Leading Under Pressure for Small Business

by Erika H. James

Erika H. James is an associate professor of business administration at the University of Virginia's Darden School of Business. Here's her guest post on how small business owners need to be prepared in the event of a crisis.

This past summer the book that I co-authored with Lynn Perry Wooten, Leading Under Pressure: From Surviving to Thriving Before, During, and After a Crisis, was released with great fanfare and interest. The timing could not have been more perfect for its debut. It hit bookshelves and online outlets in the midst of the BP/Deepwater Horizon oil rig explosion and subsequent oil spill. The country was riveted by video of oil gushing endlessly from the debilitated underwater rig in the Gulf Coast, and we were drawn into the 24-hour news cycle reporting of the ineptness with which BP executive Tony Hayward handled the public relations aspect of crisis response. Technically, the oil giant may have done all the right things to stop the leak and contain the oil, but the public could not get beyond the PR gaffes to show much empathy for the firm. In the midst of this crisis comes Leading Under Pressure, and the need for such a book was crystal clear.

To be completely frank, however, we wrote Leading Under Pressure with the Fortune 500 firms in mind. The executives leading those firms were our intended audience, as we felt they needed the most help. Interestingly, however, over the past several months, we have received more speaking requests from small to medium-size firms and from government agencies or other non-profits. In preparing for those talks, we realized that the core principles of the book apply, regardless of one's profit status or size. Although the consequences of crisis for the small business may be less dramatic, and therefore less public, they are no less severe and painful for the people working for and leading those firms. With that in mind, I present the "Top 5 Things a Small Business Owner Should Know About Successfully Leading Under Pressure":


1. Effective crisis handling requires more than good PR. In fact, in the book we rarely use the term crisis management, preferring instead to highlight the importance of leadership during difficult times. Crisis leadership encompasses PR, to be sure, but it necessarily goes beyond the communication side of crisis handling to include key leadership capabilities.

 2. Not all crises are the same. A simple but effective way to distinguish crisis types is with the labels Sudden Crisis vs. Smoldering Crisis (terms introduced to me by my colleagues at the Institute for Crisis Management). We are all familiar with the natural disasters, acts of terrorism, or workplace violence that constitute the sudden crisis category, but did you know that nearly three-quarters of crises are smoldering in nature? Smoldering crises are the small internal problems in a firm that, if ignored, can become a crisis. Labor complaints leading to class action lawsuits or product defects leading to recalls are two common examples of smoldering crises.

3. Leadership under pressure is a state of mind. Those managers, owners, team leaders, etc. who are able to scan the environment and see problems on the horizon as well as possibilities for a greater tomorrow are more likely to eventually reap the proverbial opportunity from a crisis situation.

4. Specific competencies are particularly relevant for leading under pressure. These include the ability to make quick and ethical decisions and to take risks even in the face of a threat in addition to possessing a passion for learning and a capacity for building trust across all stakeholders. Over time, leaders who do these things well ultimately help prevent crises.

5. Pay attention to impact on and input from all stakeholders. It is all too easy to become blinded by those stakeholders with the loudest bark or who have the most power or control over the organization (e.g., regulators, lending institutions, activists, or private investors) and to lose sight of other stakeholders who may actually need leadership's attention more. Certainly, you cannot ignore the powerful groups, but neither can you cower to them at the expense of employees and customers, who, at the end, of the day do more to keep the small business alive then almost any other group.

Erika H. James is an associate professor of business administration at the University of Virginia's Darden School of Business.

This article was originally posted on the blog, The Business of Being Monique.

"PR Magic: How to Make You and Your Business Buzzworthy and Gain Coverage in TV, Radio, and Print"

Free Teleseminar Presented by Ali Brown & Anne McKevitt

Imagine having your dream clients calling you out of the blue, even before you spend a dime on advertising!

Think it's just a pipe dream? Well, it may not be the traditional approach for most entrepreneurs, but that's exactly what Ali Brown's mentor did within months of starting in her first business. She's gone on to do the same thing again and again since then.

Ali's hosting a free one-time teleseminar on Wednesday, September 8, 2010 for everyone who wants to use strategic media and public relations to build their business and their brand. She will be talking with her mentor Anne McKevitt, a popular speaker and seasoned PR and media pro from both sides of the camera.

Anne has grown her billion-dollar companies by generating interest from the likes of Elton John, Sophia Loren, Vogue magazine, and major retailers worldwide...all by getting MAJOR newspaper, radio, and television coverage that works like no-cost advertising!

And now they'd like to show you how to do it, too!

"PR Magic: How to Make You and Your Business Buzzworthy and Gain
Coverage in TV, Radio, and Print"
with Ali Brown and Anne McKevitt

Wednesday, September 8, 2010
8:00pm Eastern
Learn more and register here:
http://www.millionaireprotegeclub.com/prmagic

On this special complimentary call, you're going to discover...

* how to use strategic PR within weeks to explode your business growth - whether you're just starting out or you are ready to leap to the next level

* how to get a team of influential and respected media mavens to "spread the good word" about you -- without EVER paying for traditional advertising

* who you REALLY need to reach if you want to captivate the media's attention... so they come looking for YOU for stories their audience will love

* two great ways to generate compelling stories and content that enhances your reputation at the same time it builds your business buzz (it's easier than you think!)

* where to go to reach a tightly targeted "insider" group or to cast a wide net...and when to use each one for your company's different growth stages

* exciting new details about our upcoming telecourse series "Your Complete PR Agency Toolkit(TM) - How to Build a Buzz About You or Your Business and Launch Your Own Campaign"

If you'd like to know how to crack open the floodgates to your business by getting popular media on your side, be sure to register now for this complimentary call:
http://www.millionaireprotegeclub.com/prmagic

Get the Media Attention You Deserve: No More Waiting to See Your Name in Ink

by Kristin Marquet

Publicity is more credible than advertising because it isn't paid for directly by the company or person, while advertising space is.  Public Relations specialists can't control the size of a write up as much as advertisers can.

When your product, service, name, or company is in ink, it can generate great media attention, which is why billions of dollars are spent on PR every year.

When targeting specific publications, you should not send out mass emails with pitches and press releases because it is considered spamming.  Each pitch needs to be tailored to meet the audience of the publication.

In email pitches and press releases, make sure the subject line is relevant because you want to make sure the email gets opened.  The press release is one of the most cost efficient ways to generating publicity when you have a targeted media list. Keep the press release short and concise.  Don't use flowery and ornate language.  Media professionals want news; not to read the greatest piece of literature since Tolstoy.  Remember, editors/journalists have no obligation to run your story.

Make sure you press release follows the correct format.  Stay tuned for next week's lesson in formatting a press release.

As I mentioned last week, contact one reporter/journalist at a time.  In your pitch, reference an article the journalist/reporter wrote.  Recently, I was putting a publicity campaign for one of my new products.  I sent out four pitches to four different publications two weeks ago, and landed three feature story interviews.

Make your media contact's job easier by telling them how your company can help their audience or why your company is relevant to a certain trend.  If the contact doesn't use it right away, they may call on you in the future, when a certain trend becomes popular.

Conduct case studies from clients.  Ask your clients how your product or service has helped them.  Ask for testimonials.  Incorporate case studies and testimonials into your pitch.  This will make your release more believable and newsworthy as well as make the journalist's life easier (we will teach you how to draft a solid pitch in an upcoming lesson).

Never send a pitch or press release as an attachment, unless the journalist or reporter asks for it.  Send all text in a plain text email.

Make sure you follow up in a timely manner.

Test your pitch with one or two journalists. You can email or call the journalist. Keep the pitch to three or four sentences at most if you call.

And a few bullet points later " Don't be afraid of annoying the journalist"

If possible, address the editor by his or her first and last name

Remember, journalists find many of their stories from regular people/businesses, so it is your job to pitch them accordingly.  Just don't make your news self-serving.

For assistance on drafting a news story, contact Kristin at km@marquet-communications.com.

Kristin Marquet is a regular contributor to the Secrets of Success blog.

Marketing Through a Downturn

by Monique Hayward

With my customers feeling the impact of the slow economy as white-collar-job losses mount and their investment portfolios dwindle in value, I've had to adjust my marketing strategy for Dessert Noir Cafe & Bar.

Revenue is hard to come by these days, but it's critical to stay visible in the marketplace and engaged with my customers so no one "forgets" we are still here.

In the absence of budget to launch big promotional campaigns and advertising programs, I have been implementing a low-cost marketing and PR strategy. What we’re doing differently is taking advantage of our unique selling point in the market to capitalize on consumers’ moves “down menu,” i.e., buying appetizers, small plates, and desserts at lower prices rather than high-priced entrees and large meals.

When we introduced our fall menu in October, we offered more value-oriented choices, including extending our happy hour to seven days a week, to give our customers more choices at lower price points. In November, we took this strategy another step farther and updated our menu to eliminate all the slow-selling items (“dogs”) so my staff has fewer food and beverage items to manage and can concentrate on delivering the core items extremely well.

Despite the downturn, consumers eventually get weary of all the bad news and want to treat themselves to a night out, and they will certainly be looking for a range of dining and entertainment options. This gives us a great opportunity to keep the business in the spotlight, particularly in the press. With that said, I have been focused on generating more publicity for my business on both a local and national scale to generate buzz and position myself as a small business expert on the front lines. PR gives us awareness and credibility, and while this approach is not different from my marketing strategy under normal business conditions, I have been even more vigilant about finding opportunities because they cost nothing but time and generate tremendous ROI on the back end.

One great resource is Help A Reporter Out (HARO). PR expert Peter Shankman created HARO, a free service which connects journalists in online, broadcast, and print media with sources on a wide variety topics, including business, finance, health, fitness, and technology. Each day HARO sends registered users up to three emails, each with anywhere from 15-30 queries per email. If there's a query that you'd be the perfect source for the journalist, you answer it directly. There are several queries a week from journalists who are doing stories about entrepreneurs and small businesses. If you are not a member of HARO, you need to get yourself signed up today.

I can tell you from experience that it works! I have landed features in the Phoenix Business Journal newspaper and Entrepreneur and Restaurant Startup & Growth magazines and contributions to the BizChicksRule and Credit and Collections blogs and the Gaebler Ventures web site. In addition to HARO, I've been "hustling" for stories on my own. Recent highlights include appearances on CNN’s “Your World Today with Tony Harris,” “Restaurant of the Week” on KATU Channel 2’s “AM Northwest” news magazine show, and remote broadcast of a local TV station’s evening news program from the restaurant.

Another option that allows me to get more bang for my limited marketing bucks is joint marketing and selling with suppliers, customers, or complementary businesses. I don’t have to look far to create joint marketing opportunities, nor do I have to spend a lot of money to achieve good results. Here’s a case in point: My restaurant is located next to our town’s main movie theater, and for the Sex and the City opening in May, we collaborated with a local salon and spa, the Grand SalonSpa, on free chair massages, prize giveaways, and $5 cosmos and logged our best sales day ever.

Being next to a movie theater strengthens our value proposition as movies are still considered “cheap” entertainment and our customers have always combined an evening at the movies with a visit to the restaurant before and/or after the show. In early 2009, I'm working with a special event promotion company, Odds on Promotions, to offer a $15,000 cash prize giveaway for a promotion that I’ll do for Academy Awards season. I think I can get a lot of buzz going around this, especially if the economy remains as dour as it is now, and again, it won't cost me a lot of money.

Business has always been challenging for my restaurant, as I've documented in this blog over the years. As I noted, we’ve been seeing the signs of this recession for more than a year and a half already. With the economy presenting challenges that are beyond my control, I have been forced to concentrate on the things I know I can control and marketing is one of those areas. Some lessons learned: 

Five things not to do in tough times:
1. Panic.
2. Go off the radar.
3. Compromise on service and quality and the perception of the brand when cutting spending.
4. Lose faith.
5. Lose focus. 

Five things to do in tough times:
1. Evaluate the strategy and course-correct to fit the times.
2. Keep the brand visible through low-cost advertising, promotions, and PR.
3. Take care of your best customers and engage them in a dialogue about what marketing/promotions work for them to continue to support the business.
4. Use your employees as ambassadors to spread goodwill about the business and generate word-of-mouth.
5. Use the slow periods to reflect and brainstorm new ideas when the crazy, busy times prevented you from devoting the time and energy.

There are many things you can do to keep your business visible without going broke in the process. If you have something that you're doing that's working, please share it.

Cross-posted on The Business of Being Monique
http://www.moniquehayward.com/



Monique Hayward is living the busy life of a late-30s corporate player and entrepreneur in Beaverton, Oregon. Owner of Dessert Noir Cafe & Bar. Nearly 15 years of experience in marketing, communications, public relations, business development, and entrepreneurship. Emerging author and speaker with first book set for release in early 2009.