small business gurus - the blog of Cat & Keith Matson

by Cat Matson

The PM actually used the ‘R-word’ last week, and while I don’t want to succumb to the doom, I am noticing that people are finding it harder to ignore the economic conditions around them.  This means different things for different businesses.... some are thriving in the tough conditions, some are slowing down.  So how can you not only survive time but actually thrive?

1. Take a reality check

I’m noticing a lot of business owners are talking up the gloom and doom, yet they are the same business owners who always say business is tough.  Ask yourself if business really has slowed for you.  If it has, is it the ‘recession’ or is it other factors (your marketing has slowed down, there are new competitors etc)? Compare your revenue figures to this time last year so see whether you’re just in the ‘usual’ first-half-of-the-year slump or if this is new for you.

2. Tighten control of your money...

.... and I don’t necessarily mean tighten your spending. I mean your understanding of where your money goes.  Most financial management systems in business are pretty loose – owners have an idea of how much they earned, how much they spent and that’s about it.  You need to be very clear about what it actually costs you to open the doors of your business, and what it costs you to deliver your good or service to your customer.  For every 100 cents in sales, how many cents go into production, marketing, sales and overheads?  It’s crucial to understand this.... if you don’t you can spend lots of time trying to increase your revenue, only to discover your margin per $ of sale is too low to be sustainable.

3. Gain outside perspective

If you’re only listening to the news, or other people complaining how tough it is, it’s really easy to believe ‘it’s tough’.  But someone who is not in your industry or not in your circumstances may bring fresh ideas... ideas you will never think of while you’re thinking ‘how tough it is’.

We're in this recession largely by peer pressure.... the Australian economy is actually one of the strongest in the world.  Things will bounce back and we will survive.... how you think about it will make all the difference.

Cat

Igniting your business performance

Alito - Business Mentors

by Cat Matson

For a marketer, TV is a broadcast medium - that is, I place an ad and it gets 'broadcast' to the viewers.  There is no engagement, no dialogue just a hope that the ad increase the market's affinity with the product.

Social networking, the latest hot topic in marketing circles, on the other hand is an engagement channel... or at least it has the potential to be.  But I am seeing more and more supposed social networkers mistaking platforms like Twitter, Facebook and LinkedIn as another broadcast medium.  That is, they think all they have to do is post links back to their core website and people will follow.

People accept ads on TV because that's what the medium is designed to do.... and we passively watch our favourite TV shows and sometimes we watch the ads.  But people use social networking sites to.... wait for it....

....NETWORK. 

That's right - they use it to connect, engage and be involved in a conversation.

If you're outcome in social networking is collecting friends or followers, you're missing the point (as Steve Woodruff so beautifully describes in his article "Connection Collector".)  To truly benefit from the power of these platforms, you have to actively engage as well - with influencers, your target market and other people of interest.

And while you're doing that - actively engaging with people - if you 'accidently' collect 10s of 1000s of followers - then fantastic.... and kudos to you for building a community that you are actively connecting with.  (Sarah Prout and Darren Rowse are both excellent examples of Tweeters with HUGE followings... followings built by actively engaging... yes, apparently you can 'talk' with 60,000 + people at a time!)

But if all you are doing is broadcasting 'ads' (often disguised as informative links back to your website) in the social networking space, you'll not only not collect followers or friends... but you'll lose them....

So if you're going to use social networking platforms as one of your marketing channels, then clarify your purpose, your intent and your strategies and targets for engagement... reply to people, comment or 'retweet' and thank people for connecting with you.... share elements of you the person as well as your business and have fun....

In other words.... network!  It's just like how you 'network' at a networking function.... only it's in cyberspace, at hyperdrive and can be done from your computer or mobile phone - no travel required!!

How are you engaging with your network using social networks?  Or are you a bit stuck on how to have meaningful conversations with limited words or in such a public domain?  Comment below.

Cat

Igniting your business performance

Alito - Business Mentors

How do you know if your professional advisors have done a good job?  It's not like a restaurant - you go, you order, you eat your meal.  You can tell straight away if the service was good and if you enjoyed your meal.

But how do you know if your accountant has done a good job? 

We come across this challenge on a weekly basis.... everytime we bring on a new client, part of our process is to forensically investigate the last few years of financials and returns.  And invariably we discover mistakes and oversights... often resulting in thousands of dollars being returned to the client. 

So to determine the quality of your existing accountants work, ask yourself these questions.

• Does my accountant take the time to understand the bigger picture of my context?  Not just my business or job, but the overall situation of my family, my goals, my assets and my personal style?
• Does my accountant ask probing questions.... or does he just accept my MYOB file and lodge the returns?
• Is my accountant doing everything she can to maximise my financial position while legitimately and creatively minimising the tax I pay?
• Do I feel comfortable or welcomed if I make an unplanned phonecall or send an email with just a general enquiry?
• Do I pay my accounting bills each year without really understanding what I paid for?

If any of these questions leave you wondering about your accountant, ask your friends and associates for their recommendations.

by Cat Matson

I have a big issue with long-term business planning.... actually, I have many. 

1. It’s very hard to predict the future;

2. I have enough trouble thinking about next month, let alone the next few years;

3. Most small business owners don’t have the time, resources or industry data to make sound predictions or meaningful plans; and

4. I actually find it quite daunting to think of everything that is required of me to make my goals a reality, so setting the goals in the first place becomes a bit overwhelming.

However, I still believe it is very important to have an eye on the bigger picture of my business – I mean, let’s face it, if all I have to look forward to for the next 30-odd years is more of the same.... well, that doesn’t exactly turn me on.

I know many small business owners find business planning just as challenging as I do.... which is why I recommend planning in a ‘general’ sense – clarifying the picture of the general essence of your business in the longer term rather than creating a list of ‘disconnected’ targets.

Answering questions like....

• Who will I be working with?

• How will I fill my days?

• What will my business be known for?

• What kind of lifestyle do I want to have and how will my business support that?

.... give you a sense of the general direction you need to take your business.... and gives you benchmarks against which you can measure new opportunities or strategies. 

Once you have this kind of picture in your mind, then you can create short-term goals or focus points for moving closer to your bigger picture.  Personally, I work well with a 6-month plan... that keeps me focussed on key projects and strategies that move me closer to my bigger picture outcomes.  Once those projects are complete, the next strategies become apparent... and I keep moving forward with flexibility and within the context of the wider economy.... all the while moving closer to my big picture outcomes.

How do you stay focussed on your bigger picture?  Vision boards?  Goals? Traditional business plan?  Other business plan format?  Let me know in the comments below.

Cat

Igniting your business performance

Alito - Business Mentors