In the old days when the conductor of the train was ready to leave a station the whistle blew and he shouted “All Aboard!”.Yesterdays presentation at the SAP Anniversary session of The Cluetrain ignited the blogosphere with conversational rivers that will likely swell for weeks. Doc Searls presentation ripped open minds and made us all think about today’s social web realities and what seems to be the “blinding flash of the obvious” when presented as only Doc can present.

Labeled as provocative, radical and disruptive the comments were aimed at the existing institutional and corporate mindsets that continue to create barriers to the very conversational freedoms afforded us by the enabling technologies of the social web.

Doc’s comments flew through the web as if it were a giant copy machine and bloggers added to the commentary largely in agreement but with an awoken spirit motivated and with passion. The copies magnified, flourished and the conversational rivers turned into a sea full of waves roaring with enthusiasm and energy.

Doc’s says “Groundswell - a social trend in which people use technologies to get the things they need from each other, rather than from traditional institutions like corporations. Companies sees the one-to-one communication, can’t measure it, but now there are ways to do this at scale. CBS Jericho TV show - what happens after a nuclear bomb goes off near a town. Jericho message boards were active, show went on hiatus came back placed against American Idol, same audience, show canceled. Shaun Daily, on BlogTalk radio, would not accept the cancellation. Collaborated with Nuts online, asked people to send nuts to Nina Tassler at CBS, had 20 tons of nuts that were delivered to the show. Saw that the decision to cancel Jericho was a mistake.”

CBS announced the comeback of the show on the CBS fan message boards, said that they will count on the fans to rally their friends - PS, stop sending us nuts Jericho Wiki, Jericho Widget - things are very 2.0 now. Companies don’t really understand that markets are conversations, but understand that the groundswell is there and that they have to manage it.

Revolutionaries Create Change, Radicals Create Upheaval.

If the social web had a constitution it would read “We the People of the Social Web, in Order to form a free exchange, establish free conversations, insure seamless transactions, provide for the common voice, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our community, do ordain and establish this Constitution for the Seamless Web“.

The subsequent articles would address the powers of self governance, self organization and freedom of expression. In essence such a constitution exist in the minds and hearts of those that not only agree with much of what Doc says but desire to unite in one voice and together break down the barriers with our collective influence.

Consider the comment Groundswell - a social trend in which people use technologies to get the things they need from each other, rather than from traditional institutions like corporations”. How much more productive could we be, could our world be, if we united together and applied influence towards mindsets that try and control our conversations with archaic rules and power plays. Consider what happen when Robert Scoble’s Facebook incident created a groundswell of support from other users. Facebook changed their rules. Examples abound that united we stand, divided we fall.

When Cluetrain first came out in 1999 it did indeed create a river of conversations but the flow of these conversations were constrained by the technology of the moment. Ten years later the technology has advanced, the people are smarter, more adaptive and are embodied in the power of social influence. The empowerment has been self assumed and as mentioned in Doc’s recent speech, Leadership is needed. The definition and assumption about leadership of the past implies one. The past is behind us and the new definition of leadership is many. However to lead one must be willing to stand up united and be heard so that the conversation unites many others and provokes leadership actions.

Based on the ebb and flow of the recent Cluetrain conversations sparked, copied and distributed is seems that the train is getting ready to leave the station and the conductor is yelling “All Aboard The Crazy Train!”. Are you aboard or will you stand by and watch the train leave hoping that the people reach their destination but leave the “nuts” along the way?

What say you?

www.relationship-economy.com

Doc Searls, co-author of The Cluetrain Manifesto, did a anniversary presentation at the SAP offices in New York City today and his comments were summed up by Charlene Li on a blog post at Social Media Today that is worth sharing. Charlene writes : “Doc Searls started talking about the genesis of The Cluetrain Manifesto. This was fascinating to me. He started with reflections of the overblown 90’s (Push, Pointcast). “Customers treated as plankton.” A reaction to the overblown venture investments in “capturing eyeballs” in the 90s.”

“The genesis of a lot of those ideas as he described (e.g. 95 theses, “markets are conversations”) sounds as if it wasn’t all that thoughtful. And didn’t take that long to write. But what made these ideas so fresh and powerful (my opinion here) is that it was obvious to them long before anyone else was even thinking about it. The cluetrain authors were unafraid to talk about it frankly. And — this is important — they had each other to bounce things off of.”

“Does it hold up after 10 years? Rereading it — and listening to Doc — it does. The strident tone seems a bit “of its time” — that is, they were screaming about things you don’t have to scream about any more. But the content seems as true as it did when it was written.”

“But Doc has remained way out in front of what’s happening, rather than consolidating the gains we made in getting to the Cluetrain world.”

“I love Doc’s take on Web 2.0. He implies that O’Reilly’s emphasis on the software is misplaced — and wants to know why he uses advertising as his first example. I concur. The real change is about people and how they relate to business — software is the enabler. Fascinating, as Doc points out, that Google search “Web 2.0? search yields ads about Advertising.”

“He’s still got a problem with advertisers and advertising — including on Facebook. Searls’ updated theses (numbering is not a mistake — he skipped a few)”

1. Advertising as we know it will die.

2. Herding people into walled gardens and guessing about what makes them “social” will seem as absurd as it actually is. (Facebook is his example.)

3. We will realize that the most important producers are what we used to call consumers. (Yup.)

4. The value chain will be replaced by the value constellation. (Many connections.)

5. “What’s your business model?” will no longer be asked of everything. (What’s the business model for your kids?)

6. We will make money by maximizing “because effects”. (”Because effects” are what happen when you make more money because of something than with it.) E.g. search and blogging.

8. We will be able to manage vendors at least as well as they manage us. (Agreements between companies and customers shouldn’t be skewed in favor of the companies.) At Harvard Law they call this VRM — vendor relationship management — which is what Searls is working on (projectvrm.org).

10. We’ll marry the live web to the value constellation. (The Live Web isn’t just about stars. Relationships of anybody to anybody.)

Examples: The personal RFP — find me what I need (driven by buyer not seller) I should be able to manage my own health care data. I should be able to inquire and relate to whole markets on the fly. I think Doc is still a radical — a bomb-thrower, a provocateur. But to create real change, you have to be a revolutionary — someone who engages with the powers that be to create major change. We need radicals. But we need revolutionaries too.

We’ve come to know Doc personally and all we can say is his mind sees the obvious while the masses see and engage in the clutter of the moment. Doc’s heart is as deep as his mind is broad and his perspectives are worthy of attention to those wishing to lead rather than follow.

Seeing things as they are and speaking to the obvious is frank, honest and given his reach and influence his perspectives are disruptive. Disruption is what we need to maximize the social web benefits in front of us by letting go of the paradigms behind us.

What say you?

www.relationship-economy.com 

02 13th, 2008

An average commuter will drive 60 miles a day which equates to $21,098 in cost a year per person commuting. This cost continues to rise as the cost of fuel goes up.The average worker spends in excess of 50 hours a week away from home. As businesses try and get leaner the demands on workers go up and to keep the job more is expected which means more time on the job doing more. People discuss these issues, one to one to millions daily. The conversations are abundant.

The current credit crunch and subsequent long tail effects could cause significant shifts in the “credit economy” with ripples being felt globally. Already new home housing stats are indicating a slow down in residential real estate and the bankruptcy rate is on the rise.  The conversations are abundant.

Consumer debt is at an all time high and the rate of late and default payments is increasing. The gurus of economics converse over whether this is just the beginning or the end of bad economic news. The conversations are abundant.

The debate over global warming continues and there is no denying that we are consuming more of the earths raw materials faster than they can be replaced. The push to conserve natural resources and find alternative energy sources is a global conversation which is and will continue to impact the future eco-system we all live in. The conversations are abundant.

The debate over the war on terror continues to capture our attention and that of global leaders. The different positions on the war continues to polarize people, parties, institutions, religions and governments. The conversations are abundant.

The state of our “relationships” with each other are showing signs of decay. Divorce rates are up, teenage suicide is up, criminal incidents are on the rise, employee turnover is on the rise and medication therapy for our ills is exploding with every new kind of psycho labeled malady being diagnosed and treated with yet another medication that promises to “help” us get through our mental and emotional anguish. The conversations are abundant.

The media feeds us with these stories which only sparks more conversations, responses and concerns as to what we individually need to do to cope with the issues that impact our life. The conversations are abundant.

The current political debates within the U.S. are all centric to these issues and each candidate “promises” to have the answers hoping to appeal to the masses and win their votes. The current conditions of the American landscape of issues and the possible outcomes are part, if not much, of the thread of conversations globally. Each of us and everyone of us are seeking answers to the complex problems that exist in our worlds. The conversations are abundant but the solutions are not.

Are These Abundant Conversations Converging Around Chaos?

We’re not trying to predict doomsday rather we’re only trying to illustrate what subjects are dominating today’s conversations. Subsequently what potential outcomes could come from all this chaos being discussed could indeed become part of the solutions.

Chaos is the complexity of causality or the relationship between events. This means that any ’seemingly’ insignificant event in the universe has the potential to trigger a chain reaction that will change the whole system. A well known saying in connection with this issue is “A butterfly flapping its wings in one part of the world can cause a hurricane on the other side of the earth.” This is also known as the “butterfly effect“.

The issues that are dominating today’s conversations are very real and threaten to disrupt the eco-systems we live in. If one or more of the issues accelerate at the same time the convergence could create chaos that impacts our lives and subsequently forcing changes unexpected, unpredicted and adaption to these changes will be required.

In any chaotic event, remember 911, the foundational forces that create calm and adaption to unknowns is relationships and conversations.  When society feels collective stress we turn to our relationships and converse about the issues at hand and the solutions to anything that directly impacts our individual eco-systems.  When 911 occurred we reached out and conversed with those closest to us. We took time off from work and thought about the possible implications. We stayed glued to the media waiting to hear “What Next?”. We felt the need to get closer as families, communities and as a nation. Relationships became paramount and the conversations abounded.

Considering all the current issues the social web may actually become the backbone of society’s need to relate, converse and find solutions to perplexing issues facing our world, its eco-system and our communities, one to one to millions.

If the chaos of the moment forces us to spend more quality time with our relationships engaging in problem solving conversations what could the outcomes be? Self governed and self organized could we solve problems better than those who govern and attempt to organize us now?

What say you?

www.relationship-economy.com 

Featured post by Jay Deragon from LinkToYourWorld.comBusinesses are shaped and built around markets, existing or created. Whether the proposition is a product or service, for a business to survive it has to have a market that wants or needs its product or service.Business follows different methods to build and deliver to the masses. Creating market differential aimed at specific markets is the means for creating market movement. Think of the Apple IPhone as an example of creating and delivering market differential and thus movement.

What and Where are the Markets?

A market is a social structure for exchange of rights, which enables people, firms and products to be evaluated and priced. A market allows buyers and sellers to discover information and carry out a voluntary exchange of goods or services. It is one of the two key institutions for organizing trade. In everyday usage, the word “market” may also refer to the location where goods and services are traded, or in other words, the marketplace of transactions.

Business is a Web of Conversational Transactions

A conversational transaction is an agreement, communication, or movement carried out between separate entities or individuals. These conversations often involve the exchange of items of value, such as information, introductions, knowledge, services and sometimes money. These conversational transactions evolve into relationships based on an affinity defined between two parties then thousands of individuals collectively forming a “swarm” of transactional conversations centric to affinities.

These collective relationships then form into markets being defined by the “collective parties engaging in conversations“. Think about how customers thrilled or disappointed with a new product or service converse with others thus creating a web of conversations that influence others. Think about employees disappointed with employers and the influence the subsequent conversations have when promulgated into the marketplace of people. The marketplace is where the conversation are occurring, the conversational transactions are the influence on the marketplace, any marketplace, your marketplace.

The Social Web is the Marketplace of Conversations

The social web is the new marketplace fueled by conversations and relationships formed at the intersection of people and technology. Web 1.0 was about delivering information. Web 2.0 is about enabling conversations which in turn create transactions. Thus the appropriate label of the “social web”.

Doc Searls book, The Cluetrain Manifesto, and on his blog often and regularly he refers to three categories of activity which are fueled and enabled by the power of the web. These are: transactions, conversations and relationships. Doc writes “In too many markets the mix of the three is warped and strained. Too much of the conversation is insincere, preachy, hollow or otherwise bullshit. And the current methods used by businesses pollutes both conversation and relationship.”

“Networked markets are beginning to self-organize faster than the companies that have traditionally served them. Thanks to the web, markets are becoming better informed,” Some of Doc’s key points are:

• These networked conversations are enabling powerful new forms of social organization and knowledge exchange to emerge.
• As a result, markets are getting smarter, more informed, more organized. Participation in a networked market changes people fundamentally.
• People in networked markets have figured out that they get far better information and support from one another than from vendors. So much for corporate rhetoric about adding value to commoditized products.
• There are no secrets. The networked market knows more than companies do about their own products. And whether the news is good or bad, they tell everyone.
• What’s happening to markets is also happening among employees. A metaphysical construct called “The Company” is the only thing standing between the two.
• Corporations do not speak in the same voice as these new networked conversations. To their intended online audiences, companies sound hollow, flat, literally inhuman.
• In just a few more years, the current homogenized “voice” of business—the sound of mission statements and brochures—will seem as contrived and artificial as the language of the 18th century French court.smarter, and more demanding of qualities missing from most business organizations.

The Social Web of Business

Business is about markets, methods and masses. The markets are the relationships, people. The methods are about the conversation and the masses is about the reach of the transactions. To win in the relationship economy a business must have solid market relations, honest, open and frank conversations which in turn fuel the transactions, results.

The Relationship Economy is about people, one to one to millions, transacting in the form of conversations but openly, honestly and at velocities never before experienced. These transactions enable new relationships to be formed with a global reach and formed within what we have come to call the social web.

These conversations are about anything, everything, anybody and everybody. These conversations are nonstop able, fluid, frank and with no hierarchy of control, they are free and without constraint. This represents a movement of markets and unless business understands the methods they will loose the masses and the subsequent transactions.

It is that simple yet hard for business to grasp considering the current state of mind. “It” requires a different mindset, a focus on human factors and understanding the value of “real” conversations.

What say you?

Featured post by Jay Deragon from LinkToYourWorld.com

The great historian George Santana once said “Those who forget the past are condemned to repeat it.”The history of social movements have demonstrated the human desire for independence while the “portals of power” have always tried to make people dependent on the power structures.

More and more people are becoming dependent on social networks for multiple purposes. These dependencies are flying in the face of the basic human desire for independence. Consider the resent Robert Scoble story about being banned from Facebook.

E-Week reports: Facebook on Jan. 3 reinstated Robert Scoble’s membership one day after banishing the high-tech blogger for testing a Plaxo tool that imports contact information from Facebook to the Plaxo Pulse service.

Facebook’s servers detected the automated script, which a representative told Scoble resembled the same type of script used to commit malicious attacks and send spam and shut the account down earlier Jan. 2.

Scoble promptly blogged about how he was cut off from his 5,000 Facebook friends, triggering an outcry from supporters in the blogosphere that is renewing the debate about who has the right to control data on a social network—its users or the network.

Facebook has very clear rules that the data on its network is under its purview; users would like to export their data to other social sites so they don’t have to re-enter data on multiple social networks. When Facebook banned Scoble, it provided a reason for users who want to control their data to reignite the fire.

While the historical conflict of dependence vs. independence has been between the people and the powers that govern the people there is now an evolving conflict between the people and the technology. The intersection of the matrix.

Doc Searls wrties: “Independence is a value that has run like a river, not just through the Open Source movement, but through the Independent Developer movement, the Free Software movement, and through hacker culture for the duration. Its origins are in value systems that recognize the transcendent virtues of personal freedom. Including the freedom of assembly that results in social groupings — especially those that are inherently elective. To be free is to opt in, not just out.”

“Scoble should be able to take his personal data, his social data, and his business, anywhere he likes. Our ability to associate and communicate and work out “social networking” should be independent of Facebook, LinkedIn, or any company’s walled garden.”

“The problem is, we have not framed what we want, and what we invent, sufficiently in terms of independence rather than dependence. We have not started with ourselves and worked outward and otherward from there. Instead we’ve waited for the Facebooks and Orkuts and Friendsters of the world to prototype our “social networks” for us. Which is fine, as far as it goes. But that’s like letting AT&T or Apple some other company contintue to define operating systems for us. With BSD and Linux we stopped doing that, and started making for ourselves.”

“We need to do the same with social networking. We can choose to serve as batteries in the Matrix that is Facebook (and every other “social network” that serves as a world-like habitat). Or we can choose to be free. That’s it.”

The battle between the people and the technology is just beginning. As Doc says, we can choose to depend on the matrix and thus become dependent or we can choose to be free. The choice is ours and if history repeats itself we’re in for a battle regardless of the choices we make.

Independence actually has a set of dependencies. The dependencies are at the conversational intersections between and among people. One to one to millions. The power of these dependencies is when the conversations become united and stand together on common principles that enable independence.

Facebook reinstated Robert Scoble’s membership because the people spoke up in swarms but did they change the rules of the matrix?

What say you?

www.relationship-economy.com

Jay Deragon

Featured post by Jay Deragon from LinkToYourWorld.com

Today’s social networks are “train cars” of conversations.People connect to people they perceive as “headed in the same direction they desire to pursue”. The subsequent conversations reflect common threads of interest. The different train tracks represent different conversations, different platforms, different affinities and different transactions.

We’ll define a transaction as an agreement, communication, or movement carried out between different people, entities or objects, often involving the exchange of items of value, such as information, goods, services and money. Today’s social networks are fundamentally connecting people and enabling open conversations, transactions of informational exchange.

The evolution of these transactions will be enhanced through the convergence of technological advancements to “networks” which enable people to increase the value of these transactions economically. The “train cars” are fueled by today’s conversations and they are building speed, momentum and the attention of business. The velocity of these train cars, running on multiple tracks, are moving faster than anything in history and most businesses are not even aware that “the train is coming“.

Will there be a wreck at the intersection of people and business?

Doc Searls writes: “Think of markets as three overlapping circles: Transaction, Conversation and Relationship. Our financial system is Transaction run amok. Metasticized. Optimized at all costs. Impoverished in the Conversation department, and dismissive of Relationship entirely. We’ve been systematically eliminating Relationship for decades, excluding, devaluing and controlling human interaction wherever possible, to maximize efficiency and mechanization.”

With all the attention being given to “social networking” much of the underlying dynamics that drive the adoption of the “networks” are misunderstood. Businesses, analyst, markets and the media again are focusing on the results rather than understanding the systemic nature that produces today’s results. The attraction of over a half a billion individuals engaged in today’s “networks” is a business attraction motivated by economic possibilities. While the economic possibilities are significant the understandings of the dynamics which are creating the possibilities is critical to capturing the economic gains.

If you reflect on Doc Searls comments above you will see a systemic failure of “business” to make progress in the fundamentals of human interaction, relationships. People produce business results and businesses produce relationship results. If we measured the “relationship results” of businesses the scorecard would likely create a failing grade. Businesses have been consumed by financial measures as dictated by public and private markets that measure economics. The social web is creating a new measure of business based on the fundamentals of relationships. The people have known and continue to know how “business has failed them”. It has never been a secret rather business environments have simply controlled the conversations that speak to the relationship issues.

John Maloney, Founder, KM Cluster; Global IT Architectures says: Social networks and SNA are excellent research tools for academics and scientists. They are excellent at showing and understanding relationships. However, from a purely practical sense, a business and economic sense, for driving growth, they fall down badly. Why, again academics, scientist and businesses are measuring and analyzing the wrong thing, results.

Measuring and reacting to results is like trying to play tennis by watching the scoreboard. The results of “social networking” is nothing more than a scoreboard indicating “something is driving people to engage, exchange and connect”. If businesses want to succeed in a “social network” they must engage, exchange and connect with people in order to reap any benefits of social commerce.

The momentum of a train is based on speed and mass. The faster it moves with greater mass the harder it becomes to stop it and anything in its way simply gets runs over.

What say you?

Copyright (c) 2007 George Sierchio www.actionbusinesspartners.com

Below are 5 quick ways to slow down the leaks in the money leaving your company so the money coming in can catch up

Bill Promptly. Ever find yourself so busy building your business and making deadlines that you don’t get around to billing on a regular basis? You’re not alone. In a consulting business I once owned, I often got so busy that every once in a while I forgot to have the invoices sent out until I realized I wouldn’t have the money for the next payroll. Seems like a stupid mistake, but it’s something that happens.

If you don’t already have a system in place, start (or assign an employee to start) billing for projects on a regular basis. When taking on longer-term projects or clients, negotiate in advance for regular payments based on time or upon reaching milestones instead of allowing the amount due to build up until completion of a contract.

Create Incentives for Faster Payments. Small businesses can sometimes significantly cut the time spent waiting for payment by offering a discount for quick payment. I have used this technique when necessary and have also been asked by customers if I offered that type of discount.

Basically I offered discounts of 1% or 2% for payment within 10 days. It is good for your bottom line and good for the business’s cash flow, too. The real bonus is that the customer thinks you are doing them a favor whether they choose to make the early payment or not.

Avoid Slow Pay/No Pay Customers- The best way to avoid cash flow problems because of customers or businesses not paying you is to weed out those slow pays/no pays before they become clients. So if someone is about to become a significant client or customer, do your homework.

Ask for, and check out, credit references. Call other businesses that have had a relationship with the client. You might even pay for a credit check from an organization such as Experian or Dun & Bradstreet.

Consider Consolidating Your Loans. I know it’s often tough for small businesses to borrow money. It’s also surprising how some small businesses manage to get multiple loans.

If you have several loans related to your business, review the rates and terms on each one. You may be able to consolidate two or more loans into a lower-interest account and improve your cash flow.

Trim Your Inventory. If you can’t go to a “just-in-time” inventory management system like many manufacturers have adopted then how about “just-in-less-time”? Money spent on over stocked inventory is money that isn’t producing any interest or savings for you.

Copyright (c) 2007 George Sierchio www.actionbusinesspartners.com

Here’s an interesting notion: Do you realize that there are mistakes you can make at various stages of your business’ growth that can be slowly killing it for months or even years if you don’t watch for them?

Well, these mistakes do exist and they are not just reserved for the rookie companies. Many working businesses, including those you might think are “successful” because they’ve been around for 10+ years, are often still making them… and are possibly losing a lot of money and/or wasting a lot of time in the process.

Although some of these big and sneaky mistakes seem aimed more at service type companies, they really do fit the bill for almost any type of industry. I’ve done my best with the listings below to give examples to prove it.

Underestimating Project/Service Time- This is a big one and it pertains to service companies as well as companies that sell a product. This is a service company’s bread and butter.

If you don’t estimate your time to perform each and every service in your repertoire, you will get burned and there is little you can do about it but bite the bullet and learn from it. The best way to estimate time is to do it once yourself or watch your best employee do the task and then throw in a little fudge factor on top of it. For product companies, time becomes an issue with logistics so be aware!

Not Knowing YOUR Company Numbers/Incorrectly Setting Prices- Notice I emphasized the word “your”. It’s a common mistake to use a competitor’s as your pricing gauge without actually knowing why they use those numbers. Think about the nightmare you will get yourself into if you take a competitor’s price, cut it by 10% and then start selling.

What if the competition has a bad pricing structure and is barely making money or even losing money?!?! What if your costs are more than theirs?!?! You can use competitor as a starting point but you can’t base your whole strategy on it.

Different industries have their own variables as far as costs go and you need to be aware of them for your project or product pricing. What you pay for a product you are going to sell is not the only cost to have in your head when you are pricing products. How much your labor and materials cost for a service is only a piece of an hourly rate. Employees cost more than just salary and not every employee is part of your labor cost.

Every company has insurance to pay for. There are tons of overhead expenditures that need to be part of your price. Oh, by the way, the big one that many people forget about in their price is the quality factor. What you include as “standard services” or “standard product features” as well as job site etiquette or in store service or warranties all need to go into your pricing. I’ll get to more on why in the next segment.

Not Charging for All of Your Time & Costs- This seems like a stupid statement to some but I bet most business owners will admit that they have given away a little too much of the farm at times. Hey, there is nothing wrong with giving a little extra here and there to show you care. But either way, that’s not what I’m talking about here.

What concerns me are those that put a lot of quality into their work or products or stores and do not cover the cost for it. As an example, say you run a service company and your competitors don’t do a certain standard service that you do. You can’t just undercut their price to steal a job; you need to have that cost covered in your rate and advertise the fact that it comes with the price upfront. Stores undermine themselves, for example, when they put more people on the floor for customer service but don’t charge for it.

These things cost you money and when your competitors don’t do them it costs them less money. Put out better service and then under price them, and your competition just has to wait a little bit for you to fall on your face so they can swoop back in.

As a business owner you need to believe that you are providing your clients worthwhile wares that deserve to be paid for. If you get the chance to explain why your prices are higher, then take that opportunity and do it. If they don’t like the fact that you include things that others charge extra for later or that you treat them better, then they are most likely completely price shoppers. You don’t want them as regular customers anyway. Trust me.

Not Getting Paid Fast Enough- That’s right, the old cash flow issue. As long as you are actually making enough money to pay the bills, this problem can be solved, prevented or at least made to be not as bad as it could be. Here’s the deal:

First off all, bill customers very promptly. It is very common for a small business to not have the procedures or systems in place to get invoices generated and out the door in a timely fashion (see the next segment for more).

Again, this would seem unlikely since that’s the reason why we are doing the work- to get paid. But it is very easy for the people responsible for getting this info to the billing people to be too busy to get it there or not have enough organization to give it to them the right way.

The second part to slowing down or stopping a regular cash flow crunch is to make the quickest payment deals possible with customers and the slowest possible with vendors and employees. If there is any way not to pay employees any more than twice a month, you better do it. Contractors always have an issue with this.

If you must pay weekly, then tell them before they are hired that they will be getting the first week held back, essentially buying you a week. It will help, I promise.

Part three involves credit. If your company can get a credit card, then get it. This allows for certain important things to be bought (that you can afford) that might come up during a cash flow crunch.

Better yet, especially if you have no choice but to deal with 45+ day customer payments, do your best to get a company line of credit. This is a must if you plan on selling to the government or doing commercial service work. These clients often have 60 to 90 day wait periods.

Failure to Have Solid Systems and Procedures in Place- Too many procedures (known as “red tape”) is the reason why many people start their own business in the first place. Unfortunately, having no procedures and systems in place at all is not an alternative. Depending on the type of industry, business owners must come to a happy medium or chaos and the unknown will ensue.

Some basic examples where procedures or systems are needed include billing, collections, payroll, hr (interviewing, hiring, vacations, benefits, job responsibilities, etc.), manufacturing, operating equipment, maintaining equipment, inventory, sales calls/visits and logistics to name a few.

Even a one person show needs to have some admin procedures in place. This will make it easier to hire temps and subcontractors and control what they are doing for you. Without at least a watered down version of a system or procedure to do everyday work, you will be to blame for causing many major headaches as your company grows.

I can’t emphasize how important this is for when you bring on new employees. I’m sure you heard this before, but I am also a big proponent of having an employee handbook even for one employee. It’s amazing the trouble people can cause business owners just because they allow you to pay them.

Spending Advertising Money Just to Say You Advertise- I would almost rather see my clients not advertise then to spend without regard to tracking the results. There is no point in a marketing campaign if you do not put things in place that allow you to measure how well the plan is working.

The other wasteful part of marketing that many people make the mistake of doing, is not tracking their previously successful campaigns. Why some people think that just because a $400 dollar a month ad worked once very well for one busy season, that it will automatically work every year after that is beyond me.

Spreading Yourself Too Thin- This is a classic mistake made by every entrepreneur. The key is to figure out when you are at that “wearing too many hats” point and start getting some help. The solution here is to know your strengths and to be able see when you are not performing the duties that demand these skills.

If you are the best sales person on the company, you can’t get caught up in day-to-day operations. If you do, sales will slip and eventually you won’t have any operations to worry about. Think about this to help you figure out if you are spread too thin: Did you really go into business for yourself to work 80+ hours a week?

Not Getting Help Soon Enough- Set goals to know when to hire people to take over where you are light on knowledge. Not getting help or waiting too long can kill a company. Most people who start a business do it because they are good at the technical end or the sales end.

If you know the best way to make a widget, then your strength is in production and that is where your time should be spent. Hire an outside company or consultant to take care of the sales and marketing and then hire inside when you can afford someone full time. Don’t be something to your company that you are not. It will only hold you back.

The three big issues people like to tackle themselves but usually are least knowledgeable about are legal issues, accounting/bookkeeping issues and daily operations issues. The odds are that these three things are your weakest link so if you don’t have a partner that has the background for these subjects, then be prepared to get help as soon as possible. It’s preferable that you do this before you start a business.

Although looking for these problems at any time is a good idea, the end of a year or season is an excellent business interval to make sure you are not making these errors. Take the time, or make the time, to fix these problems. If you don’t know how to reverse the problems, then get some help. If you really don’t have enough time to either figure out if you have these issues or know they are there and can’t break away long enough to do it right, then get some help.

Many companies outsource their fulfillment services to save time and money running their business. Most small and medium sized business do not want to hire an employee to run their fulfillment division because frankly, they don’t have that much to do. Unless that employee has other responsibilities, there should be no reason to hire a person to run your fulfillment duties. Outsourcing it is the most cost effective way to handle those tasks.

So, where do you start when looking for fulfillment companies to work with? First, you have to understand what your companies marketing strategies are and how a fulfillment service will benefit your company. You can find companies that can provide a complete turnkey solution to where they store, process, and send all of your company’s literature and marketing pieces. Some of these companies also offer marketing services so they can put together your literature and marketing pieces. You will have to have a realistic budget put together so when you’re locating your fulfillment business partner you will be able to decide if their services will remain under your budget.

Once you’ve done these two things, you should have a better understanding of the products, marketing pieces and the fulfillment services you will need.

Just with any employee you hire, you want to make sure that an outsourcing company understands your business and you can have a beneficial working relationship with that company. Too many businesses try to do too much and control everything. If you want your business to go to the next level, you will need to find quality partners to work with to ease the burden on yourself. Once this is done, you will be able to focus more on your expertise and the products you offer to clients. This in turn will increase your sales and bring in more revenue.

Unless you have been living under a rock the last 10 years, you very well know that if you want to increase your business revenue, you need to be doing it through an online presence.

Business first began to utilize the World Wide Web in the early 90’s when the Internet first became available to business and home users.  Ever since then, they have been trying to figure out how to create more sales through their website.

Before they can create more sales, they have to figure out how to drive more traffic to their website.  That is when many companies will outsource their Search Engine Marketing to companies that specialize in online marketing and search engine optimization.

It makes sense to do this as well because these marketing companies have specialist that know how to drive traffic to your website in different ways.  From pay per click, keywords, and visual design you want your potential clients to visit your website and have the ability to motivate them to make a purchase.  With online advertising and marketing changing with the pace of technology, it’s important that you have a group that can keep up the pace.

Because there’s so much competition in the market place for online marketing companies, you want to make sure you choose a quality provider as well.  Make sure that you sit down with the representative and clarify all of your goals and set benchmarks to achieve.  You must make sure that the company that you are going to work with completely understands your business objectives and they will be able to meet them as well.

There is enough software available that you should be able to track, analyze, and evaluate any online marketing strategy.  You can sit down with your online marketing company have review all the strategies and evaluate what is working and what is not, and how to improve performance.

After all of this, you should have been able to find an Ethical SEO company that will be able to work with your company and take your online presence to the next level.

You’ve paid good money to have your company on the Internet, make sure you take maximum advantage of it to drive more traffic to your website and create more sales!

 

*Thank you to my sponsor Apogee Search