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A blog by the Staff and Users of GoodLittleBiz.com
Send us stories and reflections about your good little business; we’ll post them in guest blogs so that others can learn from your journey.
[Here's an article from October 21, 2008 by guest author, Molly Gordon. The topic, getting clients when times are tough, is more pertinent than ever. Enjoy.]
Why do some businesses survive in tough economic times while others fail?
One explanation is that people keep buying necessities, like groceries, but not luxuries, like diamond rings or massage. But that isn't necessarily the case.
While grocery stores undoubtably have a priority claim on our pocketbooks, it's not just our stomachs that determine what we buy.
Simply put, we pay for what we value, and value is a collaboration with your just-right clients.
What Is Value?
Value is the difference between the cost of something and the benefit it confers.
The cost of groceries gets measured against the value of nourishment, and the grocer makes a sale.
The key to continuing to get business when the economy slows down is to demonstrate that the value of your work is greater than the cost.
And the best way to do that is to let your clients demonstrate it for themselves.
How a Client Establishes Value
It's easy enough to understand that the buyer or client establishes the value of putting food on the table. But what if you're a massage therapist or an image consultant?
While it's true that people can't eat a massage or wardrobe consultation, both of these "non-essentials" have deep seated value for the just-right client.
My friend Tom has back pain that used to interfere with his work, Now regular therapeutic massage keeps him flexible, fit, and productive. For Tom, massage is not a luxury, it's job security.
When Linda could afford shopping as a past-time, she thought hiring an image consultant was a frivolous indulgence. Now that she needs to dress professionally on a budget, she's realizing how much money she's wasted on bad choices. Working with a wardrobe consultant has become a necessity.
You see, clients know something you don't. They know the real reason they pay for products and services like yours.
But they don't always know that they know it. And you don't always know how they think about it.
It's your job to connect the dots so they can hire you.
You can learn how to do that in Five Keys to Conversations About Value below.
========================================================
How DO you get clients without being pushy or sleazy?
You know how valuable your work is. But getting that message across to prospective clients so you get hired is another thing. That's what you'll learn in the 7-week course, The Goldilocks Strategy for Getting Clients That Fit Just-Right. http://www.authenticpromotion.com/goldilocks.html
Early bird discount expires February 19. ============================================================
Five Keys to Conversations About Value
It's one thing to understand the concept of value as a collaboration. It's another thing to have the conversation that gets things going. Somehow, when we sit down to talk, a fog bank seems to move in.
These five keys will help you navigate through the fog.
1. Let go of the result.
2. Be willing to be surprised.
3. Ask questions.
4. Listen.
5. Check your conclusions with the client.
Let Go of the Result
The first and most important key to having conversations abut value is to let go of the result.
A conversation about value is not a sales pitch in disguise. The goal is not to make a sale, but to reveal the value of your work so that the client can make an informed decision about buying.
Every client that walks away from this conversation feeling heard and understood but without buying remains a prospective client and referral source.
Every client you convince to buy who doesn't benefit from the investment becomes a mill stone. (Besides, do you really want to talk people into buying when the right clients will ask if you'll work with them?)
Be Surprise-able
If you were crystal clear about the value your work provides clients from their point of view, you wouldn't need to read this article.
Since you aren't crystal clear, open your mind. Drop your preconceptions about value. Let the client surprise you. (And you can surprise them by really listening. But I'm getting ahead of myself.)
Ask Questions
Your job in the conversation about value is to ask questions, not to answer them.
Imagine that you are helping a friend make an important decision. Instead of giving advice, ask questions that help your friend, in this case, a prospective client, articulate what's most important to them.
- What do they want to achieve?
- Why is that important?
- What's in the way of achieving that?
- What can they build on?
- If they could have any kind of help they wanted, what would that look like?
Listen
If you aren't asking a question, your mouth should be closed. And if you don't know what to ask, silence can be okay, too. I guarantee that when you stay silent longer than it's comfortable, your client will start talking. And the best part is that what they say will be coming from them, not from you.
Check Your Conclusions with the Client
Periodically stop and review what you've heard with the client. This gives them a chance to clarify or elaborate. It will show you where you may have imposed your thinking on theirs. And it will suggest new questions to ask.
That's it. No selling. No pressure. Just an open mind, interested inquiry, and careful listening.
Value Is a Collaboration
When it comes right down to it, the value of your work emerges from a collaboration between you and your just-right clients. What's more, this collaboration begins long before you are hired.
Start asking questions and listening to the people you'd love to work with. Watch the value emerge. And watch your client list grow.
Join the conversation by posting a comment here:
http://shaboominc.com/blog/archives/are_you_worth_it_how_to_establish_th...
There’s no doubt that our economic world has changed and continues to change. And there’s little doubt that most people don’t like change – Neuro scientists agree – a great majority experience ambiguity as a threat. Further, the worst threat of all is heightened in a shifting economy: that we might lose, we might be rejected – not included in the exchanges of our choice ... http://www.bestwork.biz/blog/?p=199.
I listened to a podcast with Jack Trout of Positioning fame – indisputably one of the greats – a day or two ago. He has a new book, Repositioning: Marketing in an Era of Competition, Change and Crisis. The question set me to wondering whether ... http://www.bestwork.biz/blog/?p=197
I recently contributed to an eBook targeted to Pharma and Healthcare marketers. The book, intending to guide its audience toward where to invest their learning in 2010, is directly relevant to anyone in business... http://www.bestwork.biz/blog/?p=193
It doesn’t always feel that way – being the little guy often doesn’t feel like the power position. But take another look.
The current recession has buyers re-thinking how they use their resources. Those of us who want to remain high-value trading partners are called upon to respond – sensitively – to new sets of concerns. Our prospects and customers are operating in new worlds. They are re-interpreting what’s most important, where they will focus, what they need, and with whom they will place their trust.
It reminds me of the moment, many millions of years ago, when the cooling of the earth offered our warm-blooded small mammal forebears advantage over the dinosaurs.
Large businesses cannot move quickly.
It’s very difficult for them to notice a new nuance in Customers’ thinking, listen in a way that people experience as being heard, and respond in a way that generates new value for both parties. This most basic human interaction is not scalable. The big guys don’t have a chance competing with us in personal customer connection.
Like the dinosaurs requiring a certain amount of heat – reptiles cannot regulate their body temperatures - our large competitors thrive on scalability. That puts them at a huge disadvantage in a changing environment. They’re desperately trying to figure out how to appear responsive. But web 2.0 makes the job harder and harder.* Of course customers can tell when no one’s really listening - the human brain is very hard to fool on that score.
Little guy/gals, on the other hand, thrive on being close to our Customers. We can know every one of them personally, we can respond to each one uniquely, and naturally they can feel it.
The way to leverage this advantage is to focus on a simple question that will juice your brain and stoke the fire in your belly:
Who do you want to serve, and what do you want to make happen for them?
Use the question to focus and refocus. If you’re feeling worried about the recession (which is likely to reduce your intelligence by interfering with Pre Frontal Cortex function), the question will spark your ingenuity.
Take it one step farther, as we do in Worksheet 1, “Who would you LOVE to be working with?” That question will enable you to work with recession, not against it, by taking the little guy’s advantage: getting closer to the people you care about when they need it most.
The only reason a business exists is to help certain someone solve a certain problem they can’t easily solve for themselves. That’s why people are willing to pay their time and money, because they get help.
- Worksheet 1,">Heart of Business
* Prahalad’s brilliant book shows large businesses how to operate from n=1, but the discipline to do so is very demanding, and predictably rare.
For many, the insight that business is social is something of a surprise. In much of Western tradition, work and play are viewed as a dichotomy: business falls in the former, and sociality in the latter. But that’s not how the brain is organized. New insights from Neuroscience clarify how the brain functions to keep us focused on others (with emotions – ever heard of them?) A recent article from Strategy and Business explores the implications for managers.
Through the lens of Business Anthropology, it’s apparent that trading is old as the first human communities. Commerce is in our biology. Though I’ve been writing about that for decades, it’s delightful to see what Social Cognitive NeuroScience labs are revealing with fMRI studies; businesses large and small can seize new opportunities.
Our brains naturally respond to change as though it’s dangerous, and shut down our ‘thinking centers’ rather than firing them up. But we can train our brains to be ingenious when exposed to risk. I’m with Jim Collins’ assessment that the ability to face uncertainly with curiosity is the most important skill of our times. Neuroscience illuminates the challenge as well as how to focus on the desired competences.
Unfortunately, our brains are not geared to be effective in the face of ongoing stress like a global recession. We don't tend to get smart. But we humans have a rare gift: we retain plasticity into adulthood. We can learn new moves. And the current business environment certainly demands that we do so.
Perhaps most important to my practice over 3 decades is understanding how we’re inclined to respond to vulnerability. On this subject, current Neuroscience research is stunning. Even when informed that a situation is simulated – even using cartoons and stick figures – smart people feel intense pain of rejection and strong pleasure of belonging and contributing.
The actions we take, the decisions we make, the possibilities we recognize are determined by this powerful programming. Focusing on the vulnerabilities of others inspires our best work. We become ingenious. We can spark our enterprises and fire customers’ curiosity and commitment.
Solopreneurs and small business have a huge advantage in using this force, because we can be so nimble. We can quickly respond to emerging vulnerability and invent new ways to add value. Our forebears have done so for 150,000 generations – that’s how we got here. Any business can be vulnerability-centric. It’s the most powerful force at hand.
Have examples? Please share!
We believe that the most powerful organized force for change (for good or bad) in the world that humans have built is the system of commerce through which we exchange value and find ways to feed our families. We intend to leverage that power to make the world a better place for all of us. We recognize that at times the most influential global powers have been religions and governments, but we think that time has passed in most of the world and is gradually passing in all of it. This change opens an incredible opportunity for humanity: commerce is a lever by which we can do some very positive things for the world.
In order to continue to survive in a competitive commercial environment, we must innovate.
In order to sustainably innovate, we must improve our maturity and wisdom as individuals
(see our last newsletter.)
As we do so, we become more able to tackle the larger problems that we face — even those outside of work.
We believe the desire/demand for innovation will help us learn how to be more productive with each other. This is what we need in order to create a better future for our children. Yes, it’s the competitive element that innovation has introduced to commerce that can take us to a better life, workplace, community and world. As evidence of this, we at New & Improved are as likely to get an e–mail from one of our program graduates that they have made / saved their company big bucks via what they’ve learned as we are to get an e–mail telling us how they finally had a productive conversation with their sullen teenager using the same methods.
Wouldn’t it be great if we were able to effectively pass something forward to the next generation other than our personal wealth or tax bill? Wouldn’t it be fantastic if we put front and center the idea that the most important inheritance we could leave would be generational increases in wisdom? Wouldn’t it be wonderful if, from a young age, most of society was engaged in a conversation designed to answer the question
“What might be all of the ways we could improve our maturity as a species?”
And that we could be having this conversation in the place where we spend the largest chunk of our day to day lives — at work. In that context, you could reframe the question as,
“What might be all the ways we could work together better?”
We believe that the evolutionary pressures that exist in commerce might be just the pressure to energize that conversation.
The real bottom line
As you work to turn your organization’s attention to improvement of its innovation culture, as you work to build the systems, organizational structures and training processes that improve your company’s innovation quotient, you are also improving the world’s ability to effectively tackle the big issues that we have been too immature, narrow–minded and short–sighted to solve so far. We believe this is an innovation mission that ANY organization should be proud to throw themselves behind, even as they are working to strengthen their position in the market — their bottom line — via innovation. It is a great service to us all that you grow through innovation, because you create a competitive pressure for others that can only be resolved by increasing their innovation abilities...and hence their ability to think and work productively with others.
So get with it. Out–innovate others. Raise the bar for us all, and serve us all in the process of doing so.
You can reach Bob at http://www.newandimproved.com
Entering Q4 of a very challenging year, I’ve been asking myself, what would it take to be:
Fit to Thrive in Any Economy?
Is it possible?
In my Business Anthropologist hat, it’s clear that human beings have been finding ways to generate value for each other as the world shifts around us for, oh, at least 150,000 generations*...and probably we’ll find ways to do it too…
That begs the question, how do we go about being effective in the face of – often unwelcome – change? The imperative is urgent, though the combination of skills required are rare.
The lens of Business Anthropology that I find so handy illuminates how commerce and the human brain evolved together. It’s no accident that we sustain Neuroplasticity – so important to innovation - into adulthood. Below is a very rough view over 4 major Ice Ages and countless periods of warming/rising sea levels, no doubt accompanied by earthquakes, tidal waves, volcanic eruptions, not to mention predators, drought…honing groups’ ability to keep each other alive.
|
|
Brain |
Body |
Business |
|
3,200,000 years |
500 cc |
Large male 5’ |
Cooperating for protection |
|
1,000,000 years |
1000 cc |
Heavy brow ridges |
Good cutting edges |
|
25,000 years |
1500 cc |
Large male 6’ |
Trading over thousands of miles |
Our ancestors’ stressors differed from ours in several important ways. Understanding how our brains tend respond to the challenges of modern commerce allows us to build new neural pathways: becoming more competent to navigate our changing world as individuals, and revealing how to keep our enterprises viable.
Change is a moment of opportunity for those who can keep their brains curious, bodies vital, and enterprises nimble. I’ve developed Fit to Thrive in Any Economy, a new synthesis of brain, body, & business, based on recent insights from Neuroscience, perspectives from Business Anthropology, and practices from the Martial Arts. What are you doing? What are you seeing that’s working?
This moment in commerce is unprecedented. It’s a call for ingenuity and leadership. Let’s get the job done.
*The newly-published Ardi fossils appear to push that back to at least 210,000 generations.
This is a question that begs for a question as an answer: What do you want?
Desire is an important compass, and I think we use it less than we should. When we listen wisely, desire will tell us where we need to focus our time, money, and energy to get the results we want.
The problem is that we rarely listen wisely. We tend to distrust desire, suspecting it of conspiring to rob us of sense and dignity. When we do listen to desire, we may sometimes do so uncritically, as kids in a candy store.
The key is to listen to the direction in which desire calls us, while letting go of the destination. Listening like that will show you exactly what to learn next.
Here's how to listen to desire.
Start in a quiet place. Quiet has nothing to do with the level of external noise, but everything to do with the level of noise between your ears. Bring your attention inward and settle into your body. Let your breathing deepen.
Begin to notice your body sensations. Observe and acknowledge them without trying to change anything. Take your time so that every part of your experience can be noted. This is about coming home to yourself. It's the equivalent of pausing on a journey and finding a still place from which to check your compass.
Now invite into your awareness the things you most want for the year ahead. (The time period is up to you. If you are planning a vacation or retreat, use the length of time you plan to be gone.) Let these desires come into your awareness and simply observe them. You might jot them down if there are very many.
Having named what you desire, notice which desire has the greatest charge or energy. Then ask yourself, “What will that give me?” Pause and listen as the answer comes to you. It may arrive as a thought, a sensation, a shift in emotion, or an image. Just be present to whatever comes.
Keep asking “What will that give me?” until you feel you have reached the core of this desire.
By listening to your desire in this way, you’ve used it as a sort of compass that points to something really important and valuable to you, something deeper than the desire itself. Now that you know what that something is, you can ask, “What can I learn to move in that direction?”
How do I find the balance point: working on my business vs delivering to customers?
The key to achieving a balance between working on one's business and delivering value to customers is Reduce, Reuse, Recycle. Incorporating these three principles into your business can result in a much healthier business eco-system, one that will generate a healthy living for you.
Reduce. The first principle in finding a balance point is to reduce unnecessary expenditures of time and money.
The best business people I know are experts at making do. This is not to be confused with cheaping out, for the very same people are willing to part with significant chunks of time and cash when they feel it is worthwhile. On the other hand, they don't spend a dime on promotion, packaging, or presentation without knowing that it will bring a return on investment.
There are countless businesses that make money by selling something to other businesses. Some of them use a technique I call “shaming up.” That is, they build a case that you deserve to fail if you aren’t willing to spend money on their product or service. If you walk away from their offer, you are branded a loser.
Frequently these companies talk about leverage and needing to spend money to make money. That’s nonsense. A lever only works when there is a fulcrum, a stable object across which the lever rests. Without a fulcrum (money in the bank, for example) the longest lever in the world is useless.
Reuse. The second principle in finding a balance point is to reuse work you have done before. In this way, your work products become assets.
Here's an example. Jim does fine finish carpentry. His current project is a remodel, and the existing trim uses an exotic wood that the client prefers not to use for environmental reasons. Jim works with the client to choose a new trim that coordinates with the existing trim but has a lower environmental impact.
Applying the principle of reuse, Jim writes a blog post on choosing environmentally friendly trim and illustrates it with a snapshot from the project. In this way, he uses work he does for a client to build credibility and visibility for his business.
Recycle. The third principles in finding a balance point is to recycle resources in one form into another form.
Let's look at Jim again. If he reuses the experiences and learning he gathers in his work as material for blog posts, in time he will end up with quite a body of information. Jim can recycle this information into e-courses, ebooks, and pamphlets.
These materials can be given away or sold, depending on Jim's business strategy. For example, he might provide a free e-course on environmentally friendly construction to build a mailing list of people who might want to pay for a class on the same topic.