Forget About The “Leadership Secrets of Attila The Hun”!

If you’re like most small business professionals, you’ve got a stack of business books sitting somewhere near your desk — many of the classics that every smart business manager supposedly needs to read. However, some of these “classics” didn’t became popular because they were particularly insightful but because they reinforced conventional business wisdom of the time.

Many small business books perpetuate the use of harmful myths and, unfortunately, some of these myths have become strongly ingrained in the business lexicon. These myths are harmful because they misapply “established knowledge” and result in many professionals practicing unprofitable business tactics.

In this article I’m not talking about truisms that fail in specific cases but, rather, business phrases that are often false, even though they may seem true on the surface.

For example:

1. A good salesperson can sell anything

Actually, no. A good salesperson in the wrong market or unfamiliar with the needs of their customers can not sell anything. Each industry and regional market is different, and you’re only as good as your knowledge of the prospects’ needs.

2. The customer is always right

This cliché dates back roughly 100 years. Most people call it the “Field Rule”, named after the Marshall Field’s chain, where it was famously put into practice. The Field Rule came from the French phrase “Le client n’a jamais tort” (”The customer is never wrong”) back in 1908. Whoever is responsible, should be smacked in “le bouche.” This is a perfect example of marketing fiction being perceived as fact. In reality, to say that “the customer is always right” implies that the salesperson is always wrong and, thus, does not engender the customer’s trust or respect.

3. Anything 80 percent complete is “good enough”

This myth is just plain crazy and confusing. Does your employer (or client, if you’re self-employed) compensate you 100% for 80% of your effort? No, they require 100% effort for 100% compensation. Anything worth doing is worth doing right — and completely. If we’re talking about launching a product, the same rule applies. It should be no surprise that releasing an “80% functional” (read: incomplete or unstable) product into the market can cost your company its reputation and you a lot of time and money.

Get Real

These few examples of “off-the-shelf” knowledge demonstrate that just because it’s in black-and-white does not necessarily mean it’s true — or relevant.

It’s a sad reality that such business myths are still being perpetuated by modern day professionals — many of whom should know better. Just recently, two of my Conversationalist colleagues overheard an experienced sales exec recite cliché #2 in a client meeting. This just means that it’s even more important for the rest of us to validate the business advice we are given before adding it to our professional repertoire and putting it into practice. Skip the unsubstantiated clichés and the unproven, of-the-moment thinking and the business world will be a better place.

Recessionary Marketing: Innovate & Do Something!

Marketers are squeezed like never before. The consumer is more fickle than ever. Every day, there is a new hunt for how to best engage a consumer, how to effectively gain trade support and how to truly measure performance. It is essential that small businesses find the best ways to streamline their processes, market their core products and reach their core audience. Companies who effectively do this will make it out of this recession stronger than ever.

In the current economy, it’s all about cutting costs, not cutting corners. A marketing strategy in ANY economic scenario should always center on targeted, relevant, and timely messages. During a recession, however, companies are obligated to evaluate costs more closely. More often then not, says Bruce Temkin, a vice president and principal analyst at Forrester Research, executives make across-the-board cuts that adversely impact any company’s two core concerns: Who represents the target market you’re serving and what is the value proposition you’re delivering?

“In a recession, you don’t have the luxury of making mistakes when it comes to answering those questions,” Temkin says, “You have to more diligently answer those questions because once you do that, you then have a clearer picture of which customer you actively go and continue to market…and what you are going to do or deliver.” In other words, he says, instead of taking a hatchet to your marketing agenda, it’s time to whip out the scalpel.”

In better economic times, Temkin explains, targeting is expected, but “it doesn’t make sense to hold the entire company purely to it.” It’s easier for a company to go outside of its comfort zone when budgets are less restricted. In those times, he says, “you don’t need to be as rigorous.”

When return on investment is the top priority, here are a few low cost options that can help you do more with less:

1. Integrate your marketing channels to avoid redundancy and create a comprehensive view of the customer.
2. Create an internal and/or external blog or discussion board where customers and employees can communicate with upper-level management to create transparency and solicit input.
3. Host virtual events to complement your in-person events.
4. Tap into social networks for advice from your peers.
5. Improve the usability of your customer-facing channels. Especially your website.
6. Switch to cost-per-acquisition networks (like TrialPay) that only charge when you make a sale.

Many times, it takes a crisis for companies to recognize their inefficiencies. The companies that survive will be the ones that know how to get creative and do more with less.

Obviously no recessionary strategy is one-size-fits all, but one overall message should ring out consistently: DO SOMETHING. Don’t hide under the desk and wait it out until next year. During these times - this is when great companies emerge.

Better Processes Increase Small Business Efficiency

There can be a huge difference in the level of enthusiasm and energy in a fledgling startup and an established small business. Effective, efficient processes are what differentiate companies who are competitive, innovative thought leaders from those who stagnate and struggle with growth.

To maintain that initial enthusiasm, it is important that companies evaluate and reevaluate their processes on an ongoing basis. Internal procedures should be inventoried on a regular basis to determine which processes are subjective and can be left to each individual to address in his or her own way, and which process must always be performed uniformly throughout the company.

The three steps I’ve identified below are paraphrased from an article by Alex Silberman, president of Chief Information Solutions, a consultancy specializing in the needs of small and medium-sized businesses.

Step 1: Identify
The first step is to identify business tasks and distinguish them from functions. A process document should be written for each specific technical task,, and the details of each task process must be documented. This includes, for example, writing down the specific steps needed for onboarding a new hire, importing and updating contact data, or payment processing. A task should have a detailed, documented checklist. The checklist provides boundaries for employees, but is also helpful for measuring task performance year after year. A process for fulfilling a business function is one where judgment and tolls are used. For example paying bills, and forecasting next months sales and cash needs.

Step 2: Evaluate
Once all the business process have been identified, determine whether the process is a:

• Solid Process: Well delegated and executed, the process works well from the employee’s perspective, with clear expectations and direction, good communications and regular review. Task processes must be able to be consistently performed by a 10 year old without any training.
• Decent Process: Not great, but work investing in revisiting this process. Easily completed after about one our of training or by following documentation.
• Practice Turned Policy: The classic “we’ve always done it that way” process that has been institutionalized organically. The most common characteristic of a practice turned into a policy is that it no longer works and people performing it don’t know why it’s done that way.
• Process Built Around A Person: As companies grow, individuals who have a certain position in the company may insist on working in a particular way. Processes are built around these individuals, and questioning them is discouraged because it’s a delicate subject or creates anxiety.
• Abdicated Process: When principals are disinterested with certain processes, they tend to delegate them out to others who may not have had solid training. Examples include maintaining contact data and managing lists, or sending out the monthly mailing and coordinating with the copywriters and the mailing house.
• Process That Causes Pain: This process causes a problem and is detrimental to company growth, increasing revenue, and efficiency.

Step 3: Improve
Task processes considered less than “decent” should have their existing checklists and procedures improved. Any task considered “decent” or “solid” should be delegated to employees so they may understand what is expected of them. The task checklist acts as a sort of “boundary” in which the employee can perform his or her function. These boundaries are especially helpful when a colleague is sick and someone else needs to step in. Business functions that score less than “decent” must have their objectives, measures, tools and training evaluated until they become “solid”. Keep in mind, however, that not all processes need to be perfect.

It is key to find out why they scored low in the first place. If a given function is disliked, ask why it was put in place and decide if it is still necessary. What steps need to be taken? If the process is disliked for a reason, this reason holds the key to determining how to improve it. In any case, processes that are treated with the kind of review outlines above can be improved quickly.

Businesses should avoid the risk of being defined by “immovable objects” or people who will not budge when it comes to overhauling and implementing new processes. It is important that businesses reevaluate their processes to that inefficiencies can be identified and overcome. Specific outcomes and tasks become the basis for performance management. This approach removes the overemphasis on doing things in a given way and stresses the overall objectives. These processes also eliminate inconsistent management subjectivity so performance can be focused on results.

Using LinkedIn to Boost Your Small Business

In the current economic climate, small business owners need to utilize all their connections. Utilizing social networks like LinkedIn can be beneficial, but it is important to manage your expectations. Many times I have heard exasperated small business owners exclaim, “I’m on LinkedIn, but I haven’t gotten any business from it.” If LinkedIn isn’t working for you as a business development tool, it’s time to take a look at how to effectively utilize your network.

LinkedIn facilitates the flow of information, but it is not a magic bullet. Simply posting your profile and accepting a few connections will not net the desired results. Your online network is an extension of your face-to-face network. It is important to get to know people, add value to the conversation, and gain trust. Sometimes you’ll hit it off immediately skip directly to trust. Many times it takes a bit longer to develop the relationship and uncover a potential business need. Remember that there is a person behind each profile. They want to be heard and respected, not just thrown a sales pitch.

There are three key ways to utilize LinkedIn for your small business: Prospecting, Lead Generation, and Partnership Development.

Prospecting. You have a list of companies that you’d like to work for, and you should search for connections among your current LinkedIn contacts to people either employed or previously employed at these companies, suggests Liz Lynch author of Smart Networking: Attract a Following in Person and online. Of course you want to get to a decision maker, but having a conversation with someone at the company can give you insight into the current structure and potential needs that your business could fill. This conversation can help you prepare your approach to the decision maker, and could even initiate an introduction to him or her if your LinkedIn contact feels it’s appropriate.

Lead Generation. LinkedIn should be used to extend your off line relationships. Connect with former colleagues, classmates, associates, and people you meet at networking events. Invite to connect with people you meet who you think have relationships with potential clients. When people who are relevant to your business post questions or new job postings, offer to help out. In order to get a positive response, always find a way to add value. One of the great things about LinkedIn is that the network offers a way to keep tabs on your business contacts without being obtrusive. LinkedIn sends monthly emails with updated information about your contacts so you don’t need to constantly call or email them to “check in”.

Partnership Development. LinkedIn is a great place to find referral partners. Other companies seek out strategic alliances and joint ventures with companies that could serve their clients better. Networking is all about building mutually beneficial relationships. Use LinkedIn to search for companies that service your client’s broader needs outside of what you provide. Then, start a conversation with people about how you can help their business. Don’t be pushy! Don’t rush things because it is imperative that you build trust. Always remember that contacts place their reputation on the line if they refer or recommend you, so it is important that they are comfortable with you first.

Strong relationships lead to strong referrals. Having real world relationships with your online contacts will help reinforce trust, and lead to more business. Meeting someone face-to-face can have an impact, but learning more about their business and having online interaction on a site like LinkedIn can lead to many more effective, targeted and mutually beneficial deals than might be available with physical meetings alone. Thus, anyone who needs to build initial contacts and maintain relationships will find it useful as a communication method. Just make sure to consider the person behind the profile and you’ll be building new quality relationships online in no time.