General

The Blog Week in Review — 9/17/09

Are You a Marketing Weasel? Am I? — Tim Berry ponders how consumers aren’t always logical, but marketing with this in mind can appear ‘weasel-ish’.

Playing the Numbers — Sometimes it’s helpful to create different scenarios for your business plan, and see how they impact your financials.

3,2,1 Contact… How Do You Keep Track? — Tracking all your customer communication in one accessible archive can be incredibly useful.

Start-Ups and Health Care Debates — What does the current health care debate mean for small business?

http://blog.emailcenterpro.com/321-contact-how-do-you-keep-track/

Nothing But Good News, Daily — A Success Story

There’s more than enough bad news in the world.

That’s basically how Paul Gerstenberger used to feel. Murders, fires, wars… Gerstenberger started feeling like the purpose of the daily news was just to make him feel bad on a regular basis. “I decided then to start trying to change that, and at least give people the option of also seeing some good going on in our world,” he remembers.goodnews2

In 1996, Paul and his wife Celerina started GoodNewsDaily.com, a website dedicated to sharing only good news. “Since that time we have worked every day, for free, to find and post the good news of the day — not religious or politically leaning, but simply good news.” The site now receives stories from readers across the globe, and covers topics ranging from U.S. and international news, to sports, entertainment, even good weather news.
“We have grown to almost half a million readers….without any money or any advertising,” Paul notes, adding a television pilot for a 24-hour Good News channel is currently in the works.

Paul began using Business Plan Pro in 1996, and has written business plans for a number of businesses he has launched. Calling himself a serial entrepreneur, he says, “I have used Business Plan Pro for many years and within many different ventures. I have raised millions of dollars using the plan [software]… It is great and really gives the professional investor an insight into your company and your ability. It helps so much, I would be lost without it.”

The business plan for Good News Daily was an interesting one, Paul says, because it was the first one he’s written in which making money was not the objective. The process was, as always, a valuable one. “It helps me to clarify my thinking and to think of things that I did not consider,” he says. “The business plan process through Business Plan Pro is without any doubt the best available to help get your business on track.”

Paul’s ventures run the gamut from car rentals to self-defense classes, non-profit children’s health research to diamonds. He says he’s written plans for about 16 businesses, and hasn’t always used Business Plan Pro. The stories he could tell about those plans written without Business Plan Pro definitely would not be appropriate for his GoodNewsDaily.com website. “Frankly,” he says, “trying to write a plan without Business Plan Pro is a major mistake.”

Just like A Hollywood Movie – A Success Story

It sounds like a movie about the American dream. A native of Kenya moves to Massachusetts. He dreams of opening his own business, and begins writing his business plan on his commute to work at his first job in the U.S.

But then the economy falters and our hero gets laid off. Instead of feeling sorry for himself, he sees it as an indication that it is time to get serious about his dream.

It’s not a movie premise. It’s Njoroge Kabugu’s life. “I decided that this was a great opportunity. I had to be able to dedicate the majority of my time to completing my business plan and working on my website.”

After his layoff, Kabugu got to work on the plan for Kijiji Republic, a website selling handmade African crafts, baskets, sandals, jewelry, personal accessories and home decor. The company, started in 2008, builds long-term relationships with the artisans whose work they sell. Kijiji Republic not only markets and retails the crafts, but also maintains a non-profit branch which reinvests money back into the communities where they acquire their products. The goal is to help the artisans meet their basic needs, such as providing clean drinking water, building and supporting schools for children, and providing health facilities. Kijiji Republic also helps its artisans establish their businesses in their local communities, providing them with additional revenue possibilities.

Kabugu feels so strongly about the connection to the villages where the artisans work that the name of his company actually means ‘village’ in Swahili. “The creation of Kijiji Republic LLC was based on the concept that a village would be elevated… by empowering the people.” Selling products in the previously untapped U.S. market was his goal, and in writing his business plan and doing the market research, Kabugu realized he was on to something. “I came to realize I was the only Kenyan selling the products online directly from the U.S.,” which helped give him the security to move forward with his plan.

Kabugu says that one of the greatest values of using Business Plan Pro was what it helped him learn about his business. He particularly appreciated being “forced to think systematically throughout the process.” He strongly encourages anyone starting out to do as he did. “It is important not to shy away from an idea. Put the idea on paper by writing a business plan. It helps you to be able to see those areas which you may otherwise not realize when you carry it in your head.”

With a story that sounds like it’s straight out of Hollywood, it might not come as a surprise that Njoroge Kabugu is a big proponent of following through on your dreams.

And of having a plan.

To read more stories about how Business Plan Pro has helped businesses success, click here to check out our Customer Gallery.

Great New Superlatives Needed

We need to start using some new improved superlatives in our marketing copy. “Great!” you say. Yes, that’s the one. Great really grates on me. Great is so overused that it may as well be blank space. Great carries all the impact of a cotton puff.

Now, there was a time when great really meant something. Take Alexander the Great, king of Macedonia, conqueror of lands, founder of cities for example. Now, he is great. Somehow I just can’t see Product XX’s great online resources changing the political and demographic history of three continents.

Or maybe Ramesses II, Egyptian pharaoh of the Nineteenth dynasty, known as the Great. Can you imagine the great new flavor of Processed Food XXX ruling unchallenged for 66 years, causing the building of cities and monumental sculptures that survive for 3,500 years? Or inspiring poetry such as P.B. Shelley’s Ozymandias “My name is Ozymandias, king of kings: Look on my works, ye Mighty, and despair!”?

OK. Actually, I CAN look on Processed Food XXX and despair. But Processed Food XXX great?!?! Not a chance.

The Great Barrier Reef off Australia’s east coast is truly Great. The reef system is thousands of kilometers long, and hosts a diversity of corals and sea life unmatched on the globe. Somehow it just seems insulting to compare it to the great customer (dis)service system of Company XXXX.

So let’s stop claiming every new and old product or service is great. After all, when every thing is great, nothing is great.

There are plenty of under-utilized superlatives available. Pick up a thesaurus or a dictionary and take a look. Click over to Thesaurus.reference.com, Merriam-Webster.com’s Thesaurus or any of the other online thesauri and peruse some of the

august, capital, chief, commanding, dignified, distinguished, eminent, exalted, excellent, famed, famous, fine, glorious, grand, heroic, high-minded, highly regarded, honorable, idealistic, illustrious, impressive, leading, lofty, magnanimous, main, major, noble, notable, noted, noteworthy, outstanding, paramount, primary, principal, prominent, puissant, regal, remarkable, renowned, royal, stately, sublime, superior, superlative, talented, able, absolute, aces, adept, admirable, adroit, awesome, bad*, best, brutal, cold*, complete, consummate, crack*, downright, dynamite, egregious, exceptional, expert, fab, fantastic, fine, first-class*, first-rate, good, heavy*, hellacious, marvelous, masterly, number one, out of sight, out of this world, out-and-out, perfect, positive, proficient, super-duper, surpassing, terrific, total, tough, transcendent, tremendous, unmitigated, unqualified, utter, wonderful, abundant, ample, big, big league, bulky, bull, colossal, considerable, decided, enormous, excessive, extended, extensive, extravagant, extreme, fat, gigantic, grievous, high, huge, humongous, husky, immense, inordinate, jumbo, lengthy, long, major league, mammoth, mondo, numerous, oversize, prodigious, prolonged, pronounced, protracted, strong, stupendous, terrible, titanic, towering, tremendous, vast, voluminous,

alternatives to great. It is time to spice up and enliven our marketing language.

Steve Lange
Palo Alto Software

The Blog Week in Review — 9/3/09

Are You a Good Manager? How Can You Tell? — Tim Berry poses some questions to think about in trying to determine what makes a good leader.

Tell the World How Fast You Respond to Email — When you handle email efficiently, you’ll be proud to display a Response Time Badge on your website.

How to Write With A Knife — The Copyblogger’s excellent post on effective editing.

7 Reasons Why Your Marketing Plan Doesn’t Work — Marketing guru John Jantsch looks at the most common mistakes people make with their marketing plans.

Customer Spotlight: Work From Home Opportunity Creates New Entrepreneur

Patty Shutt, of McHenry, Illinois, had worked in chiropractic offices for over 17 years when her boss decided he wanted to start a traveling clinic. So they set up a home office for Patty, creating a virtual connection between the chiropractor, his assistant, and his patients.

When business slowed down due to the economy, Patty found herself with a tough choice. “I considered going back out and finding another billing job. However, I really enjoyed being around the house for my daughter.” So instead of looking for a job working for somebody else, she embarked on a different path. “I decided to take a medical billing course online and take the plunge by opening my own billing business.”

She started Alternative Billing Solutions in early 2009, offering chiropractic physicians a virtual billing service. She positions herself as an additional team member, working in conjunction with the chiropractic office’s staff to enhance the clinic’s billing. “My main focus is to ultimately perform the entire suite of billing duties; however I will also customize a package to fill in the gaps for a clinic’s billing department as well.” She sees the service she offers not as a way for clinics to outsource jobs, but as a way to make them more efficient. “By allowing me to handle the billing, which is really time-consuming, the clinic’s staff can use the extra time to focus on the growth of the practice, which is then a win-win for everyone!”

Patty says she really enjoyed the process of planning her business. “It certainly was a challenge! I had a lot of really good ideas; however, I needed these ideas organized,” she says. So when a friend recommended Business Plan Pro, she checked it out. After working through her plan in the software, she decided to take advantage of another service Palo Alto Software offers, and signed up for Business Plan Pro Coaching. Her expert coach helped guide her in the right direction and keep her on task. “I was able to gather specific ideas and put them together so I could focus on where I wanted my business to go, focusing on which services I really wanted to offer and which services to keep away from.”

Regularly revisiting her plan is a scheduled event for Patty. She says she tries to review it monthly, though as her business takes off that isn’t always easy. Getting back into the plan and making adjustments as situations change helps her maintain the hard-won focus she found during the planning process.

“I have a new level of confidence because my business success depends on my dedication and hard work. It is definitely worth it,” says Patty, who adds that you have to believe in yourself in order to achieve your goals. It’s what she did, and she adds, “It is really the most fulfilling experience I have ever had.”

Customer Spotlight: Peters Path plans for philanthropy. And success

Most new businesses start out narrowly focused on the bottom line. With so much financial uncertainty in the market today, building philanthropy into a business plan can be a scary proposition. But that didn’t deter Christine Crowley Peters, President and CEO of Peters Path. Her philosophy is, “Don’t let fear hold you back.”

Christine Peters,

Christine Peters, President and CEO of Peters Path

Writing a business plan is like getting an MBA

Peters put that personal credo into action in 2008 when she left a career in cosmetology and started Peters Path Corporation, located in Atlanta, Georgia. The Peters Path website launched in March 2009, selling fashionable and hip clothing and providing customers with an opportunity to experience socially responsible shopping.

Peters Path is Christine’s first venture into entrepreneurship, and she says she found just planning the business to be quite a learning experience. When she started using Business Plan Pro to write her business plan, it broadened her ideas about her company. “Our business plan was developed as the primary tool for planning and managing our business. The process forced a rigor into both the breadth and depth of our thinking about the business. In many ways it led us into areas we might have preferred to defer, as they were difficult, time-consuming, and stressful. The education we got as a result feels like it would be an MBA.”

All that time spent was worth it. She says she and her partner, Vice President/CFO Ronda Balfe, work diligently to maintain the ‘for-profit/philanthropy’ business model they’ve adopted and have built into their business plan. “It was my focus and I made it fit. We do regular pro formas based on the data built in to our business plan. Further, the plan is a dynamic document which we flex with new information as it evolves.” In fact, says Peters, she has gone back to the software to update her plan so many times that the CD with her saved plan file “has scratch marks through all parts of it!”

Charities benefit from every sale

Peters Path donates a portion of the proceeds of every sale to non-profit organizations that promote equality and empowerment, fight poverty, aid those less fortunate, and foster community service. Customers choose from a select list of charities when they purchase online, letting the shopper select where they want their money to go. “Peters Path was started as a way for me to combine my love of fashion with philanthropic endeavors, which have played an important role in my personal life, and my children’s lives,” Peters says. The company’s products include comfortable, stylish clothing and unique, hip jewelry, from brands including Alternative Apparel, Johnny Was, Angel Court, Young Fabulous and Broke, DL1961 denim, and Acholi Beads, which are made from recycled materials in Uganda by women who fled the civil war. They also carry bamboo clothing, and Peters Path’s own label of organic T-shirts.

In addition to the money donated from each purchase, the company also holds online fundraisers, where 100 percent of the profits from the sales of their t-shirts are donated to a specific cause. A recent sale raised funds for Helping Children Worldwide and the Child Rescue Centre. In additional to aiding these charities financially, the company seeks to help raise awareness of their causes. “I know that everyone has the power to make a difference. Whether it is by purchasing a product, becoming active in your own community, volunteering your time… there are so many ways to help. We want to help others ignite their own flame and let their passion make the world a brighter place.”

Teamwork is a key to success

To be able to donate as much money as they do, Peters Path has to keep a watchful eye on spending. “We are operating on one corporate debit card, and only one credit card account with a $2,500 limit that has to be paid in full monthly. It is very difficult to operate with limited funds like that. I could never do that part of our business,” Peters say, praising Balfe for the skills she brings to the table. Peters is emphatic about the value of a good partnership that involves people with different skill sets working together. “She [Balfe] complements me perfectly, as we are very different, and she brings a perspective to the table that is vital and crucial to our existence — that of managing our finances and understanding our budget. She is the left brain and I am the right brain.”

Peters advocates doing “stress tests” on your business plan — she acknowledges that the term may have a negative association these days, but adds, “the concept is very important to every business. The factors to use to stress-test different business plans will obviously differ, but should be developed.” She suggests creating worst-case scenarios that are actually far worse than you would expect, reducing your best-case scenario numbers by 20%, even dropping income forecasts a significant amount to see just how much your business will handle. When you do this, you provide yourself with an idea of what your business would look like in a whole range of situations. And by planning for that range, you’ll be in a better situation should any one of those scenarios come to pass.

Learning from mistakes

Being an entrepreneur is a new experience for Peters and, as she says, “I’m loving it.” She says she actually enjoys the roller coaster ride that running a business can be — knowing that for every good day, there’s bound to be a bad one. “While hopefully there are many more victories than defeats, both are sure to transpire. The challenge, of course, is to be resilient after the knockdowns and keep increasing the ratio of victories.”

Peters has found great value in learning from her experiences, and from the people she brings in to help run her business. “When you fail in an area, which you will — I do regularly — learn from it and really consider how you will do it differently next time. It’s from my mistakes in my life that I have learned the most.”

Peters is a big believer in figuring out what you want to do and making it happen. She says there are all kinds of resources out there for people starting up businesses. “I have attended many classes given by SCORE, and their advice and informational resources are incredible. I would recommend starting there to anyone considering starting a business. If you spend some time researching small businesses, you will be amazed at what is out there and available to you.”

A final bit of advice from Peters is that it really doesn’t matter what you’ve done before or what you think you don’t know. “What matters is today and your desire to learn new things. You just have to learn how to combine [your fears] with perseverance, determination, and passion, and then let those emotions overpower fear and be your driving force.”

An Offkey Note

Both Business Plan Pro and Marketing Plan Pro powered by Duct Tape Marketing stress the importance of understanding your target market. Who needs your products or services, and values them? What can you do for them that nobody else can? What factors drive their purchasing decisions, and how do you build and retain their loyalty? And just as important; who do you NOT want as a customer?

Assuming you’ve done your homework, or are already in business and know your customers very, very well, you then have the tricky job of re-working your product or service or brand or customer service approach (or all of the above) to most appeal to the people you really want to get and keep as customers.

You want these people to see themselves and their needs, or maybe their ideal selves, in every interaction they have with you, your company, your products, etc.

If you are selling high-tech gadgets to new entrepreneurs, you do not package it in plain brown wrapping paper tied with string, sent book-rate.

I was struck recently by the weird design choices that can result from a process (or perhaps a decision-maker) who was not clear on their target market. Back in July, Chris Ryan of The Apple Blog reviewed the history of some key apple icons.

He noted in passing that some applications “have also seen different icons with new versions.” He’s not kidding. The visual example he offers is for Apple Keynote, a presentation application.

Let’s take a closer look at what the icon history is showing about how Apple understood and tried to engage their target market.

apple-keynote-2003

The icon for Keynote 2003 shows a polished wood lectern with classic ionic columns, symbolic of neoclassical architecture and, more broadly, established, secure institutions. It also boasts a built-in electronic microphone. The podium evokes a crowded lecture hall at an elite college, where learning bridges tradition and innovation.

apple-keynote-2005

In 2005, Keynote 2 has a radically different iconography. Our translucent glass lectern now sits atop a polished metal base, the electronic component is more pronounced, and the contents of the presentation, rather than the structural features of the podium, are the focus. This is an icon aimed at the high-tech business person, presenting financial or marketing data in a corporate environment.

What happened between 2003 and 2005 to cause this change?

Well, Apple’s iPod had created a major buzz, even among PC users, a factor Apple took advantage of with the release of the Mac mini, aimed at getting PC owners to switch to Mac at little cost.

The ongoing Microsoft/Apple feud saw Apple winning out in design during this same year. As John Markoff of the New York Times noted in May, 2003, “Apple executives took obvious glee last week in noting that the software centerpiece of the Microsoft conference, new graphics software that is scheduled to appear in “Longhorn,” Microsoft’s 2005 version of its Windows operating system, apes features that have been in Apple’s OS X operating system since 2001.” (Longhorn was the working codename for Windows Vista, finally released in 2008.)

Since 2001, the general wisdom has been that PCs running Windows Office are the overwhelming default in corporate America, where IT departments want to standardize the proprietary software on their entire structure’s collection of computers. Apple, on the other hand, was for “cool,” leading-edge, personal use. The rogue employee with the Powerbook was invariably on the cutting edge of technology, compared to his desktop tower, PC cubicle-farm colleagues.

Apple’s Keynote 2 icon brings that leading edge, high-tech vision of the Mac user to the corporate boardroom. It presents a direct challenge to the notion that Microsoft Windows, and specifically PowerPoint, are the hallmark of a successful business presenter.

So far, so good.

apple-keynote-2007

So what happened?

Keynote 4, released in 2007, is an unnatural muddle of the two target markets that were so beautifully, and so clearly, addressed by the earlier icons. They have retained the metal base, but it’s now topped by a plain wood platform. The microphone has shrunk again, and the presentation, now centered and squared, is in plain black and white.

Their new target market appears to be an aesthetically challenged accountant, sent at the last minute to present the quarterly report to a tech-savvy audience with whom he is not entirely comfortable. I can almost see him, nervously brushing his comb-over across his sweating pate in the glare of the stage lights…

So, was there new market research that told them this was, in fact, the high-growth market niche they wanted? Or did some desperate marketing executive tell the product development team they were losing their appeal to the academic market, and try to bridge both worlds without enough thought?

Lesson for your business – if you have two (or more) distinct market segments you are trying to serve, don’t confuse them. Don’t try to talk to one with the language or iconography of the other. Either come up with a single, coherent design and approach that speaks to both, or split your offerings and marketing materials so that your desired customers know for sure that you’re addressing them, and their needs.

The Blog Week in Review — 8/6/09

Fear Is An Entrepreneur’s Friend — Tim Berry says fear, in the proper measure, is good for management.

Get help: Any row, any time — Business Plan Pro is full of information to help you complete your plan.

She Takes on The World Interview with Sabrina Parsons — Palo Alto Software’s CEO is interviewed about entrepreneurship, business plans, and being a Mommy CEO.

Cash for Clunkers

Cash for ClunkersLeaving aside questions of whether the “Cash for Clunkers” legislation currently up for additional funding is good for the economy, it presents a good opportunity for re-evaluating your business use of vehicles.

There are three main questions for business owners in deciding whether trading in an old vehicle is worth it:

1. How much money do you save in gas, for a more fuel-efficient car, in relation to money laid out for purchasing it?

2. Can you depreciate the value of the new car as a deductible business expense, thus offsetting the purchase price with additional tax savings?

3. How much does your more fuel-efficient vehicle reduce your environmental impact (and is this part of your branding)?
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