Money Talks, But What’s It Really Saying?

Money TalksThe Real Reason You May Not be As Profitable As You Would Like

Everyone goes into business with the stated intention of being profitable. (Even nonprofits need to generate enough income to continue and expand their operations.)  We are also flooded with information on what to do with our money – yet, so often we are don’t take the steps in our personal lives or in our businesses to ensure profitability.  Perhaps our internal belief system around money has something to do with it.

We live in a culture that encourages debt and denies the lost art of delaying gratification. And, like color that fades on a cheap paint job, the repercussions of this lifestyle are beginning to show in both our economy and our personal lives.Read the rest of this entry »


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Recession Cure – More Entrepreneurship

Richard Branson shares sentiments on role of entrepreneurs in current recession.

Multiple Streams of Income (Traffic)

Videolicious.tv Search Engine Traffic 05/22/09...
Image by DavidErickson via Flickr

Many people are aware that their businesses should have multiple streams in income so that if something happens – say that one really big contract is reduced or eliminated all together – they and their businesses can still survive. In today’s business environment, with so much marketing being done on the internet, traffic plays a huge role in generating income.

It is just as important to have the multiple streams of traffic to your website(s) as it is to have multiple streams of income.

In a recent post on ProBlogger.com, Darren Rowse answered the question What to Do When Your Search Rankings Drop. One of the points he makes is to ensure that ALL of your traffic isn’t coming from Google or any other one source. This is akin to having all of your revenue coming from a single contract.

A good rule of thumb used by many consultants to analyze the health of a company is to asses the quality of the revenue. For most companies, if more than 30% of the revenue is coming from any one customer, the revenue is discounted because a 30% drop in revenue can be devastating.

Some good questions for you to consider are:

  • How much of your revenue is dependent upon traffic from any one source or strategy?
  • What would happen if the largest stream of traffic were to suddenly go away?
  • What can you start doing today to reduce your dependence, and thereby improve the quality of your revenue?
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Business Start Up Advantages

Creamy center = sketch of business plan
Image by juhansonin via Flickr

When starting a new business, most people can only think of all the challenges and disadvantages they have relative to established players. Here is a helpful blog post written for new software companies that I think is true for all companies.

Your Just Getting Started

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Finding Your Niche on Facebook

While many people are using Facebook for social purposes, small business owners are trying to use it for business purposes. Having clear goals and a strategy for engaging in social media for business purposes is important. On Facebook, there is an opportunity to grow connections to people in your targeted niche. The following video covers why you might want to do business on Facebook, what some of your goals should be, and how to connect with your target market.

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Be Careful How You Use Twitter

Image representing Twitter as depicted in Crun...
Image via CrunchBase

While social media may be all the craze these days, it is important to link your approach to using it back to your business objectives. Just because something can be done doesn’t mean it should be.

There was an article in USA Today on how Social Media Like Twitter Change Customer Service. It covered how more than half of the Fortune 100 companies use Twitter to provide customer service. Now, while I am a fan of social media and embrace its use in business, I believe companies must be careful in how they do it. In order to meet the expectations of the Twitter-sphere, to provide customer service on Twitter means having lots of people on the watch for a mention of something said that should be addressed immediately.

Comcast has 11 people and Microsoft, just for their Windows 7 product, has 7 people responding to customer service related posts. Companies are spending millions to do this. While it is only a fraction of the multi-billions of dollars spent on customer service, it seems to be moving the trend in a direction that is not so good for business.

Social media can, and often does when applied appropriately, drive down the cost of doing business, and in particular customer support costs. Support communities with both the company and, more importantly, other customers and product experts can provide answers through forums seems more efficient for everyone. Everyone learns and has their needs met faster when common questions are shared, suggested answers are proposed, near real time fee can be shared, and solutions are verified. Better yet, the next person with the same issue can benefit instantly from early exchanges.

The use of Twitter to provide customer support has the potential to do just the opposite of what is good for business and their customers. Instead of the cost going down, using Twitter can drive more one-on-one requests for support and therefore higher costs. It can make it difficult for other user of the company’s products to provide their experience (there is a low probability of someone having a group of people they follow on Twitter just because they use the same cable TV company.) Additionally, as the tweet stream vanishes over time, so does the knowledge with it.

In contrast, support communities allows others, including non-paid employees, to handle questions that arise, retains the knowledge, and makes the knowledge search-able by others with the same issues.

It might be interesting to learn a little more about how Dell is using Twitter. In the article, although they have multiple Twitter accounts, they weren’t the ones to respond to the tweet. Someone told them how to get in touch with a Dell expert. Was that expert a Dell customer service rep or perhaps someone active in Dell’s support community? In this instance, it appears as though Twitter was used as intended, to pose a problem and have someone, not necessary the company, help point them in the direction of a solution.

Sending people to the support community with your 140 characters might train people to go to the most helpful and cost effective place first instead of starting with Twitter.

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Considering the Customer’s Perspective in Marketing

When designing marketing messages and campaigns, the whole point is to encourage consumers to purchase your products or services.  However, most marketing efforts miss the mark because the focus is in the wrong place.  Instead of thinking about your product and services and what you want to share about them, thinking about the customer’s perspective will drive radically different behavior and results.

What this video to understand what a difference perspective makes in marketing.

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Facing Giants

Sometimes it’s just your attitude and mental toughness that stands between you and your accomplishments of seemingly impossible feats.

I’ve Got a Millionaire Mind

Your mindset is everything to your success. Watch this video daily and see the change.

Is Social Media a Fad?

Short video of interesting statistics on social media. How is it likely to impact your world?

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