Look! Up in the Sky!

On a warm Friday evening earlier this month, Allstream took an unusual approach to marketing its small business solutions: it flew a UFO over downtown Toronto.

From a distance, the helicopter that towed the huge red Allstream banner was almost invisible, so the ad – which was only intelligible on one side – seemed to be free-floating. My two passengers and I in a car headed downtown took some time to figure out that it wasn't an alien invasion, but merely an ad. Then it took a while longer to realize what the message was.

The big red banner got a lot of attention – but was it the right attention? Does the hard-working target market mill around downtown with time to decipher a hard-to-read mystery ad hovering 2,000 feet up? And even if they do, does a sign that basically promotes your brand name do anything to turn prospects into customers?

I doubt it. I don't think this type of ad shows much respect for the needs of its marketplace.

While I’m generally in favor of marketing innovations, I think this one sends the wrong message. If Allstream (the former AT&T Canada, now owned by Manitoba Telecom) thinks its branding in Toronto is so weak that it needs this kind of aerial extravaganza to sell bundled telecom services, what has it been doing for the past four years?

To learn more about Allstream's small business services, click here.

Go ahead, make me feel small

I received an interesting phone message today from UPS, which seems to advocating a candid approach to contacting prospects. The caller’s name has been withheld, because it’s not his fault: Who gave this man a telephone?

Here’s the message that followed his name and phone number:

“If you can get back to me I’d appreciate it. I just got your name from a trade show we did and I wanted to know if there was any interest on your end or if you were just dropping by, to close out this potential lead on my screen here. Thank you very much. I look forward to speaking with you.”

If you ask me, that's taking transparency too far.

Memo to marketers: I don't want to know that I'm just a blip on your screen. I want to know that if you're calling me, you really care about my business, and you have a very special deal for me.

Don't expect me to remember what form I may have filled out at a trade show. And don't think I filled it out so that a salesman would call. If I won the door prize, tell me. If I didn't win the draw and you're just following up on a sales lead, make me a compelling offer.

Don't treat me like I’m a chore – or just another item on a checklist you want to finish up by noon.

It's just one more reason why entrepreneurs keep beating big business: because you have to sweat the details.

"Big money in small business"

Vancouver-based Backbone magazine has a great article on the challenges facing technology vendors selling to the SMB market.

Author Gail Balfour sets the tone by noting that 97% of all firms in Canada are small- and medium-sized businesses. Vendors such as IBM, Dell, HP and Cisco covet the market, but as Balfour notes, for a long time “even the vendor pitches targeting SMBs amounted to little more than a product tweak and a revamped marketing message.”

But this is slowly changing, says Carmi Levy, senior vp, strategic consulting, with Toronto-based AR Communications. “You cannot underestimate the importance of the small- and medium-sized enterprise. Vendors are starting to realize that there’s real money in providing proper support to SMBs.”

Why so much interest in small business? As Levy notes, Internet technologies are making it easier for smaller companies to compete with big competitors, creating a growing market for tech applications. However, big companies have to learn how to service smaller firms.

Among the challenges noted by Chris Ellsay of Ottawa-based Workshift.com:
* SMB customers demand 24/7 tech support, and on a much more intimate level than enterprise clients
* Often they don’t have a dedicated IT person or staff, and are sometimes not very tech savvy.
* SMBs are price sensitive.

Sellers can’t simply downsize a larger product offering and expect SMBs to buy it, says Levy. Vendors need to build packages of products and services from the ground up. Levy says typical SMB customers are driven by “consumer thinking” and emotional impact, not by the “harder-nosed” enterprise attitude.

One more point: Don't think your brand power is going to crack open the SMB vault and keep you there. Changing brands is much easier to do in small biz, says Jayanth Angl of Info-Tech Research Group in London, Ont. “If a [competing] company is going to give them a better solution, [SMBs] are in a much better position to make that shift, whereas in a very large enterprise that is just not as likely.”

That also means that one negative experience can push SMBs to change vendors. “They base the decision more on emotion,” writes Balfour, “and their smaller size allows them to migrate to a new product without much pain or downtime.”

For more on this subject, and how Dell and HP are responding to this market, see the original story at http://www.backbonemag.com/Magazine/SMB_09070702.asp

Why Small Business Isn't Buying From You

To help computer resellers in Canada sell more to entrepreneurial clients, I write a regular column for Tech Data's Tech Times magazine. "SMB Spotlight" looks at how small business owners think, and what makes them buy - or not.

From my first Tech Times column, published earlier this year, here are four reasons why business owners don't buy.

1) They're too busy. This is the same reason they don't return messages or finish half the projects they begin. They work much harder than the average Canadian. The stats show most entrepreneurs work at least 50 hours a week, compared to 35 to 40 hours for salaried sorts. (That’s a difference of nearly two 8-hour shifts a week.) And PROFIT Magazine’s research finds that the CEOs of top growth firms – the companies most marketers most want to deal with – work more than 60 hours week.

2) They’re not listening. Business owners face more challenges and choices every day than most people face in a year. Do I raise my price? Fire that person? Borrow money? Upgrade my ERP system? If you expect them to put everything on hold to listen to your pitch, you're dreaming.

3) They throw loonies around as if they were silver dollars. Many marketers have noted that business owners tend to be more frugal than most corporate decision-makers. They treat their companies’ money like it was their own. Which makes sense, because it is their own. Business owners are as keen to throw their hard-earned cash at new solutions as you are eager to spend yours.

4) Your offer is too complex. Business owners have too much to do, too much to read, too many problems. They cope by tackling the easiest decisions first. If your solution requires too much thinking, chances are it will be put on hold while the entrepreneur looks at simpler problems with quicker paybacks. Your turn may come tomorrow – unless other more manageable problems surface in the meantime.

These are the primary obstacles facing anyone marketing to small business in Canada today.

Fortunately, overcoming them is easy. You can capture their interest by developing trusted-partner relationships, pressing all the right buttons, crafting simple but compelling product descriptions, advertising more often and effectively, and stressing value, value, value, like a jukebox with just one record.

More excerpts from SMB Spotlight will appear here in future.

Dell's small-biz stumble

Dell became a huge success by selling no-surprises computers direct to consumers and business. I can’t argue with their success, but I’ve never been a fan of the way they sell to small business. They run ads that only computer geeks understand!

Look at the mess they sent out this month.

When I got this 4-page brochire in the mail a few weeks ago, I thought at first that maybe Dell was catching on to the special needs of the small business market. The cover says boldly: “We believe: Small business deserves computers designed just for small business.”
“And now they are.”

Good start, no? But then they mess it up by showing us two ugly, black computers that look not much different than any other computer on the market. Way down at the bottom, in small print that is white on light green, is the sell line: “Small business customers told us they wanted more from a computer – and more from a computer company. We listened. Dell VOSTRO is a new idea. It is a suite of systems and services designed just for small business... You get advice, software of your choosing… and services tailored to your business.”

So let’s see. Pictures of computers that have no apparent connection to the headline. And overwritten “sell” copy that’s in small, indistinct type that virtually shouts “Don’t read me!”

Most entrepreneurs would have thrown the thing away by now, but I persevered. Turning to the next page, though, didn’t help. It’s a two-page spread of identical ugly computers, with the usual technobable that passes for “features” at Dell: 15.4 WXGA Display with TrueLife (glossy), 2GB Shared Dual Channel DDR2SDRAM, and so on. They do mention a few benefits, such as finding WiFi hotspots without having to open your computer, or “no trialware,” but they are too weak to fulfill the promise of that headline on Page One.

The back page is better: it promises “support that's as dedicated as you are,” and tools from Dell’s “Small business 360 virtual community.” I would have liked to learn more about this last thing, which sounds pretty novel: “find resources and connect with your peers… to assist and enhance your performance potential.”

But no more details are available – not even a URL to visit to learn more about this community. Instead, Dell launches into 16 lines of fine print. Much of it seems stupid or unnecessary (“Remember to back up your data;” “GB means one billion bytes”).

Worst of all, the most important point is hopelessly buried: the fact that the prices quoted on this brochure are good only from July 10 to 19, 2007.

One of the key tenets of marketing is to give prospects a reason to take action right now. Dell tried to do that – but fails utterly, since its deadline is so underplayed that I’ll bet not one recipient in 100 realized that the advertised prices were only good for 10 days.

So let’s see: Good headline. Bad graphics. Underplayed sell copy. Weak benefits. No (apparent) reason to act. Plus, if you tried to order the products after the 19th, Dell tells you the price has gone up!

I bet they’re still wondering why the Canadian small business market is so unresponsive.

R-E-S-P-E-C-T

Large IT vendors continue to blunder in targeting the small business market.

ConnectIT, an email newsletter for the computer channel community published by Richmond Hill, Ont-based Integrated mar.com, takes IBM to task for not respecting the uniqueness of the SME market. A June 20 story by Paul Weinberg quotes Wayne Kernochan, senior IT analyst at New Hampshire research firm Illuminata Inc., as saying, “I continue to sense that some vendors don't feel the SMB market is worthy of focus."

He noted that IBM has only managed "modest success" in its push with SMB-targeted products and services, because it has concentrated on the upper level of SMB (which includes far fewer firms than the small-business mainstream).

Kernochan also points to IBM’s Informix division, which he says pumped one release of database software “indiscriminately” into the channel without distinguishing between large enterprises and SMBs. As a result, "The SMBs didn't see much value in it."

Neglecting the small truths of the small business market can be expensive. Kernochan says Informix took six months to recognize its error, “but by then the financial damage to the company had already occurred.”

Although big companies say they value the small business market, he urges IT vendors to do more to reach that type of customer. "Vendors have to figure out how to get at that market in a cost-effective way. They tend to focus their innovation efforts on the large enterprise market."

Kernochan urged IT vendors to broaden their channel coverage beyond VARs and resellers, and reach out to SMB-oriented independent software vendors (ISVs) or solution providers.

He says technology products for small business have to be simpler to use and require less administration. And he warns that small business’s dissatisfaction with the IT industry is “getting higher and higher.”

This article suggests that the solution for big companies such as IBM is the same as that for everyone targeting small business. Acknowledge the special characteristics of this market. Don't dumb your products down: just make them easy to sell, easy to understand and easier to use. Recognize that these customers are intelligent professionals, but not specialists.

And understand that no matter how big you are, you only have one chance to prove yourself.

Start Your Own Business in 10 Easy Steps

If you are ready to venture out on your own and be your own boss, there are 10 essential steps you need to follow to be set up for success. I will list these steps then go into detail about each step. These steps apply to all small, home-based businesses.

• Determine what area you would like to do business in
• Write a business plan
• Come up with a business name
• Get a business phone number, Address and Checking Account
• Register Your business
• Get Insurance and Bonding
• Get office/business supplies
• Build a Website
• Start Advertising
• Meet with your first customer

1. The first and most important step is to determine what you would like to do. What areas interest you? Do you like pets? Do you like people? Do you want to work on the computer or out in the fresh air? A great place to get an idea of all that is available is IVillage and About.com. Make sure you research the business you are interested in getting into to determine if it is a right fit for you. Join discussion forums and read up on what others in the business experience and ask questions. You can also go to the local library and read books written on the subject. You don't want to invest your money into something you find is not right for you.
2. A business plan is essential for your success and growth as an entrepenuer. You can get a free template at SCORE. A business plan will outline the steps you need to take, how much to spend, and your goals.
3. Once you have decided and researched the business you want to start, you can come up with a business name. Keep it simple and easy for your customers to remember. Your business name should have in it a reflection of what you do. For example, if you are a house cleaner, your business can be something like Perfect Touch Cleaning. If you are a landscaper, you can be called Trimmers Landscaping. You just want to be sure your customers can figure out what you do from your name. Also, make the name easy to pronounce and spell. Ask the people on the discussion groups you belong to which they like best and get some valuable feedback.
4. The next step is to set up your business identity. Your phone number should not be your home number. You can use a cell phone or set up a second dedicated line. You should have a professional voice mail message and should always answer the phone professionally. Next is to set up your mailing address. You can use a PO Box or a private box through UPS. The UPS boxes sound more like you have an actual business address, but either is fine. A PO Box is much cheaper if you want to be cost effective. Your checking account should then be acquired after your phone and mailing address are established. You can get a free business checking account.
5. Once your identity is in place, you can get a business license or register with the state if a license is not required. To find out what is needed for your business, click here.
6. Next you will need a general liability policy. The type of policy coverage will depend on the type of business you are starting. The price will range from $200-$1500 depending on amount of coverage. You can get a price quote at netquote.com or call your local agents such as Nationwide or State Farm. If you are going to have employees, you may also want to get a bond. This will cover your business against employee theft. Your local agents can also help you with this.
7. Next you will need to get your business cards, business forms and other office supplies. You can get your business cards at Vista Print and your business forms at Home Business Forms.
8. Next you will need to start building your website. You can start off with just a basic, free website and move to bigger and better things when you are ready, but I suggest you at least get a domain name ($8/year) to point to the site that way when you are ready to get a better website you won't lose your search engine rankings and have to start over. The purpose of a website is to provide your potential customers with a way to find you over the internet. It doesn't have to be fancy. You mainly just need your name, what you offer and contact info. You can do a very easy, simple website for a great price at Homestead.
9. A website is your first form of advertising, but you are now ready to hit the pavement. Put ads in the paper, inquire about the yellow pages, put up some flyers and starting spreading the word that your business is up and running. During the first year you will be doing a lot of advertising. Make sure you track how much, when and what your return was on advertising so you know where you will need to focus your money next time. You have to determine which form of advertising worked best at getting paying clients.
10. Now that you have reached the last step, your phone should be ringing with your first customer ready to schedule an appointment!

Good luck!

Your Friends at Home Business Forms

www.businessformsstore.com