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Jamie woke up with a scratchy throat, bloodshot eyes and a runny nose. While she knew she probably should take the day off, she had tons of things to get done before the holidays and a little cold wasn’t going to stop her. As the day wore on so did Jamie. By the next morning she realized she needed to see a doctor.  When she visited her physician he prescribed some medication and told her to drink more fluids and get to sleep earlier. Jamie listened to his advice, took the medication and did exactly as he told her. Why? Because he’s a doctor – a respected professional. He has received specialized training and has likely treated hundreds of people in the same way.  How about yourself? Are you not respected in your industry? Have you not received specialized education in your field of endeavor? Haven’t you helped hundreds of people in the same way this physician has?
	Everything human beings do, they do for one of two reasons: TO AVOID PAIN OR GAIN PLEASURE
What Builds Credibility Why do we unquestioningly head the advice of professionals like doctors, lawyers and CPA’s? First, we have to recognize that at the moment we seek assistance from these professionals we are more than likely experiencing some PAIN. At the very least we have some extreme degree of comfort. Our bodies are not at optimal performance or we are involved in a legal battle threatening our financial standing or perhaps the IRS is beating down our door. As we’ve discussed before, the problem is more important than the solution. Second, the institution of medicine, law and accounting has had hundreds of years to shape the opinions toward doctors, lawyers and accountants. They have created organizations, such as the AMA to create consistency and program physicians in how to speak to their patients in a professional detached manner. They have built a huge credibility for doctors and have thus created powerful “attraction” for customers. They have created the perception that “doctors” are not just a better solution, they are the ONLY solution. Think about it. Does such an organization exist in your industry? I would think not.
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Third, most professionals such as doctors begin their “interview” with a series of questions. In fact this is 99.9% if not 100% of the entire exchange between client and prospect (or patient and physician). In many cases the doctor may NEVER present a solution to the problem. The doctor’s sole part in the communication is to ask questions. The patient’s is to give answers. It would be rude and out of character for the patient to ask about the doctor’s credentials or experiences. The institution of medicine has very wisely done all they could to make this the reality of the doctor patient relationship. Telling is Selling Oddly enough it is not what we tell people about our company, product or service that builds credibility. In fact the more we tell them, the LESS credible we appear. Telling is selling and no one likes to be sold. You may be thinking; “that’s fine for a professional but I’m a simple service provider not an eminent physician or attorney.”
	Finally my “Attract More Business” learning program is available. It includes a 150 page color manual, 9 CDs, and my personal Tele-Coaching.Check it out here:www.attractmorebusiness.com
My answer to you is that I think this strategy can be applied to any type of business whether you are a professional, a nonprofessional, large or small organization. For example, my wife and I were recently vacationing in the Bahamas. We like to snorkel and dive when in these tropical areas. Typically we prefer to rent our own small boat since we abhor the traditional “dive or snorkel boat scenes.” However we also like to connect with someone who can give us the lay of the land – the good spots, what to avoid, dangers, where the fish are, etc. As you can imagine this is a very difficult thing to do. Most providers are trying to sell you their pre-packaged tours and almost none of these offer this type of service. When we disembarked our flight we saw dozens of flyers, posters and signs advertising typical snorkel trips, dive excursions and rental boats. They all looked the same. They all said the same thing. They all seemed to DO the same thing.
	Here’s Jean-Michel Cousteau himself. I got to meet him and chat for a bit.

There was one that stood out from the pack:

Jean-Michel Cousteau’s Out Islands Adventures – You build your own underwater adventure.

There were a few things that made this jump out at me. First, I knew that Jean-Michel Cousteau was the son of the legendary Jacques Cousteau. Second, I knew that the best snorkeling and diving was near the islands that were further off-shore from the main island. However most of the snorkel and dive boats did not go out that far. And third, the build your own underwater adventure was just too compelling to pass-up. 

So I called Jean-Michel Cousteau’s Out Islands Adventures expecting Jean himself to pick-up the phone. Well he didn’t however the person that did was cheerful, enthusiastic and very helpful. She gave me a brief 30 second description of how Jean-Michel Cousteau’s Out Islands Adventures was different from every other snorkel/dive service. Then she asked me a series of questions that helped her understand precisely what I desired. I spoke with her for nearly 40 minutes and all she did was ask me relevant and open-ended questions. I did almost ALL of the talking. When I had finished she told me that she could “customize” a package for us and what the cost would be. 

Now while the cost was significantly higher than I had planned, we were so excited about this 5 day underwater dream vacation that we went for it without a second thought. I don’t have to tell you that it was by far the best and most satisfying excursion we have ever had. They took us out for one entire day and gave us a personal tour of all the places that were important for us, a map of the areas we would be touring, a beautiful 20 foot Boston whaler stocked with food, water, gas, GPS, depth finder and even ship to shore radio. 

My point is we can all redefine our selves in the mind’s eye of the customer if we follow this simple rule of attraction and find ways to position ourselves not simply as a BETTER solution but rather as the ONLY solution. 

Admittedly this requires proper branding approach. That’s why I’d like to invite you to attend this Monday’s Tele-Clinic on “Developing Brands.”

Developing Brands – Monday, Nov. 29 at 1pm
While this article may just begin to address the subject of branding, I will be conducting a TeleClinic on Branding this Monday, November 29, 2004 at 1pm during which I will focus on the steps to creating a powerful branding strategy and how to put a branding campaign into action in a practical way. During this 30 minute TeleClinic I will be referring to numerous case studies and I will take questions as well. We will only be able to accommodate a limited number of participants for this telephone clinic so act now. TeleClinics are held over a standard telephone line during which I present detailed information on ways to improve your business performance. They are a great way to get your specific questions answered directly by me. The cost is only $29. To read more go to www.deoteleclinics.com, and to register, go tohttps://www.sbanetwork.org/learning/signup.asp.

Have a great week!
I hope that this “Business Update” has been helpful in assisting you to improve the performance of your organization. For more information on how the Small Business Advisory Network assists companies in improving their performance, please feel free to contact us at 310-320-8190 or email mark@markdeo.com 

Mark Deo

Today for small business operators as well as larger enterprises marketing continues to be a mystery. Often, the ad that generates record-breaking volume one month is repeated the following month and bombs. A campaign designed by the best ad agency may elicit a mediocre response. The same item sells like hotcakes after a 30-word classified ad, with abominable grammar, appearing on page 35 of an all-advertising shopper tossed on the front stoops of homes during a rainstorm! The mystery eludes solution but demands attention.

Your marketing results can be improved through a better understanding of your customers. Putting the customer first is probably the most popular phrase used by firms ranging from giant conglomerates to the corner barbershop, but the sloganeering is often just lip service. 

Marketing success, however, is more likely if you dedicate your activities exclusively to solving your customer’s problems. Any marketing program has a better chance of being productive if it is timed, designed and written to solve a problem for potential customers and is carried out in a way that the customer understands and trusts. The questions and answers that follow will reveal the mystery of marketing by looking at ways we can put the customer first. These are questions that we often receive in our practice and some of the answers we give. I hope it helps you in your marketing efforts. How can I set myself apart from the competition?
Client retention is key. The importance of “the relationship” with the customer never diminishes. For most small businesses, developing and exploiting the relationship is the one major advantage they have over the big players who don’t have the time and energy for it in the first place. This boils down to added value. Customers crave it but don’t get enough of it. When was the last time you gave serious thought to providing a value-added premium in customer transactions? Coupons, incentives, giveaways, special events – All of these are very effective when aimed at strengthening customer relationships.

How do I recession-proof my business?
Build a cash reserve. We have all heard the expression “save some for a rainy day.” But what happens when a rainy day turns into a rainy year, or two? Many entrepreneurs and small business owners will be facing this situation in the coming months. The best way to prepare is to set aside cash during more prosperous times. There’s a real benefit to having a long-term business plan that deals with the kind of cash requirements you’ll need in case of a business downturn. For some, building a cash reserve may come at the expense of swifter business expansion. But the alternatives such as borrowing cash, taking out a loan, dipping into personal net worth, or shutting the doors are far less palatable. But wait, you say, isn’t this finance rather than marketing. True but without cash reserves to launch marketing initiatives a marketing program has no chance in getting off the ground. Many people believe that the best time to launch a marketing initiative is when times start to get tough. This is a fallacy. The most advantageous time to launch such a campaign is when times are GOOD. In this way we can invest both our time and dollars at a time when people are more apt to move forward. This approach may be the very thing to keep the recession from knocking on your door. How can I get former clients back?
Recognize that all customers are at risk. Even satisfied customers can be persuaded to defect to the competition. Do not take any customer for granted. Consider that customer win-back strategies can be more effective than finding new customers. Many experts believe that win-back success rates are far higher than recruiting new prospects. Here’s a few that anyone can implement:

• Identify all of your products or services that could possibly be of value to your customers.
• Motivate your customers to use as many of your products or services as possible.
• Prove to your customers that your products and services offer value that they can not find anywhere else.
• Keep track of every sale and sort in a database
• Personally communicate with customers at regular intervals
• Establish some form of satisfaction rating system
• Sell peace of mind more than just product or service solutions
• Admit when you’re wrong and pick up the pieces quickly and effectively.

Make your organization defection-proof. While everybody is talking about customer loyalty today few are taking real action. Preventing customer defection is surely the prime motivation for building customer loyalty, but it also gives us the ability to proactively develop strategies to improve our value and service in general. This is what prevents price sensitivity.

We can literally avoid price sensitivity by how we treat the client. Remember when you’re telling, you’re selling. No one likes to be sold. That’s precisely when they start focusing on the cheapest price. By asking questions we accomplish several goals. We discover valuable information about the customer. We bond with the customer by letting them do most of the talking. And we show that we care by being interested in their wants, desires and motives. This is the most effective way to overcome the price objection and redirect their interest to the relationship. 

You don’t need a fancy ad agency or marketing firm to improve your marketing performance. In short my advice is to place the focus on the customer. It’s really about doing the simple things and doing them consistently. Focus on the relationship. Add value to every transaction. Build a significant cash reserve. Keep current customers loyal and win back the old ones. And most critically ask plenty of questions. Show that you really care. I hope you’re starting to see that there really is no mystery to marketing. It’s about putting one foot in front of the other every day and always putting the customer first. -Mark Deo

When groups of consumers move from one type of product to another on a long-term basis, new business opportunities can result. Market switches create demands for new products and services.

Some ExamplesThe switch from traditional styles of children’s bicycles to BMX bikes provided an opportunity for a bicycle shop to establish a BMX racing club and racing track. This racing involvement helped the shop to capture a large share of the BMX market.A business woman took advantage of the market switch from record albums to cassette tapes by packaging cassette recorder-head cleaning kit.To take advantage of the market switch from large to small cars, a company designed and manufactured bicycle and ski racks designed for small cars.An office machine repair service anticipated the market switch from typewriters to word processors and began to specialize in repairing word processing equipment.How To Do ItDiscover major changes in consumer buying habits by:

• Reading marketing research reports and trade association research forecasts
• Observing current fads that could potentially turn into long-term changes
• Observing new products that are growing in popularity
• Analyzing changes in your own buying habits, especially when you stop purchasing an item that has become obsolete and begin to buy replacement items with entirely different characteristics.

Find products which are associated with a market switch by:

• Analyzing the advantage of new products to find those which are greatly superior and will likely replace more traditional items
• Looking for new technologies or new products based on new concepts which are revolutionary for an industry.
• Look for a major product or service that is needed to meet changing consumer demand, but has not yet been provided, and find a way to provide it.

When the major product in the market switch already exists, look for related services or products that can be used in association with the major product.Ensure that there is a demand for the product/service you would like to provide.Key Questions

1. Can I think of any market switches that have recently taken place?
2. Can I think of any market switches that may be occurring now?
3. How can I take advantage of these changes in consumer buying habits?
4. Can I address a current market switch by providing the major product or service?
5. Can I provide secondary products or services related to a new major product?
6. Have potential customers indicated a need for the product/service that I have?

September 4, 1957- a fateful day in marketing history, as that was the day a brand new car debuted in showrooms across the country. Ads had predated the launch by months promising an exciting new car, one that would be different from all that had come before. This successful marketing campaign had generated so much buzz that people flocked to see the car of the future. What happened next came as a surprise to executives at Ford- no one was buying the new Edsel.

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There are numerous reasons why- it wasn’t a revolutionary new vehicle as promised; the launch date ensured that it was priced as a 1958 model, while competitors were slashing prices on their 1957 models so it was seen as overpriced; mostly, however, it wasn’t sold properly to the target audience. Ford had ignored all market research, and stubbornly stuck to their sales pitch despite the fact that it simply did not work.

How many of us today launch products and have this problem? Do we ignore what the market tells us because we know our products better than they do? Do we even test market our products in the first place?

Today we have a tremendous opportunity to test our ideas BEFORE we spend massive amounts of money turning those ideas into products. One of the most important, yet often overlooked, areas of testing is our sales pitch. 

How can we practically test out how we are going to sell a product before we have the product in our hands? Traditionally the answer would be to use focus groups. Focus groups, however, carry a number of inherent problems.

• They can be prohibitively expensive
• A small number of people are not necessarily representative of the market as a whole
• That small group can give feedback that drastically changes the vision of the product, causing you end up with a watered down version of your radical idea
• Focus groups rarely do a good job at testing whether people will buy an item based on a sales pitch

So what can we do if focus groups are not the solution?

Use the Internet.

We have a connection to millions of potential buyers, who often times are seeking out what it is we are thinking of creating.

So how do we connect with the people who are looking for the solution we may provide, and find out what works best to represent our potential products to them? Create a smaller version of your idea, offer that for sale on the web, and use Google AdWords to drive traffic to your site.

Let’s say you have an idea for a better mousetrap. You can create a document that describes all the problems with current mousetrap technology, and how your ideas will solve those problems. Make sure that it contains enough information to let them know what it is you are proposing to create. Put this document on a website, and ask for feedback from people who read it.

Now to get the document in front of those people out there interested in new mousetraps, you can use Google AdWords. To those unfamiliar with AdWords, they are the little ads that appear on the right side of the screen when you do a search on Google. You place these ads, and every time someone clicks on your ad to visit your website, you pay a small fee. The mechanics of setting up a successful AdWords campaign are beyond the scope of this article, but for more information,please e-mail me and I will refer you to some resources.

With our mousetrap example, you may want to get AdWords for the search term “better mousetrap”. This will allow you to drive a steady stream of traffic to your website of people who are interested in better mousetraps. Next comes the most important part- measure the results of what people do when they visit your website! Measure how many people view the main page, how many download your document, how many give you feedback, and make sure you gain their permission to contact them later with new developments. Now change the pitch you have on your site for this document about mousetrap technology. Change the text in your Ad on Google. Measure how those changes affect your traffic and your conversion rate. Continue to tweak the ads and sales pitch for maximum conversion rates. You may even get to a point where you can start to charge for your document!

Once you have optimized your site for maximum sales conversion, only then should you consider whether you should actually create the mousetrap! If you have been unsuccessful after 6 months at getting anyone excited enough to download your document, or your conversion rate is incredibly low no matter what you try, your idea may not fly with the market, and you should reconsider spending lots of time and money on your research and development. If you have a successful site, however, make your better mousetrap- you have an audience that is craving the item you want to produce, and you have honed your sales pitch well in advance. Now when you offer your product for sale, you know what works and what doesn’t work when it comes to motivating site visitors to become buyers. You also now have a large e-mail list of people who have had their appetite whetted for your new product. Let them know when it arrives, and you can thus help avoid being known as the manufacturer of the Edsel of mousetraps.

This article was written by sales technology specialist Matt Walker. For more information about what has been discussed, please e-mail him at mwalker@sbanetwork.org or call him at 714-269-4123.

It seems you can’t turn on your TV lately without new bombshells being dropped in the BALCO scandal. Now Barry Bonds and Jason Giambi have admitted to using steroids in recent MVP winning seasons. Debate is raging about what this means for Major League Baseball, and they certainly have received a black eye in the public relations department. Many people are asking how they could have avoided this problem, but the more pertinent question should be, “What should they do now?” It seems time for organized baseball to follow rule 13 from the 14 rules of attraction: Learn the Discipline of Testing The Olympics have long tested for anabolic steroids, and have used this testing to create a culture in which cheaters are ostracized by their peers and the sports community at large. It seems time for baseball to finally implement a steroids testing program to root out this problem if they are to maintain legitimacy in the minds of their consumers, the fans. Because baseball didn’t test for steroid use, and it wasn’t against the rules of the sport, they likely can’t take any action against admitted performance enhancing drug users. While baseball has it’s unique problems, many small businesses run into problems themselves. They run marketing campaigns that fail, and are stuck wondering why. In most cases, it’s also due to a lack of proper testing! The Importance of TestingBefore running a full marketing blitz, it is important that we test our messages.If you ever send direct mail or run ads, testing is critical. How can you test these messages? One way is to use the Internet- I wrote an article on just that subject.Click here to read it. These same testing principles work for traditional ads and direct mail campaigns as well. Once you have designed your marketing piece and identified your target market, create a small mailing list that is a subset of your overall market. Now create a new variation on your marketing piece that includes an offer code that is different than what is contained on the original. Next divide your small mailing list into two. It is important that each half of this small list represent the same types of prospects as the target market as a whole. Send the original piece to the first half, and the new variant to the second. Use the same follow-up methods for both, and test your results! Based on the results you get for each offer code, you can tell which marketing piece is most effective. Now take the more effective marketing piece, generate a new variant on it, and test again. By repeating this process, you can find the most effective marketing message. At this point, you may wish to try variations in your follow-up to test the most effective means of taking the attention you have gained and turning it into completed sales. Now that you have tested to find the best marketing effort for your target market, go out and market yourself to your full target market. Testing is just one of the ways you can increase your chances of success in the market. Click here to read the rest of the 14 Rules of Attraction. To learn more about how to properly target a market with which to use this testing methodology, click here and sign up for the free 5 day self study course in Attracting More Business. Have a great week! I hope that this “Business Update” has been helpful in assisting you to improve the performance of your organization. For more information on how the Small Business Advisory Network assists companies in improving their performance, please feel free to contact us at 310-320-8190 or email mark@markdeo.com  Mark Deo Print this article.

Last week we discussed Rule number 5 of our Fourteen Rules of Attraction, Reverse people’s risk in changing.

This week we’re discussing number 14, Create Standards and Systems that Nurture Growth.

If you walk into the wrong nightclub bathroom these days, you might get a scare. It seems that the producers behind the new show “Supernatural” on the WB have sent special mirrors to nightclubs across the country showing a frightening image of a ghost from the TV show. What do pictures of ghosts in a nightclub mirror have to do with TV shows? It seems that in the copycat world of television, the networks are even copying marketing ideas. ABC last year garnered publicity for such marketing stunts as messages in bottles left on a beach to promote “Lost” and for laundry bags used to promote “Desperate Housewives”.

In a recent article in the Los Angeles times, Michael Benson, ABC’s senior vice president for marketing, recently was quoted as saying, “If you do things right, you get higher ‘talk value,’…It’s about creating something that you want to tell your friends about, and show your family members.”

Apparently TV execs are finally paying attention to Rule number 3 of the rules of attraction- “Create an exclusive community of super-users”. By gaining hardcore audiences from the start, these viewers will actually go out and evangelize the show for them- which is far more powerful than typical advertising ever could ever be. How to Create a Buzz Marketing Program
If you want to create buzz, you have to know your customer and how you are reaching them. It is easier to create buzz than you may think. Good buzz begins with a positive customer experience. There is no substitute for exceptional performance. 

First – Ask yourself the following: 
1. From whom do your customers learn about your products? 
2. What do people say when they recommend your products? 
3. In what invisible networks are your products discussed? 
4. What kind of information spreads through the networks fastest?
5. “How can you get people to experience your product or service without them making a big commitment? 
6. How can you giveaway a small piece of your product or service so that people will start talking about it?”

Second – Try to change your thinking from: 
1. “I need to get this sale,” to “How can I get this prospect to talk about my product or service?” 
2. Don’t focus on under-promising but rather over-delivering. 
3. Don’t be afraid to give a little away. By employing these evangelical marketing techniques, you can transform ordinary customers into devotees that spread your message for you.  Have a great week, and let me know what buzz marketing efforts you have employed in your business! -Mark Deo

Traditional sales and marketing is suicide in today’s business environment!

Why? Because traditional media isn’t just LESS effective it actually pushes more customers AWAY than it attracts. In fact traditional methods tend to alienate target customers more than ever before.

Don’t Take My Word for It 
Check out what a recent McKinsey & Company study revealed about traditional TV advertising:

“TV advertising expenditures will be only one-third as effective in 2010 as they were in 1990.” 

Briggs and Stuart, in their new book, “What Sticks: Why Most Advertising Fails” asserts that 37 percent of all advertising is wasted.

These are amazing statistics. They reveal how the world of marketing has gone through a radical evolution and most are still UNAWARE of this. They are STILL pouring millions of dollars into ineffective forms of marketing in which they have no chance of succeeding.

What does it mean to you? 
Imagine spending thousands or even millions of dollars on radio, TV, outdoor or print advertising, only to discover that you hadn’t gained even ONE additional customer from that expense let alone reap a return from your investment. That’s enough to ruin your day or your career!

This is precisely what is happening today. Every form of traditional media is in crisis. Radio stations, TV networks, newspapers and magazines are suffering from a double digit drop in business. They are lamenting the glory days of advertising when marketers waited on line, cash in hand for a “premium ad position” in order to tout their message. It was a volume game. The more you advertised, the more you sold. NO longer!

More Choice, Less Time
Today customers have more choices than ever before and they have far less time to MAKE these choices! What’s worse is that customers basically IGNORE most traditional advertising. It is all but invisible. Instead they listen to their friends, associates, the grapevine and the more “alternative” forms of media. 

This is why viral marketing is so powerful today. The most successful marketers are adept at creating a buzz. They align themselves with influencers or “sneezers” as some people refer to them. Then they “inoculate” the sneezers with their message or buzz and watch the word spread. The trick is to create a buzz that is pure and honest not salesy or promiscuous. Then to get that buzz to spread in a smooth and persistent way so it is amplified and creates what Malcolm Gladwell calls the Tipping Point. This is the point where every person in your target audience simply MUST have your product or service – like the iPod or UGG Boots.

Sneeze on Me!
Just as there was a formula for the successful direct marketing of the past, there is also a formula for creating a “buzz virus.” 

I have created a 10 minute audio file on this topic and I’d be happy to forward a link to you if you are interested. It takes you step-by-step through creating a buzz virus, discusses the pitfalls and I give some examples of companies that have done so in a powerful way. If this interests you just send me an email that reads…

“NO MORE SUICIDE”

Have a great week!

Be honest now… If this “new” economy has you feeling like a wide-eyed harp seal that’s being circled by blood-thirsty sharks, raise your right fin.

• Unemployment is up
• Spending is down
• Production is falling
• Profits and stock prices are depressed
• Payrolls are being slashed
• Consumers everywhere are hunkering down.

The sharks are circling and there’s blood in the water!Well call me Chief Brody, but this just may be the best time to grow your business or start a new one. Think about it, everyone else is bobbing around in the water trying not to look tasty. It’s the perfect time to swim out there and take a bite out of the shark.Everything in our world – from marketing to technology to commerce – is changing faster than ever. Yet most companies are clueless about what is causing the change, how it might affect them, or what to do about it.Successful businesses hate change. People with secure jobs hate change. Market leaders hate change. But we upstarts and entrepreneurs LOVE change. As small companies, we are in the BEST position not only survive but also thrive in an economic downturn. Small companies like yours and mine can CHANGE and change fast. We can modify our business model, diversify our client and customer base, test new markets and react quickly when economic winds shift.But how do we create change on a shoestring budget?Even more important how do we minimize our risk while cruising through these turbulent waters. In other words, how do we take a bite out of the shark without getting bitten first? I would like to offer a few ideas that I think will go a long way to “Shark-proofing” your business over the coming months.The suggestions below are just a sample of what we offer in our “All Day Workshops.” At these unique workshops you will learn how to avoid the negative effects of this economic downturn. This is not based on theory or blind optimism. It’s based on the real world strategies, techniques and success stories that I’ve gathered from dozens of small businesses.During the workshop I will help you to adapt them to your business so that you can turn this recession into a time of unparalleled opportunity. Here are some of the strategies that we will cover:Pricing Strategies
When the economy grows sluggish and revenues begin to taper off, the first inclination may be to cut prices. For those selling non-commodities or even luxury products, such a move can do more harm than good. Even if sales do rise enough to offset the slimmer profit margins, a business that drops its prices risks cheapening its image. Boston Chicken found this out several years ago. The chain was riding high on a reputation for moderately-priced quality food when it began offering bargain meals. Rather than expanding its market, the move nearly erased the distinction between Boston Chicken and fast food, which alienated some customers and caused revenues to plummet. Instead of cutting prices for all customers, focus on rewarding the most loyal – the ones that will support you through the tough times. For example, during a recession you can mail targeted discount coupons, introduce a frequent-buyer program, send handwritten thank-you notes, or host a customer appreciation party.Added Value 
Persuading customers to buy premium products or services at premium prices is a fundamental challenge, a task that becomes even more difficult during hard economic times. The solution is to add value. What exactly does that mean? “Added Value” means selling the selection of products, the quality of products, educating the customer, offering add-ons or a repackaging of the product or service. Added value can best be described as content or features that make the essence of the product being offered better than an existing version of the product or other products of this type. A good example today is the re-released of movies on DVD. In many cases, the added value to the consumer is the addition of new material or features that weren’t possible using videotape formats. This is appealing to consumers who want to feel they are getting a better value. We will show you how to adapt this strategy to nearly ANY product or service.Recession Planning 
Today, entrepreneurs face so many daily challenges that planning for the future may seem like a luxury. But running a small business without a recession plan is like buying an Oklahoma trailer home without twister insurance. If you’re a small business and your financial resources are moderately limited…you have to prepare a plan, period. Those of you that have been my clients for several years know that we always are proactively planning for the best but also have a contingency plan for the worse scenario. Even as we lament the demise of the current economic expansion, it is important to remember that recessions, like expansions, have a limited life span. Bad things, too, must come to an end. It’s important to plan for that too. At the seminar I will show you how utilize a powerful cash planning strategy that will literally ELIMINATE your financial risk.Out-Marketing the Competition 
Plan an aggressive new business marketing campaign. This strategy has two parts to it. The first part, which seems blatantly obvious, is that when things are slow, you increase the percentage of your time spent on marketing and prospecting for new business. For instance, if you usually devote 10 percent of your time and energy to marketing and sales when things are fairly busy, you might increase this to 25 percent when things are slow. During a lull in business, you need to make this extra effort to attract clients, build relationships and explore new opportunities. The second part of the strategy may not be so obvious. To prevent a lull in business from ever happening in the first place, you should market consistently and aggressively all year long, every week–not just when you need the business. Planning an ongoing marketing campaign ensures a steady stream of new business leads. Marketing done today begins a selling cycle that will result in new business when you need it six months from now. For small businesses and start-ups I recommend developing consistent marketing communications that are cost effective and produce measurable results. In the workshop we will look at the types of marketing that work best during a recession.Reactivate Dormant Accounts 
Stay in contact with clients that you are no longer working with. The quickest and easiest way to do this is to sit down with your list of past clients or customers, call them, say hello, and see what’s going on. Don’t make this a hard sell call. Tell them, “Hi, it’s Jane. I’m calling just to check in and see how you’re doing, since it’s been a few months since we last spoke.” You don’t have to ask for work directly, but when you end the conversation, you might say something like, “Well, it’s been good talking with you. Keep in touch, and if there’s anything I can ever help you with, don’t hesitate to give me a call.” This lets them know you are interested in working with them again without putting the pressure on them to give you an order right then and there. You can also send a letter, perhaps calling their attention to a recent article about their business or industry. This accomplishes essentially the same goal to reconnect with the client and remind them of your existence, products, services, and availability. On average, expect one order or assignment for every 10 calls you make. But never say, “I’m not busy and need work right now or “Things are slow here.” This is a terrible approach. First, the client or customer feels pressure, feels he has to come up with an “excuse” why they haven’t given you an order lately. This is uncomfortable-and awkward for both of you. Second, it makes you seem desperate, and you do not want to seem hungry or needy. In fact, a key goal of all of these strategies is to make it clear that your purpose is to serve the client better and more efficiently, not fill a gap in your slow work schedule.Create Demand for your Product or Services Help existing clients or customers create new assignments or sales for you. Usually, my clients come to me with assignments they want me to handle for them. But often times I recognize a need in their business that requires attention. If I’m really doing my job as a consultant then I may be more attentive to their business needs than they are. At that point I’m providing exceptional service to the customer as well as creating demand for my services. Many times I will recommend strategies that they can employ that will result in an increase in their profitability and/or market share. Naturally they will ask me to implement them which also improves my business. As we’ve discussed “change” is imminent in this environment. Get ahead of the curve by getting more involved with your customers. Market yourself and explain how you can contribute rather than waiting for something to happen. In the workshop we look at 10 ways to create demand.Build a Cash Reserve 
We have all heard the expression “save some for a rainy day.” But what happens when a rainy day turns into a rainy year, or two? Many entrepreneurs and small business owners will be facing this situation in the coming months. The best way to prepare is to set aside cash during more prosperous times. There’s a real benefit to having a long-term business plan that deals with the kind of cash requirements you’ll need in case of a business downturn. For some, building a cash reserve may come at the expense of swifter business expansion. But the alternatives taking out a loan, dipping into personal net worth, or shutting the doors are far less palatable. We will look at methods of building cash reserves and financing continued operations without going into debt.Be Positive 
The most important thing about a slow period is not to be depressed by it. If you are depressed, prospects can sense your desperation and fear, and it has a negative effect on your dealings with them. Remember that everybody in business has slow times; those who say they never do are liars. You are talented and successful. The lull is temporary. Things will improve. Don’t despair, and don’t give up. It is possible to have 2, 3, even 4 or more slow months and get through it. If you follow the strategies that we’ve discussed, you can turn things around and become busy and profitable once again.Also give yourself every opportunity for success this year. Check out our web site for our next Entrepreneurial Workshop and get pre-registered. If nothing else I guarantee that it will be a great way to start the year with a positive first step.Those of you that have attended any of my classes know that they are energy packed and you walk out motivated and cranked-up! You DO NOT have to be the victim of a “slowing economy,” an “economic downturn,” or what the media calls a “recession.”

In this week’s business update:

• Interview More Effectively
• Making Advertising Work
• Attract More by Giving a Little
• Full Day Workshop

Interview More Effectively
One of the biggest challenges for entrepreneurs today is attracting team members that match with our organizational culture. Interviewing more effectively can help to eliminate the mismatches. Today job applicants are doing more pre-interview preparation than ever before. They have rehearsed the best answers to the most typical questions. As leaders we need to ask better, more revealing questions like… “Tell me about a situation that occurred at your previous job when there was a conflict. How did you handle this?” By understanding how someone handles conflict we can gauge how they might match with our company culture.
Making Advertising Work
One of the biggest complaints I hear from business owners today is that advertising just doesn’t work the way it used to. Why? Primarily because everyone is saying the same thing. Both print and broadcast media are filled with the same old promises. Most ads, even those developed by agencies, focus on selling benefits or pushing solutions. Few ads focus on the problems that customers are having. Do you think that customers are more interested in YOUR solutions or THEIR problems? Check out the award wining ad at right that shows a smashed frog with the headline, “For those with an eye for assembly.” The ad is for the company Tamiya Assembly Toys. Tamiya specializes toys that are easy to assemble without breaking. These toys really are simple. Even I was able to assemble their solar powered car for my nephew. Get the idea? Check out our Attract More Business program for dozens of examples of how to apply a “problem-oriented” ad campaign to your business.

Attract More by Giving a Little
Here’s a company that has taken Rule # 4 of the Rules of Attraction (Giving away information without selling) to the max. What’s our most valuable commodity? That’s right, TIME! Now an organization has figured out how to automatically download the programs that you like directly onto your portable MP3 player without you doing a thing! Hey, that’s a time saver. Here’s what is best about it… It’s FREE! iPodder has teamed with companies like Warner Bros, Microsoft, Oracle, ABC, NBC, Business Week, NASA, and even Paris Hilton to produce Podcasts. For a small fee, you can even brand the broadcast as your own. Check out iPodder at: www.ipodder.com and think about what you can give away to make yourself more attractive. You can also sign-up for the Podcast of our nationally syndicated radio show, Small Business Radio at:http://www.sbanetwork.org/radio

Full Day Workshop
Learn how to implement the Rules of Attraction in your business. Register before July 20th for my Monrovia workshop and before August 15th for my Long Beach Workshop to receive a FREE bonus ticket and bring a friend or business associate at no additional charge. The pre-registration cost of this event is just $299, a savings of $200 from the event cost of $499 at the door. Once one of my associates contacts you, if you mention that you are a business update subscriber, I’ll even throw in a free telecoaching follow-up session so that you can get the most out of the event. That’s a total value of $1148 available now for just $299. Go to:http://www.sbanetwork.org/classes/upcoming_classes.asp to pre-register now!