Munro Estates team celebrates

I was delighted to hear from Jonathan Bell and George Pirie, the directors and driving force behind the growth of Munro Estates earlier today.

Their company, Munro Estates, has just won the Gold Award as the top letting agency in the North East.  Not bad when you consider they've only been going for a little over 3 years…

In less than two years they've grown to a staggering 424 properties under management – that's FOUR TIMES the size they used to be – and have doubled the staff, too.  Here's a bit more of their success story…

In fact, just two short years ago, Jonathan and I met after being introduced via another coaching client gave him my number.  At the time, Jonathan's business had just 100 properties under management and was lacking the systems and structures for growth.

We worked together through coaching and intensive on-site sessions to transform the business into an operation that was ready for rapid growth.  A smart marketing strategy and clear differentiation were developed to make Munro Estates the best choice for landlords who were frustrated by letting agents who did not collect and pay rent on time, who let properties out to poor quality tenants, and who allowed properties to fall into disrepair.

The strategy that we put in place for Munro is simple and very effective – take care of the property and make sure there's a tenant in there at all time.  This maximises the return on investment for the landlord and keeps running costs to a minimum.

Jonathan's view of the coaching is as straightforward as his views on business.  Here's what he said about working with Lee…

They certainly earned this!

"George and I are naturally strong at sales, but we were not managing the team well and the administration of the business was starting to become a real handful for us.  Lee helped us to bring structure and control to the business, recognise the value of systems and taught us how to systemise the business."

This allowed us to offer a uniformly high level of service without it costing us the earth to deliver.  As the staff were able to run the systems with us monitoring performance through performance metrics, it allowed George and I to spend more time on business growth and less simply running things.  Our customers are delighted and we continue to enjoy strong growth.

We're very happy customers of Double Your Business Coaching".

This is another powerful demonstration of what you can achieve in a recession, when you apply the right knowledge in the right way.

It was something to do with helping companies to choose the right insurance, but he wasn't a broker and didn't sell insurance himself.   After a 15 minute conversation with him, I still didn't get it.  He was finding it hard to get customers.  No big surprise really – he was trying to sell something that nobody knows they need.  But worse, he couldn't explain it easily either.

He could have made life a lot easier for himself by spending time to craft himself an elevator pitch.  The idea of the elevator pitch is that if you were in a lift with the prospect of your dreams for 15-30 seconds, what would you say to get them interested enough to want to meet you properly.

Here's a simple 3 step process you can use to write your own elevator pitch…

1 – What Do You Do?

2 – Who Do You Do It For?

3 – How Are You Different To Your Competition?

Once you've written down the answers, you need to smarten the words up so they flow easily.

So an accountant might say – I look after small business accounts and help 80% of my customers to make extra profit every year.

An IT company owner could say – I stop small businesses from losing hours off every month due to computer issues.

A golf club manufacturer could say – I make golf clubs that help average golfers hit the ball 30 yards further without changing their swing.

So ask yourself sometime what you do, and make sure you can say it in 1 sentence.

Do you think these class as clever strategies, or marketing scams? In my mind, they're certainly bordering on the scam side of things.

1. A Phone Company Called Easy Talk Called…

They told me, "Just ringing to let you know your line rental will be reduced to £xx per month and all your evening calls will be free". No indication it was anybody new, they made it sound like BT.

I was suspicious though, because BT have never called to tell me I'll be paying less. So I asked them to clarify. I then discovered they're trying to get me to switch to their service.

They didn't identify themselves very clearly at all and they made it difficult for me to understand that they were a different company to my current supplier.

Verdict: Scam, they weren't open and honest about wanting me to switch suppliers.

2. Chris Cardell Sent A Letter To My Friend Paul…

A few searches have hit my site on the topic of Chris Cardell marketing, including the phrase "Chris Cardell Scam". This is because a few of my clients, by coincidence, have been members of his various clubs at some point before deciding to work with me.

Anyway, this week a friend got an envelope delivered in the post. Inside was a page apparently torn from a newspaper with a Post-It note stuck on.  The note written on it was along the lines of "Paul, This sounds right up your street, J".

It looked hand-written (although on close inspection was clearly printed in a handwriting font). There was nothing at all to make you think that Cardell had sent it. In fact Paul really thought a friend had sent it (that's the idea, of course).

It was selling membership of his monthly subscription club. The club is awkward to leave (I also get searches hit my site for "how to cancel chris cardell membership") and so this letter is framing people to sign up for around £40/month of a membership they'll have to research how to  cancel.

I even spoke to somebody this week who personally had struggled to cancel membership and had lost £80, despite the guarantee of full refunds (Deborah Purple of IT services company Backupnet in London).

The page from paper was clearly an advert for Cardell, dressed up to look like an article. This article was never in a million years a bona-fide newspaper article.

If it had ever appeared in a paper it would have been as an advert. But here it was, presented as a torn page from the paper.

Talking to another marketing buddy, these are apparently called Tear-Sheets and are popular in America. They are normally a little more obviously adverts and don't try to pass themselves off as legitimate newspaper copy.

Verdict: Mistake – This marketing tactic is just a bit too close to the knuckle for me – I love the idea of using the credibility of a newspaper article to help win trust from potential customers, but this was just a bit heavy-handed, which was a great pity.

Update: The Advertising Standards Authority have passed judgement on Cardell's tactic too.  They found it was misleading and stated that

The ad must not appear again in its current form.

You don't need to play it this way, Chris, because it damages your brand too much and it's clearly upsetting people.

Before reading their account of the situation, here's a bit of background from my perspective.

A Perfect Storm of Business Problems

They were caught in a trap that was made from three serious, business-threatening problems

1. Their major lead source was dying (teletext on Analogue TV) and lead volumes were down by 50%
2. The recession had damaged their market badly – luxury holiday sales were badly hit by the economy
3. The weak position of the Pound to the currencies around the world, especially the Euro, weakened demand for international holidays even further.

They were members of the Chris Cardell marketing club and had tried a whole bunch of strategies out.  None had made any impact and they were concerned that they could not just sit and watch the situation get worse – they had to act and so decided to invest in my Double Your Business Coaching Programme…

I've worked with over 150 businesses, but never a travel company before Airworld Tours.  Fortunately, Double Your Business Coaching works in any business, as you'll see when you read about how we doubled their business within a year.

That's an increase of hundreds of thousands – every month — in sales.

If they can do it, with the dreadful combination of circumstances that faced them, what's possible for your business?

In Their Own Words…

Now read the story as told by Jamal Shahid, one of the directors of Airworld Tours…

"In December 2008 we made contact with Lee because the recession was hurting us.  This affected the travel business generally, and we knew we had to make some changes.  On top of this, our major source of leads was Teletext from analogue TV.  With the switchover to digital TV, this was a lot less effective and we had found it difficult to replace the volume of leads effectively.  We had tried Google Adwords and other sources of advertising, but all of them cost more than the business they produced.

We knew there were some better ways of working, but despite the information we got from our membership with Chris Cardell, we found it difficult to apply it effectively for our own business.  That's why we decided to get in contact with Lee.  He came in to see us for a free coaching consultation and explained how he could help us.  We shook hands on the day and started working together in January 2009.

Progress was slow at first – reading some of the testimonials I think we had hoped for a miraculously quick turnaround.  With hindsight I think it was because we were in very tough market conditions and had such a lot that we needed to change.  If you want to increase your turnover when your business is in the millions you need a clear strategy and a bit of patience!

With Lee's guidance and support we were able to build new lead sources and better processes to get the most out of our enquiries.  This involved a better marketing strategy, faster responses, changes to telephone systems, better email follow-up and a host of other changes.

The results speak for themselves.  In January 2010 we did double the business that we did in January 2009.  Working with Lee through 2010, we think this year is going to be a great success for Airworld Tours.  We now understand how to keep growing the business, even in a downturn.

It's not rocket science, but step by step changes that each improve your business by a small amount.  Added together, these make a big difference.  Clearly we have turned things around and are increasing turnover again, which is a great position to be in despite the recession.

We can now look to the future with real confidence and are working with Lee to build a new niche market that we believe we can use to more than double the size of the business again.  We'll then repeat this with other niches to take our business up to a whole new level.

If you think your business could do with a bit of help, I strongly recommend you pick up the phone and talk to Lee.  We're certainly glad that we did"

Are you ready to take your business to the next level?

Call now on 01480 370142 to book your free, no obligation first session.

A 14th Century monk can give you a clue – he came up with Occam's Razor, which is the principle that when you're trying to solve a problem, the simplest answer is usually the right one.  We can use Occam's Razor for business growth, believe it or not.

Here are some examples of how you can use it in your business…

If you need more customers, look at how you got the customers you currently serve.  What have you done in the past to attract people in that worked?  Now do more of it!

It sounds simple, but lots of people never really think about where customers came from, so overlook the idea of going back for more.

This becomes very powerful when you're getting frustrated with a problem in your business.  For example, I've worked with one client over the past few months to increase footfall into his restaurant.  It's up by around 25% and the business is really buzzing with people now.

But in our last session he got a bit fed up when we reviewed his figures.  People just aren't spending so much, he lamented, and there was just a hint of gloom and doom about him.

Turning this on its head, I asked how much difference it would make to increase the value of each customer by £2, or even £4.  The difference is staggering, both in terms of profits and in terms of turnover.

I always think of a simple equation to help me find the answer to problems like this.  By keeping it simple, I've got the best chance of finding the easy answer.  Here it is…

Profit = customers x average spend

Looking at this case, we've seen customer volume increase by 25%, but overall sales are stubbornly staying low, so the issue is with average spend.

It reminded me of an anecdote that McDonald's something like doubled their profits, way back in the beginning of their business, simply by asking the question "Would you like fries with it?".

Staggering eh?  Which was why they then scripted this phrase so that you hear it in every single restaurant globally.  It must be asked thousands of times every day.

So for my client, we have to find some similar ideas to offering fries with every meal.  Only his restaurant is a lot nicer place than a McDonalds.    Here's a few of the things we came up with…

• Aperitifs – who can resist a Kir Royale, for example!
• Additional side plates with starters (Italian can offer garlic bread, Indian can offer Poppadoms, etc)
• Promote higher margin main courses
• Sell side-dishes by enthusing about their flavour
• Offer a plate of cheese in addition to a sweet
• Sell some interesting and unusual liqueurs

Just selling one or two of these as extras to each customer increases the value of the sale tremendously for a restaurant.  Just remember to look for the solution in the most obvious place.  Life's complicated enough without adding to it ourselves, which is a great reason to love Occam's Razor to solve business growth problems.

Lee, something you said to me last week really struck a chord.

You said that we expect to do our marketing and sell right away.

But if the customer isn't ready to buy yet, no amount of clever tactics is going to make the sale.  It's all about keeping in touch.

That's the beauty of the loop.

Just thought you might want to know, I do listen to what you say!

You see, our customers are human, just like us.  They operate off free will.  If your advert lands in front of them just as they were thinking about buying your kind of service/product, you've got a great hot lead.

But 99% of people are not ready to buy when they see your advert.  So you've got to keep in front of them regularly, so when they are ready to buy, yours will be the company they buy from.

Don't expect miracles from a single advert.  Instead, collect their contact details and keep in touch with them over time, until they are ready to buy.

I was reminded a few days ago of the story of two hikers in the forest who startle a bear.

One of the guys is terrified, and says to the other, "Oh my god, we can never outrun a bear!". The other replies, "I don't need to outrun the bear, only you!".

If the hiker you're with is the competition, are you the faster runner? The recession has hit and taken a percentage of business away. There's still a lot out there if you keep your head up.

All you need to do is be a step ahead of the competition and they'll get caught, not you.

That means that now is the time to focus on your marketing, your sales and your customer service. Let your competitors struggle while you push ahead to new levels.

Quick story on this point. Two printers I know have very different recession stories to tell. One, a business coaching client in Yorkshire, has built sales over the past year and dramatically improved his cashflow.  His name's Dean and he's based in Yorkshire.

Here's what Dean sent me on Friday,  "I followed the simple procedure you asked me to put in place and the results were instant.   This  one simple improvement has made our cashflow better than ever."

Meanwhile the other printer is bemoaning the state of the market.  He complains that there's no demand for printing anymore and all he's doing is putting out hot air that's contributing to global warming!  He should shut up and start running faster…

Lots of businesses will get eaten by bears in this recession. Make sure you're wearing your running shoes.

Lee

Marketing Is Like Fishing...

If you struggle with marketing your business, you're not alone.  I would guess that a full 97% of companies have no marketing that they have any sense of control over.

The very idea of writing a marketing plan is enough to make your eyes roll and wonder how many pages it will take.   If I told you that you can do it on just 1 page, would that feel better?  In this post, you're going to get a whole new way of thinking about marketing.

By the time you've read every word on this page, a few pennies will start to drop for you.  Do the exercise at the bottom and you'll have started your marketing plan.   Follow the next 4 posts as well and you'll have a complete marketing plan for your business that could transform things.

Like the client whose business doubled from £200,000 per month to £400,000 per month, within 12 months, for example.  This is powerful stuff, so pay attention!

Let's start by giving you a new and easy way to think about marketing…

It turns out that marketing has a lot in common with fishing…

If you fancy a bit of angling, the smart fisherman goes out to catch a specific kind of fish, because he knows that will make his life a lot easier.

With that fish in mind, you need to think about where you'll find them: in shoals at sea, or in particular pools and lakes, for example.  You'll also want to know what they're hungry for – there's no point trying to catch a white shark with a little worm from your garden!

Next, you want your bait to be the most enticing, mouth-watering tidbit in the water, so that the fish chooses your line and hook, not somebody elses.

Finally, if you really want to catch fish, you'll put half a dozen lines into the water so that you give yourself an unfair advantage over your competition.

So let's start writing your marketing plan now, …

Core Marketing Plan Section 1 – Niche

This is the fish you choose to catch for your business, as customers.  The more clearly you target a specific group, the more able you are to talk in their language, about their problems.  This makes it far easier for them to understand you, to relate to your solutions and products.

If you're a restaurant, are you trying to get people in your local town, or tourists?  Are you after younger people, or the grey pound?  Do you want high income, or students?  All of these factors come into play when you're thinking about a clear target market.

Remember that for your niche to be worthwhile, you've got to be able to find them in worthwhile numbers to make it pay.  There's no point going after a tiny group of customers with no spending power, for example.

You've also got to be sure that there is space for you in the market, too.  The whole point of finding a niche is that you want to specialise and focus on a group that have been a bit neglected.

So for example, if you're a chiropractor you could specialise in office workers.  Your marketing could talk about the problems of spending so many hours sitting in an uncomfortable chair, using a computer screen.  You could start a blog with tips for being more comfortable around the office.

For the group of people with back pain who work in offices, your marketing would really hit the spot, which is precisely the point.  If they decide they need some help with their back, who will they call?  The specialist for office worker back pain, or the generalist chiropractor?

To complete this section properly, you've got to make sure you've found a "hungry crowd".  Here are the four key questions to answer in this part of your plan…

1. Who are your niche or "chosen fish"?
2. Where can you find them?
3. What are they hungry for – what's their problem or need?
4. Is there space in the market for you to compete for their business?

Answer these 4 questions clearly and in depth, and you've got a powerful start to your marketing plan.  In Part 2 of writing your small business marketing plan, you'll learn about baiting your hook – that is, how to make your bait the most enticing, tasty meal for the fish you want to catch.  At the end of the series I'll also be posting a template for your 1 page simple marketing plan.

Oh, and as always, if you'd like some help to get your business on the fast-track, call the number at the top of the page…

This made it all the more exciting when the guys at Airworld Tours, a tour operator in London, that they had achieved double sales in January 2010 compared with January 2009.

This is really exciting news and suggests we're on the way to doubling their business overall. I'll be giving a bit more information out about what we've done (without revealing too many secrets, of course!) in the coming weeks.

Until then, if your business is going strong and you deserve a luxury holiday, Airworld Tours are your first choice!

On the other hand, if business isn't going so well, give me a call so that we can get you on the growth path, too.

The trouble is, it's easy for you to get stuck on the idea that "there's nothing I can do that's different to my competitors".  So in this blog post, you'll discover how a true commodity business – the dairy industry – has lots of differentiation.

The idea here isn't to turn you into a cheesemaker (even though "blessed are the cheesemakers!"),  but to inspire you to stand out from the crowd in your line of business.

I can think of no more challenging business to be in than milk production.  The supermarkets have you by the throat and buy from you at pretty much cost price.  You only make something because of the huge volumes you sell.  What to do?

Well, some diaries came up with the idea of flavoured milks and shakes many years ago.  But far more interesting is the brilliant mainstream milk company Cravendale.  They've innovated to make a better milk, rather than going after a tiny niche.

So now you can drink normal milk, or Cravendale's pure filtered milk that lasts longer.

I don't know about you, but if I can get "pure", that suggests that what I was drinking before wasn't pure.  Seeps into my brain after enough repetition and gradually starts to become the normal milk you buy.

The real crunch though, is that your price is no longer directly compared to ordinary milk, the commodity stuff.  You've carved out a whole new niche within the vast milk market of pure milk.

In the Cravendale ad they make the point about their differentiation – on the fridge door they tell you it's filtered so it lasts longer.  And they're all fighting for the last glass.  How many times do we throw away the last glass of milk because it's going off?

Clever, witty, engaging.  Perhaps a little irritating.  But they're selling a lot of filtered milk now, to an audience that had never seen it just a couple or so years ago.

Now take a look across the rest of the dairy industry and you'll find lots of similar examples.  Anchor Butter have differentiated themselves by claiming the free-range credentials.

Who ever heard of free range cows?  I haven't – never thought of cows being anything but free range, wandering in the fields eating grass.  But Anchor have brilliantly captured the eco-mood and transferred the free-range idea from chickens…

Interestingly, a search on Google for other butter advertising shows that Country Life gave a money-back guarantee that their butter tastes best a few years ago.

Can't find a video on it, but apparently they printed 5 million packs with the offer on it.  The idea being that you'll try the butter out because if you don't like it, you can get your money back. What's the chance of you not liking a quality pat of butter?  Pretty low risk strategy, it seems to me.

Going back to the blessed cheesemakers, how do you make an ordinary cheese into something special?  Packaging does it very nicely for Mini Babybel, who put a twist in their adverts by showing tiny cheesemakers putting it together…

As you start to get into the differentiation groove, you'll find lots of interesting options – Cheestrings are the modern replacement for Dairylee cheese triangles, it seems to me, becoming one of the defacto kids' choices for their lunchbox.

You may be wondering just how you can use these cheesy examples in your own business…

Bottom line is you've got to come up with some great ways to differentiate your business, products or services from your competitors.  So many people in small business tell me they can't.  You can, once you decide to give it the attention it deserves.

There are a host of ways you can be different in business – including changing your…

• Product (filtering the milk)
• Packaging (little wax jackets on your cheese)
• Positioning ("The Free-Range Butter Company")
• Guarantees (Best tasting butter or your money back)
• Service (the good ol' milkman)

If you'd like more inspiration on ways to differentiate your products and services, I can highly recommend both Purple Cow by Seth Godin and Raving Fans by Ken Blanchard and Sheldon Bowles.  Both are available from Amazon for around £5 each and are inspirational.

Differentiation is one of 5 parts of my Core Marketing approach to developing an effective marketing plan for your small business.   Over the next few articles  I'll be posting about the remaining 4 main concepts behind Core Marketing to help you put them into place in your business.  Next up will be choosing a nice niche…