This is an old joke, but I have always loved the way it summarizes the entrepreneur's challenge - by focusing the small business strategy on the simple question of outcompeting.
Two hunters were out in the woods one day when they heard the snarl of a grizzly bear. One hunter began to run, while the second stopped to put on his running shoes. "What's the point of that?" asked the first hunter. "Do you really think you can outrun a grizzly?"
"No," said the second hunter, straightening up. "I only have to outrun you."
On that optimistic note, please accept my best wishes for Christmas and the holidays.
Look for (much) more activity on this blog in the New Year!
Sunday, 24 December 2006
Monday, 13 November 2006
The Power of Options
I was talking recently to an insurance agent who specializes in working with high-income professionals and entrepreneurs. He’s quite selective and does very well, making sure that prospects understand his expectations and ways of doing things before he takes them on as clients.
Even so, however, he agrees that entrepreneurs can be a tough sell. He lives by two rules:
1) Full disclosure: He makes sure clients understand what he sells, why he sells them, and where his income comes from. And he makes sure that he personally owns every product that he sells. If it’s not good enough for him, it’s not good enough for his clients.
2) Options: Once he understands his client’s needs, he researches them diligently and presents three or four different ways the entrepreneur can achieve his or her objectives. That gives him a chance to educate his clients by going through the alternatives, and, presumably, gives the entrepreneur a comfortable feeling of having some control in the process.
You can frame the planner’s conclusion:
“To get an entrepreneur to buy anything, you have to have full disclosure and options.”
Monday, 30 October 2006
This just in: New strategies needed!
This just in. IT solutions vendors and resellers targeting SMEs need different tactics and messages than those commonly used to sell to big business.
That’s the unsurprising (but always relevant) conclusion of a new report by ConnectITnews.com, which recently published an article on the latest market research from London, Ont.-based Info-Tech Research Group.
After surveying how 4,000 companies buy technology, Info-Tech’s Indaba division found “a shift in the balance of power in terms of who is actually making the decisions," according to Ed Daugevietis, Information-Tech’s senior analyst for network technology.
The firm found that at companies with 200 or more employees, specialized IT executives made 55% of technology purchasing decisions. But below 200 employees, “there was a stark difference in behavior," said Daugevietis. In small firms with fewer than 40 employees, 80% of technology purchasing decisions were made by non-IT executives.
The proportion of decisions made by IT specialists rises with the number of employees. At companies with 41 to 100 employees, 30% of buying decisions are made by IT management; in companies with 101 to 200 employees, IT managers make 45% per cent of decisions to purchase.
At smaller firms, buying decisions tend to be made less by teams and more by individuals. "Not only is IT not making the decisions, but they are not even in the room," said Daugevietis. “They are frozen out.”
To read the whole article, click here.
Does your company know who makes the decisions to buy your product? If it’s an entrepreneur – not formally trained in your industry, and already making way too many decisions every day - are you communicating to them properly?
A few hints for vendors in this category:
* Drop the jargon now. Focus on benefits and problem-solving, not on technological bells and whistles.
* Do your own survey to find out who’s buying your products and services. Once you've analyzed the results, get them into the hands of your marketers, salesfolk and customer service reps fast.
* Invite end-users to a focus group. Get to know how they think. What language do they use to describe your product and the needs it serves? Again, share the results with your field staff, whose job it is to communicate with these people.
That’s the unsurprising (but always relevant) conclusion of a new report by ConnectITnews.com, which recently published an article on the latest market research from London, Ont.-based Info-Tech Research Group.
After surveying how 4,000 companies buy technology, Info-Tech’s Indaba division found “a shift in the balance of power in terms of who is actually making the decisions," according to Ed Daugevietis, Information-Tech’s senior analyst for network technology.
The firm found that at companies with 200 or more employees, specialized IT executives made 55% of technology purchasing decisions. But below 200 employees, “there was a stark difference in behavior," said Daugevietis. In small firms with fewer than 40 employees, 80% of technology purchasing decisions were made by non-IT executives.
The proportion of decisions made by IT specialists rises with the number of employees. At companies with 41 to 100 employees, 30% of buying decisions are made by IT management; in companies with 101 to 200 employees, IT managers make 45% per cent of decisions to purchase.
At smaller firms, buying decisions tend to be made less by teams and more by individuals. "Not only is IT not making the decisions, but they are not even in the room," said Daugevietis. “They are frozen out.”
To read the whole article, click here.
Does your company know who makes the decisions to buy your product? If it’s an entrepreneur – not formally trained in your industry, and already making way too many decisions every day - are you communicating to them properly?
A few hints for vendors in this category:
* Drop the jargon now. Focus on benefits and problem-solving, not on technological bells and whistles.
* Do your own survey to find out who’s buying your products and services. Once you've analyzed the results, get them into the hands of your marketers, salesfolk and customer service reps fast.
* Invite end-users to a focus group. Get to know how they think. What language do they use to describe your product and the needs it serves? Again, share the results with your field staff, whose job it is to communicate with these people.
Monday, 23 October 2006
How not to create a small business report
Since I spent so much time last week critiquing the ads in the Financial Post’s Special Report on Small Business, I thought it might be interesting to review the editorial content as well. What does it tell us about the state of small business in Canada today?
Here, according to the Post, are the key issues facing small business:
Pg. 1: Rising fuel prices. Hmm… the story itself says business optimism is nearing all-time highs. It even concludes that high energy prices have “just become part of doing business in today’s global marketplace.” (Yawn-inducing cliché alert.) They put this story on the front page?
Pg 1: Tips for taking advantage of the strong Loonie. Ya gotta love this sentence: “According to one expert, Canadian small businesses tend to be less exposed to currency fluctuations than larger ones because many, particularly service-oriented businesses such as barbershops and snow-removal contractors, do not deal in global markets.”
2. Looking for early-stage “angel” investors. Quote: “The challenge is to maintain the energy, cohesion and motivation that they’ve created while accreting.”
2. Tapping private equity (mainly for entrepreneurs looking to get out).
So far I would say this material would appeal to about 1% of the entrepreneurs in Canada. But let’s keep going.
3. SME survey results indicate entrepreneurs want more startup help from government and feel they spend too much time finding new customers. Plus: few small businesses have document-management strategies!
4. The infamous article on cross-border shipping entitled “Customs broker helps slow border tie-ups.” The bottom line: invest in compliance systems. Who do they think will read this bilge?
5. Managing the dynamics of a family business. An OK story addressing real-life problems many entrepreneurs will identify with. Marred by a reference to a “recent” CFIB study that came out a year and a half ago.
8. “Where to start on IT solutions for your startup.” A random review of business technologies, from integrated information systems to instant messaging and Skype. A conversation starter for absolute newbies.
9. How to keep hackers and computer viruses out of your information systems. This story might have attracted readers if the writer had described the problem before prescribing all these solutions. Journalism is like sales: Pain first, solution second.
10. “Moms make good entrepreneurs.” It’s an American story from the NY Times News Service. Too bad the Post didn’t think it worth talking to Canadian women entrepreneurs for this section.
11. “Don’t stress about time,” a story on time management. This would be very useful if it contained time-management tips. Instead, it’s about how entrepreneurs should manage their time better, but often don't. Another gem from the NY Times News Service.
12. A bootstrap marketing story on networking and word of mouth. A good topic, though too theoretical: don't they know that entrepreneurs want short, punchy ideas they can use?
Note: In the second paragraph a business prof advises entrepreneurs to “fling themselves into a crowd and start making noise.” No wonder (see pg. 3) they're spending too much time finding new customers.
12. A story on international trade courses offered by the Forum for International Trade Training. Useful but dullll.
14. “Making a success of a family affair.” I thought this back-page story might be the exciting profile of a dynamic Canadian entrepreneur that I expect in sections like this. Except that the story was written in New York about a Portland, Oregon company and reprinted from London’s Financial Times.
CONCLUSION: Small business is an exciting, dynamic force in Canada for innovation and growth. The Post's tribute to Small Business Week misses everything.
(Maybe I shouldn’t have been so hard on the advertisers, since the editors themselves were barely trying.)
Here, according to the Post, are the key issues facing small business:
Pg. 1: Rising fuel prices. Hmm… the story itself says business optimism is nearing all-time highs. It even concludes that high energy prices have “just become part of doing business in today’s global marketplace.” (Yawn-inducing cliché alert.) They put this story on the front page?
Pg 1: Tips for taking advantage of the strong Loonie. Ya gotta love this sentence: “According to one expert, Canadian small businesses tend to be less exposed to currency fluctuations than larger ones because many, particularly service-oriented businesses such as barbershops and snow-removal contractors, do not deal in global markets.”
2. Looking for early-stage “angel” investors. Quote: “The challenge is to maintain the energy, cohesion and motivation that they’ve created while accreting.”
2. Tapping private equity (mainly for entrepreneurs looking to get out).
So far I would say this material would appeal to about 1% of the entrepreneurs in Canada. But let’s keep going.
3. SME survey results indicate entrepreneurs want more startup help from government and feel they spend too much time finding new customers. Plus: few small businesses have document-management strategies!
4. The infamous article on cross-border shipping entitled “Customs broker helps slow border tie-ups.” The bottom line: invest in compliance systems. Who do they think will read this bilge?
5. Managing the dynamics of a family business. An OK story addressing real-life problems many entrepreneurs will identify with. Marred by a reference to a “recent” CFIB study that came out a year and a half ago.
8. “Where to start on IT solutions for your startup.” A random review of business technologies, from integrated information systems to instant messaging and Skype. A conversation starter for absolute newbies.
9. How to keep hackers and computer viruses out of your information systems. This story might have attracted readers if the writer had described the problem before prescribing all these solutions. Journalism is like sales: Pain first, solution second.
10. “Moms make good entrepreneurs.” It’s an American story from the NY Times News Service. Too bad the Post didn’t think it worth talking to Canadian women entrepreneurs for this section.
11. “Don’t stress about time,” a story on time management. This would be very useful if it contained time-management tips. Instead, it’s about how entrepreneurs should manage their time better, but often don't. Another gem from the NY Times News Service.
12. A bootstrap marketing story on networking and word of mouth. A good topic, though too theoretical: don't they know that entrepreneurs want short, punchy ideas they can use?
Note: In the second paragraph a business prof advises entrepreneurs to “fling themselves into a crowd and start making noise.” No wonder (see pg. 3) they're spending too much time finding new customers.
12. A story on international trade courses offered by the Forum for International Trade Training. Useful but dullll.
14. “Making a success of a family affair.” I thought this back-page story might be the exciting profile of a dynamic Canadian entrepreneur that I expect in sections like this. Except that the story was written in New York about a Portland, Oregon company and reprinted from London’s Financial Times.
CONCLUSION: Small business is an exciting, dynamic force in Canada for innovation and growth. The Post's tribute to Small Business Week misses everything.
(Maybe I shouldn’t have been so hard on the advertisers, since the editors themselves were barely trying.)
Wednesday, 18 October 2006
More small-biz reports, more bad ads
The Globe and Mail published its “Report on Small Business” today – yet another newspaper supplement designed to cash in on Small Business Week.
What’s interesting is that the Globe also has a quarterly magazine called Report on Small Business. So consistent branding is obviously not a priority for them.
The Globe section contains most of the ads from the National Post supplement that I blogged about yesterday also. But there are some new ones too, so I’ll critique those later on this week. But once again Rogers rules the whole section with its splashy (and well executed) two-page spread.
I feel guilty saying nice things about Rogers since I worked there for a time. But they clearly spotted the opportunity. Perhaps they knew that the banks and tech companies would approach these small business sections with a ho-hum, got-to-be-there-but-don't-want-to-spend-much-time-thinking-about-it attitude. So they spent some money, demonstrated some real energy, and stole the show.
Your takeaway for today: If you're not going to advertise with enthusiasm and creativity, why advertise at all?
What’s interesting is that the Globe also has a quarterly magazine called Report on Small Business. So consistent branding is obviously not a priority for them.
The Globe section contains most of the ads from the National Post supplement that I blogged about yesterday also. But there are some new ones too, so I’ll critique those later on this week. But once again Rogers rules the whole section with its splashy (and well executed) two-page spread.
I feel guilty saying nice things about Rogers since I worked there for a time. But they clearly spotted the opportunity. Perhaps they knew that the banks and tech companies would approach these small business sections with a ho-hum, got-to-be-there-but-don't-want-to-spend-much-time-thinking-about-it attitude. So they spent some money, demonstrated some real energy, and stole the show.
Your takeaway for today: If you're not going to advertise with enthusiasm and creativity, why advertise at all?
Friday, 6 October 2006
Staples gets down to business
Roger Pierce and Andrew Patricio of Toronto-based BizLaunch have just announced an alliance with Staples Business Depot that will see them holding free small business seminars in Staples stores on weeknights across the GTA.
If they get the turnout they're looking for, Staples and BizLaunch hope to extend the program to more stores across Canada.
Congrats to Andrew and Roger, who have been working very hard to promote small business through their courses for the past few It’s also a good deal for Staples, which is showing it’s serious about helping its customers succeed. Small business owners are eager for information and contacts. But they don't particularly want to get their education from books or extended courses, and they're tired of networking events where they just get hit on from every direction.
“Almost one million Canadians will start a small business during the next year,” says Roger Pierce. “There’s a huge thirst for small business learning and these in-store seminars will make it easy for entrepreneurs to get it.”
BizLaunch's topics include Your Business Plan in 10 Easy Steps, How to Market Your Business on the Internet, and How to Sell Like a Pro. Not brain exactly brain surgery - but it's exactly the solid, practical info most business owners need.
You’ll find the seminar schedule here. Courses start Oct. 10 and run through Nov. 30 on weekday evenings (7-8:30 pm) at 13 GTA Staples stores. Best of all, according to the press release, “Seminar attendees also receive money-saving product offers and a chance to win prizes.”
If you're trying to understand and influence the small business market, check out the schedule And get thee to a Staples store.
If they get the turnout they're looking for, Staples and BizLaunch hope to extend the program to more stores across Canada.
Congrats to Andrew and Roger, who have been working very hard to promote small business through their courses for the past few It’s also a good deal for Staples, which is showing it’s serious about helping its customers succeed. Small business owners are eager for information and contacts. But they don't particularly want to get their education from books or extended courses, and they're tired of networking events where they just get hit on from every direction.
“Almost one million Canadians will start a small business during the next year,” says Roger Pierce. “There’s a huge thirst for small business learning and these in-store seminars will make it easy for entrepreneurs to get it.”
BizLaunch's topics include Your Business Plan in 10 Easy Steps, How to Market Your Business on the Internet, and How to Sell Like a Pro. Not brain exactly brain surgery - but it's exactly the solid, practical info most business owners need.
You’ll find the seminar schedule here. Courses start Oct. 10 and run through Nov. 30 on weekday evenings (7-8:30 pm) at 13 GTA Staples stores. Best of all, according to the press release, “Seminar attendees also receive money-saving product offers and a chance to win prizes.”
If you're trying to understand and influence the small business market, check out the schedule And get thee to a Staples store.
Friday, 29 September 2006
Screw the Portage Trail
For today's key insights into the febrile minds of Canadian entrepreneurs, I present this hard-scrabbling evidence.
These pics come from an online photo album that Toronto entrepreneur Michel Neray (www.EssentialMessage.com) created of his recent canoe trip in the Ottawa Valley. I refer not so much to Brent and Stuart (I don't know them) but to the picture at right.
"Screw the portage trail" could stand as the timeless motto of entrepreneurs across Canada. Sure, the portage trail is likely easier, and undoubtedly safer. But it's also longer, and likely dull. If the point of a canoe trip is to be on the water, entrepreneurs want to spend as much time as they can on the water.
Impatient? Yes - though most entrepreneur would prefer to be labelled focussed.
The natural entrepreneurial inclination is to climb the rock, haul up the canoe, and get on with it. And not just because they like to work. Because they are more goal-focussed than most people. They see the big picture, and are eager to bring it about.
Or as Michel puts it in his album:
For more tripping pictures (you can also see how they lost a paddle and improvised a new one out of sticks, which is of course another another fine entrepreneurial metaphor), click here.
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