How do growth companies survive in complex times?

Australia’s small and medium-sized growth enterprises face ongoing and increased stress in these challenging times. Business owners have to make difficult decisions constantly and demands come at you from every angle, all day long.

Successful entrepreneurs know, however, that there are enduring key principles that improve a company’s prospects for growth and continuing profits and make it stand out from the crowd.

“At Bibby Financial Services we are constantly interacting with entrepreneurs and fast moving companies. Fast movers are the growth engine of our economy, and this is a key reason why we continue to support the sector, says Greg Hardiman.

“We have observed time and again that staying calm in difficult situations and applying the following disciplines are key when a business is trying to get ahead of the competition.”

Disciplines for success

Cash flow is the lifeblood of a business. Cash flow can be the first casualty in a downturn. In tight times fast movers develop conservative cash flow budgets and ensure they get paid more quickly. They are diligent in collecting what they’re owed. Effective accounts receivable collection frees up cash and can reduce reliance on credit.

Always challenge certainty, especially your own. When entrepreneurs think they’re right, they also think to ask what is missing and search for improvement. Excellence is an unrelenting quest and striving for it is the surest route to enduring satisfaction. The best leaders and fast movers are forever challenging their comfort zone.

Emotions are contagious and feelings are infectious. The best leaders inspire. They are optimistic and ensure employees are just as inspired to succeed in their roles.

Understand basic finance principles. Fast movers ensure financial information and accounts are timely and critical documents are maintained and delivered on a set day every month.

Clearly communicate a business’ point of difference. Clear communication of a company’s point of difference and strategic direction to its customers is imperative. Fast movers view downturns as an opportunity to stand out from the crowd; they continue to tell the market what they do best and remain visible.

Delight customers. Fast movers make frequent customer contact, great service and rewarding loyalty a priority. Fast movers ensure customers are left in no doubt of their importance to the business.
Work smarter, not harder. The best fast movers don’t let running their business run them into the ground. They continually invest in time-saving systems, software and products to free up valuable working hours.

Form great relationships. Strong relationships with mentors, financiers, bankers, suppliers, clients and partners significantly help a business. These relationships endure in good times, when the business is running well and cashflow is well-maintained, and in tough times, when cash flow is tight.

Meaning isn’t something to discover, it’s something to create. Entrepreneurs derive meaning from finding a way to express their unique skills and passion in the service and products they deliver. Figuring out how best to contribute is a lifelong challenge, to be taken one step at a time.

Take responsibility. In a fast moving company no one is left in any doubt as to who takes responsibility for the key decisions. Right or wrong, the buck stops with the leader.

Greg Hardiman

Bibby Financial Services is one of the world’s largest independent providers of debtor finance spanning Australia, Asia, Europe and North America. Debtor finance is designed to improve business cash flow and support business growth by releasing cash tied up in unpaid invoices. Unlike other funding arrangements, no real estate security is required, making it more accessible for small and medium-sized business owners. For more information on Bibby Financial Services please visit www.bibby.com.au

Service Please

So here we go again! Another year and another dollar to be earned. Same old same old! Well not really. This time around folks there is a new paradigm it is called service. Maybe it’s an old paradigm revisited.

If you want to remain in business or more importantly generate a profit to stay in business and contribute to your community then you had better catch the Service Bug together with the package it is hidden in.

The delivery of traditional services is changing as more and more people take to the internet. People tell me they don’t like it. ‘It is so impersonal and you don’t get to meet the person you are dealing with. Brother how wrong can you be. Great service is great service regardless of how it is delivered.

I am a great one for over servicing my customers, in fact anyone associated to my customers and me. It is all I have going for me. Okay so may be that’s a bit crook. But really can you ever do enough for your customer?

Here’s a testimonial I was privileged enough to be shown very recently that proves my point. I have changed names to protect the various people involved however if you would like to deal with the service provider (Travel Agent in the story contact me and I will put you in touch). I have not otherwise meddled with the testimonial as it was written. You just can’t make up this stuff, it is great!
———————————————————————
From: Rod and Lyn [mailto: @internode.on.net]
Sent: Wednesday, 18 January 2012 1:50 PM
To: travel.com.au
Cc: ‘Agent’
Subject: GREAT SERVICE FROM Louise Kerr

Hi Mark. I want to let you know about a great level of service I received from Louise over the last few days. After a poor level of service from my normal TA (retail shop-front in Brisbane), I did a web search and contacted a couple of on-line agents.

My request was for two RTW business class flights on the Lufthansa mixed alliance ticket which I have used previously in conjunction with European cruises. It turned out to be quite difficult to find seats on all the various legs particularly as I was quite specific which airlines I wanted to use within the available groupings. (need to maximise my points and status credits for One World and Star Alliance).

The other agents were good with service/response, but could not get me on my preferred Singapore – Munich leg. Louise not only was able to achieve this, but also provided me with options to hub through Frankfurt, or Munich direct at higher price.

She worked closely with me to achieve exactly what I needed, albeit at a higher price than the base Lufty RTW fare. Those were my decisions, and it was great to have the various pricing options explained. Nothing seemed like too much trouble to Louise, despite my many questions/suggestions/change of mind etc. She is now helping me with all my accommodation needs on this trip.

This is exactly what I desire in a TA, and you have a gem in Louise.

Due to her great service, your firm has gained a $20,000+ booking, and as we travel a couple of times overseas each year, a good future client. I also intend to recommend her to my similar age (retired baby boomers) friends, who all travel overseas regularly. We all seem to struggle to find consistent great service in a TA.

I worked in a service industry all my life, and know how critical good staff are to the success of the business.

Just wanted to let you know.

Kind Regards.
Name Withheld
———————————————————————

The aspects that are an inspiration for us all are that Louise focused on:

Developing a close working relationship with the customer – she understood not only what he needed but importantly what he wanted;

Providing options even though they were at a higher price (up sold);

Nothing was too much trouble – over serviced to the customers delight!

Not bad when you think this was all achieved without the customer or TA ever meeting face to face. Technology delivered the channel but in the end it was great service that delivered the result and then some.

My next trip will be booked through this TA and Louise in particular. While she is working for a TA she is building her own ‘Brand’. Wonder if her boss has worked that one out yet?

Your, ever pleased to be of service, business coach

Neville Calvert
neville@thesmallbusinesstoolbox.com

Goals in Strategy

Goal setting is a necessary and critical aspect of any strategic plan and developing your strategic plan is a process that requires both introspection and vision. Setting goals is the bridge between dreams and reality and they must be tangible and realistic to avoid frustration and disappointment.

Simple goals are definitive and historically elicit a better success rate from the implementation team. Specific targets give staff a clear sense of purpose, eliminate confusion and minimise distractions. By including staff in the discussions and goal setting process you increase your success rate 10-fold and build a strong and committed team along the way.

Seek consensus on achievable expectations from the ground level and discuss different methods of committing to goals and implementing the action plans. Incentives, beyond any usual bonuses or commission structures are a great way to challenge comfort zones and stretch the boundaries. Aim to inspire your staff, not necessarily with monetary incentives but perhaps some time off or even just a simple and sincere thank you!

Allowing the goals, which are typically managerial decisions, to evolve through discussions with employees builds a sense of shared work, common goals and team rewards. In turn this builds a sense of accountability and responsibility, which your customers will reap the benefits of by way of improved service levels and you, of course, will see the impact on your profitability.

Good communication between staff and employer aligns the team to the corporate mission. Persistence is the key to living the Strategic Plan and later revelling in the rewards. For a simple step-by-step guide to Strategic Planning visit TheSmallBusinessStrategicToolbox.com today.

Listen or Be Left Behind

In his book Predicting Market Success, Robert Passikoff says “smart brands do more than survive. They grow through innovation, expansion, diversification or specialization. This growth is rooted in an understanding of what drives loyalty: customer and category values, customer’s expectation, and what customers are willing to believe the brand can actually deliver.”

How true! If you don’t understand what your customer’s expect from you and your product or service how can you hope to exceed their expectations and build loyalty?

Market research is the only way of understanding this. However, it doesn’t have to be hugely time consuming and expensive. It is about asking your customers some key questions and collating the feedback, grouping it under logical business areas and then deciding what you’re going to do with this information.

In The Small Business Marketing Toolbox we have allocated a couple of modules to market research so that small business owners understand how to use the principles of basic research to better understand their customers and therefore build brand loyalty.

This type of market research is ideal for the small business owner because it is practical and cost effective providing tangible results that can be auctioned quickly to give you a competitive advantage.

To find out more about a practical, step-by-step marketing programme for small businesses visit The Small Business Marketing Toolbox today.

Sales Letters – Part Three

In this last in a series of blog posts about how to write sales letters that work we look and two more story-line angles that have been tried and tested over the years and have been found to elicit the right action from recipients, purchasing the product concerned!

Connect with the reader by highlighting a problem or fear they may have.

This is one of the most effective tools and connects on a basic psychological level, which can convert, if written correctly, at an astonishing rate.

For example: “You may feel safe from retirement worries now, but did you know that nearly all small business owners reach 60 without having a business that is saleable and without having made adequate provision for their retirement income? Now is the time to develop your Small Business Strategy to ensure that you can sell and receive a lump sum payment or develop a business model that will ensure your nest egg is in place and well tended when you want to start slowing down!”

This approach has been used by the advertising industry for years. It’s referred to as “pushing the ouch button” and you’d be surprised at how many situations you can use it in. It really works like a charm.

Finally, you can mention someone the reader knows.

This is a very effective method if you can personalize your communication and use someone that the recipient admires, respects and wants to emulate.

By way of example: “Did you know that your friend *Sue Brown* told us that you could really use some help in developing a more effective business model for your business? That’s why we’re inviting you to visit The Small Business Strategic Toolbox and find out how you can work smarter, rather than harder, in your small business. She loved the programme and knows it can help you too.”

If you introduce a referral programme at the same time this can be an extremely effective way to reach out and touch your potential new clients and reward your satisfied customers at the same time.
Approach your clients and ask them for the names of a few people who they believe may benefit from also using your products or services. Offer them an incentive if those people respond and you’ll develop your own sales force of committed and loyal followers very quickly and effectively. These types of referral programmes take some time to generate, but they’re well worth the effort!

In closing this Sales Letter mini-series:

Always remember that it is your primary objective in writing a sales letter to “hook” your reader as quickly as possible! We’re all receive tons of e-mails, brochures, flyers and phone calls every day from someone wanting to sell us something so you have a limited amount of time to grab their attention and get them reading on.

Ideally you want to keep your sales letters to within a maximum of two computer screens or two A4 pages and while there can be exceptions it is vital that you only write as much as you need to connect with the reader and share the benefits of buying your product/service and no more. People don’t buy waffle, they buy solutions to their problems so get to the point in a way that makes the reading a pleasant experience!