Windows of Opportunity in Troubled Economies

I have just completed Malcolm Gladwell's book Outliers: The Story of Success. In the book, he outlines why intelligence and ambition are only a minute part of the story of extremely successful people. In the book, he illustrates how two different economic downturns (one a recession and the other a depression) spawned a historical opportunity gap, fueling the rise of our nation's most prominent and wealthy citizens.

As I survey today's business climate, I see another large window of opportunity. "Stimulus packages" similar to those instituted during the economic transformation of the 1860's and 1870's that brought about industrial age icons like Carnegie, Morgan, and Rockefeller. A tightening of economic resources is leading to greater efficiencies, innovative thinking, and a rise in the number of small businesses, not much unlike the Great Depression of the 1930's and the decade following. Each great trial of societal and economic resources brings with it an innovative set of opportunities.

What do you have planned for your business for the upcoming years? Have market forces brought new opportunities and visions for added success? I invite you to comment on this post and to join us for some strategic thinking on Wednesday or Thursday for The Strategy String. The free webinar will review strategy and how to measure its effectiveness. If you have a new direction that you might want to take on for your business, get a head start and join us for this webinar on February 11th at 10am Pacific or on February 12th at 7:30 am Pacific.

Three keys to thriving in tough times

We've kicked off the new year with a couple of changes at TsuluWerks. We're noticing that three key factors are helping companies thrive during this economic depression [yes, I said it!]:

1. Fabulous customer service. Just being nice and helping people solve problems is paying off.
2. Consistent sales & marketing. Keeping in front of customers is critical -- otherwise, they think that you've closed your doors like so many other businesses lately.
3. Solid strategies. Moving through troubled times in a deliberate way keeps you on track and in the black.

To help you leverage these three key factors for thriving in tough times, we have made some changes:

• Our events are now available as webinars! No matter where you are, you can participate in a TsuluWerks event. We kick off February with two chances to sharpen your strategy with The Strategy String: Connecting Your Marketing to Real Results. Join us for this FREE webinar on either February 11th or February 12th (to learn more, click on one of the dates).
• Our capabilities list has been replaced with solutions. Instead of focusing on what we offer, we've listened to what you need and put together a menu of common solutions to the challenges that our small business, nonprofit, and enterprise clients are facing. Our newest solution, ConsulCoaching™, helps small businesses stay focused on what's important and leverage the most important skills and assets that they already have. Find the right solution for keeping your organization afloat.

If you're need help with one of the three keys or would like to inquire about our solutions, please give me a call. I appreciate your comments. I want to hear from you if you're thriving, too. Our business community could gain confidence from your success story and help everyone get back on the path to profitability.

Dramatic change needed for the automotive industry

I think that we can all agree that the US automotive industry needs a huge shake-up. The obvious points which commentators have tossed about in recent months include streamlining brand families, focusing more on quality, and reigning in union control and power. The idea of updating business models has also been tossed around.

Streamlining brand families should take the lead in changing the way that Ford, GM, and Chrysler do business. I am a marketing professional, and I'm disappointed in the snow job that the industry has done on large companies. Branding and marketing companies have made out like bandits, helping companies create subbrands and sub-subbrands to personalize the consumer experience. If everyone was in need of a custom car, the would have the resources to buy one of the customizeable luxury brands. The auto industry would benefit from being more tuned in to customer needs and preferences; however, it's not their job to create the ideal car for each person. A company would fail that way.

I propose that the auto makers shake up the mix by looking at the business model that companies like Nike and Coca-Cola use. Coca-Cola doesn't actually make the end consumer products -- the bottling companies do that. Coca-Cola is the organization that holds the patents on the formula and markets the product to build brand recognition and customer loyalty. The bottling companies are the ones responsible for getting the products out to the consumer. Nike is similar -- it markets and designs high-performance athletic gear. The gear is actually made by other companies, and distributed primarily through independent retailers.

The auto industry could explore turning over the production and manufacturing of automobiles to the workers. Perhaps the unions could rally their members together to buy out the manufacturing facilities, leaving them in more control of the products that they produce. In the meanwhile, the Big Three can focus on streamlining their brand families, designing superior-quality products, and marketing them to consumer and business markets worldwide.

By streamlining their brands and separating the production from the research and development, the auto industry can save itself. Without drastic changes to its business models and brand management, the federal loan money will be pissed away on a structure that's crumbling from the inside out.

A Private Citizen and Business Face-off?

Since the rise of the industrial age, the world of public policy has been split into two distinct camps. It started as a fight between man and machine. How do we protect the rights of men in the face of rising automation and sterile standardization? The machine was gradually replaced by the Corporate machine, provided a starched gray facade to the world of business.

In the late 1990's, best-selling author Daniel H. Pink wrote in his book Free Agent Nation about the flattening of the top-down hierarchy in business organizations. He forecast the now entrenched work style in which business is conducted based on horizontal collaborations with other businesses. Last week on the History Channel, they ran a program about the changing face of cities, where the high rise office building will seem like a joke to a generation of workers who think it's not necessary for all of a company's workers to be in the same place at the same time.

As more and more people start small businesses in their homes, public policy can no longer be about business versus private citizen. These two components are no longer mutually exclusive. Even full-time factory workers can own a rental property or run an online hat resale business in their off hours. As a result, the same policies and laws that affect corporate giants like Microsoft and Bank of America also affect the stay at home mom who develops databases and the private investor. S-corporations are IRS-backed proof that private citizens can be businesses, too.

I urge all of you to be aware of what's happening with laws and policies that are in place in your community. With any local or national news item that catches your eye, ask yourself:

1. How does this affect me as a parent/student/spouse/employee/homeowner/renter/private citizen?
2. How does this affect me as a person with business interests such as rental property, business ventures, investments, or 401k contributions?
3. How does this affect the businesses around me and their ability to provide goods, services, and jobs to our community?

By putting yourself into someone else's shoes, you'll see that the image of business is no longer the starched gray facade of the 1950's. The woman picking strawberries in her yard at 11am on a Wednesday morning could be moving $5 million worth of apparel products from Tucson to Newark while she's taking a break to tend her garden.

How are your public policies affecting you?

Why either/or? Lower taxes versus infrastructure development to help small businesses

The week of December 12th, the folks on one of the national news channels was asking the audience: should the Barak Obama and his new administration focus on lowering taxes to help small businesses or emphasize infrastructure development. The discussion was polarizing. I think it would be helpful to clarify that BOTH efforts would help our economy. Here's how:

1. Favorable tax structures are needed to retain businesses both large and small. If taxes are too high the businesses can't afford them. If the tax structures require an army of accountants to decipher, the businesses can't afford them, either.
2. Roads and public transport are needed to get people and goods to and from your business location. Nothing is worse than an 2 hour commute each day for employees and products that miss shipping containers because they were stuck in traffic. This causes people to find new jobs closer to home and buy competing products that actually make it to the shelves.
3. Utilities have to be affordable and actually work. This includes affordable electricity, water, sewer, and recycling services. If the water system doesn't have the capacity available to help a manufacturer produce its product or if the electrical grid of an area cannot handle in influx of power-sapping computer-driven businesses, then a community's ability to attract new businesses is limited.
4. The technology should be forward-thinking and affordable. Even the smallest bookkeeper in rural Tennessee could find herself working for a company with offices in London and Bangalore. If her community only offers dial-up Internet service, either she will be limited in her ability to work remotely with other companies or she'll have to move to a more populated area. Our rural and underdeveloped communities are already suffering from limited job opportunities and shouldn't have to deal with technology limitations.

Some areas of the United States have lost some key corporate businesses because of a combination of the issues above, if not all of them. Many areas of the country have a high failure rate for small businesses because of any combination of the four above. And I haven't even touched on employment law. So, president-elect Obama, don't let the media wrangle you in playing the polarization game. It takes both financial policies and infrastructure development to make a country's business community thrive. I hope that this balance in policy will bring about prosperity.

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Filling the Funnel: Negotiating the Close

Part Six of Seven on the Complex Sales Process
by Tracy A. Corley

Over the past year, we've been exploring the seven phases of the sales funnel. In this issue, we focus on the close. Salespeople often focus on getting buyer to say Yes to the proposal that is put in front of them. And much too often, they hear "no" instead. Asking for the close isn't like "making a kill" -- It is much more than an unconditional acceptance of terms. For both you and the buyer, everything is negotiable. If you're getting hesitation or hearing "no", asking for the close will most often require some level of negotiation. How can you ensure a mutual win-win for both you and your client the next time you ask for the close?