Get Your Engines Started!

I am not an economist, but I have noted that there is a cautious buzz suggesting that we might be at the bottom of this economic slowdown.

As a business owner and a consumer, I'm thrilled! Of course, there are many long, tough months ahead as we hopefully dig ourselves back out of this hole, but at least there is some hope.

Now is the time to focus on how you can take advantage of the slow economy for both yourself and your business. Even if you only have a tiny financial cushion left after the last 12 tight months, now is the time to use it! Here are some options to consider:

1. Services are cheaper - although it's not universal, most service providers are more flexible with their rates - and may have even dropped their rates. Just like all businesses, service providers are anxious to do some great work for you to help boost their bottom line, and you can probably get lower rates and shorter terms

2. Labor is available and cheaper - the labor market is hungry for work, and many stellar employees have been laid off. Now is a great time to fill critical positions in your own company in preparation for increased business.

3. Rents are totally negotiable - if you have ever thought about expanding your physical space, now is a great time to do it. Many retail, office and warehouse locations have been vacant for 10+ months. Assume that the rate and terms offered are much higher than you should actually pay, and bring in a seasoned negotiator to help you if necessary.

4. Your competitors are still scared - the single greatest opportunity for you right now is to take advantage of your competitors' lowered spending. They have likely pulled back on everything from advertising to customer service, and their customers know it! Now is the time to swoop in and impress everyone with your strength and moxie: show them that your business is still around and doing great!

Give me a call if you need some help!
310.453.7008

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Starbucks vs. McDonald's

Since I just wrote about Starbucks, I thought I should update everyone with the latest business news from the company. Fiscal second-quarter profit dropped 77%. Why? Because the company is going through a major restructuring and closing 123 U.S. stores.

I love Starbucks, but I wonder if this has anything to do with its faster-than-light global expansion. Perhaps even more damaging is the weak economy and McDonald's latte launch:

"Over the past 18 months, McDonald's has been steadily introducing lattes, cappuccinos and mochas in individual markets across the country. Some 80% of the company's 14,000 U.S. stores now sell these drinks, and this week McDonald's will roll out a national advertising campaign trumpeting the McCafé section of its menu." Full story: TIME magazine

Work at Starbucks

If you're like me, you sometimes (or frequently) use Starbucks as an office. In fact, I work out of a Starbucks at least three times each week, using it both for meetings and as a (usually) quiet place to do some work on my laptop.

In fact, right now I'm in a Starbucks working to the sounds of "Tall Nonfat Latte" and "Grande Chai Vanilla Iced Tea" and some mellow music. There is someone interviewing prospective employees in the corner opposite from me - she has interviewed three people since I got here. Behind me is a tutor guiding his highschool client through Calculus homework, and at least two tables are occupied by people conducting some sort of business meeting.

I think that part of Starbucks' success is based on the fact that so many people use it for business. Even though sometimes I don't buy anything at all, other times I buy breakfast and lunch, plus multiple lattes, in one day.

If you're interested in the Starbucks logo and/or mermaids, then you have to read this blog!

Get Scammed Quick

ATTENTION: You can get rich quick online with no investment and in no time at all!!! I did it and you can, too!

It's amazing to me how many people I've met recently who have been scammed online by the very same type of marketing schemes we saw on TV in the 1980s and 90s. "Get Rich Quick" schemes, wherever they are marketed and whatever they entail, might work .01% of the time, for .001% of the population, but it breaks my heart to see so many desperate people getting scammed and losing their money and their self-confidence when the promises simply don't come true.

This is like the weight loss industry promising that you can lose 20 lbs in two weeks without diet or exercise. Even if it were physiologically possible, it could not possibly last.

Lasting success is based on behavior, not trickery. No quick scheme in the world, whether for making money or losing weight, will be successful in the long-term unless you learn to incorporate daily behaviors (habits) that will maintain success.

Recession Marketing

I thought you might enjoy the following Q&A that I provided to a national publication writing about how small business owners can succeed in a recession.

1. What tips can you provide for organizations looking to maximize their marketing budgets?
Focus, focus, focus. The biggest problem right now is that people are spreading their marketing efforts too thin. It is much better to call one warm prospect than to send a cold mailing to 1,000 people from a database. Focus your efforts on the most profitable and likely prospects.

2. What brand building techniques do you recommend during a recession?
In a bad economy, people only pay for things that solve immediate, serious needs. Take a look at your marketing messages and determine whether they address such a need. Think in terms of Emergency Care vs. Prevention. Long-term marketing messages simply aren't selling right now, so you need to dig deep into the "pain" your customers feel and tell them how you can help.

3. Are there marketing activities you have increased as a result of the recession? If yes, can you provide an example?
I'm offering more workshops and short-term projects that deal with specific problems (per the above answer - long term strategy just isn't as attractive right now).

4. Are there specific campaign examples or strategies that have worked particularly well despite the recession?
My marketing business has actually grown in the past six months, and my pipeline is full. I think it's because I saw the consumer mentality changing and applied what I said in numbers 1 and 2 to my own company.

10 lbs

I have been actively pursuing a healthy body for more than a year now. I've gone down two pant sizes and feel great. I've established healthy habits like eating 6+ servings of fruits and veggies most days, clocking 10,000 steps per day and sweating through 4-5 cardio workouts per week. I have cut my alcohol consumption in half and actually developed a distaste for fatty, highly-processed foods.

In short, I'm happy with h0w I look and feel, and my body is healthy.

You know what's amazing though? I've only lost 10 lbs! One year and all this work, and all the scale can show me is 10 lbs.

It's times like this that I have to remember that numbers are only one of the guides we can use in life. There are lots of other metrics for our bodies, minds and businesses that can help us know whether we are succeeding at what we want.

Snail's Pace

Because my natural inclination is to rush to the finish, I have been amazed to notice that since I started meditating I have been able, for the first time in my life, to move slowly. The amazing thing about it is that in doing so, I appear to be moving even faster than before.

This is a strange paradox - by thinking more slowly most of the time, I am able to make better decisions even faster than before.

I always knew that my propensity to move quickly was linked to my propensity to make lots of mistakes. Now, however, I can see that, given the right space and time, moving slowly reduces the number of mistakes and somehow still allows me to work just as quickly as before. I'm not sure how the paradox works, but it does, and I'm stoked!

A Beautiful Life

My husband and I have crazy schedules. Our work is our passion, leaving us both exhilarated and exhausted. Today we took advantage of the fact that our "crazy schedules" also mean "flexible schedules" and spontaneously went to the beach - he surfed; I ran.

It was a beautiful day, and both of us are so appreciative of the fact that we live such a charmed life that we are able to do such wonderful things.

Casino Marketing

Yesterday we went to an Indian Casino with my husband's 88-year-old grandmother. She had the time of her life! I can't say that I really enjoyed the casino - there were clouds of cigarette smoke everywhere and I'm a horrible gambler - but I did observe some classic marketing techniques:

1. Call to action! Nowhere have I ever felt such a strong internal drive to participate in something as I did walking onto the floor filled with slot machines. Everywhere you look, there are colorful machines begging you to take a chance - and just 5c a try! How can you resist? The pull is actually physical!

What a marketer can learn: always have a call to action - your customers should know exactly what they are supposed to do at all times.

2. Sensory control: Casinos are well-known for controlling our sense of time, space and reality. There are no windows to the outdoors, and the lighting stays the same whether it's noon or midnight. There are no comfy chairs or places to relax - the only thing to do is play their games.

What a marketer can learn: if you have a retail store or restaurant, remember that the lighting, decor and sounds will drive your customers to behave in certain ways. Take advantage of the opportunity by thinking carefully about what you want them to do.

3. Possibilities: The fundamental drive to gamble is the opportunity to make a lot of money, but ask any casino owner the truth, and you know that the house always wins. In our group of five, all of us lost between $15-$100. We had also all been up by between $50-$300 at some point in the day. It's the "up" moments that drive us into the "down" ones at casinos - we think that if we try just one more time, we may win it all back (plus more!).

What a marketer can learn: always have something aspirational that your customer can "reach" for with your product. The diet industry and get-rich-quick schemes are other good examples of this.

Great Expectations

Sometimes ideas come gently, and sometimes they smack you on the side of the head like a tidal wave.

I have been working on an idea recently that is so big and beautiful that it has shaken me up considerably. Usually when this happens, I move as quickly as I can to get the idea implemented. I am always about action, action action. The thrill and adrenaline of action towards a big idea is heady and intense. Sometimes though, it feels as if I'm rushing, always racing towards the next idea as soon as the last one loses its luster.

With this new idea, I'm nurturing it slowly. Letting it percolate and build. Allowing it to gradually develop in my head before committing to any action on its behalf. It's truly the strangest, most beautiful experience I've ever had with an idea!

How do you handle ideas? Do you race to implement them before you can see any obstacles and get disappointed? Do you consider the obstacles and drop the idea out of fear? Do you slowly consider each obstacle and weigh it against the potential opportunity, gradually making steps forwards and backwards until you feel confident that you are ready to run?

How to Set Your Customers Up for Success

Yesterday I attended a meditation retreat. It was nice, but not what I was expecting based on my last experience with the organization. As a result, I was somewhat frustrated and disappointed in a way that I probably wouldn't have been if I had just known what to expect.

This is a good reminder that when you are marketing, it is important to let people know what they can expect from you. This goes beyond the time and date and a snappy title: try to also answer these three simple questions:

1. What specifically will be expected of the customer?
2. What will the customer walk away with?
3. What level of customer are you catering to? (experienced, novice, etc.)

By answering these simple questions before your customer buys, you can ensure that she is set up to enjoy herself.

Life is Fragile - Live it Well

Tonight as I was running down a trail near my parents' house, I noticed the sky fill with helicopters and heard sirens in every direction.

We soon learned that a car-carrier truck lost control and ran over a few cars and straight through the local coffee shop and bookstore. This happened less than one hour after I had been at that exact location. Two people are confirmed dead.

Sometimes terrible things happen to everyday people. There is no rhyme or reason for why the truck careened down the street into the quiet little coffee shop in which I had just observed several people diligently working on their laptops.

There is so little that we can control in this world, but the one thing I know we can control is living our lives well.

Opportunity Is Abundant!

"Sometimes we stare so long at a door that is closing, that we see too late the one that is open."

Alexander Graham Bell
1847-1922, Inventor

It's no secret that now is a tough time in the economy, but it is a great time to be an entrepreneur, because we can zig and zag around challenges and turn them into opportunities. I think it is important to learn from the large corporations that are failing right now, but it is also important to remember that opportunity is abundant for those of us who can be flexible and seek new paths while others bemoan the old ones.

The Money is There!

On Friday I met with a banker who deals with Small Business Administration (SBA) loans, and he told me that now is a great time to apply for a government loan to get your business off the ground. The stimulus package is trickling down to small business owners by providing them with access to capital to start and grow small businesses.

The SBA process can be lengthy and frustrating, but at the end of the day, it's a great way to get the money you need to grow, and now is a great time to take advantage of it.

If you're interested, check out some of the great resources on the SBA's website.

Painful and Inconvenient

There is an emergency situation in marketing right now: what worked before will not work now.

Customers have undergone a significant shift in the past three months: they feel as if they shouldn't spend any money unless it's on something that is extremely painful or inconvenient to them. I have seen this especially in the field of health and wellness.

For example, people who used to see an acupuncturist to help with energy and illness prevention have been cutting back on their visits. People who used to see a therapist to resolve an unpleasant past start to feel as if the work they are doing is a luxury, not a necessity. People who were working with a trainer are buying hand weights to avoid the luxury of a trainer.

Such attitudes are completely natural, and perhaps even necessary, but it leaves small business owners in a lurch.

Now is not the time for subtle marketing or "one size fits all" messages. Now, more than ever, you have to hone in on the things that are extremely painful and inconvenient to your target audience. This means that long-term health and wellness won't sell in this environment; you need to have something specific that solves a real problem today.

Don't worry - this doesn't mean you need to resort to fake hype. You just need to look at the clients who are still coming to you as regularly as they were before January. What is their greatest pain?

For example, Jane, a therapist, helps clients manage anxiety. In the past, that was enough of a marketing pitch. Now, she is noticing that people don't feel that is reason enough to spend the money on her services. Instead, she needs to hone in on the pain and inconvenience that is a result of their anxiety right now. For example, they are lashing out at co-workers and have been reprimanded and told to improve their performance. Jane needs to address this painful and inconvenient symptoms of her clients' anxiety in her marketing rather than assuming that her clients will see the connection by themselves.

THE BOTTOM LINE: Clients need justification to spend money on health and wellness right now, so be sure the address the painful and inconvenient symptoms that are affecting them today.

Shut Down or Keep Going?

Most business owners have hit some point in their company development at which they ask themselves whether their hard work is worth the effort. Is this the company you dreamed of building? Would you be just as happy working for someone else? Would you make more money working for someone else? Is your partner dragging you down? Is managing employees just too much effort?

These questions can cause a great deal of anxiety in even the most successful businesspeople, and they should not be taken lightly. When you feel as if you are at a crossroads in your business development and are trying to decide whether to grow the business or just get out of it, ask yourself the following questions from both a financial and an emotional standpoint:

• How much have I invested in this business?
• What do I love about my business?
• What do I hate about my business?
• What will it take for me to continue running this business and/or grow it?
• Am I committed to this business?

If you decide to commit to your business, spend time listing exactly what it will take to keep you engaged and excited about it. For example, would it help if you hired or fired a few employees? Could you outsource a particularly troublesome aspect of the business? Practical and simple changes to the basic structure of your organization can make a large impact on its success.

In addition to considering the practical and financial aspects of your commitment, take the time to evaluate what you need emotionally as the owner. Most entrepreneurs start their business to get away from "The Boss," but end up treating themselves worse than anyone for whom they have ever worked. Often entrepreneurs work themselves into the ground and, in doing so, lose sight of the reason they started the business and lose all pleasure in conducting it.

Make time for yourself to manage and dream about your business. Make sure you are paying yourself an appropriate salary and taking vacations. When you commit to building your business, you should also commit to ensuring you are making a profit both financially and emotionally.

Small Business Owners: Stop Tweaking About Twitter

I love Twitter, but I feel it's time to make a stand for the fact that many people DO NOT need to use it - at least for business purposes.

I have met so many small business owners in recent months who are stressing out about the idea of needing to be on Twitter. They don't know why they should be Twittering, but they know that everyone seems to be talking about it.

Small Business Owners, here is a message for you: unless you provide something that people can buy over the Internet or otherwise long-distance (e.g. phone consultations, a product, etc.), then the single most effective marketing effort you should undertake is picking up the phone (or writing an e-mail) and contacting current, past and potential customers. Next, plan lunch dates with other professionals and businesses that refer business to you. That's it! Don't worry about Tweeting or Blogging or Facebook-ing. Just focus on building stronger relationships with the people who already know who you and are likely to refer you, and I guarantee that your business will grow.

Give it a try, and let me know if you have any questions!

I Want, I Want, I Want!

Although my personal financial situation hasn't changed as a result of the worsening economy, I have found it to be a useful opportunity to get back in touch with frugality.

I have found it quite fun and exhilarating to embrace a more frugal lifestyle, and have exposed my tendency to go shopping when stressed rather than deal with the stress itself.

My biggest challenge, I have found, is not a desire to buy clothing, shoes or accessories; it's that I want a new duvet cover. There is no real reason for wanting it other than the fact that I'm tired of our current one. A year ago I wouldn't have hesitated, but this year I find myself constantly looking and almost buying, but holding back. As I consider each purchase, I come back to the fact that my current duvet cover works great. It's attractive, and it has been a workhorse. It's nowhere near the end of its life despite 4 years of service.

So ... there is the creative, unfettered part of me that says "what are you worried about? Just buy it! It's beautiful and will make you happy!"

Then there is the rational, prudent side of me that says "what are you really buying here? Happiness? A new duvet cover will not make you happy - only you can make you happy."

I am left wondering: am I being cruel to myself by not buying a new duvet cover, or am I being kind to myself by recognizing that money can't buy happiness?

Animal Advertising

"Advertising may be described as the science of arresting the human intelligence long enough to get money from it." - Anonymous

This brings up some important questions about marketing and advertising - is it possible to sell without expecting people to 'lose their heads?'

The most obvious execution of this style of marketing is the infomercial (TV) and squeeze page (online). You know - those slick direct marketing campaigns that appeal to our animal instincts. They overwhelm us with clever copywriting, amazing testimonials and questionable statistics combined with a 100% guarantee to spur us into desperately needing something that only a few minutes ago we would never consider.

These campaigns are designed to suspend human intelligence and instead appeal to our animal intelligence - those deep-seated desires of needing to be part of the group, wanting bright, shiny objects, and making decisions from your gut, not your brain. These are decision-making skills that do have great value in our lives, especially when we are in danger, but they can also be easily exploited.

I have recently had some direct experiences in which intelligent, smart products and services that appeal directly to the working intelligence have failed miserably, while those that have almost no real value but appeal to the animal intelligence have flourished.

As marketers and as consumers, we must wonder sometimes who is really in charge: the sophisticated human, or the tribal animal.