Art of Earning, Business Brainstorm
With an abundance of “stuff” all around us, it’s easy to think that the road to success is paved with bargains. People want more and they want it cheap, right?
Is it even possible to build a business that’s comfortable by stocking its shelves with products that cost more than average?
Sure, it is. Even in this economy (no excuse, people!), companies are making a killing on premium products that you’re buying.
Apple is doing it. So is Harley Davidson. The makeup brand I use, Jane Iredale, is doing it too. Heck, I would probably even put Starbucks in that category. My new go-to drink is over $5.
Passion-driven businesses are built around the fact that the customer is as passionate as the business owner. That the zeal for quality & distinctiveness is a shared trait between merchant & patron. Further, the passion they share is not only at face value – for a great computer, motorcycle, or mineral foundation – but for an underlying purpose – design, culture, or beauty.
Purpose is a nonnegotiable. Business owner & customer either share it – and do business happily – or they don’t.
Passion-driven businesses lose money on “…maybe”.
Passion doesn’t allow for compromise on the things that matter most to you. And not compromising rarely allows for a deal.
What is beyond compromise in your business?
- Level of service?
- Quality of materials?
- Craftsmanship?
- Vision of success?
- Start to finish method?
- Source of materials?
- Consistency?
- Ease of use?
- Sustainability?
How could you expand your market of passionate customers by focusing on the highest quality regardless of price?
Inevitably, your passion for your service, product, or vision means that you can check off a whole list of nonnegotiables. Take, for instance, Henry Sidel, who has a passion for Japanese culture:
“I never thought I’d start a business,” says Sidel, now 43. It wasn’t entrepreneurship that excited him — it was his passion for all things Japanese.
Sidel first visited the country as a homestay college student in 1987, later returning after graduation to live there for a time and learn the language. Over the years, he made several more trips, but his interests didn’t converge until a 2001 sake tasting at a New York restaurant. The spirits, shall we say, moved him. (Joanna Krotz, Turning Passion Into Profits)
Think he’s hocking the cheap stuff? No way. Someone who is passionate about the culture, the product, and the people doesn’t care too much about the price. He’s interested in connecting the best, most interesting sake with the people who appreciate it as much as he does.
His nonnegotiables have to do with showcasing different regions of Japan, promoting artisans, and featuring unique flavors. And he does this all with another quirk of high-end business: a limited menu.
Sidel is also ranks education & events among his nonnegotiables. It’s not just about selling, it’s about creating an experience.
My guess is that your dream for your business is not much different. You dream of a business where you attract customers who love what you do as much as you do. Who are in it for the experience and not just another cheap thrill. Who value your expertise, your passion, and your vision. Who happily hand over the cash because – regardless of what the rest of the world thinks – it’s worth it to them.
The thing is, this type of business doesn’t evolve into a high-end business. It’s designed as a high-end business.
Think again of that dream-of-a-business we were just envisioning.
What changes could you make in the structure or operation of your business to make it more like the “if only” business you dream of?
What decisions have you been avoiding because of your fear of the “high-end?”
Leave your response below!
My blog is a part of an online influencer network for Business on Main. I receive incentives to share my views on a monthly basis.
Business Brainstorm
I just got back from teaching at an intensive business event led by Ashley Sinclair. Sinclair packed every bit of info she could into a three-day business learning & planning extravaganza.
But Sinclair started off the event – and kept reminding participants throughout – that they were ready. They didn’t need to keep coming back for more & more & more. They needed to take their ideas and get jiggy with ’em.
Well, you know me. I just love me some experimenting. And sure, I love learning – love it! – but I didn’t build a successful business with an instruction manual. I built it with a just-crazy-enough-to-work attitude and a willingness to play.
I’m not alone:
If your idea of launching a business is to dive in and start trying stuff, then huzzah! A new study finds that one of an entrepreneur’s most important traits is having “practical intelligence,” or reliable common sense.
— Joanna L Krotz, Common Sense: The Key to Entrepreneurial Success?
So, for the love of using your noggin, I’m bringing you 10 quick ideas to experiment in your business TODAY.
- Survey your customers. Ask them what they need, not what they want from you.
- Brainstorm or design a new product – from scratch! Start with the outcome you want to achieve and then fill in the details in an outline. Know who would buy this & why. No need to make it perfect!
- Seize an opportunity. Odds are there’s an opportunity weighing on your mind that you are just not sure you’re ready for. Embrace it! Give it your best shot!
- Highlight a liability. You’ve been stressing about a particular shortcoming or liability in your business, trying to come up with a solution. Forget it! Tell everyone why that liability makes yours the best biz to work with.
- Throw out that service you hate. Selling something that just doesn’t feel good? Feels awful? Get rid of it. Know that you’ll be that much more passionate about the rest of your offerings.
- Email your list today. I know, it makes you nervous. Do it anyway. Make an offer.
- Say what’s on your mind. Don’t hold back in negotiations. And don’t hold back your best counsel from clients just because you’re a little unsure of yourself.
- Throw out the instruction manual. Your business is actually pretty resilient. Just get started on that thang you’ve been meaning to learn how to do!
- Love the details but don’t obsess over them. On your tenth review of the new logo? Get over it and love what’s nearly perfect.
- Change your prices. I know it’s been on your mind: try out that “if only” price and just see what happens!
My blog is a part of an online influencer network for Business on Main. I receive incentives to share my views on a monthly basis.
Business Brainstorm
When I was working retail, my store was suffering from a market who increasingly wasn’t interested in buying our product: books. The internet, electronic reading, and the ever-shortening attention spans of our customers made selling books in a bookstore hard work.
While people still loved books, what reason did they have to visit our store to buy them?
Big box store to big box store, mass merchandiser to mass merchandiser, indie to the library, Amazon to Alibris, you could get books anywhere.
I remember the first day we heard about our new “loyalty program.” It was free and involved a “simple” registration process that resulted in a mostly unnecessary litle red card. We had conversion goals, use goals, and scripts. We had training and conditioning.
Like much of what my company did, it didn’t go over well. Customers didn’t understand the program. They didn’t understand how it benefitted them to carry the card in their wallets bulging with other mostly forgettable cards. They didn’t appreciate us asking every time if they had their card.
The card created a lot of things… but loyalty wasn’t one of them.
A recent study by ACI Worldwide, a marketer of electronic payment solutions, found that nearly a quarter of Americans have received a customer-loyalty reward they considered too small to take seriously. Only about a third had received a reward or promotion that prompted them to return to the store that offered it. And a stunning 44 percent said they’d actually had a negative experience with a loyalty program.
— Randy Myers, Loyalty Programs & Perks That Work
There are only two loyalty cards I carry now: one for my grocery store, the other for Starbucks.
But is it the card that fosters my loyalty… or something else about the experience?
I don’t “do the shopping” at any other grocery store. It’s the chain that I grew up with and it’s the biggest, nicest, and well-stocked store in our area. It also carries the widest selection of organic food products this side of our not-so-full-of-farmers farmer’s market.
I use the loyalty card… and I use its rewards. But I’m not sure if that’s a product of the card itself or just a part of my already present loyalty to that company.
I’ve only just begun using the Starbucks loyalty program. Their “card” is different in that it is also the form of payment. Easy. Their rewards system is based on “stars” (drinks) not dollars and plays like a game. They also make it all too easy to refill my card, making it feel like the money I spend there is just play money.
Yes, I am buying more coffee since I started using that program.
But what about you, dear entrepreneur?
How are you cultivating loyalty in your business?
It’s a widely known fact of business that it costs a heckuva lot more to find a new customer than it does to retain an old customer. But it’s easier than ever to lose your customer in a sea of competitors and ever-changing needs.
Most of us don’t sell products that “run out” and require restocking. Jewelry, art, clothing, and home decor are all things that require a conscious decision to buy not just an impulse to refill. Even services like coaching that can entail multiple sessions or work over time can appear to fulfill a finite need.
How can you as a business owner retain your customers, continually delight them, and create products that keep them coming back for more?
Clearly, a “loyalty program” is not the way to go (unless it is – by all means, you people are creative!). A punch card isn’t going to work for your handmade jewelry.
Understand that your customers are not just fly-by-night buyers, they’re collectors.
Treat your work and the people that buy it with the same respect a gallery treats its patrons. Entertain them, communicate with them, offer them bonuses, exclusives, and above & beyond service.
Help your customers feel special while at the same time helping them to see buying your work as an opportunity.
Take your customers on a journey.
Look at the first purchase a customer makes as a starting point. Where would they like to go next? Where should they go next? How can you take them there?
If you make a product, look for ways to round out the experience with add-on sales down the line. Also look for opportunities to take your customer from casual users to power users (simple earrings to statement necklace, for instance).
If you’re a service provider, pay attention to the new needs that “graduates” of your service have. Can you fill those? Can you create a next-level experience?
Incentives might work – but they’re not the only way.
Notice that neither of the strategies I provided are incentivized. You could easily create a discount or value-add make your offerings more enticing. But is it necessary? Is it even desired?
Your customers already know & trust you, many times all they need is the opportunity to stay loyal to you. Are you creating that chance?
My blog is a part of an online influencer network for Business on Main. I receive incentives to share my views on a monthly basis.
Art of Earning, Business Brainstorm
Folks, we’ve got a middle problem.
The Middle Problem is all about choosing not to choose. It’s about fearing either side. It seems like the easy way when really it’s the hard way.
The Middle Problem shows itself when you’re brainstorming taglines, pricing products, and writing your copy. It keeps you from enjoying your work, moving forward with a sense of purpose, and finding customers who truly love you.
You’ll notice The Middle Problem most in the pricing of those who aren’t confident in their products or services. They’d prefer to keep the prices low instead of making claims about their work. Maybe they don’t have a lot of experience and are substituting cheap for practice (hint: “cheap” only makes things cheaper). Maybe they think that, because they’ve had a difficult time getting customers thus far, they can’t really charge what they’re worth.
Worse still, they might not know what they’re worth.
You might think, “What a bargain!” Or you might think, “Really? That’s kind of a lot for that…” Or you might even feel sorry for them. When someone has a Middle Problem, you just don’t know what to think sometimes.
You’ll also notice The Middle Problem in someone’s bio, on their services page, in their product descriptions. Maybe she’s got experience in all sorts of fields and doesn’t want to choose one (or invent a new one!) now. Maybe she’s been burned one too many times before. Maybe she’s just not-quite-confident enough to say what she really does so she says she’s a jack-of-all-trades.
Do you really want to hire a master-of-none?
People in the middle want to feel safe, instead they feel unappreciated and unnoticed.
They want to feel fair, instead they feel taken advantage of.
The Middle Problem is the thing I see plaguing under-performing businesses most often. When you stand for something plain & simple, when you declare your expertise, when you charge what you’re worth, it’s easier to get noticed. Sure, some people noticing you will realize that you’re not the business for them. They would have figured it out anyhow… or caused you heartache trying.
In the Middle, your prices are too high for the bargain shoppers (do you want to go lower?) and too low for the shoppers looking for quality. In the Middle, you’re working more than you’d like and don’t have the fun money to make up for it. If you’re going to work when you need to be doing other things, might as well get paid well for it.
Does this sound like you & your business? It’s time to get out of the middle.
How to Poop or Get off the Pot:
- Know what you’re good at. I mean really, really good at. And don’t guess. Ask people, do research, work for free until you figure it out. Discern what your true gift is.
- Get better at what you’re good at. You are not born ready for your first day in business.
- Look at your competition. How are they positioning themselves? What are they charging? How are they organizing information? What will you do differently and what will you do similarly?
- Set your prices to respect yourself & your clients. If you’re not making enough to do the best work, your clients are getting cheated. If you’re not earning enough to ward off stress & resentment, your business won’t last long. Set your prices so that your customers get your best work and you get your best life. Now that’s fair.
- Communicate your work without wavering. Got a blog? Newsletter? Twitter? Use them to talk passionately about your work. Make strong statements. Say big things. This is your time to shine; use it.
What’s your experience with The Middle Problem? Have you recently gotten out of the middle? How do you feel living in the extremes?
Leave your response in the comments below!
The Art of Earning is changing how people think about money. It’s changing their attitudes and their businesses. Have I mentioned you can name your own price? Find out more.
Tara speaks from an impressive wealth of experience she’s come by on the web–and best of all? She gets you asking the right questions in the smartest fashions, and will help you begin earning money online in healthy, productive, successful ways.
— Dave Ursillo | daveursillo.com | how to lead without followers
Business Brainstorm
My first introduction to Anne Lamott was while I was in college. I was studying religion both from an academic perspective and from a faith-based perspective. The two are not exclusive. Her book of essays on faith, Traveling Mercies, was a big hit & had become (and still is, I think) required reading for young women struggling to find an edgy voice for their faith.
I read the vast majority of it on a transatlantic flight the summer between my sophomore & junior year and promptly left it in an airport in Vienna.
Nevertheless, that book gave me a lot of hope. It wasn’t that it was anything too new to me – just a true reflection of so much of my own internal dialogue, printed and bound.
Somehow, no one ever suggested reading Lamott’s book on writing, Bird by Bird, until Megan sputtered that she was shocked I’d never read it. Oops! I devoured it while flying between Allentown and Portland last week. With each new chapter, I was shocked at what I was reading. I wasn’t learning that much about writing but I was seeing business & marketing strategy in a new whole new light.
What Anne Lamott has to say about the craft of writing also applies to building a passion-driven business in the 21st century. I will share a few of my favorite ideas below but, please, do yourself a favor and add Bird by Bird to your business reading list!
The problem that comes up over and over again is that these people want to be published. They kind of want to write but they really want to be published. You’ll never get to where you want to be that way, I tell them.
You kind of like what you’re doing but what you really want is to make money, be successful, have a business that supports you.
You can’t put the cart before the horse.
You must dig deep to find the passion in what you’re doing or you need to make your passion what you’re doing before the truly desired results will manifest themselves.
It is entirely possible to build income streams, a working business, and a platform before you have your true soul-work nailed. But until you nail it, the really juicy results will remain out of reach.
The core, ethical concepts in which you most passionately believe are the language in which you are writing.
These concepts probably feel like givens, like things no on ever had to make up, that have been true through all cultures and for all time. Telling these truths is your job.
Want to know what to blog about? What to send in your emails? What to tweet about? Tell us about the world from your perspective: the givens, the understandings, the questions, the codes, and the visions.
Explain to me what is most basic to the way you see the world & the people in it.
Explore & expand, sure. But understand that what is core to you may be new & exciting to me. Understand that I may have never met another person that believes what I believe and to find you, putting words to my thoughts, makes you a superhero. Tell me the stories that never get old (even if they do for you).
Don’t skip ahead. And don’t forget about this just because you’ve been around for awhile. Keep coming back to the very core of what you believe to be true and tell me anew.
All of us can sing the same song, and there will still be four billion different renditions. Some people will sing it spontaneously, with a lot of soulful riffs, while others are going to practice until they could sing it at the Met.
Bottomline: don’t worry about the competition. Keep your mind on your own business, you own song, and sing it loud!
Those who might look like competitors to outsiders may really be potential harmonizers.
We all have a little something different to offer. When you get clear on what notes you’re singing, it’s easy to find those around you who are singing the same song with a different set of notes. And, since I have a minor in music, I can tell you that’s the definition of harmony.
Harmony is beautiful. And it’s often something that gets people to take notice.
Do your ears perk, does your skin prickle, when you hear two or three singers raising harmony into the world? Mine do. Mine ears also perk, my skin also prickles when I see you collaborating with and supporting fellow business owners. Find your harmonizers and lift up a song.
Perfectionism is the voice of the oppressor, the enemy of the people. … I think perfectionism is based on the obsessive belief that if you run carefully enough, hitting each stepping-stone just right, you won’t have to die. … Perfectionism means that you try desperately not to leave so much mess to clean up. But clutter and mess show us that life is being lived.
If you are waiting for your idea/website/launch/business model/ebook/service package/copy writing to be perfect before you get started, it’s time to quit waiting. Just start. It will never be perfect. Instead, it will wallow in mediocrity and the only person to ever know about it will be you.
Go big – go public – or go home.
There will be mess, failure, destruction, frustration, and sorrow. And that will make your victory & success all the sweeter.
Amidst mess, there can be order. Amidst failure, there can be perseverance. Amidst imperfection, there can be greatness. In fact, that’s the only way those things have ever existed.
Convinced? Add Bird by Bird to your reading list.
Business Brainstorm
I have a confession to make. I think about you. Quite a bit.
I dream up what you might have had for breakfast. I envision the conversations you have with your husband or girlfriend. I imagine the situations you get stuck in and the kind that make your whirl with excitement.
You’re the main character in the story I write in my head.
Thankfully, you let me know I’m doing a pretty good job. You write me comments like, “How did you know I was thinking about that?” or “This is just what I needed to hear today!”
I’m no Sookie Stackhouse.
But I do make a point of understanding you.
By now, entrepreneur, you understand that your story and how you weave it is often what differentiates you from a pack of similar makers or service providers. Your story provides the context for your business. It explains what you do and, more importantly, why you do it.
But your story is not the reason people buy.
Someone buys when she understands how your product or service fits into her story. This is the essence of marketing: weaving your product or service into the story of your customers’ lives.
Lately, I’ve read some comments from people who get a little sick when asked to create a customer profile bedecked with demographic informational accessories like income bracket and age. “It’s icky to consider how much money my customers make or where their kids go to school,” they say.
“What does it matter?”
Stories have the felicitous capacity of capturing exactly those elements that formal decision methods leave out.
— Don Norman, Things That Make Us Smart
Yes, wanting to know the median age of someone’s children or their shoe size is icky if it means that you can create a formula that tells you exactly what marketing techniques will result in the most sales. But that’s not why we want to know these figures. These facts, figures, and suppositions help us craft a story.
Just like you, your customers’ circumstances are not separate from the greater narrative of their lives. Their income, age, location, clothing style, favorite coffee hang out, and Android vs iPhone preference help you understand their story. When you fill in the mad lib of their lives, you have a clear perspective on what they love and what they need.
Marketing and sales do not fit into some neat formula or instruction manual. Marketing and sales live in the imagination. They put us in touch with one of the greatest of human attributes:
Empathy.
One aptitude that’s proven impossible for computers to reproduce, and very difficult for faraway workers connected by electrons to match, is Empathy.
— Daniel Pink, A Whole New Mind
The empathy we muster for the whole experience of our customers’ stories is directly related to our ability to close the deal.
When you understand a customer’s story, you can become a character in it.
Create your customer story
- Use Pinterest or a photo editing tool to create an inspiration board that gives you a visual representation of what your customer is like.
- Write out a “day in the life of” schedule for your customer.
- Paint a picture of the situation your product or service aims to help with.
- People watch. Look for people you might imagine to by your ideal customer. What are they thinking about at that moment?
- Create a private Twitter list of users you think of as your ideal customer. Follow it for a few weeks to get a feel of what in their lives is “tweetable.”
The aim here is not to sell people things they don’t need. The aim is to create the things they do need. The aim is to understand what is missing from the story & supply it the only way your own character knows how.
Would you rather be a character in a story or an advertisement on the page?
That’s what I thought.
Today, forget about honing your own story. Concentrate on becoming a part of your customer’s story. Fill in a gap she didn’t know was there. Help her put into words what has gone unsaid.
Become a character in her story.
Play along. Leave a response below to tell me the story of your customer. Include as many details as you can. Tell me about a problem or question she has. Offer the tale of her greatest success. Today, you be the author.
