The Ingenious Business Guide
A collection of proven innovative techniques from a top management consultant. Any small business owner or corporate manager can implement these radical concepts to achieve enormous profit.
Articles
Innovation, Humility, and Genius
2010-08-19 17:27:07
A guest article by Grant Stanley, CEO of CA In American culture we think of supremely creative people and innovators as geniuses. This places a lot of pressure on creatives and innovators to produce amazing work continuously. We treat creatives as if they possess an internal power to create. However, they don’t have the power to control the creative process. They have simply learned to make themselves available to inspiration. Elizabeth Gilbert in a TED Talk made an interesting point about genius. She said that we think about creativity all wrong. She said that people aren’t geniuses, they are simply influenced by their genius. She stated that if we think about genius and inspiration in this way we will have a more accurate picture of the creative process. Elizabeth Gilbert on nurturing creativity I agree with her. I maintain that you can’t force creativity or inspiration, and that people need to set
2010-08-19 17:27:07
A guest article by Grant Stanley, CEO of CA In American culture we think of supremely creative people and innovators as geniuses. This places a lot of pressure on creatives and innovators to produce amazing work continuously. We treat creatives as if they possess an internal power to create. However, they don’t have the power to control the creative process. They have simply learned to make themselves available to inspiration. Elizabeth Gilbert in a TED Talk made an interesting point about genius. She said that we think about creativity all wrong. She said that people aren’t geniuses, they are simply influenced by their genius. She stated that if we think about genius and inspiration in this way we will have a more accurate picture of the creative process. Elizabeth Gilbert on nurturing creativity I agree with her. I maintain that you can’t force creativity or inspiration, and that people need to set
Ingenious Sales Tip: Breezing Through to the Decision Maker
2010-08-19 09:09:48
The Infamous Gatekeeper You've got your eye on the top sales spot at your company someday. To stay on course you know that you must make a bunch of cold telephone calls today. Steeling your resolve, you reach for the telephone and dial the first name on your sheet. Or alternatively, marveling at the new Customer Relationship Management software in which your company recently invested, you mouse over a name on the screen, a gentleman who is the CFO of a huge company, and the system auto-dials. The phone rings, and you await the inevitable, palms sweating. Because you know to get to this man you must first get past the gatekeeper. Maybe the call will go to voicemail and you'll be spared the agony, you wonder. Or maybe the receptionist will put you right through without interrogating you. That'd be nice. You continue to wait as the phone rings... a woman answers! She spouts off the standard company greeting, and you ask for the n
2010-08-19 09:09:48
The Infamous Gatekeeper You've got your eye on the top sales spot at your company someday. To stay on course you know that you must make a bunch of cold telephone calls today. Steeling your resolve, you reach for the telephone and dial the first name on your sheet. Or alternatively, marveling at the new Customer Relationship Management software in which your company recently invested, you mouse over a name on the screen, a gentleman who is the CFO of a huge company, and the system auto-dials. The phone rings, and you await the inevitable, palms sweating. Because you know to get to this man you must first get past the gatekeeper. Maybe the call will go to voicemail and you'll be spared the agony, you wonder. Or maybe the receptionist will put you right through without interrogating you. That'd be nice. You continue to wait as the phone rings... a woman answers! She spouts off the standard company greeting, and you ask for the n
Startups vs Incumbents: Competitive Advantage
2010-08-18 07:00:11
In starting companies it is nearly impossible to simply outperform or outwork competition from incumbents because if you operate in a profitable industry your competitor most likely has cash-flow and they’re profitable. So they can afford to reinvest in labor and equipment and you’re just starting out. So it’s key to select and execute the right competitive advantage. Below are several successful strategies to gain and maintain a competitive advantage: Uniqueness: Your product or service is so unique that the competition hasn’t thought of it. The danger is that unless your idea is legal protectable or you can keep your property process a secret your competition can simply copy your product or service. Establishing a unique brand is one way to establish you
2010-08-18 07:00:11
In starting companies it is nearly impossible to simply outperform or outwork competition from incumbents because if you operate in a profitable industry your competitor most likely has cash-flow and they’re profitable. So they can afford to reinvest in labor and equipment and you’re just starting out. So it’s key to select and execute the right competitive advantage. Below are several successful strategies to gain and maintain a competitive advantage: Uniqueness: Your product or service is so unique that the competition hasn’t thought of it. The danger is that unless your idea is legal protectable or you can keep your property process a secret your competition can simply copy your product or service. Establishing a unique brand is one way to establish you
Developing a Turn-Key Organization, pt ii Train Your New Managers
2010-08-17 17:06:04
Developing Leadership Ability Within a Company Just as you need to acculturate your entry-level hires, you must also train new managers. If you hire a seasoned manager from outside the firm (a practice I strongly discourage) you will need to acculturate your new hire too. Your strongest practice is almost always to promote from within. The reasons for this are numerous. Most importantly, you'll sap employee loyalty and dull the edge of your most ambitious leaders if you give a senior role to an outsider. But your newer managers are already acculturated to your organization; why would you want to throw away that training? Your current employees already know your current policies and the way to do things within the company. And they already have existing relationships that will help them do their job. Further, an insider is always more loyal to the company than an outsider. The only reason to hire outside the firm is if your culture is wea
2010-08-17 17:06:04
Developing Leadership Ability Within a Company Just as you need to acculturate your entry-level hires, you must also train new managers. If you hire a seasoned manager from outside the firm (a practice I strongly discourage) you will need to acculturate your new hire too. Your strongest practice is almost always to promote from within. The reasons for this are numerous. Most importantly, you'll sap employee loyalty and dull the edge of your most ambitious leaders if you give a senior role to an outsider. But your newer managers are already acculturated to your organization; why would you want to throw away that training? Your current employees already know your current policies and the way to do things within the company. And they already have existing relationships that will help them do their job. Further, an insider is always more loyal to the company than an outsider. The only reason to hire outside the firm is if your culture is wea
Developing a Turn-Key Organization, pt iAcculturate your new hires
2010-08-17 00:15:44
New employees must be acculturated Last week I explained how to lead your customers. This week we’ll explore how to lead your new employees and fold them quickly into your company culture. What is some of the scuttlebutt that employees grumble about their managers around the water cooler? They’re overbearing, indecisive, lazy, oblivious, etc. If you sift through all the criticisms, you’ll likely discover the complaints fall into two piles: micromanagement and failure of leadership. Both of these traits stem from fear: fear of losing control, or fear of appearing too militant. And they're each sides of the same coin. Very few employees realize the difficulty involved in being a manager until they become one. Management if often considered a thankless, arduous, and vilifying role within a company. But approached the right way, it can be a motivating, energizing, satisfying responsibility. With a few tools, any ma
2010-08-17 00:15:44
New employees must be acculturated Last week I explained how to lead your customers. This week we’ll explore how to lead your new employees and fold them quickly into your company culture. What is some of the scuttlebutt that employees grumble about their managers around the water cooler? They’re overbearing, indecisive, lazy, oblivious, etc. If you sift through all the criticisms, you’ll likely discover the complaints fall into two piles: micromanagement and failure of leadership. Both of these traits stem from fear: fear of losing control, or fear of appearing too militant. And they're each sides of the same coin. Very few employees realize the difficulty involved in being a manager until they become one. Management if often considered a thankless, arduous, and vilifying role within a company. But approached the right way, it can be a motivating, energizing, satisfying responsibility. With a few tools, any ma
How can you beat Big competitors with deep pockets?
2010-08-16 20:51:56
How Does a Small Business Compete with National Brands? Are you the owner of a small business that is fighting for customers and sales with the big huge chain stores? How do you win the battle when you know you're outnumbered in every way? It is not only possible to compete with large business but to beat them soundly. I just found out how one business is doing that one customer at a time. I was at the auto mechanic shop the other day to fix the coolant leakage on my old car. The service I received there made me think about what it takes to make a first-time customer return for the rest of his life. Let me explain… Now, this shop is what you call a mom-and-pop shop that is battling against large national chains like Valvoline, Midas and others. He doesn’t have a large marketing budget or the buying power of those chains. What he does have is a personal, one-to-one relationship with his customers, and that is the reason why he is not surviving but thriv
2010-08-16 20:51:56
How Does a Small Business Compete with National Brands? Are you the owner of a small business that is fighting for customers and sales with the big huge chain stores? How do you win the battle when you know you're outnumbered in every way? It is not only possible to compete with large business but to beat them soundly. I just found out how one business is doing that one customer at a time. I was at the auto mechanic shop the other day to fix the coolant leakage on my old car. The service I received there made me think about what it takes to make a first-time customer return for the rest of his life. Let me explain… Now, this shop is what you call a mom-and-pop shop that is battling against large national chains like Valvoline, Midas and others. He doesn’t have a large marketing budget or the buying power of those chains. What he does have is a personal, one-to-one relationship with his customers, and that is the reason why he is not surviving but thriv
Simple Marketing, pt iv: How Valuable is Your Best Client?
2010-08-15 13:25:54
How Valuable is Your Best Client? Why is it important to know this figure in your marketing plan? Because the value of a customer give you your break-even cost for an ad campaign based on how many clients your ad will bring in. The research we've done so far gives us our optimal client's value. Then we can start to test market our ads with an eye on calculating where you can get the biggest bang for your advertising buck. Once you determine that, then you will use that medium exclusively. I see you shaking your head. You're thinking that you need to be in different media to get the widest exposure. But why? Why do you care how much exposure you get as long as prospective clients are beating down your doors even if you're running a single advertisement? Eventually you'll either max out your capacity or have so many clients that word of mouth will achieve visibility for you. Or more likely, your ad will stop pulling as well and you'l
2010-08-15 13:25:54
How Valuable is Your Best Client? Why is it important to know this figure in your marketing plan? Because the value of a customer give you your break-even cost for an ad campaign based on how many clients your ad will bring in. The research we've done so far gives us our optimal client's value. Then we can start to test market our ads with an eye on calculating where you can get the biggest bang for your advertising buck. Once you determine that, then you will use that medium exclusively. I see you shaking your head. You're thinking that you need to be in different media to get the widest exposure. But why? Why do you care how much exposure you get as long as prospective clients are beating down your doors even if you're running a single advertisement? Eventually you'll either max out your capacity or have so many clients that word of mouth will achieve visibility for you. Or more likely, your ad will stop pulling as well and you'l
simple Marketing, pt iii
2010-08-13 12:41:56
What Is My Customer Buying? From this earlier post you now know who your customer is and where to find more of them. The next question to answer is why do they buy from you. So you have to determine what benefit your customers pay for. To get best results, employ a skilled marketing consultant to guide you in this exercise. But if you're determined to go it alone, you can get great mileage performing a thought experiment to uncover the true benefit your client realizes buying from you. I explained in a previous column that people buy emotionally, not logically. Our consumer culture so artfully manipulates us that we are often unaware of our own motivation. For instance, examine the process of buying a new car. Why does someone buy a new car? What wants or needs does it satisfy? Initially one might think a person buys a new car for transportation. But wouldn't that be the last reason anyone would buy a new car? S
2010-08-13 12:41:56
What Is My Customer Buying? From this earlier post you now know who your customer is and where to find more of them. The next question to answer is why do they buy from you. So you have to determine what benefit your customers pay for. To get best results, employ a skilled marketing consultant to guide you in this exercise. But if you're determined to go it alone, you can get great mileage performing a thought experiment to uncover the true benefit your client realizes buying from you. I explained in a previous column that people buy emotionally, not logically. Our consumer culture so artfully manipulates us that we are often unaware of our own motivation. For instance, examine the process of buying a new car. Why does someone buy a new car? What wants or needs does it satisfy? Initially one might think a person buys a new car for transportation. But wouldn't that be the last reason anyone would buy a new car? S
The bottom line mantra
2010-08-12 21:37:02
It's a given that every business - no matter whether it sells golf balls, golf lessons, or designs golf courses - must earn a profit. Even non-profits and esoteric shell corporations try to maximize the bottom line. Peter Drucker famously wrote "the purpose of a business is to create a customer." I will add "...at a profit." A company creates or buys goods at cost, marks them up, and provides them to clients at a net profit. A service business substitutes intangible costs for the costs of merchandise. Sound simple? It is in concept but in this age of global competition, fragmented markets, commoditization, and ballooning costs, maintaining profitability can get tricky. Altruism and philanthropy aside, human beings are necessarily self-interested. Fundamentally, our wiring compels us to act so we may survive. This survival instinct pushes us to collect in abundance those things we feel we need. Sometimes our needs encroach on others' boundaries and therein lies a potential con
2010-08-12 21:37:02
It's a given that every business - no matter whether it sells golf balls, golf lessons, or designs golf courses - must earn a profit. Even non-profits and esoteric shell corporations try to maximize the bottom line. Peter Drucker famously wrote "the purpose of a business is to create a customer." I will add "...at a profit." A company creates or buys goods at cost, marks them up, and provides them to clients at a net profit. A service business substitutes intangible costs for the costs of merchandise. Sound simple? It is in concept but in this age of global competition, fragmented markets, commoditization, and ballooning costs, maintaining profitability can get tricky. Altruism and philanthropy aside, human beings are necessarily self-interested. Fundamentally, our wiring compels us to act so we may survive. This survival instinct pushes us to collect in abundance those things we feel we need. Sometimes our needs encroach on others' boundaries and therein lies a potential con
The discounted upsell
2010-08-12 21:33:25
The response was 10:1 in favor of my dealing with a customer who asks for a discount. Why would a customer ask for a discount? For some reason they feel entitled. Maybe you're ringing up a sale for a civil servant, a loyal client, an irate customer, or any other class of consumer. But they've asked and now you have to decide. Do you: 1) give in and feel uncomfortable; or 2) refuse and risk losing a client. The other day I was at the service station D & S Auto in Santa Paula, California where I took my car in for an oil change. When Denny, the owner accepted my payment I inquired "Are you running any specials?" He admitted he wasn't. So I pushed him: "Can I get a discount?" He looked down at the floor, obviously uncomfortable, and then caved agreeing to knock $5 or 8% off the normally $40 job. I asked him why he had acquiesced to the discount and whether he felt good about it. He confessed he felt bad but didn't know how
2010-08-12 21:33:25
The response was 10:1 in favor of my dealing with a customer who asks for a discount. Why would a customer ask for a discount? For some reason they feel entitled. Maybe you're ringing up a sale for a civil servant, a loyal client, an irate customer, or any other class of consumer. But they've asked and now you have to decide. Do you: 1) give in and feel uncomfortable; or 2) refuse and risk losing a client. The other day I was at the service station D & S Auto in Santa Paula, California where I took my car in for an oil change. When Denny, the owner accepted my payment I inquired "Are you running any specials?" He admitted he wasn't. So I pushed him: "Can I get a discount?" He looked down at the floor, obviously uncomfortable, and then caved agreeing to knock $5 or 8% off the normally $40 job. I asked him why he had acquiesced to the discount and whether he felt good about it. He confessed he felt bad but didn't know how