How to Win New Business

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megaphoneIt is the million-dollar-question for most entrepreneurs.   In order for your business to grow, you need to win new business, while growing your existing business.  Study after study have proven that it is much cheaper, and much more profitable, to market to an existing customer.  If you already have a relationship with a customer and they buy something else from you (either a product or service) that “sale” didn’t cost you half of what acquiring a new customer would cost.  So, when looking to grow your business, start with customers you already have.

However (and it is a big however), marketing and selling to your existing customers will only get you so far.  Eventually, you need to win new business, find new markets and attract new customers.  I estimate that probably millions of pages have been written on this subject.  But Chris Brogan narrowed it down to 7 Ways to Win New Business.  I like things that are direct and to the point.  I like lists.  And I loved this post.

One of his ideas struck me as critical to the success of most entrepreneurs: Focus on what you do best, and do that even better.

One of the most common “mistakes” I see entrepreneurs make is to try and do everything all at once…even things they don’t like and/or aren’t good at.  The best marketing strategy won’t work if you don’t execute it well.  The best way to make sure you execute well is to….focus on what you do best and do it even better.  If you need help with other stuff, ask for it.  You can find a consultant, contractor or an employee who likes doing what you don’t.  Find the things that you like doing and are good at.  Focus your energies there.  The results will speak for themselves.

Case Study: KidzSack – planning and doing alot!

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frontPackaging_op_626x693I first came across Tina’s products while looking for some entertaining and useful stuff for my kids when we travel.  I found the KidzSack and have been a fan ever since.  What I love about this product, and the company founder Tina Hill, is that these handy kids backsacks are practical, thoughtful and tough.

I found out why when I asked Tina to explain her business to me.  Tina planned everything down to the smallest details.  Then she started working…I mean doing things, calling people, sending samples.  She planned a little so that when she started doing stuff it worked.  Here’s what Tina has to say about her experiences building her business and her brand.

Laura: How did you get started with KidzSack?

Tina: I am a 44 year old mom of four who started my business with just $200 about 2 years ago.  Now, I am in over 120 stores internationally including Four Seasons and Ritz Carlton Resorts.

Laura: What was your strategy when starting out?  What made your backpacks different?

Tina: I had to be both unique and creative in my marketing and brand strategies.  First, let me tell you that Kidzsack is an eco friendly, creative backsack for kids ages 4 and up. There are obviously tons of backsacks, backpacks, and sportsacks out there…so what makes mine different?  What would make mine stand out among all the others?  And why is it eco friendly…I mean, everyone is jumping on the eco band wagon these days, right.

Kidzsack fabric is made from 100% recycled cotton and soda bottles making it eco friendly..and it is made in the USA.  I decided from the get go that I needed something to set me apart.  I wanted to be first in a new category…something to give buyers something to really think about. Kidzsack is the only creative backsack on the market that uses recycled fabric.  Something that Whole Foods has taken notice of and I’m now selling there.

Kidzsack packaging is made from cardboard that can be recycled but not just that…being a parent concerned with quality, I’ve made packaging that isn’t entirely enclosing the product.  I want consumers to be able to touch the fabric and see the quality.  It’s not cheap lightweight poly cotton.  The fabric is 10 oz. canvas that the consumer can actually feel for themselves.  The packaging is even mom designed by a local mom!

Kidzsack is mom invented and made in the USA.  I know that when I’m shopping for gifts, seeing something mom invented and made in the USA makes me pause and read more.  Especially in a market where EVERYTHING is made in China.  This also sets me apart from the majority of mass merchandise coming out of China.

Kidzsack is packaged with reusable markers because as a mother of four kids (13, 11, 9, & 7), I understand the importance of buying an activity (arts & crafts item) that can be used again…and again.  How many times have I bought a gift in the past that my kids played with once…and then it got put away on a shelf…or in a closet…never to be played with again and left to collect dust!!  Buying a reusable product, activity is something that consumers are looking for…especially in this economy when everyone is feeling the pinch.

Laura: What have you done to get visibility for your product?

Tina: I have created a  product that is first in a new category; that stands apart from the rest because it’s using materials that other similar products are not. I have contacted every newspaper in every town that I have ever lived in to get them to write a story on me.  I have contacted every eco magazine to get them to do a write up on Kidzsack.  I have e-mailed friends for contacts at networks and that has gotten Kidzsack on CBS NY.  I have networked and e-mailed and blogged and you name it…because I have every intention of making Kidzsack a household name.  I’m trying my hardest to stay true to the USA and am even using local manufacturers for both screenprinting and sewing. I’ve created something that moms can understand because it’s a mom must have.  The Kidzsack solves a problem.  When mom is running out the door…all she has to do is, grab a Kidzsack, throw a juice box in and snack. No more looking for toys, activities, coloring books, crayons…BECAUSE KIDZSACK IS THE ACTIVITY.  Kidzsack is a Fun Creative Bag for Kids on the Go!

Book Excerpt: Plan a little so you can do a lot more

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42_rules_marketing_3d1The following is an excerpt from the Amazon bestseller 42 Rules of Marketing by Laura Lowell.

After much observation and questioning, I have come to classify marketing people into two groups: Planners and Doers. This may seem a stereotype, and it probably is, but bear with me.  Most people I talk to can definitely place themselves into either one camp or the other.

The Planners: You know these folks. They are endearing for their need to always “have a plan.” They think, analyze, request more data and then reassess their assessment. Then something changes—ugh! After a moment of panic and deep breathing, they get to work. They go back to the plan and test their assumptions, review their contingencies and are quite proud to report that the plan is still workable “with a few tweaks.”

These folks plan and plan and plan but actually  don’t do very much. Planners are important and we need them. Without them the Doers would be running around like chickens with their heads cut off! Remember the hit series Friends? The character Monica, played by Courtney Cox, was the epitome of a Planner. She had her life planned out from the time she was 12 years old.  Not only did she plan her life, but her friends’ lives as well. Everyone loved Monica because she was practical and you could always count on her to “have a plan.”

The Doers: These folks, on the other hand, must be doing something. Anything. It doesn’t matter what they do as long as they are “moving the needle” and “making progress.” They have great ideas, and are excited and energetic. They are generally fun to be around. Because of the infectious spirit of the Doers, others jump on the bandwagon and everyone starts doing things.

The issue is whether the Doers are doing the right things. Are they consistent with the strategy and business objectives? Are they integrating with other activities going on? Are their activities repeatable? Can they grow over time? Back to the Friends example—Phoebe, as opposed to Monica was the quintessential Doer. She did whatever came to mind, whenever it came to mind. Everyone loved Phoebe because she was spontaneous and full of energy.

The point is, you need both Planners and Doers in order to get things done. Not everyone can walk the tightrope between planning and doing. And that’s the biggest issue—the lack of balance between strategy and tactics. Thanks to the Planners, companies can develop brilliant strategies— on paper at least.

Thanks to the Doers, companies can spend a lot of time and money without much to show for it. What the lucky ones quickly learn is that developing a strategy is very different from executing one.

When companies try to implement their strategies, they run into obstacles such as channels, partners, technology, infrastructure, competition, or lack of resources. The reverse is also true. Companies can spend so much time executing that they lose sight of the business objective.For example, they might end up with an awesome website, but no incremental sales (See Rule 2.) To be valuable, strategy must be practical, and tactics must be integrated.

Planners and Doers tend to have difficulty connecting the dots between their plans (strategies, objectives, etc.) and their actions (tactics or activities). Lots of time, resources and money get wasted. This is a luxury of days gone by and one that business today can’t afford.

My Mom used to tell me “if you slow down, you’ll go faster” and she was right. How many times do you wish you’d just taken a minute to think something through before you jumped in? How about you? Are you a planner or a doer or maybe a little of both?

What do you do?

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doing-it-wrong-ballAs you may know, I’m a HUGE fan of Seth Godin.  The guy’s just plain brilliant, in a practical, no-nonsense, direct and to-the-point kind of way.  There are so many things that I’ve learned from Seth over the years, but the one that keeps coming up is the idea of Talking vs. Doing…Thinking vs. Planning.  Seth has a great blog post on the topic – and the best part of it is, the post is less than 100 words (98 to be exact).

Marketing is about ideas, creativity and finding ways to get people to listen to what you have to say.  But the point of the matter is that ultimately, you need to do something that makes people want to listen to you.  You can talk and talk and talk, but if what you have to say isn’t interesting, compelling or relevant, no one is going to listen.  If they don’t listen, then you have failed in your job as a marketer.  Our job as marketers is to convince people to buy more of our stuff – whatever that stuff is.  That’s it.  Now there are lots of ways to do that – that’s where the ideas, creativity and such come in.

Where I see entrepreneurs getting into trouble is that they talk, and plan and think…and never do anything.  What do you do?

Gobbledygook Manifesto – the what?

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The following is an excerpt from the Gobbledygook Manifesto, by David Meerman Scott.

Oh jeez, not another flexible, scalable, groundbreaking,  industry-standard, cutting-edge product from a market-leading, well positioned company! Ugh.  I think I’m gonna puke! Just like with a teenager’s use of catch phrases, I notice the same words cropping up again and again in Web sites and news releases—so much so that the gobbledygook grates against my nerves and many other people’s, too. Well, duh. Like, companies just totally  don’t communicate very well, you know?

So few marketing and PR people write well. Many of the thousands of Web sites I’ve analyzed over  the years and the hundred or so news releases I receive each week from well- meaning PR people are laden with these gobbledygook adjectives. So I wanted to see exactly how many of these words are being used, and created an analysis to do so.

AN ANALYSIS OF GOBBLEDYGOOK
First, I selected words and phrases that are overused in news releases by polling select PR people and journalists to get a list of gobbledygook phrases. Then I turned to Factiva from Dow Jones  for help with my analysis. The folks at the Factiva Reputation Lab used text mining tools to analyze news releases sent by companies in north America. Factiva analyzed each release in its database  that had been sent to one of the north American news release wires it distributes for the period from January 1, 2006, to September 30, 2006. The news release wires included in the analysis were Business Wire, Canada newsWire, CCnMatthews, Commweb.com, Market Wire, Moody’s, PR newswire, and Primezone Media network. The results were staggering. The news release wires collectively distributed just over 388,000 news releases in the nine-month period, and just over 74,000 of them mentioned at least one of the Gobbledygook phrases. the winner was “next generation,” with 9,895 uses. There were over 5,000 uses of each of the following words and phrases: “flexible,” “robust,” “world class,” “scalable,” and “easy to use.” Other notably overused phrases with between 2,000 and 5,000 uses included “cutting edge,” “mission critical,” “market leading,” “industry standard,” “turnkey,” and “groundbreaking.”  Oh and don’t forget “interoperable,” “best of breed,” and “user friendly,” each with over 1,000 uses  in news releases.

Read the rest of David’s manifesto here…