The way out

If you own a tobacconist you’d worry about government regulation. If you run a pub or club you will be worried about anti-pokies segment and anti-smoking sentiment.

If you own a service station, you’d be worried about alternative energy. If you own a hamburger joint or a pizza shop you are worried about healthy eating habits.

If you own a bookshop, shoe shop, fashion store - or almost any other type of retail outlet, you’d be worried about the internet.

In fact, even small manufacturers probably don't realise that 3D printing is going to send many of them broke quicksmart.

But there is a way out.

Arnold Schwarzenegger was a wimp until he started lifting weights and Michael Dell was a dishwasher when he was working on selling his first PC. Bill Gates was a nerd programming software for traffic lights until he sold the first DOS license to IBM and Ray Kroc was a travelling salesman until he opened his second McDonalds.

Abraham Lincoln ran a general store before he eventually entered politics and John Travolta was a waiter until he cracked his first audition. Rod Stewart was a grave digger and Jerry Seinfeld sold light bulbs by phone. Author Stephen King was a janitor when he had the idea for his breakthrough novel Carrie.

Who you are today and what you are doing today has absolutely no relevance to who you may become.

And it is true: one store can readily become a chain just as easily as a chain can become one store. Being broke can be great training for being rich.

But these stories are not about dreams coming true.

In each and every case, the person actually DID something.  (Sold a PC, wrote a novel, auditioned – or whatever.)

And that, dear friend, has always been and will always be the difference between success and failure: the act of executing is how dreams are made real.

Your current problems could disappear overnight, or it may take a while longer.

But the only certainty is that nothing will happen if you don’t do something about it.

What are you going to do next?

Dennis

PS: One of the things you can do is to attend the Retail Conference in Melbourne (Sep 2011) and tap into the ideas and the solutions on show. Get your special discount code here.

PPS: Subscribe to ReadThinkLearnLaugh for the next issue about ‘raising the bar’ in retail. (Previous issue HERE – no subscription required.)

Three-part series on success (Part 3)

Part 3: Tell your story

In this short series on business success, we have so far looked at two steps of the 3-step process.

The final step in the process is to tell your story. And I don’t mean that in a ‘once upon a time there was…’ kind of way. The difference between a good photograph and bad photograph is that one just captures light, the other captures a moment – it tells a story.

A story is a message that has meaning. A story appeals to the emotions. There is a narrative (storyline) that keeps people captivated.

The way you display your merchandise must tell a story. Your advertising message must tell a story. Your offer must tell a story. Your sales pitch must tell a story.

Stories are about ideas and people and events that we care about. And ultimately, our success depends upon whether our story is told well enough, frequently enough and convincingly enough for people to care and finally for people to remember.

ONE: Be credible. Key words are consistency, trust and character.

TWO: Solve a real problem. Key words are discipline, rational and analytical.

THREE: Tell your story. Key words are emotional, passionate and relevant.

Three-part series on success (Part 2)

Part 2: Solving a problem

In the last post we looked at CREDIBILITY; part 1 of a simple 3-step process of being a successful business.

Being credible will get you listened to, but you will only be needed if your product or service solves a real customer need. Ask yourself: What problem does my business solve for the customer?

The mistake that many entrepreneurs make is that they become blinded by their passion. (Reading too many self-help books will do that.) It really isn’t about you and what you are good at.

A successful business is not about scratching your itch, but scratching a customer’s itch. Just because you like baking cakes does not mean there is a need for another patisserie.

Be honest with yourself when evaluating business opportunities. Be ruthless in your assessment of the demand for your product. Are there sufficient customers who will pay money for you to solve a specific problem or address a specific need?

You don’t have to spend big to determine the scope for your idea. But you do have to step outside the emotion. Be rational; think through your venture before you start.

Three-part series on success (Part 1)

Part 1: Credibility

Aristotle, the grandfather of the Art of Persuasion coined the term ‘ethos’ to describe the idea of ethical appeal or CREDIBILITY.

Credibility is a prerequisite for success because your job is to persuade people to buy what you have to offer and your message will not be convincing unless you – the communicator – are believable.

You become credible (in a sales situation or in your advertising communications) in a variety of ways.

One: Incorporate facts from credible sources in your advertising and sales presentations.

Two: Make sure you are consistent (what, how and when you communicate). You can’t be the cheapest today and best quality tomorrow; that is a mixed message that will decrease your credibility. And don’t make unbelievable claims about your business or your offer. (We sell the best coffee in the world.)

Three: Get endorsed by other credible people/ organisations. Be a member of an association or belong to a professional body. Get a stamp of approval.

Four: Be seen in the right company (i.e. with credible leaders). Advertise in the most trusted medium.

It's the second step that counts

Last week I posted about the 10 symptoms of a failing retail business. (Symptoms are not the same as the reasons of course.) It is a bit negative to leave at that, so a post about success is in order.

Let’s first do a thought experiment. Think about any failure you have had before. (Business or personal – it does not matter.) Take a moment and articulate that failure in your mind and think about it. (Play along, don’t read ahead.) Just think about the failure – and admit to yourself that you have failed.

Now, replay these thoughts in your mind. When you thought about that failure, did you also think about why it happened? The reason for the failure?

I bet you did.

If the reasons for failure are complex, then it is also simplistic and naive to come up with a ‘magical’ 7-step process to fix it. So I won’t.

I will get you started though. And the first steps are the hardest, so it should be useful.

We all know from the movies that when you go to AA, the alcoholic has to start with an admission of failure:

“Hi, my name is So_and_So and I am an alcoholic.”

The thing that you do after that admission is the key to success. But that is step 2. You can’t skip step 1. You have to admit it. You have to accept it. You have to say it; firstly to yourself, and then maybe even publicly.

The cure will be executed in public, and you can’t do that if you are pretending that everything is sweet.

Step 2 is what comes next, and this where people start the failure (or success). The alcoholic goes home and has a drink. The failing retailer sits down and justifies their failure.

This is human nature, and this is also the root of failure. As soon as you admit that you have made a mistake, you come up with a reason why it happened. This is very subtle and it just happens.

The reason is always something or someone else. And this immediately lifts the psychological burden – but also raises a barrier to success.

By identifying (an external) reason for failure, you disown the problem.

So the key to success is to take a few steps/ decisions that will not allow you to explain or justify anything.

Failure is only failure if you continue to fail. If you fix it, it is not failure, but a challenge you overcame.

So what can be done to ensure we take step 2 - and not think about the reasons for failure?

Don’t do research. Don’t ask anyone else’s opinion. Don’t do anything (not even thinking) except do something about remedying the situation immediately.

Simply take an action, any action – even the ‘wrong’ action – and you are on the way to solving the problem.

I can tell you from experience that you will very quickly build a momentum of solving problems and the ‘failure’ can be relabelled a ‘bump in the road’.

If you have taken step 1 and step 2, and they are both right, step 3 becomes so much easier.

1. Admit it.
2. Do something – anything.

You’re on your way.

BTW: In the previous issue of RTLL, the notion of success is explores at length (with videos, images etc.)  This is strictly for subscribers only, but I will make an exception this time. If you promise to subscribe (at the bottom of the newsletter), then you can GO HERE. I cover success from a business and a marketing and a personal angle – allow some time to read it.

Do you want to be the diva or choirgirl?

I heard an interesting story about a memorial service or tribute to Dame Joan Sutherland.

The story was told of her trying out for her school choir, and being rejected.

Don’t worry – this is not the story of how someone should persevere and be rewarded with eventual success.

What was interesting about the above incident was the reason the teachers ([presumably) gave for the rejecting – and I paraphrase:

Joan should not join the choir because her voice is too loud and it will drown out the other girls.

You can see where I am going with this.

She became a peerless success as an opera singer because her voice drowned out the other girls.

Now the question for you today is this:

Will your company be content to be the choir girl or will you be the diva?

If you are reading this, the answer is presumably ‘diva’ – and my advice would then be to start singing.

Because if you don’t sing your own praises, no one else is likely.

Is your business RBO?

We have BYO restaurants and RBO businesses.

Run by Owner.

When you visit a retail business, you get to know who the owner because the business says a lot about the owner.

The paradox is that the when a business is RBO then you know that it is not an entrepreneur, but a small business person in charge.

• Because for a business to grow and continue to grow, the owner has to step back.
• In order to step back, you need to invest in advance of the expected return on that investment.

Don’t tell me you don’t have the money to put that extra person on. (Would you find $100K if your child was kidnapped and you had to come up with a ransom? This is no different; don’t let your business hi-jack your life.)

The only thing that prevents you from taking that step is fear. Fear of success or fear of failure.

Which one is it for you?

You can overcome this. I have.

Part 3 of 3: On Success

The final step in the process is to tell your story. And I don’t mean that in a ‘once upon a time there was…’ kind of way. The difference between a good photograph and bad photograph is that one just captures light, the other captures a moment – it tells a story.

A story is a message that has meaning. A story appeals to the emotions. There is a narrative (storyline) that keeps people captivated. People remember…memories. A story is more memorable.

The way you display your merchandise must tell a story. Your advertising message must tell a story. Your offer must tell a story. Your sales pitch must tell a story.

Stories are about ideas and people and events that we care about. And ultimately, our success depends upon whether our story is told well enough, frequently enough and convincingly enough for people to care and finally for people to remember.

In this short series we looked at the three foundation principles of achieving marketing success.

You achieve marketing success by applying these principles to your business. There are no secrets and no buzzwords are required to be a successful entrepreneur.

1. Solve a real problem. Key words are: discipline, rational and analytical.

2. Be credible. Key words are: consistency, trust and character.

3. Tell your story. Key words are: emotional, passionate and relevant.

It may sound glib. It may sound easy. But it is neither.

And to be perfectly honest, in addition to all of this, you also require some luck. But never use that as an excuse.

Part 2 of 3: On Success

Last week we wrote about solving the customers problem, not focussing on what you are good at.

This week - it is all about being / becoming credible.

Credibility is a prerequisite for success because your job is to persuade people to buy what you have to offer and your message will not be convincing unless you – the communicator – are believable.

Aristotle, the grandfather of the Art of Persuasion coined the term ‘ethos’ to describe the idea of ethical appeal or CREDIBILITY.

You become credible (in a sales situation or in your advertising communications) in a variety of ways.

One: Incorporate facts from credible sources in your advertising and sales presentations. Make a factual statement in either your headline or pricing offer.

Two: Make sure you are consistent (what, how and when you communicate). You can’t be the cheapest today and best quality tomorrow; that is a mixed message that will decrease your credibility. And don’t make unbelievable claims about your business or your offer. (We sell the best coffee in the world.)

Three: Get endorsed by other credible people/ organisations. Be a member of an association or belong to a professional body. Get a stamp of approval. Be authentic, be honest and be recognised for what you stand for.

Four: Be seen in the right company (i.e. with credible leaders). Advertise in the most trusted medium. Act like you want to be perceived to be. Action is a powerful form of proof.

Next week we will look at the final principle.



Part 1 of 3: On success

The blueprint of your business success or failure can be found in the answer to this question:

What problem does my business solve for the customer?

The mistake that many entrepreneurs make is that they become blinded by their passion. Many people have been led to believe that it is a good thing to be passionate, but customers won’t pay you money to be good at something – they pay you to do something for them.

A successful business is not about scratching your itch, but scratching a customer’s itch.

Just because you like baking cakes does not mean there is a need for another patisserie.

Be honest with yourself when evaluating business opportunities. Be ruthless in your assessment of the demand for your product. Are there sufficient customers who will pay money for you to solve a specific problem or address a specific need?

You don’t have to spend big to determine the scope for your idea. But you do have to step outside the emotion. Be rational; think through your venture before you start. Ask some potential customers. Understand the need that you aim to address.

It helps if you can passionate about meeting that need, but just because you are passionate about something does not mean there is a need in the market.

Next week we will look at the second principle.