If there is one thing I can guarantee any business owner, it is that your business will experience change. Sometimes workplace change can occur very quickly and in today’s marketplace, it can occur quite often. Although change can be difficult and presents new and interesting challenges, it isn’t necessarily negative. Change may take place in order to respond to a new opportunity. As I tell my clients, the key is having the right strategy in place to manage change, which can often be the difference between success and failure. When managing change, there are two main business strategies – reactive and proactive.
Reactive business strategies respond to an unanticipated event after the fact. A reactive approach to business is all too common. Unfortunately, this approach may lead to lost new and emerging opportunities, or losing out to a more aggressive competitor who bursts onto the scene. Being reactive is inefficient and extremely stressful. It doesn’t allow you to plan because you’re too busy reacting. A typical example of a reactive strategy is to wait for business to decline before investing in marketing and promotion. Reactive companies tend to fail in the long run. Look at what happened to companies like Nokia and Blockbuster.
Proactive business strategies anticipate the events, plan for them and take action. They are ready to capitalize on new and emerging opportunities or respond to new competitors. Research is very important to a proactive business strategy. You have to analyze the market thoroughly, pay attention to the trends and adapt to them before your competitors do. The reality is that no business can be proactive all the time, however if you focus on a proactive strategy, you will be more effective at dealing with challenges and as a result, more successful. A typical example of a proactive strategy is to invest in marketing and promotion to gain a greater market share in anticipation of increased competition, instead of waiting for business to decline first as in a reactive business strategy. Apple and Amazon are perfect examples of proactive companies.
Creating a proactive business culture is hard work but it pays off. It starts with a change in mindset. You need to be ahead of the curve. Instead of racing around putting out fires, anticipate and plan for success! Here are some tips to help create a proactive business culture:
- Schedule time to plan
- Clearly define expectations and goals
- Refine and improve business processes
- Research your industry
- Pay attention to trends
- Stay on top of the business climate
- Know your competitors
- Identify risks
- Search for and find problems before they happen
There is no doubt that adopting a proactive business strategy is the ideal approach to help you shape the results of change. However, sometimes changes come so quickly that we do need to react and therefore a reactive strategy needs to be applied. If you’d like more advice on how to create the right proactive or reactive business strategy, or are looking for other business advice, check out how TAB can help!
Many senior executives want to share the lessons they’ve learned from their 20+ years of experience at several large corporations, but with the changing landscape of corporate culture, these execs are being ‘pushed’ out or looking for new opportunities.
I’ve spoken to countless senior executives that have climbed the proverbial corporate ladder, and have been dedicated to progressively building their careers at a huge multinational for years, even decades. However, they are finding that the face of the company is changing and a younger group of individuals now reflect the corporate culture. Some are facing the possibility of being phased out, or are looking for ideas and direction for what may become the next chapter of their career.
There is little doubt that today’s rapidly changing, globally competitive environment often requires a shift in mindset and competencies, and a growing number of senior executives in their 50s are evaluating their value and long-term growth plans. These professionals were hired by large multinationals when in their 20s and have enjoyed travelling the world, solving business issues, creating new processes and plans, organizing teams, going to tradeshows and conferences, and engaging in high-stake meetings with their colleagues in Asia. Where do they go from here?
When you have fully invested in your career and have a wealth of knowledge, the question is how can you share your wisdom and help others reach their goals?
If you are interested in learning about an opportunity to leverage your business expertise and provide guidance to business owners while giving you the freedom to work at your own pace, build equity, meet local business owners and become part of your business community, check out this website or simply contact me to discuss your situation.
I’ve seen it time and time again, business owners, whether they own an accounting, engineering firm, marketing agency or IT company, are left feeling vulnerable due to the feast and famine of income streams.
When I meet with business owners they share with me their concerns about their struggle for consistent revenues; one month the financials look great, but next month, they are not on target and they begin to stress about making enough income to cover their expenses. Sometimes this cycle is endless and it can take a toll on the many business owners striving for income predictability and growth.
When a business experiences the feast or famine scenario, things like hiring staff for a project today in hopes that there is work for them tomorrow can result in more stress and pressure on the owner to bring in more business.
Owning a business can be one of the most rewarding experiences, but so often business owners are conflicted with decisions about hiring the right staff, committing to paying rent for the appropriate space, investing in office equipment and technology, not to mention marketing. Without consistent and predictable revenue it is hard to make long term plans that will allow owners of professional services businesses to accomplish their goals.
If you are interested in learning about a professional business that will put an end to this feast or famine scenario but still give you the freedom to own a business, check out this website or simply contact me to discuss your situation.
I work with many business owners who are very often so focused on customer acquisition that they forget about how important and cost-effective customer retention is. According to the Harvard Business Review, acquiring a new customer is anywhere from five to 25 times more expensive than retaining an existing one. Research by Frederick Reichheld of Bain & Company shows that increasing customer retention rates by 5% increases profits by 25% to 95%.
One strategic business approach that I often recommend is to go deeper with the clients you have rather than invest the time to attain new ones. I’ve outlined below several tips to help you improve your customer retention rate:
Are your customers leaving you? If you want to improve your customer retention rate, you need to be aware of how many customers are leaving (the churn rate) and determine what is causing them to leave. Ask yourself what as a company you are doing that is causing your customers to leave.
Customers don’t buy from companies; they buy from people. 60% of all customers stop dealing with a company because of what they perceive as indifference on the part of salespeople (Peppers and Rogers Group). Have your salespeople become complacent? Are you making an effort to make your customers feel valued or do you take them for granted? Are you rewarding your loyal customers for their business?
Listen to your customers. Talk to your customers – after all, they chose you. Invest the time to ask them how they feel about your products/services. Understand what they are looking for and what their plans are for the future. Personal relationships are powerful and inspire loyalty. The customer experience is key to your success.
It’s not all about price. Companies are often totally focused on being the lowest cost provider. While being competitively priced is very important, there will always be someone who can come in at a lower price. Price alone won’t keep your customers; delivering the best value will. Value is a combination of price, trust, customer service, delivery, relationships and support.
Has your company lived up to expectations? It’s one thing to win the business; it’s another thing to keep it. Make sure your brand has delivered on its promise and your product/service meet or exceed expectations. Take a look at creating a great customer experience. Managing customer expectations is an important part of customer retention. Set realistic expectations. It’s better to under-promise and over-deliver.
Communicate! Communicate! Communicate! Communicating with your customers will keep you top of mind. Remember, there is always going to be someone lurking in the wings to swoop in and steal your business. Find out how often and by what channels your customers want to receive information. Always address your customers’ concerns immediately. If you make a mistake, own it and fix it. Your customers will appreciate your honesty and your efforts.
Do you prize deliverables over results? Every deliverable must be able to show a measurable result that will positively impact your customers’ business and help them achieve their goals and objectives.
Bonus Tip: Conduct an exit interview. There is no company in the world that retains 100% of their customers, no matter how good they are. If one of your customers is leaving, take it as an opportunity to improve. Conduct an exit interview to learn why they’re leaving. This information is extremely valuable and can help you to make changes in order to avoid a similar situation in the future.
Are your customers leaving you? Want more advice on customer retention, or general advice from other business owners like you? Find out if a TAB Board is right for you!
I can’t stress enough how important personal branding is for entrepreneurs. You may not realize it, but each one of us is a brand. Type your name into any search engine and the results will show you exactly what your online brand is. Did you make a conscious effort to create and promote your brand? Does it accurately represent you? Is it targeted towards a specific audience?
Although the words brand and branding are often used synonymously or confused with each other, they are separate and unique.
What exactly is a brand? A brand is your unique identifier, your market identity. It represents you in the marketplace – who you are, what you do, your reputation, trustworthiness, and the quality of your product or service. Your brand is how your customers perceive you and how they feel when they do business with you.
Sir Richard Branson is the perfect example of a personal brand. Although he’s the founder of the Virgin properties – Virgin Atlantic, Virgin Mobile and Virgin Records among others, Sir Richard Branson’s personal brand is the most powerful of all. People want to do business with the Virgin properties because of Sir Richard Branson. The personal brand drives the corporate brand.
Personal branding has become increasingly important. People trust people, not corporations. They want to do business with people, not corporations. Your personal brand is your differentiator. It creates an emotional connection between you and your customer. Ultimately, it defines the value of your business. In order to stay competitive in today’s marketplace, you must have a strong personal brand.
Branding is the active process that shapes your brand. It requires a strategy and targets your core audience. Branding can include the name of your company, logo, other visual assets, website, communications and media.
Entrepreneurs who are more influential pay more attention to their brand rather than just their branding. As an entrepreneur, how can you build your brand? Ask yourself:
- Who are you? What do you stand for? What do you offer? How are you perceived by others? How do you want to be perceived by others? Be authentic. Your brand should be reflective of who you are.
- What do you do? What product or service do you offer? What is your value proposition? What differentiates you from your competition?
- Why does it matter? Define your purpose. This will give you great direction.
Evaluate your brand. Your brand should tell people who you are, what you offer and differentiate you from your competition. Is your brand reaching your target audience? Are they responding positively? Are you delivering on your brand promise? If not, it’s time to reassess and make changes.
Is your personal brand and branding effort working for you? Want more advice on brands and branding, or general advice from other business owners like you? Find out if a TAB Board is right for you!
In today’s competitive landscape, it’s important for a business to be able to rapidly adapt to market and environmental changes. “Agile” is the buzzword associated with this ability to adapt quickly to changing situations; but what is “agile” and how can a business become an “agile business”?
Agile is a philosophy, not a process. Although originally used for software development, it’s now used by companies large and small in any industry. According to the Agile Manifesto, agile refers to:
- Individuals and interactions over processes and tools
- Working software over comprehensive documentation
- Customer collaboration over contract negotiation
- Responding to change over following a plan
Becoming an agile business is a process that constantly needs work. Is it worth it? According to PricewaterhouseCoopers, agile firms grow revenue 37% faster and generate 30% higher profits.
Here are some guidelines for becoming an agile business:
Create focus. Don’t be distracted. Get rid of a long list of priorities and instead replace it with a short, manageable list of three or four items that are “must dos”. As you complete one item, add another to your list. This will keep you focused.
Communicate your vision. Communication is the key to change and change-worthy behaviour. Communicate with employees often, be transparent and give them clear and compelling reasons to embrace agility and become agile champions.
Hire the right people. The success of your business rests on hiring the right people – employees who are aligned with your vision and your values. In order to be agile, the employees you hire must be results-oriented, not task-oriented. They must be able to work within an organization that gives them the freedom and the responsibility to accomplish their jobs without a step-by-step instruction manual on how to do it.
Create autonomy. You can’t maintain a stranglehold on your employees and micromanage every decision in an agile environment. Senior managers need to lessen their direct control over day-to-day activities and give their employees control over how they do their work. Give your employees the environment and support they need and have confidence that they’ll get the job done.
Be prepared for the unexpected. Although you can’t plan for the unexpected, you can be prepared for it. Agile businesses are flexible, adaptable and expect change. They are ready for all eventualities and can quickly pivot. Changing requirements are the name of the game.
Agile is motivating. An agile environment by nature is motivating. Instead of working on the same project month after month with little change, an agile environment empowers employees to respond to changes, giving them freedom to become more than their job descriptions.
How agile is your company? Want more advice on becoming an agile business, or general advice from other business owners like you? Find out if a TAB Board is right for you!