Tip – Read these ideas with an open mind, if they aren’t perfect for your business think about how you could modify them to made them fit.

Do you have any newsworthy stories under your nose ? An old couple returning to their homeland for their 50th wedding aniversary ? A young sporting team travelling overseas to compete ? Do you see a sudden increase in clients going to a particular country ?  All of these stories could merit reporting in local newspapers and media.  Find the email address of the journalist who covers local interest stories and email them. The best way to get PR is to become a source, journalists need sources, quotes and tips.

Look at things from the clients point of view, what additional information could you be providing that would help your clients ? Can you offer clients a list of local dog/cat sitters who can feed their pets when they are away ? Do you know where the best place is for them to leave their car when they are away for a short trip ? The more you solve the clients problems, especially the ones unrelated to selling them travel, the more likely they are to recommend you to their friends and family.

If you’re asking for referrals make sure you reassure people. One reason people don’t refer their friends and family to businesses is that they worry about the business under delivering, which of course reflects badly on them. Don’t just say “if you’ve enjoyed our service please tell your friends about us”, provide some reassurance that if they do refer people these new clients will be well taken care of.  ”If you’ve enjoyed our service please tell your friends about us. We want to give your friends and family the best service we can so make sure they tell us you referred them!”.

It’s all about smoothing out the wrinkles. There are hundreds of interaction points where a client or potential client can decide to stop, turn around and go elsewhere. There are hundreds of little wrinkles in the process of dealing with your agency that make things a little bit harder for your clients. Every time you can identify and remove one of these wrinkles your business become a little bit more efficient at turning prospects into clients.

There are some process wrinkles that we are all aware of, and should have already addressed :

  • Are your contact details easy to find on your website ?
  • Are your opening hours clearly displayed on your shop front so that passers by know when they can visit ?
  • Are your staff greeting people with a smile soon after they step into your premises ?

Once you have removed all of the obvious defects in your business interactions it’s time to look more closely for some of the more subtle wrinkles that may be deterring clients. It’s very difficult to put yourself in the shoes of a client who has just walked in to your agency because you are so intimately familiar with it but if you can do that and walk through the process as they would you will find lots of moments of uncertainty that you need to remove.

Every time a potential client is uncertain or is forced to make a decision is a moment when they may turn away.

For you ideal client dealing with your business should be as smooth a process as possible, from the moment they find your website or pass your shop front to the moment they make their final payment for their travel.

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A “back of the envelope” calculation is a rough attempt to work out the scale of something.

“How many dentists who like golf are there in New York ?”

“How many people in my city own more than one car ?”

“How many people who walk through my local mall  earn over $100,000 ?”

My back of the envelop calculations are always so badly off the mark it worries me that I don’t have an accurate view of the business landscape around me.  For example when I try and estimate the profitability of any business I conclude that they cannot be profitable at all.

How does this ski store make a profit ?

For example, I live in Canberra Australia, a city with a population of 340,000 people. Near my home there is a ski shop that sells snowboards, skis and winter clothing.  Now I estimate only 50% of the city’s population would ever visit this part of town. Only 20% of the population actually go skiing.  Only 25% of people who ski buy new ski equipment or clothing each year.  Buy there are at least 4 local competitors, plus people purchase equipment online and of course people purchase equipment at the snow fields themselves.

So assuming only 20% of the people who visit the area and need to buy ski equipment this year purchase from this store in particular they have 1700 customers (340,000 * 0.5 * 0.2 * 0.25 * 0.2). If each customer spends on average $200 then the store revenue is $340,000.

Now imagining a 50% retail mark-up on the goods sold, which a seems slightly high assumption,  the store would have $170,000 with which to pay rent, utilities, marketing and a couple of full time staff.  Does this seem reasonable given the successful appearance of the store ?

Well if I think the result of my calculation doesn’t match with what I see in the real world I can start questioning my assumptions. And of course with a back of the envelope calculation almost everything is an assumption.

Never mind the customer number estimates what were made out of whole cloth. There are some more useful assumptions that I can research.

How much is a store lease in that part of town ?

What is the total yearly cost of a retail “behind the counter” staff member in my town ?

What is the average mark-up on a retail clothing or ski equipment item in my area ?

What are average utility bills for a store of that size in my area ?

Obviously the ski equipment business  might not be of interest to you but how well do you know the equivalent facts for your industry ?

Can you make an accurate estimate of the expenses of your competition ?

Getting into the habit of pondering, doing back of the envelope calculations, and then checking up on your assumptions can be a good way to hone your business acuity.

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1. Take the next step in self promotion

Many of us are naturally a little shy about self promotion.  Well maybe it’s time you started handing out a summary sheet describing additional available services to all your clients.  Maybe it’s time you started getting your staff to ask every client “are there any additional services we could be providing for you”.  Maybe it’s time you got marketing signage on the side of you car.  Maybe it’s time you joined some local business networking groups or started one.

Each of these specific suggestions may not apply to you, but the general principle does, get out of your comfort zone and try that promotional activity you had considered but put off.  It’s almost certainly not going to be irrevocable, if it doesn’t work or doesn’t feel right then stop.

2. Find ways to give more value

Is there some paperwork that many of your clients need that you aren’t providing them but could be ? Is there some piece of information that many of your client need that you don’t provide ?

A great way to make an impression, to get your client talking about your service, is to surprise them with that little bit extra that they didn’t expect.

Is there something interesting or useful or special you can put in your waiting room that will stand out in the memories of your clients ?

You know the usual customer service attentions that everyone gives ? An email or card on a clients birthday, asking the people in the waiting room if they would like a coffee.  Well they were not always standard practice, someone, someone like you, invented them in order to set their business apart.

What can you do to provide that little bit of extra value to your clients and set your business apart ? The surest path to more clients is happy existing clients.

3. Ask your clients how you can reach more people in their industry

“Ok, so that’s all complete now.  Just before you go can I just ask you a question.  We are looking to expand and grow this business. Do you have any suggestions on how we can reach out to other people in your industry ?”

If you are not regularly asking this question already I guarantee you will get informative, unexpected responses.

“Well a there is a networking group that meets…”,  ”In this area there is a website that…”, “A lot of people subscribe to…” etc

4. Study what the competition are doing and what people in your industry overseas are doing

Information arbitrage is a high margin business indeed. You should know what your competitor down the street is doing to grow his business but there is also a huge opportunity to look for innovators on the other side of the world.

Is there some additional service that people in your industry in Europe, America or Australia have started offering that is not yet standard in your neck of the woods ? Look around for innovations that are working in other parts of the world in your industry and think about how you could introduce them to your business.

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At CustomerCradle we’re not experts in marketing accounting practices, we just provide the tools that allow you to collect the information you need to become one, but perhaps we can provide some ideas that will get you thinking.

Niches

It’s been said that if you claim to be perfect for everyone people will think you are perfect for no one.  The first step to getting more clients could be to select a specific type of client, a specific business type, and to focus on them.

Who are you biggest, most profitable, happiest clients ? How could you target their industries.  Maybe you could ask them!

Ask your clients what they want and expect from an accountant. No really, ask them.

You probably think you know what your clients expect from your business.  You’re probably wrong.  There are almost certainly clients who have additional needs that are not being met or who were surprised by an aspect of your service.

If it feels awkward to ask them directly you could outsource a telephone or email survey asking for feedback, people may open up more freely with a third party.

This approach is strongly inline with the CustomerCradle Ethos : Get the facts, don’t guess if you want success.

Make is clear to all that you want to improve

You’ve probably experienced being in a bad restaurant with unenthusiastic staff and disorganized order taking. Perhaps you’ve complained or mentioned to the manager that service wasn’t up to par. Most often though you probably didn’t, it would have been a hassle and if the manager really cared he should be able to see the dysfunction.

Obviously your business isn’t like that, but the little example illustrates that people will generally only help you if you are seen to be helping yourself.

What can you do to make it even more clear to your staff and clients that you want to grow and improve your practice ?  Do you have a client feedback form ? Do you ask for feedback on your stationary ? Do you have an easy complaints process so that clients feel free to raise problems ? Do you have reading material available and on display that shows you are committed to learning and improvement ?

You may be surprised at the suggestions and help you get when you’ve let people know that you are trying to grow.

Well that’s all we’ve got for the moment, as always drop us an email or leave a comment, we’d love to hear from you.

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One of the biggest challenges in growing a business is the unsettling uncertainty.

It’s like being the captain of a ship in the middle of the ocean.  You haven’t arrived at the destination yet and two possibilities exist.  Either you are heading in the wrong direction or you are heading the right direction you just haven’t gone far enough yet.

One way to check whether you are taking the correct action to grow your business is to look at other more successful businesses.  Have they done what you are doing ?  Have they done a lot more of it ? If so that would seem to be a strong indication that you need to double down, you need to keep pushing forward, you need to raise the main sail.  (How’s that for a metaphor rich sentence :) ).

Another way to know whether you are on the right course is to know in detail how your business is preforming this week as compared to last week. That was a large part of the reason that we made CustomerCradle.

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Jon Dale is a business coach with Small Fish Business Coaching.  He has 15 years experience in IT and Telecommunications where he has been involved in account management, sales and managing sales teams.

Jon’s coaching philosophy includes making sure business operators are focused on what needs to be done and are not neglecting the tasks outside of their comfort zone.

Q. Is there a particular type of business that you specialize in helping or have a particular insight into ?

A. Small Fish specialises in coaching small businesses – that is from slightly larger than tiny, micro, one-person businesses up to $10-20m revenue. They are small, ambitious for change or growth, have a small management team (or a single leader) and often face a challenge – don’t know how to grow, see a growth opportunity but not sure how to get it, stuck in a rut or not making enough money.

Personally, because of my previous career background, I have an affinity for businesses selling services to other businesses – not necessarily technology. However, I think this is just me attracting people who have similar experience to me. Other coaches in our company have had similar experiences – finding it easier to attract clients with whom they share some common background or experience.

Q. What are the two most common mistakes you see struggling business operators make ?

A.  1 - Not doing enough to attract new customers – in other words not doing enough marketing. Many small businesses rely on a single or a couple of marketing activities and kind of wait for them to come or leave themselves at the mercy of their “market”. In our opinion (with some justification), that is not enough.

You need 12-15 different marketing or prospecting activities running at any one time (thank you Tony Gattari – great speaker, by the way. www.achieversgroup.com.au).

2 – Not paying attention to their responsibility to manage and lead their team (if they have one). Many small business owners neglect this and many are frustrated by “staff issues”. It’s a very common problem and one easily remedied by improvements in the way people lead and inspire, communicate, manage and hold accountable. Most staff do actually care as do most business owners and all it takes to make things work much better is to grease the wheels, so to speak, with a little leadership.

Q.  Can you describe an experience in which a struggling business was able to turn around by making specific changes to their business practices ?

An accountancy practice I have coached for a long time was struggling – not enough cash was coming in consistently enough for the owners (a husband and wife) to live comfortably and stress-free. They were being taken advantage of by clients who took a long time to pay bills and, consequently, had 180 days worth of aged debt. They were undercharging and being significantly less expensive than an equivalent service from other accountancy firms, they had staff issues and they were doing nothing to attract new customers.

We worked on all these issues and more, increasing their prices, getting tough with debtors and enforcing collections, turning the fearful accountant into a marketing monster (honestly) and working hard to engage the small team of accountants and admin staff. It wasn’t immediate and it was hard work but, over a period, revenue and profit have improved, cash flow is hugely better and the principal and his wife are planning a holiday (playing golf on the longest golf course in the world – across the Nullarbor, for some reason J)

Although every business is different and often just a little bit peculiar, they often share characteristics and opportunities. The ones above occur over and over again.

Q. Do you think gathering information about how customers heard about a business and how efficiently enquiries are being converted into sales is important ?

Yes I do. It helps you understand how effective is your marketing and how effective is your sales team at converting those expensive leads you’re generating. You should give any marketing initiative enough time to prove itself then ruthlessly cull any that don’t deliver enquiries and you should be a lot less ruthless and a invest a lot more energy into fixing up a sales person who isn’t performing. They can be helped and they matter, too.
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Lisa Murray is an author,  small business coach and peak performance strategist.  She has worked with hundreds of business owners in many different industries. She brings her extensive marketing and management experience to help business operators.  You can find out more about Lisa at www.revivecoaching.com.au


Q. Is there a particular type of business that you specialize in helping or have a particular insight into ?

A. I help small business owners who are in start-up mode, stressed out or growing quickly. I have very diverse experience and work across many industries.

Q. What are the two most common mistakes you see struggling business operators make ?

A. 1 – Not creating a business model which has the capacity to deliver a consistently profitable result.

2 – Trying to compensate for their weaknesses (or ignoring them completely!!) instead of focusing on their strengths and using other people to fill the gaps.

Q. Can you describe an experience in which a struggling business was able to turn around by making specific changes to their business practices ?

A. A client came to me when she was earning $30 an hour freelancing for other professionals in her field.  We sacked the unprofitable clients, redesigned her business model to work for her lifestyle, focused her business on some specific niches and increased her prices.  She now has a stable of retainer based clients and is earning in excess of $12000 a month working 4 days a week.

Q. Do you think gathering information about how customers heard about a business and how efficiently enquiries are being converted into sales is important ?

A. Absolutely!  This will allow you to do your marketing efficiently!  You need to know your return on the time and resources invested.

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Robert Knapp has been  a business mentor and executive coach for over 25 years.  Among other things he works with businesses creating business plans and exit strategies.  You can find out more about Robert at www.mentum.com.au

Q. Is there a particular type of business that you specialize in helping or have a particular insight into ?

A. Financial companies, SME’s who are committed to grow the business, entrepreneurs, law firms needing a systemised plan to move forward.

Q. What are the two most common mistakes you see struggling business operators make ?

A. Lack of a business plan with an exit strategy

Q. Can you describe an experience in which a struggling business was able to turn around by making specific changes to their business practices ?

A. 1 –  I implemented a business and profit building strategy that was missing from the understanding how to run the business.

2 – Worked with my clients as an external CFO.

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As you probably know, the two most important aspects of running a gym or health club are sales (getting new members) and retention (holding on to the members you already have).

Traditionally the key aspects of sales is thought to be advertising and positioning.  Positioning meaning knowing your market and being where there is demand.

Retention is all about customer service and learning to notice when a member is in danger of leaving.  You can monitor your records for signs that a member may not renew.  Have their visit frequency reduced or even stopped for example ?

Increasing your new member signups is not about what you think, it’s about what you know

If you’re not recording how each new inquiry heard about your club, if you’re not recording how efficiently your staff are converting enquiries into memberships then you are leaving your success to mere gut feel.  And while we all feel we have a good gut feel and intuition about our businesses history tells us that this isn’t true.

Are the number of people hearing about your club from word of mouth recommendations going up or down over time ?  If they are going down or are static you may have a customer service issue holding your business back.

What percentage of people who phone or visit your club are male and what percentage are female ?  Note, I didn’t say members of your club.

What percentage of people who walk through the door do you convert into members ?

Do you convert males or females better ?

How many enquiries did your last flyer drop produce ?  Was it an improvement on the previous time you sent out flyers ?

Which staff member is most effective at converting walk in inquiries to members ?  Not which staff member do you think, probably, is most likely to perhaps be converting walks to customers, what are the numbers ? the percentages ?  If you knew you would be able to get other employees to model the behavior of this star.

The amazing thing is, all of this information is freely available to you.  You don’t have to guess, if you want success start recording the facts.  You will most likely learn things about your business, marketing and staff that your gut would never have told you.

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