Putting the Marketing Cart Before the Quality Horse

With so much focus on marketing, could businesses be putting their hype before the horse?

I read an interesting story by Jack Neff in Advertising Age magazine, who talked about big corporate botch ups. The "Big Three Transgressors Against Public Trust " -- BP, Toyota and Johnson & Johnson -- aren't the only ones who have had problems this year.

Kellogg recalled 28 million boxes of cereal; P&G has recalled 8 different branded items since November; Unilever recalled Breyers, Country Crock and Slim-Fast; and McDonald's took back its Shrek glasses.

All that investment in marketing to build brand and brand loyalty goes the way of the garbage truck when companies put their marketing message monies ahead of quality control. Cutting costs can destroy brand equity.

Since Northwest Arkansas is tied to the Walmart ship, this is news relevant to all of us. I can imagine what madness our colleagues at Walmart face when recalls of this caliber occur.

But, since I'm a small business champion, it strikes me that the message for our ears is about quality on a much more subtle level. Instead of recalling products, we're faced with recalling customers and clients. We all know the numbers -- acquiring new customers takes five to ten times more effort than keeping the ones you have. Are we following the math?

What do you do to make sure the quality control in your business is up to par? What is it that your business does to build brand equity in your neighborhood marketplace?

Top notch customer centric service?  Well trained, happy employees? Clean, up to date environments?

There's a lot to think about. As you look to grow your business and market share -- even if it is a small business -- it's worth putting your dollars on that horse called "Quality" to win.

Taking advice from Keith Hicks

As a solopreneur I'm always busy. I never finish all the job tasks on my plate for the day. Okay, I admit it, I rarely finish them all, ever. Something always gets shoved to the back burner to simmer until it evaporates or boils over.  There's some comfort that I am not alone in this.

Finding more time in my work week was a topic that caught my eye when the article came across my editor desk for the August issue of Biz2Biz NWA Digest.  The author was Keith Hicks, a local business coach, who writes an article each month on various business development topics.

This month's really hit home with me. Time. Finding more time. I don't want to spend more time. I don't want to hurry through my tasks. I don't want to skip or short circuit the time it takes to do a job right. So what is this concept of finding more time?

You'll have to read the article to get out of it what you will, but the tidbit that set my brain stirring was this concept of delegating.

I've always thought I was pretty good at delegating when I have someone to delegate to. I don't micro-manage, or restrict how someone comes to the desired end result. But when I read Keith's article I had one helluva ah ha! moment.

"Recognize everyone is not you," Keith Hicks wrote. "Don't get caught up in the 'only I can do this right' trap. If an employee can do it 80 percent as well as you, let that be sufficient. Let them do the work you hired them to do."

It dawned on me then that this is how companies of one become small businesses that grow into larger businesses. It dawned on me that this is the difference between being a person who works for herself and a business owner leading a product (or service) up the ladder of  success and profitability.

You may be laughing at me this very moment. Well, duh, you say. But if we're all taking a spoon of truth syrup, the reason we go into business for ourselves is so we can control our environment. So we can do it the way we want to. Because we believe only "I" can do it right.

And that's the trap. It takes a village.

Thanks, Keith.

You look good in a hat

I ran across a blog site today where the gentleman was celebrating his new business. He was so excited about branching out on his own; full of vigor and vision. He had gathered all the periphery associated with starting out on his own. He posted a clever little series of pictures of his new office (a corner with a crummy old desk), his new commute (from kitchen to living room), his new coffee maker (the Starbucks around the corner) and new dress code (which didn't include pajamas).

I felt his enthusiasm. I felt his glee. I felt like hiding the key to the closet that houses all the hats he will now need to wear. 

As a solopreneur, he will soon enough encounter the myriad of roles he will have to play to make his business succeed.  Like an actor on stage who must perform all the roles, including directing the stage and the orchestra, he will do well in some and suffer through others.  It is a quick costume change, from one hat to another, but it requires full compliance, none the less.

CEO, CFO, COO, CSO, HR, Marketing Director, Sales Director, Chief Engineer, Lawyer, Accountant, Bookeepper, IT, Clerk, Receptionist, Event Planner, Networker, Proofreader, Customer Service Rep, Buyer, PR Pro, Education and Training Coordinator, and Janitor ... all in one seamless segue!

"A hat is a flag, a shield, a bit of armor, and the badge of femininity. A hat is the difference between wearing clothes and wearing a costume; it's the difference between being dressed and being dressed up; it's the difference between looking adequate and looking your best. A hat is to be stylish in, to glow under, to flirt beneath, to make all others seem jealous over, and to make all men feel masculine about. A piece of magic is a hat." Martha Sliter

Summer Time is Fun Time Even for Business

I can remember counting down the days until school let out and summer began. The excitement grew every day we marked another day off the calendar with a big bold X. I was a Florida girl then.  Summer meant long days at the beach, swimming in every pool in the neighborhood like musical chairs, and movies every Saturday in the cool, dark of the downtown theatre. It was there I met the likes of Cornelius, ZIra, Dr. Zaius and the others from the Planet of the Apes.

I was raised on the tourism teat, nurtured by the master marketer, Walt Disney World. I watched Orlando burst from a cow-town of 100,000 to one of the top visited destinations in the world. I’m glad I live in Arkansas.

This year the U.S. Travel Association’s International Pow Wow was held in my old stomping grounds, Orlando, Florida. The event gathers travel pundits and travel journalists in a trade-show conference that’s considered the largest generator of “Visit USA” travel. The event drew close to 5,000 travel buyers from more than 70 countries.

Arkansas’ tribe was represented at the Pow Wow by Arkansas Parks and Tourism. One goal, of course, was to catch the eye and cast it toward The Natural State. According to the U.S. Travel Association, the business of tourism puts about $5.7 Billion in Arkansas’ pockets every year, creating nearly 63,000 jobs with a $1.1 billion payroll.  (Florida generates $70.5 billion!)

Suffice it to say, tourism is big business. But all I really want to do is count down the days to summer vacation.  In this month’s issue of Biz2Biz we premier our “Downtime Destinations” travel section.

Our launch explores the Galapagos Islands of Ecuador, one of the top “must-see” destinations, and a truly one-of-a-kind wonder of the world.

Every quarter, we plan to give you an inside, up close look at a vacation destination, in the hopes of encouraging you to use all your vacation days.

Studies show that we are all better for the downtime we take from work. That includes small business owners who think time off is impossible. Studies show that vacations are just downright good for us. We return to work feeling more productive, rested and rejuvenated, closer to our families and filled with life-long memories.

It’s summer, kids. Get out and go! 

Janie Clark, Publisher, Biz2Biz NWA Digest

Better stock up on 1099s

A business peer read our articles on Health Care Reform in the May Biz2Biz and was prompted to share news she'd uncovered. What she shared blew me away. Here's the 411:

Hidden in the HCR Bill is a teeny weeny section that says that beginning in 2012 all companies will be required to issue 1099 tax forms to any individual or corporation from which they buy more than $600 in goods or services in a tax year.

So let's put this is perspective.  You buy an iMac from the Apple store for $1,000. Now you have to send Apple a 1099. Buy $650 worth of paper towels from a B2B distributor? You'll send them a 1099, too. Shop at Office Depot for your office supplies? You'll have to send them a 1099.  Spend more than $600 on your merchant services? Yep, put them on your list, too. All those B2B luncheons you attend, you'll be sending both the Chamber and the hotel 1099s.

The story was reported in CNNMoney.com and went on to say that one of the reasons this tax code revision landed in the HCR was government's way of recapturing unreported income -- and maybe that will offset the cost of the health bill.

We reported in the Money Issue of Biz2Biz in February about the IRS looking at "tax gaps." The Feds believe there is $345 billion in unreported income going untaxed.  They also surmise that if small business is going to get health care tax cuts, we're going to have to make it up for it somewhere else.

There are so many ways to peel this peach I don't know where to begin.  Aside from the sheer nightmare of adding reams of paperwork we, as small business owners, don't need this tops my list of the most ridiculous things people think of.  There's a TV show on True TV that this would fit right into-- "America's most stupid rules."

Is government securing its own destiny by giving itself more work? Will it cost more to administrate this code than they will gain in tax revenue? Is government in the throes of a black hole, about to collapse upon itself and suck everything with it?

OMG! What do we do about this?

Read the full article at CNN Money.

Health Care Reform and Small Business

Raise your hand if you have health insurance. Raise your other hand if your employer provides part of it. 

If your hands are still at your sides you are a member of some 45 million Americans without health insurance. Of those without insurance, an estimated 63 percent are either self-employed or work for a small business, according to the Employee Benefit Research Institute (EBRI).

If your hands are still in the air you are probably one of 177 million people who have employer-provided insurance.  However, as President Obama said, “all it takes is one stroke of bad luck – an accident or an illness, a divorce, a lost job – to become one of the nearly 46 million uninsured.”

It’s not all about budgeting. An estimated 17-plus million uninsured are making more than $75,000 a year, and are part of the fastest growing segment of the uninsured population.

In this issue we look at the health in the workplace. Many say the theory behind the healthcare reform is a move to national health care, which we wouldn’t be pioneering. England is trying to get out from under theirs.  Canada has states getting out from under theirs. Meanwhile Hong Kong, Taiwan, Japan, France, Germany, Sweden, Denmark, and Australia are thrilled with their health care systems comparable to the level of care in the U.S. at half the cost.

Will the health care reform bill help or hurt small businesses? Some say it will help. Others say not. Some say we need a national health care system. Some say we don’t need another inefficient government-run program.

Time will tell. In the meantime, stay tight with your insurance provider and eat at least one apple a day.

What kind of a shopper are you anyway?

Money. It’s on the minds of many of us. In business everything we do impacts our bottom line in some way. And so does our personal relationship with money, finances and budgets. What kind of relationship do you have with money? Brent Kessel, author of It’s Not About the Money and co-founder of Abacus, a sustainable investing and financial planning firm, says there are eight broad categories we fall into:

1. The Guardian is always alert and careful.
2. The Pleasure Seeker prioritizes pleasure and enjoyment in the here and now.
3. The Idealist places the greatest value on creativity, compassion, social justice or spiritual growth.
4. The Saver seeks security and abundance by accumulating more financial assets.
5. The Star spends, invests or gives away money to be recognized, feel hip or classy and increase self-esteem.
6. The Innocent avoids paying significant attention to money, believing (or hoping) that life will work out for the best.
7. The Caretaker gives and lends money to express compassion and generosity.
8. The Empire Builder thrives on power and innovation to create something of enduring value.
What type are you? We found two quizzes to help you rate your dollar sense and sensibilities. http://bit.ly/MoneyQuiz1 and http://bit.ly/MoneyQuiz2