| d="body"> | | | | There were many exotic restaurants around and |
| I'm going to start very quickly by asking you all a | | | | in the distance we saw the familiar M sign and we |
| question: most of you are business owners, why | | | | headed there. Why? Because we knew what to |
| did you get into business? What was the core | | | | expect, we were in a foreign place and unusual |
| reason that you went into business? | | | | circumstances. Later on we investigated and |
| Delegates give reasons | | | | explored all the local culture, but to begin with it |
| Forced situations, to gain some improved lifestyle, | | | | was nice to find something where we knew what |
| to gain more financial independence those sorts of | | | | to expect. The pricing was very similar (in a |
| Reasons? To gain more control over your destiny | | | | different currency, but very similar), chips were |
| and your time. Better quality of life, the link into | | | | still cold, but we managed to fill our tummies at |
| lifestyle again. In my experience the key reasons, | | | | least! |
| apart from forced situations, the key drivers are | | | | So the systemisation process is measuring all the |
| wanting financial independence, wanting control and | | | | operations within the business and documenting |
| also wanting some fulfilment that is not being | | | | them. That makes the business much more |
| achieved already through what you are already | | | | systems reliant rather than people reliant. That's |
| doing. | | | | not to say that people aren't important they are, |
| Also in my experience, order to achieve those | | | | people are crucial to a business operation. People |
| passions and visions of what you want to achieve | | | | need to be recognised and valued, I'm all for that. |
| for the future - that better lifestyle, that more | | | | Having said that, people work better and are |
| control - then you and your business need to be | | | | more empowered if they have clear boundaries in |
| working for you rather than you working for it. | | | | which to operate and work from - a system. |
| What I want to do in this session is focus on | | | | Making them accountable for that system is also |
| understanding all the dimensions within a business | | | | a way of refining the process. Not a blaming |
| both from an external perspective as well as an | | | | culture, but a learning culture. |
| internal perspective. Most business owners just | | | | And just one quick example here, for this |
| get caught up with the internal matters, getting | | | | workshop today (this is a very simplified version), |
| the production of the business working, getting | | | | it seemed to me, and Jean may agree with me, it |
| customer acquisition working and getting the | | | | involved a lot more activity than just those listed |
| actual business done, the technical work. | | | | here, but in a simplistic nature, systemisation is |
| However, not so much time is spent focussing on | | | | about listing in a logical order, the activities that |
| the other core elements. So, what I would like to | | | | need to take place. |
| do is to share with you a number of principles | | | | Making people accountable for them, maybe even |
| that will enable you to separate these different | | | | signing them off if they need to, and having them |
| dimensions and understand them more clearly. It | | | | time bound as well is all important. So it's a |
| will give you ways, I'm sure; of helping you to | | | | combination of those factors that makes the |
| create new customers but also maximising the | | | | system work. It can be applied to any process. It |
| return that you are getting from your existing | | | | doesn't have to be IT based, it can just be |
| customer base. | | | | written down on a list. |
| In addition to that, I am a passionate believer in | | | | I'm very much a believer in having regular lists, |
| systematisation within a business and I'll explain | | | | linked to priorities. Again, because having laser like |
| what I mean by that, and finally there are | | | | focus on your goals is also making sure you are |
| important people issues (that we have already | | | | putting in those activities at the right time, in the |
| discovered today) that impacts dramatically on | | | | right way to actually make those goals come to |
| the effectiveness of your business. | | | | fruition. So it is about having daily tasks that are |
| There are certain elements that the business | | | | priorities, its about having weekly tasks that are |
| experts have identified as survival requirements | | | | priorities, its about having monthly tasks that are |
| for business. There are two key factors - Firstly | | | | priorities and ensuring that they are done at the |
| the business needs to produce results for | | | | appropriate time. |
| customers. Throughout this I am referring to | | | | It's also about recording how much of your time |
| everyone as customers but you may refer to | | | | or the time within your business as a whole (this |
| them depending on whether you provide a | | | | includes all of your employees where appropriate), |
| product service or treatments, clients or patients. | | | | what time is being spent doing what function? |
| But I am referring to everybody as customers. | | | | This is having understanding of what the business |
| The key is that word 'result'. An analogy here, if | | | | is actually doing and why, and then using that |
| you were to go and buy a pot of paint, the result | | | | information as a learning and refining process for |
| is not just buying the pot of paint and happily | | | | the future. |
| going home with it and storing it in a cupboard | | | | What I would like to do now is consider some |
| that is not the result. The result is obtained once | | | | practical marketing activities for new client |
| you actually apply the paint, put it on the walls | | | | acquisition. So that means a whole raft of things |
| and you then see the benefit. So that's what I | | | | here and I am sure many of you are familiar if |
| mean by achieving results. | | | | not operating some of these. So, these are all |
| In my view, once you have actually | | | | ways that you can go out and get clients and get |
| demonstrated to the market place that you can | | | | new customers. The interesting thing about this |
| achieve results for customers, then in theory at | | | | process though is that the list is actually in a |
| least (and it should be in practise), your business | | | | particular order. |
| should be sustainable because you've | | | | What I have done is listed marketing activities in |
| demonstrated that you are able to add value to | | | | order of the resource to fulfil them. So from the |
| the market place. | | | | top to the bottom, telesales for example takes |
| Secondly you also need to make a profit if the | | | | little resource - one person and a telephone. In |
| business is to survive. Of course, all the other | | | | order to perform seminars and workshops |
| issues that we have looked at today, hygiene | | | | however you require a bigger resource |
| factors such as, requirements for legislation, | | | | requirement. By resource I am talking about the |
| compliance, and integrity within the business, all | | | | three resources that we all have in our business. |
| those things apply as well of course. Making a | | | | They are people resources, they are time |
| profit and producing results for customers are the | | | | resources and they are financial resources. So as |
| key survival factors. If they are the survival | | | | we work down that list typically the resource |
| factors, what are the success factors to contrast | | | | requirement increases. |
| this? | | | | The other interesting factor is the level of |
| Again, I suggest that there are two key factors. | | | | influence we have in our market place. This |
| One is how you promote your business, the | | | | requires us to have an understanding of the |
| marketing of it. The other is how you find unique | | | | external and internal environments that we are |
| solutions to people's problems, innovation. As we | | | | operating in. For example, market trends, |
| go through, what I want to do is provide some | | | | demographics and the size of the market. |
| tips, suggestions and ideas that can be used in | | | | As far as our activities are concerned, that is our |
| those two areas to really grow your business. | | | | internal environment and we can control that fully. |
| What I would like to do now before we go on | | | | I think the thing we need to recognise is that we |
| further, is just identify three other key elements. | | | | have control over our own internal environment |
| Then there is an exercise I'd like you to do. I see | | | | and the marketing activities that we actually |
| a business as a living organism it's a bit like a | | | | perform. But interestingly, the more we go down |
| representation of the living world, in a smaller | | | | that list the more they are able to influence |
| form. | | | | potential customers to our business. |
| What typically happens is that most business | | | | So therefore by inference they are all equally |
| owner's focus on today, they focus on the | | | | viable. OK, some may take more resource, some |
| problems and solutions of today and are entwined | | | | cost more, some take a lot more time, some a |
| in the business. In order to complete the circle and | | | | lot more planning, but they are more influential so |
| understand the full dynamics of a business and to | | | | they can attract more customers. So they are all |
| make it work like a Formula 1 car rather than an | | | | equally viable, it's just a question of which ones |
| old model T Ford, it is important to realise that, | | | | you choose and you have control of this fully. |
| just like life and just like the world, there is also a | | | | I would like to do to demonstrate this point in |
| past and there is also a future which are all | | | | action by taking 2 businesses I am working with |
| equally as important as the present. | | | | today among others that I am working with. The |
| So a quick exercise now. What I would like you to | | | | situations have lots of similarities. They are both in |
| do is to close your eyes and open your mind and | | | | wholesale distribution, one of them has 3 business |
| just think about some of those reasons you | | | | owners and has been in business for about 8 |
| mentioned earlier about wanting to get into | | | | years and it markets through a range of |
| business, but actually put yourself in the picture of | | | | marketing activities to get new customers and to |
| what your life will be like in 2-5 years time on the | | | | also maximise existing customer value which we'll |
| assumption that you will achieve the business | | | | look at in a minute. But they are quite highly |
| success that you want. | | | | systematic, they have key performance |
| So, how are you feeling? What people are around | | | | indicators for the staff, they do have job |
| you, what size of organisation do you have? How | | | | descriptions, they do have clear roles for the |
| fulfilled do you feel? How financially independent | | | | people within the business and processes for |
| are you? Imagine all of the wonderful things that | | | | them to follow. |
| you are driving towards. What I want you to do | | | | Now the other business is also successful, both |
| is just momentarily, put yourself into that picture | | | | businesses are doing well, both are producing |
| and imagine that situation. So if you would like to | | | | profits. The other business however is more |
| close your eyes just for a moment and open | | | | established. It operates almost exclusively in the |
| your mind and put yourself where you really want | | | | market of a field sales operation. They are good |
| to be. | | | | at it and they have refined it, however, it's not |
| Music plays in background..... | | | | particularly systematic because the individual sales |
| So if you would open your eyes again, what I | | | | people operate, apart from the territories they've |
| would like to do now is very quickly with the | | | | been given, with a lot of autonomy, they don't |
| person next to you share what that vision looks | | | | really have a systemised way of working. In |
| like. Share what it is you want for yourself and | | | | addition to that they do some direct mail on a |
| for your business. | | | | limited basis but they have very little systems. |
| The second thing I would like you to do is to | | | | OK so that's just a general overview of the |
| share the one thing that would make the biggest | | | | businesses. |
| difference to your success. What one thing do | | | | Now let's look at some of the financials. The first |
| you need to do? So, what is it you want and | | | | business has a 1 million turnover the second |
| what's the one main thing you need to do to | | | | business has a 10 million turnover. Interestingly |
| achieve it. Just quickly share that with each other | | | | though, on first sight you might think business 1 |
| please. | | | | may be turning over less but is more profitable. |
| Maybe in the networking session later we can | | | | Look at the profit, 20% profitability, can't be bad. |
| continue sharing those thoughts. | | | | But the acid test, going back to what it is that |
| But what I want to do now is accept that our | | | | you want to achieve from your business, is what |
| businesses have a future based on what we want | | | | the business owners are generating from this in |
| it to be, a past, based on what's happened so far | | | | absolute cash terms. Ultimately it is only cash that |
| and a present. Lets just spend some time talking | | | | creates a better lifestyle for them to enjoy |
| about that future for a moment. | | | | having more control over their time. Well business |
| It's about thinking big isn't it? It's about opening | | | | 2 produces over 3 times more cash than business |
| the mind, removing some of the barriers. It's | | | | 1. So I am working with business 1 to encourage |
| about cans... they say that success comes in cans | | | | them to operate other marketing methods |
| and not cannots. And it's about putting specifics | | | | outside the one they practice already. It will grow |
| around our goals. So it's all very well having a | | | | them faster and will still create profit and even |
| vision of what you want to achieve, but you also | | | | though the profitability levels percentage wise |
| need to document past results. By having | | | | may drop, the business owners will end up with |
| laser-like focus on our desires and the activities | | | | more money in their pocket and that's what it's |
| we put in on a daily basis we are able to move | | | | about at the end of the day. That's what creates |
| progressively towards our goals. You need to | | | | lifestyle, equity and capital. |
| ensure that all of your goals are congruent with | | | | Let's spend a minute or two talking about getting |
| those outcomes that you want. | | | | value from your existing customers. |
| It's about having SMART objectives. I am sure | | | | There are a number of techniques we can use |
| many of you would have heard that mnemonic | | | | here, a number of processes and a number of |
| before. That is Specific, Measurable, Achievable, | | | | activities. I don't intend to go into this in detail but |
| Reasonable and Timed objectives - SMART | | | | I do when I'm working individually with clients. |
| objectives that are documented. If you are going | | | | Firstly it requires recognising the ultimate value of |
| to do one thing about getting nearer to what you | | | | your customers. A lot of businesses ignore this |
| really want from your business, I would | | | | principle. |
| recommend that is the best place to start. | | | | Just to give you an example, let's say that each |
| Document what you want. Don't worry about | | | | customer is worth £1,000 to you in a year, |
| how you are going to get there, that comes | | | | to keep things simple. Well the true recognition of |
| next, that's another step. | | | | the value of that customer is not just the |
| We then need to focus on what's happened up | | | | £1,000 in that year. If they are a loyal |
| until now with our business or in our previous life | | | | customer then they are going to come back to |
| if we are just starting out in business. We need to | | | | you again and again to buy. Over say a five year |
| have management systems in place to monitor | | | | period, if that's how long you are likely to keep |
| and track our business performance element by | | | | that customer, amount to £5,000. |
| element. | | | | It is only by understanding the real ultimate |
| This applies not just to the processes within the | | | | lifetime value that you are then prepared to |
| business; it applies to the people that are | | | | invest in that customer to maximise their true |
| operating your business as well, your staff and | | | | potential longer term. The customer acquisition |
| other workers. | | | | element is always more costly. Experts' estimate |
| It is only by understanding the past and having | | | | it costs 8-10 times more in resource to get new |
| records of the past that we can manage the | | | | customers as it does to manage existing ones. So |
| refinement process to make the future more of | | | | it's far more effective to maximise the value and |
| what we want and to make it happen more | | | | return from our existing customers. We also |
| quickly. Without a recording process in place we | | | | acknowledge that we always need to continue to |
| never know what we are moving towards and | | | | grow our customer base because of natural |
| what we need to change. So that gives us | | | | customer attrition. |
| guidance. | | | | In the longer term we can add profitable activities |
| Another key experience that I have had is that | | | | to our marketing, for example up selling. Up selling |
| some of the best businesses are extremely | | | | is simply having an add-on, possibly discounted |
| systematic. The obvious example that everyone | | | | sale along with the first purchase. It works |
| always quotes is McDonalds. But it is very true. | | | | extremely well in the retail market. |
| They've got 50,000 branches worldwide and | | | | Cross selling is offering other products or services |
| whilst you might not believe that they produce | | | | which align with the product or service that they |
| the highest quality in cuisine, one of the things | | | | are already buying. So it's complementary |
| that make them successful is their systemisation, | | | | purchase, and may include offerings that your |
| allowing them to achieve consistent results for | | | | business may not fulfil directly. Fulfilment may be |
| customers. | | | | through an alliance with another business. |
| When customers go along to McDonalds they | | | | Back end selling is generating more regular |
| know what to expect and that's really the key to | | | | contact, more regular business over time. So |
| their success. I try to avoid fast food, but I have | | | | from that £1,000 example in the first year, |
| find myself using them because of that known | | | | over five years it's £2,000 in the second |
| expectation. I went off some time ago to the | | | | year and growing thereafter. That's where the |
| Bahamas and we were hungry and wanted | | | | profit is, the profit is in the back end not in the |
| something to eat. | | | | customer acquisition activity... |