Bay Area Mastermind

This Advertising Stuff Doesn't Work, What a Waste of Time and Money

2010-08-31T01:05:24Z

Frustration is all around these days as many businesses struggle to get customers in. Advertising can sometimes be black hole that simply sucks the money out of a business with no return. Therefore, it is not uncommon for business owners to feel that they may be better off not doing any advertising or marketing. Are they right? We will explore this question and find the real answer to the advertising black hole problem.

]]> Advertising vs. Marketing

To begin with we must make sure we are talking about the same thing. The first thing to understand is that these two are not the same.

Advertising as defined by Wikipedia is " A form of communication intended to persuade an audience (viewers, readers or listeners) to purchase or take some action upon products, ideals, or services. Focus is on Ads and commercials in print, audio, or visual.

The best mrketing is a definition that comes from Sergio Zyman the former chief marketing officer of Coca Cola, and author of "The End of Marketing as We Know it" , Zyman defined marketing as, " Marketing is selling more stuff, to more people, more often, for more money".

In other words, marketing is a system that is based on a scientific discipline process where the return on investment determines whether or not it is working .

So if a business is running ads in the: yellow pages, on the radio, in the newspaper, or Valpak mailer, this is advertising.

By now most business owners know that traditional advertising which focuses on the entertaining does not work. Simply getting people's attention is not going to get them to buy and therefore can be a waste of money.

As stated above, marketing is a system and it is only effective if there is a market to message match. When a marketing program is designed and implemented properly it becomes one of the most powerful assets of a business.

A properly designed marketing program:

• Will have specific objectives and timeframes.
• Will not be all things to all people. Instead it will focus on getting more of the best customers to buy more often for more money.
• There are specific metrics that are constantly tested and adjusted according to the needs and desires of the target audience.
• It will be solely focused on the target market's needs and not be ego driven
• It can repeat the process every time without having to reinvent the process

Therefore, when a marketing program does use an advertising message it is because the target audience is wanting to be communicated in that way or that is the place to find them.
It is not because:

• It is cheap to advertise in this media.
• The media reaches a bunch of people. remember if they are not your best customers you are wasting your money.
• Everyone in the industry uses that media to advertise or
• It has always been done that way. Akin to the blind leading the blind.
• It is the latest cool technology
• Doing it for the sake of doing something. Hope is not a strategy...

In contrast when done properly a good marketing program will be able to avoid the frustration that many business owners face when simply just advertising.

That being said, there are no magic bullets out there. There is no full proof marketing system that once implemented will bring droves of clients to your front door. It is true that at times a technique used by one business will have great success while the same technique used by a similar business will completely bomb.

The only way that a marketing system is finalized and becomes an asset occurs after the marketing program is launched and then tested to maximize the results.

This means that at times the initial ideas may not work and there will be a cost associated with trying. However, the testing is limited and based on research and not just repeating of the same message with hopes of something happening.

Like anything working and perfecting a system takes time, but it does not have to be based on luck. There are methods and techniques that work well and have a long history of success when used in the right way.

Knowing how to use these techniques and methods is critical to developing that great marketing program. Any business can have a working and profitable marketing program with the right information that will continue to payout for years to come.

If you would like to learn more about effective marketing you are welcome to Test Drive a Bay Area Mastermind session and see for yourself. Bay Area Mastermind also provides services where our marketing experts design and help you implement a fully functional marketing program. Simply call 888-485-8122 and ask for a free consultation and find out what is possible for your business.

When It Is Not a Good Idea to Make a Change in Your Marketing

2010-07-22T04:41:19Z

These days it is apparent that the way we sell and the way that we market is changing right before our eyes. For some business owners not being able to flex with the changes is causing major problems with their profitability and with some it has meant closing down altogether. Therefore, being able to change as our market changes is critical to maximizing our market share and profits.

]]> The opposite can be just as bad for a business, mainly changing for the sake of change. In other words making a change to a process or marketing system simply because it has been a while since anyone has made a change.

Some of the reasons that are commonly expressed for doing this include:

· The CEO thinks we need a new look and feel

· We have been using the same old marketing piece for several years and it is time to update it

· The marketing or sales department wants something new because our competitors have something new

· and many more similar excuses

A cardinal rule in marketing is change is only necessary when the current marketing method is not working anymore. Simply stated, there is no real reason to take a good working marketing piece and throw it out for an unknown marketing piece.

One area where a lot of time and money is spent unnecessarily is in logo designs under the guise of branding. There are many reasons why this expense may not be justified in the end. Here are just a few:

1. A logo design does not persuade your customers to buy your product over the competition.

2. Any logo change will involve making a change to all marketing materials. You are talking about reprinting everything from letterhead and business cards to brochures and other publications.

At times business owners executives fall into the trap of investing time and money working on items such as logos at the expense of things that would really increase sales and revenue.

A case in point is GM's Cadillac division undergoing a logo change (see above). Looking over the logo it does not appear to be much different in design although industry sources claim it is more "jewel" like in appearance.

Truth be told the consumer does not judge the value or the performance of a vehicle based on a logo. It would have been a better use of money and resources to focus on building a car that meets the needs and expectations of the buying public rather than focusing on designing a logo.

There are other car companies that have been able to do this successfully such as BMW, Lexus, and now Audi. These vehicles have pushed Cadillac out of the luxury car market by providing exceptionally well designed vehicles (not logos) to their consumers.

Nevertheless, there are times to change the various marketing pieces because they are no longer working. In today's challenging times this decision should be focused on those things that will make the biggest impact to the bottom line and not to the corporate ego.

Leadership Lessons From a True Legend Who Walked his Talk

2010-07-06T20:49:21Z

Even if you have never been into sports most business

professionals have heard of and admired Coach John Wooden. On June 4Th 2010 the world lost this great basketball coaches and wise leader at the age of 99. Fortunately we still have access to his ideas and strategies that can help any business owner succeed.

]]> Coach Wooden was known as a master strategist and motivator. However, probably his best attributes was his ability to demonstrate what real leadership is all about a a very high level for an extremely long time.

John Wooden had taken the time to boil down what made success and clearly explained it using the Wooden Pyramid of Success. In this model Coach Wooden explained that success is possible, but it does take work and it does require being aware of certain aspects of our lives.

Here are just a few of the ideas that we can all benefit from.

Industriousness: "Success travels in the company of very hard work. There is no trick,
no easy way." Certainly this is true today as ever before. It is very hard work indeed and for sure there is no trick or easy way. Sitting in front of a PC and firing off emails or talking on the phone with friends for several hours a day and thinking you have had a "good day"
is not how it is going to happen for most people. Our research shows that expanding your personal and professional network is by far the most potent leverage point.

Enthusiasm: "Your energy and enjoyment drive and dedication will stimulate
and greatly inspire others." Mostly importantly, it will inspire you when you are doing the heavy
lifting, and for sure, it will make a prospect sit up and take notice.

Intentness: "Stay the course. When thwarted, try again -- harder, smarter.
Persevere relentlessly." Yes it is tough and tiring, but every ounce of effort brings you one step closer to success.

Poise: "Be yourself. Don't be thrown off by events whether good or bad." The success you have had in your career to date
was gained because of the skills you brought to the situation and organization, not because you were trying to be someone other than yourself.

Confidence: "The strongest steel is well-founded self-belief. It is earned, not given." You have earned the right to have self-confidence! It isn't like you don't have a track record that demonstrates the things that you have done to bring success to the challenges you have faced.

If you would like to explore more of the wisdom of Coach Wooden and his pyramid of success model, you can add his book to your summer reading list," Coach Wooden's Pyramid of Success: Building Blocks For a Better Life".

For less than $10 youwill gain tremendous insight of a successful leader that was around for almost a century.

Business Lessons From The World Cup

2010-07-01T21:01:34Z

There is an old saying that I have always

liked, " It aint over until the fat lady sings". This is as true in sports as it is in business. It is so easy to prematurely give up when the odds appear to be totally against us. The annals of business are full of stories of small, new, and under capitalized companies being able to overcome the efforts of multinational corporations.

]]> So what does this have to do with the World Cup?

A lot. For one thing, many of the so call powerhouses have not been able to perform as well as it was predicted. In fact a lot of "lesser" quality teams have outperformed better experienced teams. Case in point was the ability of Team USA to tie England a more experienced team.

Similarly we saw the New Zealand team hold off Italy (the reigning world cup champions). Now Italy has been completely eliminated from the competition. Imagine that, the former champion is gone.

How Do We Apply What They Did To Our Business.

Have A Game plan

The underdogs had focused on a clearly communicated set of tactics throughout the game. There were just a few things to focus on.

When we are involved in our game plan we want to have our team focus only on a few directives -not too many as to distract or confuse them. Everyone on our team must know what their role is in achieving those targets. There is no room for misunderstandings.

Work As A Team:

The business must operate as one team where each member is a valuable as the next. Weaker members are helped along by stronger members. There is no room for egocentric players who want all the glory for themselves. Either the whole team wins or the whole business fails.

Have A Competitive Spirit

When you look at all the successful teams in the World Cup they all played their hearts out, showed respect for their impressive rivals, and didn't show any fear. We saw this with team USA and how they were able to bounce back from adversity, returning from a two-goal deficit to tie with Slovenia.

Likewise, as business owners we need to find the right players for our business teams that will have the competitive spirit and play their hearts out. It is up to each business owner to hire and develop their teams to work together as a team, and then provided the right support, coaching and motivation.

Managers Must Accommodate For When The Pressure Builds

Managing a team can be more difficult when every member brings vast experience and a resume of success to the table. Still, a high-profile project can present all-new challenges for even the most experienced employees.

Despite the world-class credentials of the French team, when the pressure peaked, the fallout was tremendous. Managers need to monitor the pressure valve and provide their teams with the tools to stay focused on applying their skills and helping their teammates do the same.

At Bay Area Mastermind, our members and clients are provided with the latest management strategies to increase productivity and performance as well as create that competitive fun environment.

If you would like to learn how to develop a winning team, contact our offices at (888) 485-8122 or email robert@bayareamastermind.com

Every Business Owner Needs an Advisory Board

2010-06-02T22:55:49Z

These days staying ahead of the competition and market changes is necessary to the very survival of the business. Just being good is not enough and mediocrity spells certain death for any business who allows it to occur. So, how can a business owner make sure that they are on top of it all? One way, is by making sure that a business owner surrounds himself/herself with like minded successful business owners.]]> The important thing is that business owners replenish their store of expertise on a constant basis. For years the best business minds in the country (and the world) have surrounded themselves with a trusted board of advisers and peer mentors. Today, this concept has merged into the idea of a mastermind group and the current business environment demands this approach. Let me explain why.

Most business owners get advice from their attorneys and accountants as part of the normal course of business. By and large these advisors are technical experts in their own fields of knowledge and will see everything through the lens of their discipline. While this is definitely applicable when dealing with legal or tax advice, it may not be the best place to turn to when dealing with overall strategy.

Likewise, if a business owner is fortunate enough to have a team of talented executives working for them these professionals may have a biased view towards the business. This means that they may not be willing to suggest the tough ideas due to personal agendas.
What is really needed is to have insight from trusted peers outside the business who do not have a vested interest in the business.

This is not to say that a business owner's executive team or advisors are worthless. Rather it is to point out the importance of having input from those who are trusted thinking partners with nothing to gain from the decisions that are made.

In a true mastermind group business owners can plan and strategize about the future freely and without hesitation. Even with the best executive team it is difficult to do this. Let's assume that there is a real need to discuss whether or not it makes sense to continue with the business. There is no way that this discussion can occur candidly with current employees. Even if the business owner decides not to shut down operations most employees involved in such a discussion would be affected by the topic,

In comparison, these and other sensitive talks can occur frankly and openly with other business owners who understand what it is like to make those types of decisions and understand the need for confidentiality.

Key to having a good advisory board is to have a diverse group of business owners who bring varying degrees of experience and insight. For example, most innovation comes from the fringes of an organization and not necessarily from the experts. The reason is that at times being too involved in our own business makes us blind to opportunities that may be sitting right under our noses. Someone not involved or invested in our business will be better able to point it out to our benefit.

As we said above, these days having access to a true mastermind group is urgent to being able to not only survive, but thrive in today's business environment. If you would like to test drive a mastermind meeting just click here or call 888) 485-8122

Three Big Levers to Grow Your Business and What We Can Learn from Starbucks, McDonalds, and AMC

2010-05-19T22:22:05Z

There are a billion different ways to grow your business, but there is a particular set of three "levers" that you can use to make game-changing increases in cashflow.

Your businesses cashflow is basically defined by:

Cashflow = Number of Customers x Average Ticket Sale x Frequency of Purchase

This means that if you can increase any of these three variables, you can grow your business.

Let's look at each of these variables in detail and go through a few examples.
]]>
Increasing how much your customer buy from you each time is best exemplified by McDonald's infamous six-word question of "Would you like fries with that?" That simple question has increased sales tremendously. Take McDonald's later upsell of asking if you'd like to "supersize" your fries / drink / meal. What started as a transaction under $1 for your hamburger, suddenly jumped to $5+ when you add on the large fries and drink. All from asking a simple question...

In the movie theater industry, there's not much (if any) profit in the actual ticket sales. The major profit center is in the concessions. When you go to pick up your popcorn at an AMC, you'll see a notice by the register that says if the employee doesn't offer you a drink, that you get a free popcorn. Why? They want to make sure that every customer is asked if they'd like a drink, instantly adding $4-7 to the transaction.

Lastly you can focus on increasing how often your customers come back to you. Starbucks has done a great job of this in a few interesting ways. In the summer time, they've run a promotion that if you bring back your coffee receipt from the morning that you can get $2 off a cold drink in the afternoon. Now your morning receipt is burning a hole in your pocket encouraging you to come back in the afternoon and make a second purchase - in the same day!

The Starbucks Gold Card Program that rolled out a year and a half ago originally gave card holders who were to pay $25/year 10% off all of their purchases. They got rid of that program a few months ago in favor of giving you a coupon for a free drink for every 12 drinks you purchase with the Gold Card, but making the card free. This instantly expands the card holder base AND keeps customers coming back to rack up the points towards a free drink. (Think loyalty programs here. What big business can you think of that doesn't have a loyalty program? Do you have a loyalty program in your business? Could you?)

The most recent Starbucks frequency campaign was their Frappuccino However-You-want-It program that started last week and their introduction of Frappuccino Happy Hour. Suddenly - and for a limited time - you could get half off any made to order Frappuccino at Starbucks. This got customers into the store daily (yep, I did it) and started to form a habit. Stores that were used to having a regular volume of traffic suddenly had lines out the door with repeat customers coming back for more.

Adjusting any one of these three levers in your business - number of customers, amount of transaction, frequency of transactions - will make a dramatic impact on your business.

Your exercise is to determine what you can do to:

Increase your customer base
Increase how often your customers buy from you
Increase how much your customers buy from you each time

An Ironic Story

2010-05-15T18:04:45Z

I just had to share with all of you this rather silly story. Heck, these days all of us can use a good irony here and there. The world is sometimes just interesting and full of strange tales.

So here is the short story. Let me know what you think.

]]> Recently Somalian pirates commandeered a Russian oil tanker.

The Russians immediately dispatched a warship to the scene.

As is the case these days the Russian tanker crew locked themselves in the rudder compartment. This then allowed the Russian soldiers the ability to board the tanker and if necessary shot without hurting their own people.

So, this is exactly what happened. Now the problem is what to do with the captured pirates? In days of old they were simply hung from the tallest mast.

Of course today it is a whole different thing with courts and lengthy public trails. So instead the Russians decided to put the captured pirates back on their skiff and pushed them out 300 miles from shore without navigational equipment. It is believed that since the pirates were not great sailors they might have drown out at sea.

The ironic part of the story is that a pirate Commander, made the threat, "We will hold Russia responsible if any harm comes to them."

Now that is some good irony

Can You Get Smarter By Playing Brain Training Games

2010-04-21T18:17:55Z

A new study published in the science journal Nature states that there is no empirical support to show that using those computerized brain training programs actually improve overall cognitive functioning. The study followed 11,430 participants over six weeks using the cognitive training tasks claimed to improve such things as reasoning, memory, planning, and attention. ]]> The results showed that these training sessions only improved the participants ability to do well on those specific games. However, there was no statistical proof that what was learned transferred to over all untrained tasks or lead to general improvement in the level of cognitive functioning.

That being said, this does not mean that we can basically sit back on the couch and just watch sitcoms. There is ample research to support the fact that the brain does need to be stimulated in order for us not to lose what we already have.

Things that have been shown to help in this area are reading, crossword puzzles, learning a new language, and learning to play a musical instrument. According to neurologists, Dr. Amen, of PBS fame, states that along with nutrition and exercise, these activities mentioned can have a positive effect on the overall health of your brain.

When we begin to learn something new it does force our brain to build new neuron pathways. These new neuron pathways are most often developed when we are learning something totally new rather than just reinforcing what we already know.

As business owners and entrepreneurs having a mental edge is truly beneficially as it allows us to solve problems and develop new ideas to grow our businesses. At Bay Area Mastermind we include research and ideas to help bolster our members abilities. If you would like to try out a meeting, click here or call our office for details

The Silver Lining for Business Owners

2010-04-08T20:22:28Z

In the previous post, How Credit is Effecting Your Business, we discussed how the credit crises has changed the way that business owners are operating. We also discussed the value of knowing the true FICO score and where to get it.

Sure there are more things to deal with now than before as a result of the fear that many vendors have. For example only a few short years ago it was not necessary for principals or executives of a business to have to provide their personal credit information when applying for credit or services for their businesses. Today, it is a totally the opposite and many times it is very common for vendors to require a credit check of the company's executives.

]]> Many landlords have begun to increase the amount of deposit that is required based on the credit scores of the principals. This is no longer limited to residential property only. Now, commercial property managers are asking to view the credit reports of the company's owners and/or executives. In some cases lower credit scores can mean additional deposits in the form of pre-pay rents.

The same is true of utility and phone companies. Depending on the part of the country a business is in, it may mean having to pay for setup fees in advance.

The bottom line is that in an era where a lot of vendors have been hurt there exist a lot of fear. We are all experiencing the pendulum swing from easy credit to tight credit. This is not the end of the world, but does require business owners restructure the way they do business and be aware of where the possible snares are and also where opportunities are.

The Silver Lining

Not all is doom and gloom. In fact now is a great time to find what you may need to grow your business. One area where there are now opportunities to get great deals is on previously financed equipment .

During these tough economic times some companies who had leased equipment have either decided not to continue with the lease and returned the equipment, or are simply defaulting on the lease ,and turning over the equipment. The result is that many leasing companies are willing to make great deals to get rid of the surplus equipment.

The other day I was talking with a colleague who bought large copier that was a year old and previously sold for$16,000 for only $2000. Similarly, leasing companies do not want previously leased office equipment back and will make incredible deals not to take it back.

These bargains are not limited to equipment, but also office furniture and even supplies. One place where these bargains are seen is in bankruptcy trustee sales where the trustee wants to get rid of the inventory as quickly as possible to complete the case. Here again there is a real possibility to obtain great bargains at pennies on the dollar.

So, for the shrew business owner with cash, during these tough times can mean a great opportunities to get the equipment that will help grow their business. Alas this to will pass and we all will see a better economy, and these opportunities gone. However, there will be other opportunities at that time if we all just keep an eye out for them.

Three Successful Sales Call Strategies for Entrepreneurs

2010-04-02T01:33:02Z

These days every business owner is out there making sales calls to drum up business.
The conventional wisdom has been that the more prospects we call on the better. This has been known as filling up the sales funnel. This approach needs modification if entrepreneurs want to thrive and grow their business]]> The main idea being that the more prospects you call on the more customers will come out at the end of the funnel. True, there will be many that won't turn into customers, but over the long run it would be worth your efforts.

Today, this strategy is very expensive given the increase in competition and decrease in the resources. The fact is making a sales call has a tremendous cost to any business owner in time and effort. Spending time with the wrong prospects is extremely unprofitable and can actually take away from other profitable activities.

So, let's take a look at what can be done to maximize this activity for bottom line profits.

Step 1. Don't data dump on your prospect.

The average entrepreneur has a tendency to call on a prospect and begin to download everything about their product and services as soon as they get past the greeting. Most of the time all they talk about are features of their products/services rather discuss what is in it for the prospect. This is one reason that prospects usually just shuts down.

When a prospect gets the data dumb many times the prospects responds by just tell you they need to think about it. Truth is they began to shut down at the beginning of the meeting and now they just want to end the meeting and go on with their day. Many times if we are dealing with the president of the company or other top executive we may not get a second chance to make another presentation.

Research shows that customers only retain up to three sentences before they are overloaded. A better approach is a consultative customer centric presentation where the entrepreneur is using open questions and eliciting requests for feedback from the prospect.

Step 2. Let the Customer Talk and Really Listen

This does not mean sitting quietly and coming up with the next thing to say. Listening intently is more than hearing what they are saying. It also involves taking in information regarding the prospects attitude and mood. Then being able to adjust the presentation accordingly and build trust and rapport. Without trust and rapport there simply is no way that the prospect will buy from you. So, it is extremely important that they feel understood by you and not sold.

Step 3 Quickly determine if they are a buyer and if they will buy soon

There is no sense in wasting time on trying to convince someone that they should buy your services or products. Similarly there are those prospects who want to buy but either it is not the right time or they lack the ability to buy.

Average entrepreneurs have a tendency to fill the funnel with prospects in "hope" that they will someday become customers. All this activity only results in having a very big funnel full of hope and that is dangerous to the survival of the business.

Sure, some folks in the funnel will eventually buy, but is that a strategy that any smart business person should use in this economy? As I stated above, businesses need to spend their time on prospects that are ready and willing to buy now.

This means that targeting the right prospects in the first place is paramount to sales success. Then understanding these three easy steps will reduce wasting time, increase efficiency and really grow profits.

Want to know what prospecting and lead generation systems work? Why not take a Test Drive of our professional Mastermind Meeting Today.

How The Credit World Is Effecting Your Business

2010-03-31T02:24:12Z

One of the things that has effected this downturn more than anything else is the tight credit standards that all of us are dealing with. It is effecting the ability of business owners to expand and grow their business and it is effecting customers and client's ability to purchase products and services. So what is really happening and what can we do about it?

]]> For many business owners credit cards and home lines of credit have been the main source of credit to fuel various parts of the business. It is not unheard of today that these home lines of credit are being cut at will by the banks.

The same has occurred with credit cards. In several cases companies like American Express have placed charging limits on clients who have good credit and never been late with them. The main reason why this is happening is due to the fear caused in some parts by the increasing amount of delinquencies.

Unfortunately, the lending institutions are making broad strokes in their decisions . The pendulum has now swung to the opposite side. A few years ago anyone who could fog a mirror was given credit. Today the same lending institutions have tighten so much that only those with perfect credit and income are given some credit. These new lending practices have already impacted many industries and is one reason why the economy has not rebounded as quickly as before.

Another thing to note is that the model that is used to calculate the FICO score is one that is adjusted over time. In other words the rules have changed and will change again as our lending environment changes. Therefore, you cannot rely on what the rules were a few years ago.

Here are a few key issues that will affect your credit score

First begin by obtaining a copy of your FICO credit score. This is the only score that matters. So do not waste your time and money getting the ones that are offered through the various credit agencies. To get your FICO score buy it directly at www.myfico.com/12.

Once you have the report get rid of anything that is incorrect as soon as possible. Things like incorrect addresses and aliases that may appear. You want to also pay close attention to derogatory items that do not belong to you. These days we cannot afford to have errors on the report when the banks are looking at these reports so closely.

Another item that can affect your credit score is showing too much credit outstanding. Your credit score will drop if the ratio between what you have outstanding is larger than 7% to 10% of the credit line. In other words if you have a $2000 credit line your credit score will drop if you have more than $200 outstanding! Even if you are paying it off every month and never been late. One way to fix that is have your credit line increased.

A third thing to remember is make sure to pay the creditors that report to the credit agencies first and foremost. Remember that utilities and creditors like the cable company do not report to the credit agencies and are usually willing to work a payment plan out. So, if things get tight it is best to make sure that the credit cards are being paid first.

Finally, beware of credit repair agencies. The Federal Trade Commission has warned about the legitimacy of these organizations. There is no quick fix to most serious credit problems.

Customers and Clients need Our Help

The problems mentioned above do not only affect business owners they are also affecting the customers. Today, many businesses are dealing with declined credit cards along with less buying power. This is why major retailers such as Target and Wal-Mart have brought back the lay-away plans of yester year.

For informational marketers it has meant the need to offer payment plans where a purchase is broken down into two maybe three payments over a few months. Other businesses have gotten creative and provided for multiple credit cards to be used in a single purchase. In this way the customer can pull together various credit lines to buy the product or service. It is important to make these

The topic of credit is a very large one and we have only begun to scratch the surface. The fact remains that this is a subject that has a direct impact on our life styles and business. Having a better understanding of strategies about how the system is now working will help us in navigating through these tight credit times.

Do We have to Watch What We Say Now More Than Before?

2010-03-25T21:48:33Z

It seems that these days just about anyone who is in the public eye is constantly being watched closely. The public and the cameras are watching not only what we do but what we may even whisper. Case in point is what happen a few days ago as U.S. VP Joe Biden recently dropped the "f-bomb" in a comment... not realizing that his microphone was still on.

]]> The mainstream media is positioning it as a blooper similar to imprudent stuff he's said in official speeches.

Then we can recall the Shaun White episode at the winter Olympics. You may recall what happened when Shaun's coach dropped the S-bomb. The media was quick to pick up what was said between these two close friends and adult men.

In each of these incidents the media and the public have made a lot out of these remarks. However, I think it was just an example of the way grownups talk in the real world.

Having said that, what about the business environment and the conduct that is expected of business executives, leaders, and owners? It is safe to assume that when we are in the public eye anything we say or even whisper will be closely scrutinized.

There is a sense of distrust and suspicion of anyone that is in featured in the media. Perhaps this is due to a lack of trust that Americans have for the business world. There are those that blame much of the economic woes on the greed of business leaders and so what is said is examined closely. So when it comes to the use of profanity it has more of an impact on those that hear of it than it would have a few years back.

The media and some in the public expect a certain level of decorum of those in the public eye and see the use of profanity as less than perfect. After all, our leaders are suppose to be perfect in every way and not conduct themselves as mere humans.

How to Get Your Money's Worth from Sales Training

2010-02-02T19:03:44Z

Are you thinking that maybe it is time to brush up on your sales skills? How about your company? Are there salespeople in your organization that could benefit from training to improve their skills and positively affect the bottom line?

Many industry reports and articles are coming out these days talking about the new sales environment and how some of the old tried and true methods of selling are just not working. So it is no wonder that many proactive business people are looking into sales training.

]]> Nevertheless, with the current economic environment it is critical that any assets used need to provide a return. This is not only limited to the money spent, but involves the time and effort expended to participate in any training program. So what do you need to be aware of before investing in a sales training program? First, determine what you are looking to accomplish by investing in a sales training program. What you do not want to do is invest in a program with the hope of using the information in the future. This is a common situation that is seen in the internet guru market. The programs are often sold as the next best thing. However, most beginning level internet marketers cannot use the techniques and strategies. So they buy the program and hold on to it in hopes that in the future they will be able to use it.

When looking at sales training programs make sure that the program will targeting the skills and techniques that are in need for your market. If you are considering providing sales training for your sales force take the time to do a proper evaluation as to what specific challenges the sales team is experiencing before investing in any program. A good sales training organization can tailor fit their training to meet your needs. Stay away from "off the shelf" materials unless they are specific to your needs.

Secondly, be realistic of what to expect from a sales training event. Remember there are no magic bullets that will produce immediate results. Any training is limited in what it can actually do without practice and serious effort. As Brain Tracy used to say, it takes 21 days of consistent practice to make something a habit. Without practice and repetition most people will resort to what they have always done because that is what they know and feels comfortable. Finally, in order to get the most of any training it will be necessary to set up a schedule to practice and review the materials. If the sales training is provided for a sales team it would be a good idea that brief follow up sessions be scheduled with the sales trainer to reinforce what was learned. Despite what we would all like to see it is virtually impossible to remember everything that is taught after just one exposure to the information. In conclusion, it is a good time to hone your selling skills and those of your sales team. The selling environment has become more competitive and only those truly professional and polished sales people will dominate in the marketplace. At Bay Area Mastermind we provide sales training for both individuals and organizations. Call our offices (888) 485-8122 or email us for more information about our programs. Bay Area Mastermind can help you determine what your needs are and help you put together a winning program.

Why Your Industry is Getting in Your Way

2010-01-08T19:54:16Z

Are you in active in your industry's trade organizations? Have you frowned upon business groups with members in unrelated industries?

We often hear from folks after exposing them to a successful strategy in a different industry the technique "won't work in my industry."

Earlier today I read an interesting article in the latest edition of Wired Magazine about The Science of Failure and they had an fascinating story about a group of lab scientists that I think you'll enjoy.

What do lab scientists have to do with your business? Read on...

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When we look at a problem from the outside, we're more likely to notice what doesn't work. Instead of suppressing the unexpected, shunting it aside with our "Oh shit!" circuit and Delete key, we can take the mistake seriously. A new theory emerges from the ashes of our surprise.

In looking at scientific research, scientific researcher Kevin Dunbar noted that the scientific process is often viewed as a solo journey - the solitary scientist working to miraculous discoveries all by themselves. In reality, the biggest breakthroughs typically come from lab meetings, "those weekly sessions in which people publicly present their data."

Dunbar observed that the skeptical (and sometimes heated) questions asked during a group session frequently triggered breakthroughs, as the scientists were forced to reconsider data they'd previously ignored. The new theory was a product of spontaneous conversation, not solitude; a single bracing query was enough to turn scientists into temporary outsiders, able to look anew at their own work.

As an entrepreneur, do you often find that you're working alone, trying to take your business to the next level and nobody can really relate to what you're trying to do? That is, until you go to your industry trade meetings, or speak with those in your same field.

But is keeping the conversation in your own field really beneficial?

Back to the labs...

But not every lab meeting was equally effective. Dunbar tells the story of two labs that both ran into the same experimental problem: The proteins they were trying to measure were sticking to a filter, making it impossible to analyze the data. "One of the labs was full of people from different backgrounds," Dunbar says. "They had biochemists and molecular biologists and geneticists and students in medical school." The other lab, in contrast, was made up of E. coli experts. "They knew more about E. coli than anyone else, but that was what they knew," he says. Dunbar watched how each of these labs dealt with their protein problem. The E. coli group took a brute-force approach, spending several weeks methodically testing various fixes. "It was extremely inefficient," Dunbar says. "They eventually solved it, but they wasted a lot of valuable time."

Sounds like an industry trade meeting...

The diverse lab, in contrast, mulled the problem at a group meeting. None of the scientists were protein experts, so they began a wide-ranging discussion of possible solutions. At first, the conversation seemed rather useless. But then, as the chemists traded ideas with the biologists and the biologists bounced ideas off the med students, potential answers began to emerge. "After another 10 minutes of talking, the protein problem was solved," Dunbar says. "They made it look easy."

Now THAT sounds more like a mastermind meeting.

When Dunbar reviewed the transcripts of the meeting, he found that the intellectual mix generated a distinct type of interaction in which the scientists were forced to rely on metaphors and analogies to express themselves. (That's because, unlike the E. coli group, the second lab lacked a specialized language that everyone could understand.) These abstractions proved essential for problem-solving, as they encouraged the scientists to reconsider their assumptions. Having to explain the problem to someone else forced them to think, if only for a moment, like an intellectual on the margins, filled with self-skepticism.

This is why other people are so helpful: They shock us out of our cognitive box. "I saw this happen all the time," Dunbar says. "A scientist would be trying to describe their approach, and they'd be getting a little defensive, and then they'd get this quizzical look on their face. It was like they'd finally understood what was important."

So what are YOU doing to mix yourself up with experts and like-minded entrepreneurs in OTHER industries besides your own? Who do you bounce your ideas off of?

If you're not part of a mastermind, you owe it to yourself to check one out.

Many of the greatest minds of our time and of generations past were in Masterminds, and many of today's business leaders are, too.

It's where we share our ideas, get real feedback about our ideas, and most importantly find out what's working in unrelated industries that we can use in our business right away with the same or better success.

Year End Economic Review and What's in Store for 2010?

2009-12-31T21:42:43Z

On this new year eve we are looking to celebrate not only the new year but the start of a new decade. This is a good time for us to take a look back and see what we have achieved these last 10 years, and also look forward to the next period in our lives.

In this post we will take a look at where we stand now economically speaking and what 2010 has in store for us given the current state of the economy. We will also take a brief look at the opportunities that are now present and some that will shortly be appearing. So let's jump right into it.

]]> Undoubtedly, there are a lot of economic variables moving around that may at times give us contradicting indications and time just does not allow us to examine all of them. So here are the highlights:

The Stock Market
One of the first areas to look at is the stock market. As this post is being written, the Dow is hovering around the 10,545 range. For many, this represents a nice rebound since the Dow finished 2008 at 8776. However, today's "high" reading is no higher than where the Dow was in 1999 and in 1999 dollars the Dow would only be about 8200. This means that in order for the Dow to return to 1999 levels it would have to rise another 28%. Therefore, although it is moving in the right direction there still a long way to go before we regain our previous equity values.

City and Local Government Services
The economic impact has been especially difficult at the state, county and city government levels. The loss in property taxes and sales tax has continued to hamper many local government budgets prompting some to consider four-day work weeks. This is one trend that will not be improving in the coming year due to the continued foreclosures and lack of consumer spending. We can expect to see government services continue to be cut with many outreach programs taking the brunt of impact. Also, be prepare for some government agencies to begin aggressive campaigns to go after monies owed to them in order to make up for the shortfalls.

Consumer Spending
According to MasterCard Advisors' recent SpendingPulse report, U.S. retailers saw stronger performance during the 2009 holiday shopping season, with sales up 3.6 percent. The report showed that part of the increase was due to a 15.5% increase in online purchases. This is better than what retailers experienced in 2008 where they saw the worst holiday performance in decades. Yet, Kamalesh Rao, director of economic research at SpendingPulse, cautioned that the return of retail spending was "tentative" and remains far below 2007 levels.

Even teenagers are beginning to cut back and lowering their expectations according to a New York Times. This has resulted in double digit sales decreases at stores such as Abercrombie & Fitch, Hot Topic and American Apparel. The fact remains that with the increase in unemployment and continued tightening in credit, the ability for consumers to spend as before has changed - perhaps forever. Going forward consumers will continue to be more careful on what they spend and make adjustments to their standard of living. However, the affluent consumers are not as affected and opportunities are available there as long as the value proposition is right with this buying group.

Advertising
The frugality is not limited to just consumers. In a recent report, The Boston Consulting Group surveyed 434 firms in seven countries each with more than $1 billion in annual revenues to see where they saw themselves. More than two- thirds of the respondents said they
expect lower profits in the future. The report also showed 87% stated that they felt consumers would be highly price sensitive. In response to these sentiments, many of these businesses were looking to make cost cutting initiatives in the new year.

Paralleling this story, Yahoo Sports reported that Pepsi will not advertise in this year's Super Bowl on CBS. Likewise, FedEx also stated that it will not be advertising in the Super Bowl again in 2010. In previous years a 30 second spot had cost on average $3 million. The 2010 cost for the same ad has now dipped to as low as $2.5 million. The drop in advertising
costs is not only limited to big networks. A look around shows that all media has dropped their prices in recent times. This opens up new opportunities for businesses who before could not afford to reach these audiences. Expect more deals to be made in all advertising channels.

Residential Real Estate
Existing home sales volumes are off 30% from the peak and have returned to 1998 levels. A key point to notice is sales volumes are being propped up by government interventions such as the tax credit, and aggressive FHA lending. But for the government's intervention,
there would be far fewer home buyers today and house prices would be falling even further. A major concern to the residential market will come this spring as more prime loans are expected to adjust coupled with an increase in unemployment numbers.

Commercial Real Estate
The year 2009 was a terrible one for commercial real estate. Devaluation and liquidity problems will continue to play out in 2010 especially as many loans come due. How will this play out? Nobody knows for sure. Nevertheless, there are some bright spots that
are already emerging. Liquidity is returning to the market, and there is increased lending activity by life insurance companies. Also the market has witnessed the successful execution of the first securitizations in more than 18 months. Another bright spot is the incredible argains that are available across the country.

The Fight for Talent
Believe it or not, some businesses are finding it tough to hire the employees they need. Even as we are still in a recession, there are a range of companies that have not been able to fill some critical job openings. The positions in demand are in science, technology, health care, as well as machinists, welders and other highly skilled laborers. This problem will continue to increase not only in 2010 but beyond as many of the baby boom generation continue to retire and the supply of these highly skilled employees dwindle. One thing that is for sure is that our educational system will have to change to meet the shortfall of skilled employees. This will mean that at least in the short run, businesses may have to take the lead to train this new workforce.

In conclusion, we have briefly reviewed changes that will have an impact on how we live and what we do for a living. While the changes that are occurring may appear to be frightening at the onset, there also are hidden opportunities lying within. In some cases, it may mean the opportunity of a lifetime to buy or participate in markets that were previously unavailable.
In other cases, it may mean a change in employment and lifestyles that may benefit us in ways we can only imagine.

One More Thing

This post was a bit longer than than normal and yet there was so much that I had to leave out due to time. For this reason we have scheduled a teleseminar where we will go into more details on each of these areas as well as highlight some other economic areas that could not be mentioned here. Let us know if you would be interested in being part of this teleseminar by just emailing us or calling out office. From all of us at Bay Area Mastermind we wish you a prosperous and Happy New Year.