2017-05-MAY
What is Your Business’ Value Proposition?
Your value proposition is your competitive advantage and is directly related to what your customers want. Few things, if any, are more important to your success. See if any of these questions reflect your experience:
- Do you feel overwhelmed trying to create your value proposition?
- Have you tried projects that seemed to create great value but didn’t win over your prospects?
- Have you been frustrated by unproductive meetings and disappointed by misaligned teams that produced little of value?
Here are some simple things you can do to define your true Value Proposition:
- Identify and understand your customers and what they want. Organize the information in a simple way, look for patterns, and align your products with your customers’ needs. Target what matters most to your customers.
- Use effective, clear, and inclusive communication to create a common language that your team will be able to buy into and take ownership of your strategy. This leads to more meaningful, productive, and enjoyable meetings and actionable outcomes.
- Avoid projects that waste your time and resources by incessantly testing the premises underlying your ideas and projects. This allows you to pursue big bold ideas that complement your existing projects.
- by Shohreh R Aftahi, MBA, PhD
FocalPoint Business Performance Coaching
pathtofullpotential.com
Negotiate Better: The Walk Away Law
The Walk Away Law says: You never know the final price and terms until you get up and walk away.
You may negotiate back and forth, but you never know the best deal you can get until you make it clear that you are prepared to walk out of the negotiation.
The first corollary of the “walk away” law says: “The power is on the side of the person who can walk away without flinching.”
When you walk out, always be pleasant and polite. Leave the door open so that you can come back with no loss of face.
The second corollary of this law says: “Walking out of a negotiation is just another way of negotiating.”
The very best negotiators are extremely adept at getting up and walking out. They will leave the room, the building, the city, and even the country to increase their perceived negotiating power.
A common tactic is for one or more of the key players to storm out vowing never to return. Another version is “good guy – bad guy.” One will be unreasonable and demanding while the “good guy” will try to make peace by getting you to concede a little to placate the “bad guy.”
- from "THE 100 ABSOLUTELY UNBREAKABLE LAWS OF BUSINESS SUCCESS" – Brian Tracy
What Determines Your Company’s Value? (2nd in the Series)
Last month we started answering important questions such as these:
- What is your company worth?
- What influences how fast it sells?
We will continue to examine the factors that go toward answering these questions.
Customer Relationships
Buyers worry that the relationships your customers have with your business are really relationships between “Frank” in your customer’s purchasing department and “Sarah” in customer support.
Business owners considering a sale should be sure that customers have contact with multiple people in the business – preferably not all family members.
This multi-contact approach also forces employees to be more diligent in recording notes, transactions, order and contact data in the corporate records, which also has value to the buyers.
Family Members
Family members have a natural loyalty and trust for one another. However, a buyer may worry that if family members stay on, their loyalty may not transfer to new ownership. Further, this is especially important for certain positions, such as the heads the finance, operations, sales, product development functions as well as key sales positions.
You must execute the right personnel decisions to properly position your business for sale to a third party.
- by Greg DeSimone - Beacon Equity Advisors, Inc.
4 Keys to Building Better Customer Relationships
The relationship between your small business and its customers must be more than the mere exchange of goods and services for money if you want to succeed.
Poor customer relations can adversely affect your business, costing you in lost customers and sales. Here are four things you can do to build a strong and healthy connection with your customers:
- Ask Them What They Think. Feedback is invaluable. The problem is the opportunity isn't always there. Invite feedback. Send out surveys and hand out comment cards whenever appropriate.
- Show Customers That You Appreciate Their Business. Demonstrate your appreciation with loyalty programs and discounts. Give them free items whenever possible.
- Connect with Them. There is absolutely no reason for you to not connect with your audience, especially since connecting with them is easier than ever before. Technology has given your small business the power to stay in touch with your target market.
- Do More Than They Expect. Disappointment sticks with people. Fortunately, pleasant surprises also stick in the mind. The secret is promising little, then over-delivering. When people get more than they expect, they feel like they got a good deal.
What Are the Best Ways to Validate a Business Startup Idea?
I’ve personally been a part of 14 startups and over 400 business turnarounds. Here are a few of the lessons I’ve learned over the years:
Protect your cash. Don’t spend on researchers or consultants when you can do very relevant research on your own.
Fill a need. I don’t care in people say they like your idea. Is there a real need for it?
Get clarity. Complete clarity is required! Write a business plan for your idea before you start. Some important “clarity” questions:
- Can you clearly describe the “emotional” value of your idea in 20 seconds or less?
- What makes your idea unique?
- Who, specifically would be your perfect customer?
Validate. Research using online search engines, family and friends, printed media, and online forums to establish validity.
Don’t fall in love. Don’t be unwilling to change your idea!
Learn the business. Be sure you know something about the business you’re about to dive in to.
Understand entrepreneurship. It’s about work and effort, and believing in yourself when others may not.
Be fully committed. Many times, investors, bankers, and supporters will base their willingness to help on your level of commitment.
- by Coach Dan Creed
Workers Compensation Insurance: How to Cap Costly Premiums
How can you control your own workers compensation bills?
Nothing is better than improving safety. Premiums go up most quickly for employers who experience many claims. A workplace of people who get back injuries drives costs up more than a single expensive car accident.
Watch for dangerous conditions wherever employees are operating machinery or driving vehicles. Also, be vigilant about areas where people move from one level to another. Here are some other safety tips:
- Teach employees safe lifting techniques and provide them with back braces.
- Install sufficient lighting in all areas.
- Make sure the plumbing is working well so people do not slip on water.
- Make sure employees take appropriate work breaks.
Report injuries as soon as they occur – delay can increase medical costs. Early reporting also increases the chances of uncovering fraud, because evidence is easiest to gather immediately following an accident. Also, make a smart choice in your carrier. Find one who will do reviews to improve workplace safety and also investigate claims for fraud.
Reducing risk and facilitating a speedy return to work is in everyone’s best interest. Workers return to full pay and employers help keep workers compensation insurance prices down.