Profit and Lifestyle Tips

Get More Business from Current Customers

Marketing to your current customers is the absolute best way to generate profitable new revenue quickly. Your customers already know and trust you, so it is easy for them to say “yes” to more services. Here are four things you can do easily that will help you with connect with current and past customers now.

1. Send an email

If you have a large customer list (or a small support staff), the work and cost associated with a direct mail campaign can be daunting.  Consider sending an email to your best customers.  It doesn’t need to be fancy just start with 4 or 5 informative paragraphs and add links to your website. 

2. Re-connect with your best customers

A face-to-face meeting with your best customers and prospects off the clock is always appreciated. Take the time to listen to the challenges your customer has, and offer solutions that will help them achieve their goals.

3. Schedule a Strategy Session

A lunch tends to be informal and somewhat social, but you might also have customers who need a more in-depth assessment. Perhaps they are new and you are still learning to work with them. Or you might suspect that the customer may put your account out for bid. Whatever the case, suggest to customers you can offer them a one hour complimentary strategic planning session.

4. Ask for a Referral

As you reach out to customers and prospects, ask those who else may need your services.  This could come in the form of family members, friends, co-workers, or business associates. When you do get a referral, always remember to send a thank you note.

Marketing to current customers is just one of many ways you can get more business.

Our Canadian Pride came out at the 2010 Winter Olympics!
 
Congratulations to all the athletes.  Canada set a Olympic winter record of 14 Gold Medals, the most ever won during a Winter Olympics and our friends in the United States topped all countries for a total of 37 metals.  Germany came in second with 30, Canada third with 26, and Norway fourth with 23.
 
For some the athletes, their Olympic journey is over and for others, the training begins all over again.  Some may have won and where others didn’t achieve their goals.  Not matter what, they aren’t starting over at zero.  They will take their lessons they have learned during this Olympics and apply them.
 
Just like the athletes, we need to do the same in our businesses and lives.  We all have wins and we all have setbacks but we are never starting back at zero.  True success is when we take the lessons we have learned and apply them.  It’s when we don’t that the definition of insanity comes into play (Keeping doing the same thing expecting different results).  Our continued article “Make the Decision to Thrive in Your Business: Key 2 “Mindset” is the essence of this.

Mindset

In order to thrive in your business, it is imperative to manage your mindset.

DEFINITION:  A fixed mental attitude or disposition that predetermines a person’s responses to and interpretations of situations.  An inclination, an intention or habit.
 
Your mindset is your thoughts, intentions, habits, attitudes, beliefs and expectations, both professionally and personally.

Many business owners stay stuck in current reality, “TODAY” and focus on all

Business Mindset

the things that are going wrong. You need to see the truth as it presently is in your business but also focus on where you want to go. Set that intention:

• Do you have business goals with targets?
• Do you review your goals weekly and make adjustments when necessary?
• Do you have product and service goals?
• Do you know the strategies you need to take in order to meet these goals? 
• Control your self-talk.  Focus on what you want to happen.  Stop listening to the negative media. Listen to uplifting music or positive business development audio programs.
• Take accountability for your results. If you are playing the victim mentality card, stop it.

CBC Business

Having a business mindset is being able to think strategically and knowing that the purpose of your business is to make money. A TV show that illustrates this is the “Dragon’s Den” on CBC (yes a Canadian show)  This is a show where entrepreneurs pitch their business ideas and products to 5 business moguls who have the cash, the connections and the strategies to make it happen.  “Shark Tank” on ABC is very similar but we prefer the format of Dragon’s Den. 
In your pitch you need to explain your business, what is your market, how are you going to make money, and how are you going to manage risk.  It is interesting that many start-ups have not thought about these questions, but surveying businesses who have been around for more than 5 years, they can’t answer these questions either. 

Every decision you make affects your business.  The quality of your decision is based on the quality of your mindset.  A good entrepreneur reacts to challenges positively rather than negatively.  You welcome change and turn it into opportunities and you react quickly to the unexpected.

The third key is about taking your message to your audience.  There are only three things to focus on.

Key 1:  Oveall Financial Assessment

Given what is happening in the economy, this is the time that really tests your skills and mindset as a business owner. Do you have what it takes to stay in business but also thrive when so many others are closing up shop? Hopefully your answer is yes but if you are not sure, here are four keys we use in our businesses and with coaching clients.  It is imperative that you know we are not just “coaches” or “advisors” without knowledge or experience. We have a brick and mortar building, employees, overhead, inventory, accounts payable, accounts receivable and the bank.

We tell you this so you recognize we have experienced the advice we are giving out.  Whether you are an entrepreneur or small business owner, today is a good time to take a fresh look at how you operate your business.

There are Four Keys to Prosper in Your Business
Here is the first key which will get you focused on your business’s financial well being.
 
1. Overall Financial Assessment:
Do you know the financial state of your business? That seems like a silly question but statistics show that 90% to 95% of business owners don’t know their numbers.  Here are some questions to get you started.

• Is your accounting system set up to give you true financial numbers on a monthly basis? Most businesses operate from a reactive approach because they don’t get their true numbers until the end of the year.
• Are you making a profit? If you are not making money, do you understand why this is happening?
• Do you know your margins on every product and service you deliver? Have you price checked the cost of your products lately? Should you eliminate some products because the margins are too low?
• Do you have a positive cash flow?
• Have you looked at your expenses line-by-line? Are your expenses out of control? With some vendors, you can renegotiate for cost savings.
• What are your accounts receivable collection days? If you have accounts
  over 90 days, start calling now.
• How are you managing your accounts payable? Many suppliers will offer a discount for paying early.
• Do you know how many times your inventory turns during the year? This area needs to be controlled. The just-in-time strategy may work as long as you can readily get stock.
• How do your numbers compare to industry standards?
• Do you understand how your business becomes “an asset of value”?

As a business owner, you need to know your numbers.

What is an entrepreneur?  An entrepreneur is someone who manages and organizes any form of business.  The definition of small business in North American is a business that has 500 or less employees and over 70% of them have fewer than 10 employees.  So for most owners, whether sole entrepreneur or small business, you need to lead and to manage projects and people.

Here are four leadership traits of the entrepreneur or small business owner:

Initiative
As an entrepreneur, you had the initiative to start your business but you also need the initiative to grow and expand it. You are not a limited thinker and usually see “outside the box”.  You are active oriented and you have specific steps to bring the idea to life.  You face reality head on and deal with it.  You do not expect others to bail you out.
 

Creativity
It is your ability to do old things in a new way, to see new solutions to present challenges, or figure out different ways to make things work together.  You are a forward thinker, seeing the future success of your business.  You see the problem solved and there are no boundaries.

Risk Taker

You can’t predict the future but you can set your intentions for what you want and adjust as the future plays out.

Happy May ~ This is a great month for many reasons.  First it’s our Mother’s Birthday – (Happy Birthday Mom! – here we are with our Mom, Doreen), Mother’s Day, Victoria Day (Memorial Day for our American friends) and of course the flowers are starting to emerge.
We are now enjoying a beautiful spring. It seems that only a short while ago, we were shoveling mounds of snow and the whole yard was blanketed (NO … smothered) in a covering of white.

But just to make sure we don’t take the weather for granted, we got a surprise snow storm the Monday morning of our camping and quadding trip on the Victoria Weekend.

Check out our photos on Facebook:
http://www.facebook.com/album.php?aid=80660&id=744713270&l=08aa7d3613

This is also the month we went to the “I Can Do It San Diego” – Hay House Conference. We were blessed to spend time with the master herself – Louise Hay who wrote  her first book “Heal Your Body” when she was 61. Here is Arlene with Louise on the first day of the Conference. Louise is vibrant, beautiful and inspiring at a young age of 83. From one book to a publishing empire, Hay House is the international leader in self-help and transformational publishing.

Q:  My customers like the way I do business presently and I believe they do not use the internet.  Should I have a website?

A:  Every business should have a website because that is where people of all ages are looking for information, products and services.  Especially if they do a local search of your city and business.  For example – Seattle and chiropractor.  The smaller the geographic location, the more targeted your customers will be.  One of the things that we have noticed lately is that more of the paper directories are being discontinued which is all the more reason to have a website. A website can support your expertise, drive sales to your business along with providing general information like phone numbers, address and directions to your location. 

Don’t know where to start?  Buy your business domain name.  If you have questions about starting a website, we know the right people to help you.  Email us at info@profitandlifetyle.com

As always, if we are in California, we take the time to visit Disneyland. We love Mickey Mouse  and it is the “Happiest Place on Earth”. Disney is running a special birthday promotion for 2009 as part of their new marketing campaign “What will you celebrate?” “Life’s many celebrations deserve to be wrapped in magic and transformed into the happiest memories of all.”

THIS IS BRILLIANT! You get F*R*E*E admission on your birthday. What a great business strategy because you would never visit Disney alone and especially on your birthday – you always bring family and friends with you. So what else do you get?
• a button announcing “It’s My Birthday” and your name on the button

Now many people would say that isn’t much. But think about this from a marketing perspective. Each time a Disney Associate sees your birthday button, they say hello and wish you a Happy Birthday whether you are boarding a ride or ordering a meal. Other people at the park also see “the Birthday Button” and wish you Happy Birthday along with setting the same intention to come on their own birthday. Just having all that attention for the day most likely will create a fan for life. You would tell everyone what a great time you had at Disney and how special they made you feel. All that marketing for a minimal cost of $60 for the birthday person. The return would be bringing others with you – each paying at least $60 per day admission, meals, clothing, toys, gifts. The Return on Investment for a family of four would be at least $400 – 85% return.

How can you take this marketing strategy and apply it to your own business?

1. Disney doesn’t sell the amusement rides. They sell an experience.
The take-away: The value you give your customers is far more than just in the product or service that you provide. You can distinguish yourself from your competition by
providing value–not products and services–that your competitors don’t provide. For example if your business is a salon, you can create a whole experience for the customer when they walk in for their reservation versus appointment, offering them special teas, coffee or infused waters, along with neck massages and paraffin wax hand treatments. Even calling the customer by their name changes their experience.

2. Disney knows the value of the up-sell.
The take-away: With meals, you can get a special Disney character cup for an additional $5. Normally we wouldn’t go for something like this but if it is a special occasion (especially if it is a birthday), we would probably say yes. This is not about nickel and diming your customers. This is about offering your customers choices. Everyone wants choices. Not everyone will want the premium package but some do. For example if your business is a travel agency, you could up-sell a wine and cheese reception, offer a car service to the airport or house babysitting service. You are not taking advantage of your customers rather you are providing additional value.

3. Disney knows the value of the cross-sell.
The take-away: With most of the rides, you exit into a gift shop or there is a gift shop within  sight after exiting. Each gift shop is packed with clothing, toys and gifts related to that area. The stores also introduces you to the videos and movies from the Disney TV and Film Production company. The tea cup ride (Cathy takes a spin), the gift shop has loads of hats from Alice in Wonderland (Arlene as the Mad Hatter), as well as Mickey ears and Peter Pan hats with personalized embroidery. For example, if you are offering  year end accounting services you could also offer them a monthly bookkeeping service or a seminar on how to read their financial statements.

 How does this type of marketing affect your bottom line?
• It costs an average of 6 to 7 times as much to attract a new customer than it does to keep an existing one.
• On average, a dissatisfied customer will tell 10-16 people about their negative experiences.
• It takes 11 good experiences to overcome a single bad one.
• 91% of unhappy customers won’t buy again from a company that displeases them.
So now think about this – How did Walt Disney figure out how to make people pay to stand in lines all day? Brilliant Marketing

Today, more than ever people are stressed. The media constantly is letting us know what companies are going out of business, the amount of money government is injecting into the economy, the rise and fall of housing and mortgages, and the list goes on.

One of the best ways we have found to de-compress is to go play. Some of our best ideas have been when we are driving somewhere, going quadding, or walking the beach. Just this month, we came upon an idea that added $500,000 to our business’s net worth.

We just read how a scientist and his colleagues spent months trying to decipher a formula. Finally the scientist decided that he was frustrated and getting nowhere and needed a break from it. So he took off to the mountains. As he was relaxing, getting ready to play and gazing at the mountains – the whole decoding of the formula came to him, so he called his colleagues to join him where they finished the formula in a fraction of the time.

Sometimes we think if we just push through the problem, WORK HARDER, the answer will come but we know firsthand how that doesn’t always work. So if you are stressed about a challenge, take a couple of hours or a day to just go and play. Leave work and get outdoors to clear your heart and head.

No kidding–Sometimes it’s that simple.