Want to Give Back to Your Community? Try Your Local Chamber of Commerce

30 April 2009 Categories: Networking

Commerce What do you know about your Chamber and how often do you go? I’m guilty of not participating; many reasons but my excuse is  because of my travel schedule which changes every week. Like many other small businesses, we are lucky enough to get our health insurance through our chamber and that’s where it ends. I decided it was time for me to “give something back” and get involved. Many of you have business expertise that would be valuable to others, how about contacting your chamber and share that expertise.

Since I knew I would be home the month of April I called Katherine Burbank, Executive Director, Guilderland Chamber of Commerce and talked with her about providing a presentation for the members.  We came up with Tough Times Require Tough Strategies, an hour presentation with ideas for expanding business during the  present business climate. The  focus was on social networking, building a competitive advantage and providing an unforgettable experience for the customers. I offered a free business consultation as a door prize. Of course I brought magazines from Fabulous Floors  and biodegradable golf tees; Can’t forget the importance of green. 

With plenty of publicity from Cyndy Myers, Member Services Coordinator, the idea was born. The next thing I knew I had a new gig!

The Guilderland Chamber maintains maintains a membership of approximately 600 businesses, and strives to help their members succeed and grow. The Chamber also promote community life in the area and partners with schools, towns and other organizations that promote the areas.

Social-networking I did a little research on the history of the chambers. It seems the Chamber of Commerce of the 21st century is constantly evolving but the first  chamber was founded in Charleston, South Carolina in 1773.  The early associations were organized to protect and promote commerce in their areas. The chamber was set up to protect and develop programs for its members, Today the modern Chamber of Commerce  can no longer just ask its members, "What do you want your chamber to do?"  Instead, it needs to ask, "What kind of a community do we want ours to be?" If something is to happen in a community, much of it can be fueled by the chamber of commerce members—but it takes a big commitment. The basic mission of the chamber of commerce is to create and promote a climate where business can operate in a productive and profitable manner. So the members are the chamber and it’s up to us to make things happen.

I loved it! Everyone seemed interested, I met lots of new people and got plenty of emails. Everyone was excited and seemed very involved with the chamber and each other.. The winner of the free consultation was Greg Zorian from Sims, a high-end barbershop with multiple locations. I am going to pay a visit to Sims this week and see what events we might promote to develop business. I can’t wait to go up and "learn the barbershop business."

I spoke with Chairperson, Roger Lipera, from Roger Lipera Web Design & Consulting, after the event. Roger is very active in the chamber and obviously has committed lots of time and expertise, “ Making the chamber work is important to the growth of the community says Roger, without the members participation it would never work." Roger has plenty of enthusiasm and knowledge I felt energized after our conversation.

I received good wishes from Cyndy who was not able to attend. Katherine seemed genuinely pleased with the turnout and was already looking at another event. "Lisbeth's workshop on Web 2.0 was the most well-attended and captivating workshop our chamber has held in a long time," she said. "It shows the importance of the web and how businesses need to be able to interface with their customers in this era."

I was surprised to see an article about the presentation in Spotlight newspapers in the days following.

What can you do for you community? Just get moving!

  • Take an interest in your city or your town and become part of the solution. These days we all need to invest in the changing of our country.
  • Support others in the chamber, seek their advice, recommend them to others and use their services when possible. We all come with our own associations and are not comfortable changing what works but we can still help others network.
  • Help your chamber grow, talk about it and  get others to realize the value of belonging. Remember when people consider moving to an area one of the first places they contact is the local chamber of commerce. 
  • Take a major role if you can. I spent several years on the Board of Albany Executives and learned so much about my capabilities as well as what we were able to accomplish as a networking group both locally and nationally.
  • Take a stand; we all have our times when we "let others do it." Remember if we all do it, it gets done for all!

Well I’m hooked, what's next? We’ll see. 

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Having Trouble Doing Business? Maybe It’s Not a Lack of Customers

27 April 2009 Categories: Economy, Reaching the Consumer

Pondering I keep hearing how business is so terrible and how there are no customers. And then I run into retailers like Taylor Flooring and Homevalue who tell me there are fewer customers but they’re doing good business and are seeing new ones.

Of course during this time you have to trim down your costs but you still have to have a plan for attracting new customers.  As I recall, when times were good you didn’t need a strategy to attract customers; there were so many customers coming in the door that you didn’t even have to be a good salesperson to get these customers to buy. You just had to be there. You know the old "build it and they will come" saying. Well, it was true. They just came.

Now they aren’t coming, and for lots of reasons. Maybe it's a lack of trust in the "system" or less money and more re-prioritizing of their lives and financing. If you didn’t have a plan before, you’re in a pickle. Those who are doing well or getting through this recession without losing their shirts have always had a plan. Plans have to be altered but your plan should have the basics of what’s necessary.

So let’s talk about your "brand plan."

You’ve relied on your brand and others' brands to get you through but has the message changed? The customer sure has, so your brand must change if you’re going to connect.  Customers are worried, and certainly see trusted brands as a safe bet. They're comforting in times when everyone’s all wondering, who can I trust? For those of you who have taken sales training classes you all know that "empathy" is the most important trait of a good salesperson or anyone or anything who’s trying to sell a product.  

Reducing quality, changing prices, taking away "value" that you have always given the customer will not increase your brand value.  These empathetic messages must say to the customer, we understand, I’m with you. The message "you should buy because things are cheap" or "we’re the only game in town" just makes you look like you don’t care about what your customer is experiencing. Don’t take out your frustrations on the customers.

Tactics such as rewarding only big time spenders or reducing quality so customers get to play less won’t build trust. Expanding your product offering at lesser prices is still value added. But reducing quality on items when you know they need better is not a good strategy.  Quality is still quality and value is still value, always keep that in mind.

Book_Cover_Revised Educate your customers on how to shop your products. Tell them warranties do matter and installation standards certainly make a difference. It’s time to go back to those values. Old time, new customer service.  In my book, Red Hot Customer Service, I talk about things most people have forgotten but that can still impact your sales and bottom line.

Remind your customers that buying the brand certainly does matter because it can be trusted. Don’t forget in times like these, your brand and your connection is what really matters. What are you doing to support your brand?

  • Look at your warranties, do you remember to give them to your customers after the sale?
  • Do you explain to customers how to take care of the products they’ve purchased?
  • Do you call them after the job to say hello and make sure the job is perfect?

Do you do small things like show up on the job and talk with the customer? If the customer isn’t home do you go to the job and video the rooms that are complete and send it to the customer while they are at work? (This is a very creative move on retailer’s part.)

Realize that consumers have changed and this shift may be long term. Customers are very unhappy and untrusting and may insist that you prove who you are. Customers tired of the greed and lack of company ethics will demand accountability. I saw an interesting ad for insurance company RM Global. They wrote about the tornado that tore through Atlanta in 2005, leveling everything including the Atlanta Motor Speedway.  Three-and-a half months later the fall race weekend opened as plan. How? Because of the partnership between the Atlanta Motor Speedway and RM Global. More and more ads are showing connections. Oil companies talk about how they can reduce carbon footprints; Men’s Warehouse is offering to let the customer "keep the suit" if they lose their jobs, and most car companies are willing to take the car back if you lose your job — or help make the payments for you.

Will the recession end some day? Yes it will. The longer it takes the more damage it will do in the customer's mind. According to John A. Quelch, a professor at Harvard Business School, "During the recession of 2001, there was no decline in overall spending, although many cut back. It should be noted that this recession shows consumers being very frightened, which means that they will carry the sting for many years."

In other words, during the last recession we had, in 2001, consumers didn't change their spending habits! It's different this time, so it's time to get in step with your customer. We may be doing this dance for a while.

Resources:

Lis Calandrino is a sales trainer and marketing consultant who speaks around the country on topics ranging from retail sales to online marketing and social media trends. She can be reached at lcalandrino@nycap.rr.com or 518 495-5380.

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Blogging Ain’t All the Same but Some Blogs Are Better Than Others

20 April 2009 Categories: Blogging

I have looked through many blogs and read about many blogs; now I have my own ideas about what makes a good blog. Here are some ideas for you to consider as you determine how to build your blog.

  • A blog is not simply a commercial for your business. If this is your format then you probably won’t have many takers. Why, you ask? Blogging is part of the new Web world — commonly called 2.0 — which is the conversation with the customer, not the one where you tell them or show them why they should buy from you. Your customers will get the idea from your blog. Are you writing things that are of interest? Will they comment or send you notes? The blog provides the means for conversation.
  • Ask your readers what they would like from your articles. This is a good time to consider how well you know your customers and what you can be doing to build relationships.
  • Take a look in your industry. What are others writing, talking and blogging about? Call them and talk with them. Add comments on their blogs or ask if you can be a guest blogger. This will get you some experience and ideas as to how blogs work. Send a blog link to all of your friends and ask what they think. This will get you some good feedback.
  • Make a long list of topics that you can write about. I say long because you want to write because you love it not because you hate it and now you have another job! Check other blogs in your industry and see how you can make yours different or what can you build on.
  • When you write your posts, add links to other blogs, articles on the subject, videos and photos. Remember, the reader should come to you because you add value — not only from your writings but from other places when they can get ideas. Start collecting information, sign yourself up for RSS feeds on topics of interest. This way, you'll get info all during the day and will get the latest scoops on your topics.

Don’t forget to make it easy and have fun!

Need a format, information, and a push to get going or just don’t want to do it yourself? Call me at 518-495-5380 or email Lcalandrino@nycap.rr.com.
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Business is Alive and Well, Despite the Headlines

16 April 2009 Categories: Competitive Advantage

Store-2
I've been speaking with my friend Tom Boschwitz from Homevalu Interiors. Homevalu Interiors has been around for a number of years and continues to change and reinvent itself. But it doesn’t matter how long your business has been around or how good it is, every business is dependent on customers who are willing to part with their money. And these days, consumers think twice or even three times before they take the buying step.

Bringing customers out is a labor of love — what works for one doesn’t necessarily work everyone.  The key is go get out, experiment, try new ideas and of course just do it.

And there are companies that are doing it. It just takes more skill and inventiveness.  Some people say they never see a customer and then someone tells you they’ve seen about 100 on a snowy night in Minnesota.

Lillian-Handbags Homevalue is an inventive company. Having done extensive customer research, including focus groups and consumer interviews, they probably have a better handle on what customers want and need than most businesses. Of course when the economy is tough one has to think wisely about where to spend advertising and marketing dollars.

Over the past few months, Homevalu has done a variety of in-store events for customers. Instead of hosting  color and design nights, which are quite common, they are actually holding multiple events. In fact, it's a party with various events and plenty of fun things to do.

Byerlys-Chocolatier
I remember not long ago Homevalue held a pet adoption which brought in over 100 people! They also hosted Ladies' Night Out (see pictures), held in the middle of a Minnesota snow storm. Vendors such as Mary Kay, Byers Chocolatier, Lillian Handbags, and others were invited as well as the store that provided the wine and the music.

Rudy-&-Ladies-Night-Ladies
Tom says that he budgets about $40 a person for the event, while comparing  traditional advertising costs at about $60 a person. The last four events in total have brought in about 450 customers. It appears that he's creating quite a following.

By holding multiple events and bringing in many of the same customers, Homevalue gets to thank past customers while cultivating  new ones. It just proves, if you can build a better mousetrap…

Strawberries

Some ideas for your events:

  • Ask your employees what events they think will pull in customers. Once you decide on an event, ask you salespeople for a list of 20 people they would invite. I had to bite my tongue because I wanted to say 50. Don’t forget the butcher, baker and candlestick maker. Once you have the list, decide on the theme, the invitation and other businesses that would add value to the event and have their own lists of customers.
  • Be inventive; there is a flooring store in Kentucky that hosts line dancing every Thursday night—in the store. Does it work? Ask the "regulars" who bring different friends every Thursday. Ask the owners, who need a bigger dance floor to accommodate the calls.
  • Take plenty of photos, get them to the newspaper, the chamber, your business group. Don’t forget to invite your local newspaper to cover the event.
  • Get email addresses so you can send thank you notes. If you are having trouble asking, hold a drawing and note they will be notified by email.
  • Send photos to the people who attended and send them via video email, Talkfusion.com or sendoutcards.com.  Both great ways to stay with your customers. One via email the other via snail mail. Don’t forget to use these marketing tools to thank the customers and also as a way to invite them. In your video remind your customers to visit the vendors who were at your event.
  • Don’t forget to thank the vendors and get them as much publicity as possible. Remember, they all came to do business and are relying on you to make this happen.
  • Plan for your next event while you're at your "present" event. Ask everyone what other types of events would they like. Will they help you plan? Who would they like you to invite? Is there a favorite charity they would like to support? How can you involve them? Is there a special charity they would like to support for the evening?

Remember, most of your business comes from referrals, not just from happy buyers but from people who just love you and feel good about recommending you and your customers.

How about your events, what are you doing what’s working? Come on, share it with us. Need some help planning an event? Call or email me.

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Change is Not in the Rear View Mirror

13 April 2009 Categories: Change

Obama-queen We are privileged to be able to listen to what’s making history this morning — way before the newspapers get the information. We can follow it on Facebook, Twitter, or even by calling  877-my AMFIX. I decided to call AM/FIX and was asked whether the traditional face-to-face meeting was obsolete. My two cents: Of course we have to meet! Seems like a wasted question. President Obama can't make the same connection to Prime Minister Gordon Brown or the Queen via Facebook now can he?

I followed the Obamas trip to England and was interested in what news came out of it. Did you know that England issued a limited edition President Obama coin available in silver or gold? This is entrepreneurial and an interesting way to stimulate the economy.

Certainly there are people who have created major problems relating to our economy. However, we are all responsible for moving forward. In England, Obama stated that the rest of the world has always relied on the US for relief and to help everyone, but his statement was also that the U.S. has to take care of its own house first. Everyone will have to assume responsibility for this global problem if it’s going to get solved swiftly.

Let’s not forget Michelle Obama. She was dressed simply and not wearing a sleeveless dress so we didn't have to hear about her well-toned arms. But I also noticed that her blouse was a little low cut and this will no doubt come under scrutiny. Michelle represents the 21st century woman, in my view: Well-educated and super successful in her own right. She is popular around the world and let’s not forget an  African American woman. We have yet to see her effect on the world. She appears to be able to listen and is obviously interested in collecting new ideas.

This was the first official meeting between the U.S. and Britain as the British Prime Minister Brown and President Obama meet to discuss their concerns prior to the G-20 Summit meeting.

So should we spend, save, invest? No clear answers, but we will get through this and we must realize there will be a future. Brown was more specific than Obama about what needs to happen: Basically, straighten up the banks and financial institutions, invest in fiscal stimulus contributions, cut interest rates and restructure the financial system. I think by now we all know what’s wrong, let’s just keep moving forward!

Obama was much less clear, speaking of taking action and pushing back, being cooperative and support economic growth, support trade and not forget the human side of our problem. Cooperation, cooperation,cooperation. I hope we have people that want to join us in this effort.

Obama's buzz words:

  • Kinship of ideas
  • Lead and listen
  • Corporation between powers and work together
  • Global plan for economic recovery. Everyone needs to raise the bar and put some type of regulations for banks in our global economy.

The biggy sems to be to create a stable economy by reducing interest rates and stop the loss of jobs and businesses. Unlike the 1930s, we have many social programs in place which will help get us through this.

So what’s a business to do? Remember, eventually people will buy cars and houses, though they'll be a bit more cautious.

  • Invest in the future while keeping your business stable. If you need to downsize to survive, then do it.
  • Consider what will be the best possible decisions that you can make and then make them.
  • Focusing on fear will not help you make decisions; fear only immobilizes people.

Bo This is the time to act and look forward—the future is never in the rear view mirror. Looking back doesn’t help, this is 2009. And we have a lot of resources available to resolve the problems.

Oh, and if you keep up with the goings on of the Obamas, you may know that they recently got a Portuguese water dog, which the kids named Bo. I wrote him a note on his Facebook page giving him a piece of my mind that the dog wasn't a rescue dog. Was that out of line?

Resources:

"Timing has a lot to do with the outcome of the rain dance." – Cowboy proverb

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The Challenges of Family-Owned Businesses

09 April 2009 Categories: Entrepreneurs

Tree
My friend and associate Caren McCabe, of McCabe Training, sent me an article recently called The Family Run Business: The Good, the Bad and The Ugly of Succession Planning. Here's a snippet:

"Family run companies are in many respects the backbone of American business. They are typically the most stable of small businesses, with a much lower failure rate than other small business models. Some of the largest and most successful companies in America are family owned and operated, yet 70 percent of family run businesses don’t make it to the second generation; a full 90 percent never make it to the third generation.

These statistics are not new, but appalling just the same. So why the high failure rate? Most experts chalk it up to poor succession planning, as if a plan would somehow make it all better. No plan will correct fundamental weaknesses in a business unless its managers recognize and address those weaknesses. These weaknesses prevent many family owned businesses from realizing much of their real potential."

In the flooring industry, one of the most famous family-owned businesses is Koch Industries, valued at the present time at about $100 billion. There are four brothers involved in the business. The biggest acquisition occurred in 2005, when it acquired Georgia Pacific, the giant pulp and paper products producer, for over $20 billion. With the Georgia Pacific and earlier acquisitions, Koch Industries became the owner of such nationally known products as "Stainmaster," "Lycra,", "Quilted Northern," and "Dixie Cups." Of course other famous family businesses are Gucci and the Gallo Brothers. 

According to a 2008 Article in USA Today, there are approximately 25 million family-owned businesses in the U.S. — many of them mom-and-pop operations. There is no group tracking the closure of family businesses, but experts say they are vulnerable in the current economy. 

Over the past 20 years consulting with business I have managed to work with 15 businesses run by and filled with family members. Ranging from great grandparents to great grand children and another group of family members called the in-laws. Situations where the stockholders and owners do not actually work in the business but their spouses do. Emotions run rampant, as do long-standing feuds that occurred when partners were children. The dynamics are even more critical and interwoven. Not only do you get to make decisions with your cousins at work but you get to discuss these decisions over the family dinners. 

Usually, the clearest, best-informed and most rational understanding of what decisions should be made and what actions should be taken comes in the form of how was it done in the past. Why? Because family-owned companies can be tied up by emotional influences on decision making such as "grandpa knew best," hindsight. Fearing family retribution, many of these important issues are literally swept under the rug.
While it is interesting to note that "family" businesses in the Fortune 500 (no longer private family businesses, but still family controlled) outperform their "professionally managed" counterparts, their recognition of the power of a truly good corporate culture is what is most intriguing. 

To Work or Not Work? Both! 

Pride — or as Landes calls it, the “family stewardship" — is a big factor in many family-owned businesses. Not only have you become a business owner but you have inherited something that may go back centuries. Wegmans is still run by a fourth generation of family managers. Another grocery chain, Stew Leonards, has received worldwide acclaim for excellence in customer service and quality and is featured in two of management expert Tom Peter's books: A Passion for Excellence and Thriving on Chaos. In 1992, Stew Leonard's earned an entry into The Guinness Book of World Records for having "the greatest sales per unit area of any single food store in the United States." 

What doesn’t work in family-owned businesses? Unclear expectations and roles for employees, birth order and sibling rivalry all take a big part in the success and failure of these companies. Being the oldest (usually the one who is the most competitive paired up with the youngest who everyone thinks had it the easiest) creates a dynamic that is not so easily channeled into a productive team. Often times birth order makes it difficult for younger siblings to run companies. 

No matter how much education and "smarts," it’s just not easy to grow out of the "younger kid role." These businesses work when roles are defined by expertise rather than seniority. I have seen perfectly viable companies slowly disappear because no one was willing to take on the leader. When the leader is grandpa, it’s a different story.
As much as possible, have a succession plan, stock ownership and clearly delineated roles in place.
Hire a neutral party to help separate the family issues from the the business issues. Although this isn’t always easy, team building groups and interpersonal skill building will make it easier for family members to get themselves heard.
Focus on the strengths of the people involved and their abilities as opposed to birth order and seniority. 

Lis Calandrino is a sales trainer and marketing consultant who speaks around the country on the retail industry and online marketing. She can be reached at lcalandrino@nycap.rr.com or 518 495-5380.

Resources:
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