GROW YOUR BUSINESS. gyb 2013 IN THIS ISSUE: Professionalizing the Family Business. Phone a Friend - Business to Business Marketing

Transcription

1 IN THIS ISSUE: Professionalizing the Family Business Phone a Friend - Business to Business Marketing Blog Your Business to Success Crowdfunding and the Small Business Model

2 Professionalizing the Family Business Statistics show that approximately 35% of Fortune 500 companies are familycontrolled. At some point, these were all small start-up enterprises who kept it in the family while getting things off the ground. But at some point those mom-and-pop ventures must take on a more professional face, presenting themselves as competition for the big guys. This can be a tough balance to maintain. There is a correlation between the continuing success of a family business and the extent to which the leaders enforce a high standard of professionalism. It seems in a family business there are five areas in which these standards must shine through: Developing a vision and strategy for the business Defining the governance of the business Shareholder compensation and equity Organizing the management practices of the business Managing succession issues Define firstly how decisions will be made. Is there a chain of command or will you create an advisory board? Who will sit on the board? How will outside advisors come into play? Asking these tough questions from the start will dictate how crises are handled. Formalize the decisions in a document for easier referral. Develop a clear strategy for compensation. Compensation should be based on market conditions in order to keep family and nonfamily members satisfied. Draw clear lines where family ends and business begins. Make sure that duties and responsibilities are delegated with clarity. It isn t a case of doing it my way this time because we did it your way last time. Consider the four D s (death, divorce, disability and disillusionment) that may most affect a family-run company. Develop clear policies that apply to all team members regardless of whether or not they are kin. Developing sound management practices is vital. The family nature of the business can affect the non-family members in a negative (or positive) way. Be sure to include dispute resolution strategies. Incorporate sound performance appraisal systems to ensure morale remains high, the culture is balanced and that a sense of community is formed. Be clear from the start: are you a FAMILY business or a family BUSINESS? 1

3 Phone a Friend - Business to Business Marketing Business to business marketing? How is that different from marketing that is directed at the consumer? Isn t it ultimately about generating leads and closing sales? Well, sort of. Business to business marketing (B2B) is a little different than business to consumer marketing (B2C) and it is important for small business owners to know the difference. The major differences: B2B is directed at a smaller number of customers, most likely local. B2B products and how they are used are often more complex than their consumer-geared counterparts. The more personal the relationship, the better, when it comes to B2B marketing. B2B targets another business rather than an individual; therefore the marketing strategies are more complex, as you may be targeting a number of departments in different ways, in order to complete the sale. Decisions in this sector are very rarely made on impulse - businesses are made up of several layers of decision-makers and purchases are made on more objective grounds. While consumers may be driven by aesthetic appeal or brand reputation, a business buyer will require a more informative proposal. B2B marketing is less flashy, more analytical. A limited number of clients, with complicated decision-making networks and inquiring and informed minds demand a personal relationship built on trust and understanding. In B2B marketing, segmenting clientele is based on what is referred to as firmographics - defining factors about the business itself. These can include: Location Spending patterns and limits Their needs (price, quality, support, etc.) Niche, or position in the market Trade associations or group affiliations Use of the product/service Annual revenue Preferred method of placing orders Loyalty to your brand Appreciating the difference in B2B and B2C marketing can be the defining factor when it comes to small-business success. 2

4 Blog Your Business to Success Starting a blog, whatever the reason - to boost sales, connect with customers or enter into a new market niche - can be an invaluable asset to a small business owner. We have talked relentlessly about the importance of mobile marketing and the acceptance that websites and a presence on the Internet are no longer optional strategies. The business blog is the next logical step in building a strong and reliable online presence and is the best way to more personally connect with clients on a simple platform. Formulate the business blog as the hub of all communication and content related to your business. Regularly updated, significant content will automatically increase SEO. The blog should give your brand visibility, credibility and exposure, while maintaining your core values and goals. Expert in a related field? Posting articles and content related to the business can draw in a new niche and widen your scope when It comes to website traffic. Well-built blogs will show your company s personality, distinguishing it from the competition and providing an outlet for sharing knowledge and expertise. Excellent way to handle client queries, complaints or concerns. Operating in an open book fashion, sharing advice with other clients who may share the same concerns provides a superior level of customer support. Tracking the visitors and comments to the blog can also allow for a more meticulously planned marketing strategy to develop, based directly on the market response. A few things to avoid when starting a business blog: Do not attempt to control the user s experience- sounds and auto-start videos are a huge consumer turn-off! Readability is key- avoid too-bright colors and hard to read text. Blogs are a short and sweet method of communication- keep to the point and try to stay at less than 500 words. The Blogosphere is becoming a powerful tool- be respectful to the community and avoid stepping on toes. A good way to achieve this is to first research blog etiquette. Maintaining a business blog may seem a large investment when it comes to time, however the returns are visible across the board-boosting sales, creating better client communication and increasing brand visibility and engagement. STEPPING OUT OF THE COMFORT ZONE To be an effective business leader, it is vital to step out of that cushy comfort zone and create challenges for yourself and your business. Prep yourself for these uneasy transitions by sharpening your mind. Lay off Google for a few days, play a round of speed chess and seek out foods, music and experiences that are new. Tap into your emotions and let your fear of the unknown push you to make more adventurous business decisions. 3

5 Crowdfunding and the Small Business Model What the heck is Crowdfunding, you ask? It is such a new concept that even Microsoft s spellcheck does not recognize it! The term may be fresh to the small business world, but the idea behind it is very simple. In fact, you may already be involved in Crowdfunding, and not even know it. profit-making power. It both encourages and thrives in a community, bringing likeminded people together. There are several Crowdfunding strategies in play these days. Donations, subscriptions and fundraising websites like IndieGoGo.com and Kickstarter.com are a few of the prevalent ones. Crowdfunding is also inherently more flexible than a conventional model. They are built to ebb and flow, rather than to adhere to limiting restrictions. Other than starting a new venture, this method can also be called upon when launching a new product or service or expanding the business. The more heads the better is the motto here. Crowdfunding evolved out of the concept of outsourcing- reaching outside of the business four walls to accomplish tasks. It operates in a similar fashion. Basically, it is a collective financial strategy, encouraging individuals to pool their resources in support of new business ideas that may not otherwise get off the ground. The appeal of this method is that it matches creativity and business- creating partnerships that have both ingenuity and Some of the advantages over more conventional models are: Starting small is no big issue - minimal start-up costs make this accessible to any entrepreneur. Control and influence- creators and sponsors come together in projects they are both passionate about, building enthusiasm. Interactivity builds more diverse teams, with a shared goal. The idea that two heads are better than one is taken to a new level with Crowdfunding. There are five general forms of Crowdfunding: donation, reward, equity, interest and mixed. Any combination of these forms can help get a small business off the ground, or step in during hard times to keep things going. Keep in mind that Crowdfunding has some drawbacks (such as fraud) so make sure to invest time and research diligently before considering it as a viable option. 4

6 While every effort has been made to provide valuable and useful information in this publication, this firm and any related suppliers accept no responsibility or any form of liability from reliance upon or use of its contents. Consider any suggestions within your own particular circumstances and contact us if you want more help. Terms Of Use All rights to the content in this publication are reserved by Bullseye. Any use of the content outside of this format must acknowledge Bullseye or its licensee, RAN ONE, as the original source.