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	<title>Small business startup advice - SmallBusinessVoodoo.com</title>
	
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		<title>Network Marketing – Beware Selling The Idea Of Selling</title>
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		<comments>http://www.smallbusinessvoodoo.com/1208/network-marketing-beware-selling-the-idea-of-selling/#comments</comments>
		<pubDate>Sun, 26 Sep 2010 22:27:53 +0000</pubDate>
		<dc:creator>Steve Winduss</dc:creator>
				<category><![CDATA[Small business sales techniques]]></category>
		<category><![CDATA[network marketing]]></category>
		<category><![CDATA[small business selling techniques]]></category>
		<category><![CDATA[multi-level marketing]]></category>
		<category><![CDATA[sales]]></category>

		<guid isPermaLink="false">http://www.smallbusinessvoodoo.com/?p=1208</guid>
		<description><![CDATA[Selling The Idea Of Selling Network marketing prospecting is the real heart of your network marketing business &#8211; selling the idea of selling. In other words, whilst selling products to friends, relatives and other contacts starts the sales commissions rolling, there&#8217;s a better way. The real money is to be made through proactive network marketing [...]]]></description>
			<content:encoded><![CDATA[<p><strong>Selling The Idea Of Selling</strong></p>
<p>Network marketing prospecting is the real heart of your network marketing business &#8211; selling the idea of selling. In other words, whilst selling products to friends, relatives and other contacts starts the sales commissions rolling, there&#8217;s a better way.</p>
<p>The real money is to be made through proactive network marketing prospecting and bringing more and more people into your network. If you can get 5 people to join you and they each get 5 people who in turn each get 5 people and you get sales commissions from all of them, then you can make some serious money.</p>
<p><strong>However, network marketing has picked up a bit of bad karma. The  evangelistic methods passed down from network leaders through their  distributors to unsuspecting public like you and me has left a little problem.</strong></p>
<p><strong><span id="more-1208"></span></strong>Yes, in theory it all makes sense. Yes, it&#8217;s legal and honest. Yes, you are selling good products (because you did your homework didn&#8217;t you!). But inevitably you will &#8211; over a period &#8211; try to sell to all of your friends and relatives because, if you are trained properly, you will start to see anything that moves as a potential prospect.</p>
<p><strong>You won&#8217;t be able to help yourself. Instead of seeing friends and family as people, you start to see them as OPPORTUNITIES. </strong></p>
<p>And guess what? Your friends and family will start to feel like opportunities, not people. Unless you are very careful, they will start to dread you coming over to preach your &#8220;opportunity&#8221;.</p>
<p>And you can&#8217;t wait to get over there because you can&#8217;t wait to start preaching again! It&#8217;s inevitable. Your network marketing training demands it. Your upline sponsor demands it, your team meetings demand it. The problem is, for those of us not as enlightened as you it is downright boring and painful.</p>
<p><strong>Every inch of your excitement is an inch of our misery. </strong></p>
<p>So think carefully from the outset about your network marketing prospecting strategy, if selling the idea of selling means putting relations and relationships on the line or whether you will go about it in a different way.  The choice is yours. And by the way, there are other ways&#8230;&#8230;&#8230;</p>



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		<title>Small Business Myth #5: Make Yourself Indispensable</title>
		<link>http://feedproxy.google.com/~r/smallbusinessvoodoo3/~3/jz_-XdfsKH4/</link>
		<comments>http://www.smallbusinessvoodoo.com/1279/small-business-myth-5-make-yourself-indispensable/#comments</comments>
		<pubDate>Sat, 06 Feb 2010 12:56:10 +0000</pubDate>
		<dc:creator>Steve Winduss</dc:creator>
				<category><![CDATA[employee]]></category>
		<category><![CDATA[small business myths]]></category>

		<guid isPermaLink="false">http://www.smallbusinessvoodoo.com/?p=1279</guid>
		<description><![CDATA[Make yourself indispensable. That must be the key to a long and successful small business career surely. We&#8217;ve all seen them. Strutting the office like a displaying peacock. Assured of the fact that no one else could do the job they do. It would be impossible. And therefore they are indispensable. How wonderful. How wonderful [...]]]></description>
			<content:encoded><![CDATA[<p>Make yourself indispensable. That must be the key to a long and successful small business career surely.</p>
<p>We&#8217;ve all seen them. Strutting the office like a displaying peacock. Assured of the fact that no one else could do the job they do. It would be impossible. And therefore they are indispensable.</p>
<p>How wonderful. How wonderful that if they got run over by a bus this afternoon the small business&#8217; vertical pipeline would come to a standstill because they were no longer able to carry out their work.</p>
<p>Ah yes you say but you have to think of No 1 first, yourself.  Make yourself indispensable and that small business will need you more.  And they will pay you more and love and nurture you.</p>
<p><strong>Well let me tell you how it is from the small business perspective: They hate &#8220;indispensable &#8220;. They loathe &#8220;indispensable &#8220;. If there&#8217;s one thing they can&#8217;t abide, it&#8217;s &#8220;indispensable &#8220;.<span id="more-1279"></span></strong></p>
<p>Why? For the very same reasons that you love it.</p>
<p>Indispensable means leaving a hole when you&#8217;re not there.</p>
<p>Indispensable means blocking the pathways of progress for anyone try to move through you.</p>
<p>Indispensable means someone focused on themselves and not on the business, motivated by self interest and not by the ability to develop their subordinates. Paranoid and negative, insecure and moody. <strong>A small business pain in the arse.</strong></p>
<p>Make yourself indispensable?  No. If you really want to impress the boss, spend your time making yourself totally dispensable. Coach your subordinates to improve their skills. Encourage them to believe that you will look to promote them at every opportunity. Praise others at meetings. Give credit to the person whose idea it really was. Work hard to ensure that your role continues smoothly even if you are not there.</p>
<p>Share the secrets of your success. Have you ever heard a TV chef say &#8220;this is my favourite recipe but I&#8217;m not going to tell you what it is&#8221;?  Of course not.  TV chefs can&#8217;t wait to share their favourite recipes.  In fact they are passionate to make sure you try them and get them absolutely right.  And that&#8217;s because they know that if the recipes work for you, you will follow them to the end of the earth.</p>
<p>So shed the attitude of a follower and <a title="leadership" href="http://www.smallbusinessvoodoo.com/30/effective-leadership-in-small-business-30-ways-to-spot-an-intrapreneur/" target="_self">become a leader</a>. Leaders rarely fail.  Small business leaders rarely fail.</p>
<p><strong>Don&#8217;t make yourself indispensable. Make yourself invaluable. There&#8217;s a big difference.</strong></p>



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		<title>Yes, But What Is Network Marketing?</title>
		<link>http://feedproxy.google.com/~r/smallbusinessvoodoo3/~3/ZuoGff0Dl2M/</link>
		<comments>http://www.smallbusinessvoodoo.com/1203/yes-but-what-is-network-marketing/#comments</comments>
		<pubDate>Mon, 07 Dec 2009 17:08:01 +0000</pubDate>
		<dc:creator>Steve Winduss</dc:creator>
				<category><![CDATA[network marketing]]></category>
		<category><![CDATA[mlm]]></category>
		<category><![CDATA[multi-level marketing]]></category>

		<guid isPermaLink="false">http://www.smallbusinessvoodoo.com/?p=1203</guid>
		<description><![CDATA[Network Marketing, MLM, multi-level marketing. Whatever you call it it&#8217;s the same thing, but exactly what is Network Marketing and is it a viable business model? I&#8217;ll be kind and give you a short answer and a long answer, take your pick. What is network marketing ? &#8211; the short answer: Network marketing is a [...]]]></description>
			<content:encoded><![CDATA[<p><strong>Network Marketing, MLM, multi-level marketing. Whatever you call it it&#8217;s the same thing, but exactly what is Network Marketing and is it a viable business model?</strong></p>
<p>I&#8217;ll be kind and give you a short answer and a long answer, take your pick.</p>
<p><strong>What is network marketing ? &#8211; the short answer:</strong></p>
<p>Network marketing is a particular type of business model which involves normal people like you and me (well, almost normal in my case&#8230;) selling a company&#8217;s products to friends, relatives and other contacts whilst at the same time encouraging those same people to take up the same mantle and sell the same products to <span style="text-decoration: underline;">their</span> friends, relatives etc</p>
<p>This is building the network and your sales commissions are based on everyting sold within your network. Seems simple enough. If you&#8217;ve got the energy, let&#8217;s delve into this in a bit more detail.<span id="more-1203"></span></p>
<p><strong>What is network marketing ? &#8211; the long answer:</strong></p>
<p>Let&#8217;s start with the standard business model. Big companies decide what products to make, produce the goods, package them up, sell and distribute them and somewhere in the middle spend huge sums of money advertising and promoting in the hope that eventually the revenue from sales will dwarf the expense of selling them in the first place.</p>
<p>In a typical business, anywhere between 10% &#8211; 50% of the sales turnover will be reinvested in advertising, promoting and marketing products in order to generate sales to ultimately earn profit for the company. The companies with the greatest scope for advertising are those with brands and products which command a significant premium in the marketplace. Of course, there is a Catch-22 here because to create a brand/ product which can command a premium in the first place, the company will inevitably have to spend marketing budgets well ahead of any potential revenue.</p>
<p>Despite the presence of highly paid agencies, PR executives, advertising gurus and in-house marketing expertise, monumental gaffes abound in the industry, outcomes where massive committed advertising budgets were frittered away as products were committed to the commercial crematorium.</p>
<p><strong>Just for a laugh, remember these?</strong></p>
<p>Coca-Cola&#8217;s much vaunted &#8220;mineral water&#8221; Desani had to be withdrawn not only when it was revealed that the source of the water was a tap somewhere in Peckham but finally when bromate levels were discovered to be over twice the legal limit. That was 2004 and Coca Cola are still smarting from the fallout.</p>
<p>Who could forget the Ratners howler. Gerald Ratner was asked at a conference how his jewelry was so cheap. He replied &#8220;because it&#8217;s total crap!&#8221; Not satisfied with this, he then went on to refer to Ratners&#8217; earrings as &#8220;cheaper than an M&amp;S prawn sandwich but probably wouldn&#8217;t last as long.&#8221; Fantastic! Ratners share price tumbled by £400m, Ratner was booted out and the company renamed Signet Group.</p>
<p>Reportedly, Coors Brewery launched a beer in Spain with the strapline &#8220;Let it loose&#8221; which was unfortunately translated as &#8220;gives you diarrheoa&#8221;.</p>
<p>The list goes on and on but distracts me from the main point which is this: suppose these companies could find a way of paying out for the potentially huge marketing costs only once the product is sold.</p>
<p>Sorry about that long preamble but now we get to the answer to:</p>
<p><strong>&#8220;what is network marketing?&#8221;</strong></p>
<p>There is a different model that network marketing companies choose to follow. Instead of spending those vast marketing budgets ahead of sales, they use word-of-mouth (well, quite a sophisticated version anyway) and pay the common man a commission on everything that his/her word of mouth has managed to generate in sales.</p>
<p>You know, one person tells three people who each tell another three etc. (remember that if you put a grain of rice on the first square on a chess board, put two grains on the next, four on the next, eight on the next and so on, by the time you get to the final square on the board the number of grains of rice will by up to 9,223,372,036,854,780,000.)</p>
<p>Instead of spending 50% of their turnover on advertising, they pay out a fixed percentage of turnover to those people that spread the word. It&#8217;s a great technique that has a number of benefits to them:</p>
<p>1. Only pays out once the product is sold</p>
<p>2. Products endorsed by real people to friends, family etc is a very potent way of advertising a product</p>
<p>3. The grain of rice principle above shows the potential power and extent of such a method</p>
<p><strong> </strong></p>
<p>Of course it&#8217;s not all plain sailing for these companies. After all you have to know how to mobilise armies of normal people and keep them mobilised.</p>
<p><strong>Only a relatively small number of people have the self motivation and discipline to stick to and succeed at anything, whether it&#8217;s losing weight, keeping fit or making money.</strong></p>
<p>However, the successful network marketing companies have developed these techniques and, using the grain of rice principle, even if the majority of people pull out along the way, they will still reap huge turnovers from those that are left.</p>
<p>So that hopefully helps you to understand &#8220;what is network marketing?&#8221;. The most important thing for you now is to decide if it is a suitable business model for you to pursue.  I will write more on this subject in a future blog.</p>
<p>Recommended reading:</p>



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		<title>Focus On Creating Value From Good Ideas</title>
		<link>http://feedproxy.google.com/~r/smallbusinessvoodoo3/~3/AfW8G_hcgWA/</link>
		<comments>http://www.smallbusinessvoodoo.com/1226/creating-value-from-good-ideas/#comments</comments>
		<pubDate>Wed, 21 Oct 2009 22:06:29 +0000</pubDate>
		<dc:creator>Steve Winduss</dc:creator>
				<category><![CDATA[small business ideas]]></category>

		<guid isPermaLink="false">http://www.smallbusinessvoodoo.com/?p=1226</guid>
		<description><![CDATA[How often have I spoken to entrepreneurs with a sound idea and a willing investor who spend too much time trying to get the best deal out of the investor,  losing track on creating value from the good ideas that brought them together in the first place . This is a typical question: Question: I currently own 70% [...]]]></description>
			<content:encoded><![CDATA[<p>How often have I spoken to entrepreneurs with a sound idea and a willing investor who spend too much time trying to get the best deal out of the investor,  losing track on creating value from the good ideas that brought them together in the first place . This is a typical question:</p>
<p><strong> </strong></p>
<p><strong> </strong></p>
<p><strong>Question: </strong></p>
<p><strong>I currently own 70% of Company X Ltd and have 20% against a loan note for about £3K. The other 10% can be brought back for £2.5K-£5K.  I also own 50% of Company Y Ltd.</strong> <em>The question goes on to explain the relationship between the two companies, then continues:</em> <strong>I feel that if I could structure my situation better, I may be able to retain ownership and a larger slice of the pie. If you have any ideas on how I could structure my situation, that would be great.</strong></p>
<p>Answer:</p>
<p>At the moment you have no value. Everything exists as ideas or shell companies or partnership agreements or something else.  Nothing is earning any money for you currently.  Spending time trying to maximise your share of something with no value has little value either.<span id="more-1226"></span></p>
<p>The harsh reality of life is that the guys with the money hold all the trump cards. Ideas are just ideas.  Somebody generally has to inject cash to give an idea a chance of being worth something.</p>
<p><strong>It is much harder to part with cash for a good idea than it is to have the good idea in the first place.</strong></p>
<p>You have individuals who are prepared to do the hard bit &#8211; part with cash.  Take it and spend your whole time and energy trying to convert their investment into something massive &#8211; ie create real value, create revenue earning businesses that other people will part with even more cash for.</p>
<p>You will then get your slice.  OK, so the investor may get a bigger slice but who cares.  And then, guess what, you&#8217;ve now got cash!</p>
<p>When you have your next idea you will have at your fingertips both the idea and the cash. How fantastic will that be.  When you create real value for that idea then you can keep the lot.  Then you can start investing in your next big idea, other people&#8217;s ideas or just having fun.</p>
<p>So don&#8217;t spend too much time trying to restructure what you&#8217;ve got &#8211; your investors will most likely sniff out if you have subtly removed the golden egg from your agreement so be straight, put everything on the table and look to reach a &#8216;reasonable&#8217; solution. Don&#8217;t be afraid to haggle to a point but ultimately, even if you have to give away more than you think reasonable, go with it and get on with creating the value.</p>
<p><strong>Always, always, always, focus on creating value from good ideas.</strong></p>



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		<title>Entrepreneurship &amp; Isolation</title>
		<link>http://feedproxy.google.com/~r/smallbusinessvoodoo3/~3/rBEdCxAiz4M/</link>
		<comments>http://www.smallbusinessvoodoo.com/1210/entrepreneurship-isolation/#comments</comments>
		<pubDate>Fri, 16 Oct 2009 06:55:27 +0000</pubDate>
		<dc:creator>Steve Winduss</dc:creator>
				<category><![CDATA[entrepreneur]]></category>
		<category><![CDATA[leadership]]></category>

		<guid isPermaLink="false">http://www.smallbusinessvoodoo.com/?p=1210</guid>
		<description><![CDATA[Entrepreneurship and isolation, do the two go hand in hand? Question: Sir, I am both entrepreneurial and social.  As a recent university graduate I miss being among other people.  Being around others invigorates me.  As I grow my business and hire new employees will I feel reinvigorated?  Does it matter if the people you work with are your [...]]]></description>
			<content:encoded><![CDATA[<p><strong><strong><em></em>Entrepreneurship and isolation, do the two go hand in hand?</strong></strong></p>
<p><strong><em>Question:</em> </strong></p>
<p><strong>Sir, I am both entrepreneurial and social.  As a recent university graduate I miss being among other people.  Being around others invigorates me.  As I grow my business and hire new employees will I feel reinvigorated?  Does it matter if the people you work with are your &#8220;equals&#8221; or are people you hired?<br />
</strong><br />
<em>Answer:</em></p>
<p>Isolation is not a pre-requisite for Entrepreneurship, although it is easy to fall into this mindset.</p>
<p>Something that is very difficult to predict prior to starting your own business is how lonely it is potentially going to be. You&#8217;ve got two employees, neither of which even vaguely understand what you&#8217;re all about. You&#8217;ve got 10 customers and 3 suppliers and they&#8217;re not interested in your personal welfare either. So what to do and who to turn to?<span id="more-1210"></span></p>
<p>Entrepreneurship is about being invigorated and invigorating others.  We all need it.  Even the high energy performers get their energy from somewhere.</p>
<p>One  key to successful entrepreneurship is to surround ourselves with inspiring, high energy people.  We musn&#8217;t be too proud to get our energy from someone else, even if they are subordinate to us.  So look around at the different groups of people that you interact with and seek out the inspiring ones from each group.</p>
<p>* employees<br />
* suppliers<br />
* customers<br />
* entrepreneurial contacts from same or different industries<br />
* family<br />
* regulatory bodies<br />
* mentors<br />
* etc</p>
<p>It doesn&#8217;t matter where they&#8217;re from or what &#8216;level&#8217; they are at.  If they are motivated high energy people then you want them around you.</p>
<p>There is one final point to remember however.  Entrepreneurship involves providing your fair share of motivation and high energy.  <strong>Don&#8217;t forget, this is a two way affair.</strong></p>



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		<title>Hot, Flat And Crowded – And Why You Should Read It</title>
		<link>http://feedproxy.google.com/~r/smallbusinessvoodoo3/~3/vy1xrFtOwXA/</link>
		<comments>http://www.smallbusinessvoodoo.com/1184/hot-flat-and-crowded-and-why-you-should-read-it/#comments</comments>
		<pubDate>Fri, 10 Apr 2009 14:51:08 +0000</pubDate>
		<dc:creator>Steve Winduss</dc:creator>
				<category><![CDATA[small business startup]]></category>

		<guid isPermaLink="false">http://www.smallbusinessvoodoo.com/?p=1184</guid>
		<description><![CDATA[Hot, Flat and Crowded &#8211; Thomas L Friedman The do-gooders have got it all wrong. They have been telling us for eons that we have to save our planet. Rubbish. Our planet is just fine. It&#8217;s our ability to stay living on a planet that&#8217;s becoming hot, flat and crowded that&#8217;s the problem. You see, [...]]]></description>
			<content:encoded><![CDATA[<p><strong>Hot, Flat and Crowded &#8211; Thomas L Friedman</strong></p>
<p><strong>The do-gooders have got it all wrong. They have been telling us for eons that we have to save our planet. Rubbish. Our planet is just fine. It&#8217;s our ability to stay living on a planet that&#8217;s becoming hot, flat and crowded that&#8217;s the problem.</strong></p>
<p>You see, the planet doesn&#8217;t care if we are here or not. And the bad news is that we are living on borrowed time and not doing very much about it.</p>
<p>&#8220;Hot, Flat and Crowded&#8221; by Thomas Friedman goes some way to helping us understand this dilemma and puts together a broad template to help get us out of this mess. But it&#8217;s not going to be easy and success is by no means assured.</p>
<p>So what does Hot, Flat and Crowded refer to? Well, in a nutshell&#8230;</p>
<p><strong>Hot</strong> &#8211; greenhouse effect, climate change, fossil fuels, rising sea levels and so on.</p>
<p><strong>Flat</strong> &#8211; An increasingly connected and enabled world through the internet and improved telecommunications where individuals across the globe can prosper as never before. But this extraordinary expansion of the &#8216;middle class&#8217; brings its own problems.</p>
<p><strong>Crowded</strong> &#8211; A global population of 6.7 billion rising to 9 billion by 2050, where are they all going to go? What will they eat? How will they (ie we) survive?<span id="more-1184"></span></p>
<p>Don&#8217;t worry that the book is written by an American for Americans, it is totally relevant for all nations.  The world needs America to take the leading role anyway so get over it. The masterstroke of Hot, Flat and Crowded is how it weaves the key issues in a coherent way and puts forward some practical measures to, well&#8230;&#8230;.save ourselves.</p>
<p>As well as a world that is hot, flat and crowded, throw in the issue of petropolitics, (ie how democracy in the leading OPEC members is inversely proportional to both the nation&#8217;s ability to supply oil/gas and the price it can get for it at any given time) and you can start to build your own picture of where the world is going, not just for generations to come but for you and me right now.</p>
<p>To help get that message across, let me highlight just one statistic from the book. It is universally accepted by the world&#8217;s scientific community that if the amount of carbon dioxide in our atmosphere reaches 500 parts per million then our ability to live on this planet will be greatly compromised. We are estimated to reach that point by 2050!</p>
<p><strong>More scary still, to reduce carbon emissions sufficiently to stay below this figure, the world needs to commission the equivalent of one nuclear power station every day for the next 36 years. </strong></p>
<p>Have I got your attention yet?</p>
<p>I&#8217;m inclined to say that we would all do well to understand how rapidly we are decimating our ability to live on this planet. However since this is a small business website, let me be a little more targeted and put a case for small business, present and future, to read Hot, Flat and Crowded before moving forward.</p>
<p>When assessing a new business venture we are always wise to step back from the immediate opportunity and &#8220;have a look around&#8221;. If you&#8217;re launching a new alcopop, research the alcopop market then step back and look at the alcohol market in total. Then step back and see how the drinks market as a whole is looking. Then step back and consider how the total grocery sector is looking. A little bit further and you can form a view of the economy over the next few years. And so on.</p>
<p>Well, I am suggesting that you go back even further and consider what you&#8217;re planet is doing first. Many effects of global warming are already visible and dramatic changes to our ability to live on Earth will have struck certainly within my lifetime (I&#8217;m 44 by the way).</p>
<p>But more relevantly, regardless of exactly when these changes hit hard, and even if the scientists have got it badly wrong and there is no such thing as global warming, <strong>the momentum of world opinion is now firmly set that we must &#8216;go green&#8217;</strong>.</p>
<p>So, whether you buy into the hot, flat and crowded hypothesis or not, your business needs to reflect the mood of the world, your country and most importantly your customers.</p>
<p><strong>All businesses, current and start-up, will be marked against their green credentials whether a new grocery product, motor vehicle or technological beakthrough. Ignore at your peril.</strong></p>



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		<title>Ryanair – When Customer Service Goes Down The Toilet</title>
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		<pubDate>Fri, 06 Mar 2009 13:31:54 +0000</pubDate>
		<dc:creator>Steve Winduss</dc:creator>
				<category><![CDATA[customer service]]></category>

		<guid isPermaLink="false">http://www.smallbusinessvoodoo.com/?p=1168</guid>
		<description><![CDATA[So Ryanair are considering charging passengers to use their inflight toilets. Have they proved that customer service really doesn’t matter after all, or will Ryanair have stepped beyond the pail on this one? Ryanair’s latest wheeze to charge for their inflight toilets is the latest in an unofficial socio-economic experiment being run by the company. [...]]]></description>
			<content:encoded><![CDATA[<p><strong>S</strong><strong>o Ryanair are considering charging passengers to use their inflight toilets.  Have they proved that customer service really doesn’t matter after all, or will Ryanair have stepped beyond the pail on this one? </strong></p>
<p>Ryanair’s latest wheeze to charge for their inflight toilets is the latest in an unofficial socio-economic experiment being run by the company. To what level can they continue to strip customer service out of the system before people will stop buying their cheap tickets? Just how badly do customers want to get to destinations for next to nothing?  And, to be fair, it’s a fascinating experiment to watch.</p>
<p>At the moment it seems OK that luggage is lost, flights are cancelled without warning or recompense, grumpy tetchy service is endured,  surprise charges at check-ins are standard, customer service lines are unhelpful and stampedes for boarding gates are the norm.<span id="more-1168"></span></p>
<p>I took part in this socio-economic experiment with my family last year. We flew to Nantes to save a few hours off the drive time to Bordeaux. We were a little miffed that boarding staff forgot to invite priority ticket holders up first, after all it had cost us an extra £40. (This is a problem if you have children because the seats aren’t reserved by number, it’s a free-for-all on the plane.)</p>
<p>We marvelled at the unseemly haste to get us on board, by the absence of a smile or warm gesture from our hosts and by those bright yellow plastic headrests and unbelievably filthy seats.  But it was on the way back that we shared the true Ryanair experience.</p>
<p>We were all herded into the departure gangway at Nantes, a glass walkway which gets very hot in the middle of summer, having been told that our plane was “ready to depart”. I was slightly confused by this as I had been looking out for our plane and had not found one.</p>
<p>It turned out that actually our plane hadn’t even been “ready to arrive”. To our amazement, after about ten minutes of waiting we saw it coming into land in the distance and taxi its way towards our gate.  The elderly swayed in the heat, parents with impatient kids got tetchy and even young unencumbered couples’ jaws dropped as they realised what was going on.</p>
<p>We stood watching and wilting as passengers disembarked and within a few minutes we were climbing on board, settling down amidst the rubbish and odour left from the previous flight.</p>
<p>Currently this approach suits Ryanair and their business strategy. Low fares, high passenger volumes, quick turnaround times.  Customers suffer the  Ryanair experience for any of three reasons; 1. the fares are cheap 2.  they are the only show in town (in many cases anyway) and 3. it&#8217;s their first time on board. But this model has two fundamental flaws.</p>
<p>Firstly, Ryanair is building no customer loyalty, no cushion, no extra fat around the corporate model. The margins and the goodwill are so slim that a little twitch here or there could mark the end.</p>
<p><strong>And such a twitch might be the point at which customers realise that Ryanair don&#8217;t seek profits by maximising customer service but by eliminating it altogether. </strong></p>
<p>Whether Ryanair introduce coin slots on inflight toilets is immaterial. The intent is there for all to see.</p>
<p>Secondly, It is also highly likely that management will apply the same ‘customer service’ ethos to their staff. Paying for their unifoms, training, low pay, long hours and high turnover rates are all signs of that ethos.</p>
<p><strong>To neglect customers is to neglect your staff and vice versa.  So the path of a downward spiral is set.</strong></p>
<p>The model for Ryanair is working at the moment but it’s a high risk strategy. As long as customers are prepared to waive their rights to customer service then it all holds together. Of course, it is difficult to say that lessons can be learned until the day of judgement arrives. But for those embarking on their new business ventures, sideline customer service at your peril.</p>
<p><strong>Treat customers and staff as if your life depended on it.  Seek your profits through them, not inspite of them. </strong></p>



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		<title>Plan To Face The Dragon’s Den – Part II</title>
		<link>http://feedproxy.google.com/~r/smallbusinessvoodoo3/~3/37Hw32AWVCU/</link>
		<comments>http://www.smallbusinessvoodoo.com/1147/plan-to-face-the-dragons-den-part-ii/#comments</comments>
		<pubDate>Thu, 19 Feb 2009 22:57:30 +0000</pubDate>
		<dc:creator>Steve Winduss</dc:creator>
				<category><![CDATA[small business planning]]></category>
		<category><![CDATA[dragon's den]]></category>

		<guid isPermaLink="false">http://www.smallbusinessvoodoo.com/?p=1147</guid>
		<description><![CDATA[OK, we&#8217;re half way through our preparation to face the Dragon&#8217;s Den. If you missed Plan To Face The Dragon&#8217;s Den Part I then refer back. Let&#8217;s move on to the next stage, steps 7 -12. 7. Proof A business idea on its own is worthless. The world is awash with ideas. You must elevate [...]]]></description>
			<content:encoded><![CDATA[<p><strong>OK, we&#8217;re half way through our preparation to face the Dragon&#8217;s Den. If you missed<a title="Plan To Face The Dragon's Den Part I" href="http://www.smallbusinessvoodoo.com/1136/plan-to-face-the-dragons-den-part-i/" target="_self"> Plan To Face The Dragon&#8217;s Den Part I</a> then refer back. Let&#8217;s move on to the next stage, steps 7 -12.</strong></p>
<p><strong>7. Proof </strong></p>
<p>A business idea on its own is worthless. The world is awash with ideas. You must elevate your business idea to something of commercial value before you walk into the Dragon&#8217;s Den. You need proof. Proof essentially breaks down into two parts:</p>
<p>- Does your product work? Make sure you have a working prototype, or better still the real thing. A malfunctioning prototype and you can kiss a warm reception goodbye.</p>
<p>- Will anyone buy it? Research is of little value. Particularly on the scale that your limited funds are likely to reach. Try selling your product first. Get listings from high profile retailers/ wholesalers. If you can&#8217;t get listings, get a purchase order. Get a letter from the CEO saying how he will stock your product. Get anything that provides evidence that your product will have buyers. And lots of them.<span id="more-1147"></span></p>
<p><strong>8. Know everything about your business &#8211; that means &#8216;everything&#8217; </strong></p>
<p>This is the most essential part of yor preparation. You have constructed a business plan. It may be simple. It may be short. But it musn&#8217;t have holes. The Dragon&#8217;s Den will find the smallest hole and drive a bus through it. Ask yourself questions such as:</p>
<p>- are your assumptions reasonable?</p>
<p>- do the financials look exciting and can you substantiate each figure?</p>
<p>- are your sales estimates based in reality or have you got carried away?</p>
<p>- have you allowed a realistic time frame to get to breakeven?</p>
<p>For further ideas on ensuring your business plan is complete, take a look at <a title="Measure Twice - Cut Once" href="http://www.smallbusinessvoodoo.com/ten-pillars-of-small-business-planning/small-business-planning-pillar-8-measure-twice-cut-once/" target="_self">Measure Twice, Cut Once</a>.</p>
<p>Once you have applied this process several times, bring in trusted colleagues or friends, show them the plan and ask them to ruthlessly tear it to shreds. Ask them to be awkward. Turn you inside out. By the end, you will know as much as is possible to know about your business and be confident to put in a good performance.</p>
<p><strong>9. Practice your presentation thoroughly</strong></p>
<p>Your presentation may only be 3 minutes out of an hour&#8217;s session but it must be polished, confident, believable, professional, faultless.  Ensure every word in your presentation is there for a reason. If it&#8217;s not, take it out. Use the adage &#8220;Say what you&#8217;re going to say, say it, then tell them what you just said&#8221;.  Have you clearly explained your product, the opportunity and the key financials? Practice, practice, practice.<strong><br />
</strong></p>
<p><strong>10. Know the Dragons</strong></p>
<p>There&#8217;s tons of information on the internet about the Dragons. The more you learn, the better you can tailor your presentation to hit their buttons.</p>
<p><strong>11. Know the Dragon&#8217;s Den process</strong></p>
<p>Finally, good knowledge of the process that you will go through will put you at an advantage to all those candidates who probably won&#8217;t bother. A typical process may look like this:</p>
<p>- telephone interview</p>
<p>- two hour &#8216;mini-Dragon&#8217;s Den session</p>
<p>- selection for show</p>
<p>- appearance on show with no guarantees that your performance will be aired on TV</p>
<p>- 3 minute pitch with up to 90 minutes of questioning</p>
<p>Spend some time on the <a title="Official Dragon's Den Website" href="http://www.bbc.co.uk/dragonsden/" target="_self">Dragon&#8217;s Den website</a>.</p>
<p><strong>12. Know the candidates</strong></p>
<p>Why not contact previous candidates, both successful and unsuccessful? They&#8217;re easy to find. There aren&#8217;t too many Levi Roots in this country. Google will throw up names. Try, for instance, Lesley Anne Simmonds of <a title="Shoes Galore" href="http://www.shoesgalore.org/" target="_blank">Shoes Galore</a>, a successful shoe franchise who put her radio interview about her Dragon&#8217;s Den experience on her website. Despite being unsuccessful in wooing the Dragons, she found the whole experience extremely rewarding and has seen her franchise empire boom from the publicity generated.</p>
<p>If you follow the twelve steps highlighted then you will be in good shape to front up to the Dragons. You will have worked hard and planned hard. You owe yourself a good showing. Your preparation will be appreciated by the Dragons Den and you will be richer for the experience .</p>



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		<title>Plan To Face The Dragon’s Den – Part I</title>
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		<comments>http://www.smallbusinessvoodoo.com/1136/plan-to-face-the-dragons-den-part-i/#comments</comments>
		<pubDate>Tue, 10 Feb 2009 01:33:24 +0000</pubDate>
		<dc:creator>Steve Winduss</dc:creator>
				<category><![CDATA[small business planning]]></category>
		<category><![CDATA[dragon's den]]></category>

		<guid isPermaLink="false">http://www.smallbusinessvoodoo.com/?p=1136</guid>
		<description><![CDATA[You’re keen to subject yourself to the Dragon’s Den. But will you end up champ or chump? The Dragon’s Den goes from strength to strength. We can’t get enough of it. You can now even take part in the online version of the show securing up to £50,000 for your enterprise. Individuals endlessly expose themselves [...]]]></description>
			<content:encoded><![CDATA[<p><strong>You’re keen to subject yourself to the Dragon’s Den. But will you end up champ or chump?</strong></p>
<p>The Dragon’s Den goes from strength to strength. We can’t get enough of it. You can now even take part in the online version of the show securing up to £50,000 for your enterprise.</p>
<p>Individuals endlessly expose themselves to the Dragon’s Den. Occasionally it pays off but we continue to be stunned by the ill preparation and idiocy of so many.</p>
<p>How we cringe when a Dragon fires a gentle opener “what’s your expected turnover next year?” to which the hapless entrepreneur replies “er, um, er&#8230; ten million pounds”. When pressed a little harder, it transpires that they meant to say “ten thousand pounds”. No, wait a minute, that&#8217;s not right um, oh, er&#8230; I don&#8217;t know, quite a lot anyway.</p>
<p>What the hell&#8230;who’s going to be interested in a plastic cucumber protector after all?</p>
<p>Anyway, if you really want to succeed in the Dragon’s Den and you’re name isn’t Levi Roots then here&#8217;s the first six of a twelve point checklist to see you on your way:<span id="more-1136"></span></p>
<p><strong>1. Decide why you want to be on the show</strong></p>
<p>i. You like the idea of being on telly</p>
<p>ii. You think that it will give valuable exposure to your business proposition</p>
<p>iii. You want some entrepreneurial input from Theo, Peter, Deborah, Duncan or James</p>
<p>iv. You really do need some seed money to kick start your business idea</p>
<p>If your in for ii. &#8211; iv. then ensure that your idea is innovative and investment ready. If your in for i., make sure it&#8217;s entertaining.</p>
<p><strong>2. Prepare </strong></p>
<p>The Dragon&#8217;s Den expect you to know your business (existing or imaginary) inside out. Business plans are not just for fuddy duddies so get planning now. 70% of businesses don&#8217;t bother. But imagine leaving your wedding day to chance and waiting to see who turns up. <a title="The Ten Pillars Of Small Business Planning" href="http://www.smallbusinessvoodoo.com/ten-pillars-of-small-business-planning/" target="_self">The Ten Pillars Of Small Business Planning</a> will guide you through the process.</p>
<p>You will confront issues that may be uncomfortable or insurmountable. Listen to what the planning is telling you. If it says that the business model can’t work, don’t ignore it. Either change the plan until it does or accept that your idea is not commercially viable.</p>
<p><strong>3. Know more about your business idea than the Dragon’s do</strong></p>
<p>Don’t be lulled into a false sense of security that because you have designed a toilet seat protector for women you will have the upper hand. The Dragons will piece together your business plan like a jigsaw puzzle and know an awful lot about your business very quickly. That&#8217;s because the fundamentals of any business are essentially the same. Concepts such as profit, loss, cash flow, research, planning etc are common across all businesses.  The Dragon&#8217;s Den will claim your scalp if you come off second best here.</p>
<p><strong>4. Key personnel</strong></p>
<p>There are two key personnel you must cover in your business model.</p>
<p>1. The &#8216;<a title="Entrepreneur Or Intrapreneur" href="http://www.smallbusinessvoodoo.com/7/entrepreneur-or-intrapreneur/" target="_self">intrapreneur</a>&#8216; is the entrepreneur on the inside of the business. The driving force. The glue that binds the business together. The jack of all trades who understands all facets of the business. Financially astute. Inspirational. A real leader. This is a hell of a brief so it might not be you. Be as objective as you can if you think it is. Check out <a title="30 Ways To Spot An Intrapreneur" href="http://www.smallbusinessvoodoo.com/30/effective-leadership-in-small-business-30-ways-to-spot-an-intrapreneur/" target="_self">30 Ways To Spot An Intrapreneur</a> to help.</p>
<p>2. Industry specific expertise. Again, this could be you but if not, find it quickly.</p>
<p><strong>5. Key financials</strong></p>
<p>You should know every number in your <a title="Financial Planning - The Four Financial Statements" href="http://www.smallbusinessvoodoo.com/ten-pillars-of-small-business-planning/small-business-planning-pillar-the-four-financial-statements/" target="_self">financial planning</a> before getting remotely close to The Dragon&#8217;s Den. However, if you&#8217;re worried that you&#8217;ll go blank in front of the cameras, then keep it simple:</p>
<p>- Cost per unit (how much can you make your widget for)</p>
<p>- Selling price per unit (how much can you sell it for)</p>
<p>- <a title="Gross Profit Explained" href="http://www.smallbusinessvoodoo.com/ten-pillars-of-small-business-planning/small-business-planning-pillar-profit-and-loss-statement/" target="_self">Gross profit</a> per unit (how much profit can you make on each widget)</p>
<p>This is the basis for a commercially viable product. Anything less than 50% gross profit looks shaky, nearer 100% is good.</p>
<p>Know your breakeven point &#8211; broadly speaking that number of sales that are needed in order to keep your company afloat. This will contribute to the risk side of the equation. The reward side is covered by understanding profit.  The Dragon&#8217;s Den team usually look for the first three years trading:</p>
<p>- Estimated turnover</p>
<p>- Estimated overhead</p>
<p>- Estimated total profit</p>
<p>As a rule, <a title="Net Profit Explained" href="http://www.smallbusinessvoodoo.com/ten-pillars-of-small-business-planning/small-business-planning-pillar-profit-and-loss-statement/" target="_self">net profit </a>(ie gross profit minus overheads) needs to be heading well north of 20% to begin to look exciting. Now let&#8217;s think about cash. You need to know the answer to three questions:</p>
<p>- <a title="Cash Flow Forecasting" href="http://www.smallbusinessvoodoo.com/ten-pillars-of-small-business-planning/small-business-planning-pillar-cash-flow-statement-forecast/" target="_self">How much cash do you need?</a></p>
<p>- When do you need it?</p>
<p>- Why do you need it?</p>
<p><strong>6. Assumptions</strong></p>
<p>All the decisions you take about your business are based on assumptions. This is because you have no reality yet to do otherwise. Be crystal clear about all key assumptions used to put together your viable business model.</p>
<p>OK, we&#8217;re half way through our preparation for facing The Dragon&#8217;s Den. You&#8217;re well on your way to a coherent and well thought out proposal. Let&#8217;s move on to <a title="Plan To Face The Dragon's Den Part II" href="http://www.smallbusinessvoodoo.com/1147/plan-to-face-the-dragons-den-part-ii/" target="_self">Plan To Face The Dragon&#8217;s Den Part II</a>.</p>
<p>.</p>



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		<title>Business Credibility: Achieving Great Things In Stages</title>
		<link>http://feedproxy.google.com/~r/smallbusinessvoodoo3/~3/qR4TleNzdSo/</link>
		<comments>http://www.smallbusinessvoodoo.com/1125/business-credibility-achieving-great-things-in-stages/#comments</comments>
		<pubDate>Fri, 23 Jan 2009 11:36:48 +0000</pubDate>
		<dc:creator>Steve Winduss</dc:creator>
				<category><![CDATA[business culture]]></category>
		<category><![CDATA[startup]]></category>

		<guid isPermaLink="false">http://www.smallbusinessvoodoo.com/?p=1125</guid>
		<description><![CDATA[Business Credibility: Achieving Great Things In Stages &#8220;A thick tree grows from a tiny seed.  A tall building arises from a mound of earth. A journey of a thousand miles starts with one step. Contriving, you are defeated; Grasping, you lose.&#8221; - Laozi Ancient Chinese philosopher So for Man City, the bubble has burst. For [...]]]></description>
			<content:encoded><![CDATA[<p><strong>Business Credibility: Achieving Great Things In Stages</strong></p>
<blockquote><p><strong>&#8220;A thick tree grows from a tiny seed.  A tall building arises from a mound of earth. A journey of a thousand miles starts with one step. Contriving, you are defeated; Grasping, you lose.&#8221; <em>- Laozi Ancient Chinese philosopher</em></strong></p></blockquote>
<p>So for Man City, the bubble has burst. For the time being at least. Ka Ka has turned down a £500,000 per week salary and Robinho has gone AWOL.</p>
<p>It has been mooted that Ka Ka turned the offer down on moral grounds but I have a sneaky feeling that he has more business sense than the whole Man City board put together.</p>
<p>Ka Ka realises that if a business (in this case a football club) aspires to great things it needs to map out the journey in believable bite sized chunks. It needs credibility. And business credibility needs to be earned and not bought.</p>
<p>Ask a horticulturist and they will tell you not to plant a seed in a pot that is to big. Better to replant it repeatedly into pots that are progressively bigger.</p>
<p>If you’re launching a new small business into an already crowded market then aim to beat the competition in steps. Prioritise building business credibility. Find an energetic and competent intrapreneur to drive your business, but don&#8217;t throw money at Stuart Rose (CEO at M&amp;S) and expect him to either say yes or actually be a good fit anyway. He may be right for a few stages down the line but not now.<span id="more-1125"></span></p>
<p>Don&#8217;t take on premises that are too big. Resist the temptation even if you are sure that you will outgrow them. You may never get there because the cost burden on your business strangled its chances to ever reach that stage. Be prepared to move, perhaps more than once.</p>
<p><strong>Success, even dramatic success, is a journey as well as a destination and needs to be mapped out accordingly. </strong></p>
<p>The stakeholders in your business need to see some business credibility. They will demand it: directors, employees, financiers, suppliers, customers, even your family.</p>
<p><strong>Aspire to the extraordinary but achieve it through repeating the ordinary.</strong></p>
<p>If you&#8217;re not convinced that you can attain great heights other than in one giant leap then try this:</p>
<p>Sit down with a bag of rice and a chess board. Pick up a grain of rice and place it on the first square. This grain represents your first product sale which profits you, say, £1.</p>
<p>Now place two grains of rice in the next square. You have demonstrated business credibility by doubling your turnover, albeit from a low base. Now, when you report that you are going to double your turnover again (placing four grains on the next square) everyone will believe you. Because you have business credibility.</p>
<p>Doubling again (eight grains) only enhances your credibility further. The stakes get higher (16 grains, 32, 64 etc). You continue. Your credibility keeps rising even when the stakes get serious.</p>
<p>And guess what? By the time you complete that chess board, your total profit will have reached £18,446,744,073,709,600,000. (That’s £18 hexillion for the purists, or a trillion trillions.)</p>
<p>OK the numbers are fantastical but you get the point. You have achieved something extraordinary through a succession of ambitious, credible and ordinary steps. The speed you move from square to square is down to you.</p>
<p><strong>It&#8217;s OK to reach for the stars, but plan to get there in credible steps. You&#8217;ll get there faster than taking one giant leap.</strong></p>
<p>Business credibility is the key. I have already sent my bag of rice and a chess board to Manchester.</p>
<p>&lt;!&#8211;[endif]&#8211;&gt;</p>



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