy Virtually every upset customer feels frustrated because they didn’t get what they expected. It’s that simple. Whether or not they have a valid reason for feeling frustrated is completely irrelevant. Upset customers need to know that you care—not just about their problem, but also about their frustration. So, empathize. That’s something that no refund or exchange will ever replace. Use phrases like, “Gosh, that sounds frustrating.” Or, “I’d feel the same way if I were you.” Empathizing will diffuse an angry customer faster than any thing else you can do.

5. Apologize and provide extras Tell the customer, “I’m sorry.” Even if it wasn’t your fault, but your coworker’s, you represent your organization to that customer, so apologize on behalf of the entire company. Even when you suspect the customer may have erred, it’s better to give the customer the benefit of the doubt, than to be “right” and loose a lifetime of repeat and spin-off business. If your product or service really did fall short of the mark, then to retain the customer, of course you’d give them a refund or exchange. But that’s not enough. On top of the exchange or refund, give them something for their inconvenience. Any small gesture or token of appreciation (that doesn’t force them to spend more money) will be greatly appreciated and will transform that upset customer into one of your greatest advocates.

The Training Solution

Every business has occasions where things go wrong and customers are disappointed. When that happens, your customer base won’t be preserved by money back guarantees or exchanges. Rather, your business will be saved by properly trained, front-line employees.

JEFF MOWATT, CSP is an international speaker and corporate trainer. His focus is, “The Art of Client Service… Influence with Ease.”® For tips, self-study kits, and information about booking Jeff, visit www.jeffmowatt.com or call 1-800-jmowatt (566-9288).

Posted by Ashley in Growing Your Biz on July 27th, 2011

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Canada Post Strike – How Was Your Business Impacted?

By Ashley Jang

To most business owners, running a business means that you often need to rely on postal service to ensure that business related documents and packages reach their destinations on time. So what happens if an organization like Canada Post decides to strike, preventing your critical business documents from going where they need to go? Earlier this month, business owners found out exactly how this decision would impact their business.

Were the consequences of the strike a severe blow to small businesses operations? While businesses still rely on courier companies to send and receive items like packages and original documents, an increasing amount of paperwork is now transmitted online, reducing the need for snail mail. Take invoices, for example. Most companies offer customers the option to subscribe to online billing—this not only helps conserve paper, but customers also enjoy quicker access to their payment information. With news of an impending strike, some organizations took steps to change their business processes in order to avoid possible inconveniences. Union Gospel Mission, a large charity in Vancouver, initiated an online giving site so that donations could be made online instead of by mail. Allowing for online transactions not only saves money and time, it is also much more convenient for everyone involved.

Everyone knows that the majority of our mail consists of bills. For the most part, everything else is junk. So if people begin receiving all their bills online and no longer accept the junk mail, will we soon see a day where snail mail is used only for packaged deliveries? Courier companies have likely seen a spike in package deliveries due to the increasing number of products being ordered on the Web. Will these deliveries soon become Canada Post’s main function?

Did the Canada Post strike impact you or your business? Please share your experience in the comment section below. One lucky commenter will win a $25 Staples gift card! Please include your name and email address with your comment so we can contact you directly. Contest open until midnight EST.


Ashley Jang currently works as a Social Media Community Specialist for Staples Canada. She has a background in journalism, social media marketing, blogging and strategic communications.

Posted by Ashley in Lifestyle on June 29th, 2011

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The Power of Saying No

By Eric Gilboord

Why say No
Some small business entrepreneurs want to own their own business in order to say Yes—Yes, I want to buy that desk. Yes, I’m going to hire you. Yes, I’ll take the assignment. Yes, I’m going to take today off. But the real power is in knowing when to say No. It is often said that you shouldn’t go shopping when you’re hungry because you’ll buy out the store and make choices that are not good for you. The same rule applies when you are growing your business. The short-term advantages of a Yes today could be far outweighed by the long-term disadvantages tomorrow.

The trap many small businesses fall into is when they assume that being busy and being successful are one and the same. Or when they take assignments/orders based on the need to pay the rent or salaries. While these are very real reasons to accept an order, they could also turn out to be costly and destructive to your future. There are businesses that take fewer orders, but are more profitable than their competitors. Some businesses enjoy tremendous profit margins from small ticket orders. They just happen to write many small but profitable orders each day, having learned to process small orders efficiently.

Success is not always based on gross sales. But staying in business is based on being profitable. If you learn to say no to the wrong opportunities you will create a vacuum to be filled by the right opportunities.

Have you ever been forced to turn down an order because you were too busy
processing other less profitable orders? If only you had turned down that last minute request for a special order needed right away, you might have had the time for the good order. Picking and choosing opportunities may seem like a luxury, but is really a necessity for survival and growth.

There is a caution, though—don’t be arrogant or too picky without thinking the opportunity through. The key is to have a formal business plan and marketing strategy in place to use as a basis for making your decisions. I have found much comfort and relief in turning down an opportunity because it was not on strategy for my company, since I have already determined which clients I want to service. When approached by a prospect or when going out proactively to seek out new business, my internal radar directs me toward the most appropriate situations and away from the undesirable ones. Through experience, I have learned to distinguish the good from the bad.

Saying No to customers or prospects
Not every assignment or sale is right for your company or makes the best use of your time. Every small business owner has at least a few customers they refer to as the “one day customers”—those with potential. One day I’ll make money on this customer. They look good on our client list and one day they will be profitable for us. This is just a learning experience until we get to know each other better and, one day, we’ll see some profit. Sometimes that day never comes. You have invested hours or days in a relationship and it can be difficult to let go. “If I hold on just a little longer, I’m sure the big order will come.” Sound familiar? It is important to be realistic about opportunities. I’m not suggesting that you walk away from an opportunity just because it isn’t a big order right off the bat; I’m saying that it’s important to take a good, hard look at each situation honestly and with a view to the future. You have the power to say No and doing so might save you from future anxieties.

Saying No to employees
You don’t want to diminish the enthusiasm of your staff or associated companies. Their ideas may be good, but not appropriate for your company at this time. Try building upon their idea instead of killing it. The way it was presented may not fit with your current plans for the future of your company. Or perhaps the suggestion is better suited to a point in time later on. Be open to new ideas, as the next concept may be the one that takes your business to a new level. Write it down and place it in a “bring forward” file. You never know where the next great idea or insight will come from. Sometimes, an outside source can see things a little more objectively or clearly. An internal staff member may have more direct customer interaction and, therefore, is in a better position to recognize real customer needs.

How To Say No
1. Quickly—You want to say no quickly, but not without giving the situation a reasonable amount of thought. In some cases, the person who came to you needs to make alternative arrangements and your decision will impact their next steps.

2. With An Explanation—An explanation for saying no may be required so they can understand your reasoning and won’t ask for the same thing again. Due to circumstances beyond your control, you may not be able to provide the caliber of service needed at this time, but would appreciate an opportunity next time.

3. Politely—Arrogance will always bounce back to bite you, usually at the most inappropriate time.

4. In Writing—Some situations require a more formal approach, and in the process of writing out your reasons, you will give yourself the opportunity to thoroughly examine the situation.

And that’s According 2 Eric.

ERIC GILBOORD is a specialist in making marketing easy for business owner/operators and any staff with sales or marketing responsibility. He demystifies marketing so they can use it to generate sales today and grow their businesses faster. Eric believes in blending traditional marketing with new media/social media. ROI is a must. Eric is a popular speaker, coach, columnist and author of many articles and books on moving a business up to the next level.  The Expert Business Calls for Marketing Advice… That’s Easy to Understand. For more information call 416-686-2466. To sign up for his marketing tips newsletter and to read his blog please visit: www.EricGilboord.com

Posted by Ashley in Growing Your Biz on June 22nd, 2011

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