Q: In a recent column you made the point that the customer is always right, which I agree with. However, in the same column you also said that it is sometimes necessary give problem customers the boot. If the customer is always right, at what point do you think they become so problematic that you should stop doing business with them?– Gary M.A: That column brought a number of emails similar to yours, Gary, requesting that I clarify the line between “the customer is always right” and “sometimes you have to give a customer the boot.” Here’s the bottom line: if you, as a business owner or service provider, are willing to take a customer’s money in exchange for providing him with goods or services, then the customer has what I call “the right of expectation.” This means that the customer has the right to expect you to deliver everything promised in the transaction between you. For example, if you own a restaurant the customer has the right to expect that their meal will be prepared and served to their satisfaction. If you are a dry cleaner the customer has the right to expect that you will launder their clothes without returning them in shreds. If are hired to perform a service the customer has the right to expect that the service will be provided to their satisfaction within the terms of the defined task. As the business owner, it is your responsibility to meet the customer’s expectations and provide good customer service. Even if your business does not involve a formal contract that spells out to the letter what should be expected, there is generally a clear understanding of what the customer expects and what you are willing to deliver. If you back peddle on your end of the bargain, let’s say by serving a bad meal or losing a customer’s laundry and refusing to make things right, then you are guilty of not meeting the expectations of your customer and thereby are guilty of providing bad customer service.Unfortunately not every entrepreneur puts emphasis on delivering good customer service. They are in it for the money and damn the customer if they have a problem. Such entrepreneurs were the topic of the column you mentioned, the point of which was, if you make a habit of not meeting your customer’s expectations, you will not be in business for long.Now let’s look at the flipside. Just as the customer has the right to expect that he will get his money’s worth when doing business with you, you have the right to expect that your customer will not demand things that are beyond the scope of realistic expectations (or the contract). If a customer orders hamburger, he shouldn’t expect it to taste like steak unless you have advertised it as such. If a customer brings you a cotton shirt to launder he should not expect a silk shirt in return. It’s when the customer’s expectations get out of sync with what should realistically be expected that you will have problems.We have all had customers who expected far more than was their due: customers who were unreasonable, overly-demanding, condescending, hard to please and sometimes, even dishonest in their dealings with you. When a customer’s reasonable expectations become unreasonable demands you must decide whether or not that customer is doing more harm to your business than good.So here is the line in the sand between the “customer is always right” and “sometimes you have to give the customer the boot” - if a customer crosses the line from being an asset to being a detriment to your business, you should consider giving that customer the boot.This is easier said than done if that customer constitutes a large chunk of your revenue, but even then you have to consider what your business might be like if that problem customer was not in the picture. Would the time you spend dealing with the problem customer be better spent on sales calls that might expand your client base and grow your business (a business that is dependent on one client is a house of cards)? Would your employees be happier not having to deal with this customer? Would you sleep better nights knowing that you don’t have a dozen phone messages from him on your desk every morning?The easiest way to decide how much trouble a customer is worth is to look at the amount of revenue this customer brings in versus the time and expense of meeting his expectations. If this customer pays you $1,000 a month, but costs you $2,000 in time spent keeping them happy, this customer is actually costing you money. Just a handful of these kinds of customers will put you out of business fast..For example, I once had a client whose business was worth several thousand dollars a year to my software company’s bottom line. However, this client proved to be problematic from the second the contract was signed. He and his employees called our office ten times a day and dominated my tech support team’s time with IT problems that were not even related to the service we were contracted to provide. It got so bad that my employees cringed every time the phone rang because they were afraid it was this client calling again.When the time came to renew this client’s contract it wasn’t hard for me to decide to give him the boot. I simply did the math. This client had added thousands of dollars to my company’s bottom line, but had cost me at least that much in handholding and support, not to mention the mental anguish he had caused my employees. I opted not to renew the contract and politely invited the client to take his business elsewhere.The perfect customer relationship is win/win, meaning that your customer benefits from your product or service and your company prospers by delivering the product or service. The relationship must be built on mutual respect and honest intention. It is when the relationship becomes win/lose that you must be ready to take action. If the customer thinks he can hold you over a barrel and get more out of you than he has paid for, the relationship and your business suffer for it.Look, you don’t need me to hit you in the head with a stupid stick on this one. You know who your problem customers are and you know that you will eventually have to deal with them. You have to consider the value of every customer in the long run, not just their value today. Is the customer making demands that are beyond the scope of what should be reasonably expected? If the customer constantly demands more than they are entitled to and gets angry when you refuse to comply, consider giving them the boot.Is the customer taking advantage of your good graces? Some customers may mistake your willingness to please for weakness and try to wring more out of your relationship than they should. If the customer has a record of trying to take advantage of you and plays every angle to get more from you than they deserve, consider giving them the boot.Is this customer a threat to your reputation? Let’s face it; there is nothing more harmful to your reputation than a dissatisfied customer with a big mouth. And it does not matter who is at fault in the disagreement, a disgruntled customer is going to bad mouth you in the end - especially if they were at fault. If you suspect a customer might be the sort to one day air dirty laundry in public, consider giving them the boot.Does the customer pay in a timely manner? If you have a customer that is consistently 90 to 120 days late in paying even when your contract clearly outlines your payment terms to be otherwise, it may be indicative of other problems to come. If you feel the client is a payment risk, consider giving them the boot.What’s the best way to avoid a customer booting? The best answer is to have a contract that clearly spells out the specifics of the relationship. The contracts I use in my various businesses clearly define the services to be provided, the cost of those services, and the timeline and terms under which those services will be rendered. If there is a deviation from the contract, we write an addendum that details any changes and their effect on the contract. Do I still have to give some customers the boot? You bet, but not very often. It’s hard for a customer to cry foul when everything is there in black and white right above his signature.What if your business doesn’t use contracts? Then hang a poster in your shop or have a hand-out that clearly defines what your customer can expect from your business and then deliver what you promise. If you have a poster or hand-out that clearly outlines your services, your rates, scheduling, return policy, etc., there should be very little that the customer can complain about. I know, famous last words.
Article Source: www.iSnare.com
Q: How important is the name of a business? Should the name of a business reflect what the business does or is it better to come up with something catchy and easy to remember?– Randy P.A: What’s in a name? When it comes to your business, Randy, a lot more than you might think. In fact, deciding on a business name is one of the most important decisions you will ever make. The right business name can help you rise above the crowd while the wrong business name can leave you trampled in the rush. With the economy in a slump and competition on the rise, now more than ever it is important that you put considerable thought into coming up with the perfect name for your business. Unfortunately, this is a task that is easier said than done. It seems like all the good business names are either married or? no wait, that’s a different subject, but the analogy holds true. We live in an age when a business called “The Body Shop” might repair wrecked cars or sell skintight jeans to teenagers, so before you send your letterhead to the printer, consider the following points to help you select the business name that’s right for you. The first thing you should do is conduct a little research to determine if the name is already in use by someone else. You would be surprised at how many entrepreneurs forget to research this point and open a business with a name that is already in use. Check with the county clerk and the secretary of state to make sure the name isn’t already licensed for use or incorporated with the state. Also check with the U.S. Patent and Trademark office to see if the name is already trademarked, i.e., owned, by someone else. Using another company’s trademarked name exposes you to legal action by the trademark owner. Even if your name is just similar to the trademarked name, you may find yourself in court defending your right to use the name. And odds are it’s a battle you will lose.If the name you choose is not in use, you should immediately reserve the name with the secretary of state (if you plan on incorporating) and apply for a trademark to ensure your legal ownership. If you do not trademark the name someone can come along later and attempt to steal the name out from under you. Imagine spending years building up your business only to have some upstart trademark the name and engage you in a legal battle over rightful ownership. This is one fight you don’t need, especially when the hassle could have been easily avoided with a few bucks and a few forms.Another important thing to consider is the domain name for your business. The domain name is the website address a customer will use to find you on the Web. Is the domain name for your business name available? If not, is there a domain similar to the business name you’re considering? You will undoubtedly discover that securing a suitable domain name is actually harder than choosing a business name. Most logical domain names are already reserved, but you might get lucky. Keep in mind that domain names should be short and descriptive, and preferably have the .com or .net extension. You can use other extensions (I’ve even used the “.to” extension on occasion) if necessary, just keep in mind that you will need to put forth a little extra marketing effort to promote the website address as people typically assume a .com extension as the norm. Whatever you do, don’t use a domain name that is a confusing amalgam of letters and numbers that is hard to remember and even harder for your customer to type in. One good way to approach the task of naming a business is to do so from your customer’s point of view. Your business name should clearly define your offering and communicate your message to customers. Put yourself in your customer’s shoes for a moment. If you were looking for a business that provides your product or service, what would you expect that business to be called? If you were in the market for computer parts, for example, wouldn’t you look for a business that has “computer parts” reflected in the business name? Jim’s Computer Parts may not sound as snazzy as Jim’s Electronics Emporium, but snazzy doesn’t pay the bills. Happy customers who quickly identify you as the source of their purchase do.The name of your business can also spark subconscious reactions in a customer that may drive them to you or drive them away. Words like quality, complete, executive, best, low-cost, and on time often spark positive reactions in the mind of the consumer. Words like cheap, discount, and used tend to create negative emotions. You’ll notice that no one claims to sell used cars anymore, but the dealer lots are loaded with vehicles that are “previously owned.”Finally, let’s talk about things to avoid. Experts agree that you should avoid using generic terms like enterprise, corporation, partners, and unlimited as part of your everyday business name. These terms are fine for the legal business entity name, but are often too unclear for everyday use. Can you tell me what any of these companies do: ABC Corporation, Big Dog Enterprises, M&B Partners, and Discounts Unlimited sell? I didn’t think so.Also avoid abstract names like Yahoo, Google, Monster and Flip Dog (I am not going to list the names of the numerous local high tech firms that have bucked this rule :o). Abstract names will require a subtitle to explain what the business does or an expensive marketing campaign that brands the name into the minds of consumers. Unless you have deep pockets, I suggest you go with a name that describes your business at first glance and leave abstraction to the likes of Cher.Finally, you should avoid hokey names, unless of course, you are starting a hokey business. Crazy Dave’s Stereo Shop is a great name if the business is really run by Crazy Dave and his personality is exploited in the marketing of the business. However, if you want to be taken serious, then give your business a serious name. Would you go to Crazy Dave’s House of Dentistry? Neither would I.Here’s to your success.
Article Source: www.iSnare.com
Last week I told you about a recent report from The Conference Board that has a lot of big company CEOs concerned about competition from smaller, more innovative and entrepreneurially-minded companies. To refresh your memory, The Conference Board’s CEO Challenge 2004 reported that 87% of the 540 global businesses surveyed cited innovation and enabling entrepreneurship as priorities for their companies, and 31% considered these issues of “greatest concern.? These CEOs understand that their big company status no longer guarantees that they will win contracts and retain market share based solely on their size and track record. They understand that the greatest threat to their businesses is not coming from the boardrooms of their largest competitors, but from small companies born in garages, on kitchen tables, and in tiny, rented offices.It?s a fact that smaller companies, by need and design, are more innovative, more flexible, more decisive, and faster to move than their larger brethren who are entrenched in operational processes and corporate procedures. Small companies are typically not led by career executives for whom every decision must be predicated by hours of meetings and mounds of documentation. Most small companies are led by their founders; men and women who were cut from an entrepreneurial cloth that has yet to fade. It is when a company grows to the point that the founder steps aside to make way for professional managers that the company loses its innovative nature and entrepreneurial flair.The good news for large companies is that they have definite advantages over small companies, especially when it comes to resources and funding. Turning a Goliath into a raging horde of David?s is never easy, but it can be done if the company is willing to make changes to internal processes and attitudes, and commit the time, money, and personnel to make it happen. Since size and number of years in business are no longer differentiators in the competitive marketplace what must large companies do to become more innovative and entrepreneurial? To begin they must do three things: shorten the process time, cut through the red tape, and promote innovative and entrepreneurial thinking from the top down. If the board, the CEO, executives, managers, supervisors, and employees are not dedicated 100% to making the changes necessary to transform the company, the effort will fail and the giant will lumber on.Shorten The Process TimeAt large companies everything is done by the book, i.e. by established processes and procedures. Very little gets done at large companies without what I call the ?Multiples of M.? Multiple Meetings to discuss the issue; Multiple Memos to reiterate the issue; and Multiple Management approvals required to sign off on the issue. To become more innovative and entrepreneurial large companies must streamline the decision-making process down to a single set of M?s: Move on or Make it happen. Cut Through The Red TapeHere?s a true example from my corporate days that illustrates how procedures and red tape get in the way of efficient operations A fluorescent bulb in my office blew, which made the other bulb in the fixture flicker like a strobe light at a discotheque (causing flashbacks that we won?t discuss). I assumed getting a new bulb would be a simple matter of calling down to the facilities office and reporting the problem. My assumption was wrong. I was told that I would have to come to the facilities office, which was in another building 2 miles away, fill out a facilities request form, and take the form back to my immediate supervisor, who was required to stick his head in my office to confirm that the bulb was indeed out before signing the form. I assume this was to make sure that I was not trying to commandeer a fluorescent bulb under false pretenses.Once my supervisor confirmed that I really did need a new bulb, he signed the form and I took it back to the facilities office, foolishly thinking that they would hand me a bulb that I could take back to my office. Oh no, that would have been too simple. I was told that once my form was approved by the facilities manager a maintenance worker would be dispatched to my office and would replace the bulb for me. Great, I said. When can I expect that to happen? ?I can have someone over there a week from Tuesday between noon and 5pm,? the man at the facilities desk replied. I suddenly felt like I was dealing with the cable company. How many big company employees does it take to change a light bulb? I lost count at four.Encourage Innovation and Entrepreneurial ThinkingNext, you must create an environment in which innovation and entrepreneurial thinking are encouraged and rewarded. If your employees feel that their opinions, thoughts and ideas don?t matter, they will not submit them to you, but may take them elsewhere.Again, based on my own experience, I can tell you that innovation, especially innovation that occurs below the management level, is often ignored, ridiculed, and in some cases, used as an excuse to give employees the boot. The perfect example of this was when I took an idea on how to improve an internal system to my manager and was told, ?Knox, you think too much.? Now this was a new one on me. I had been accused of thinking too little and of not thinking at all, but never had I been accused of thinking too much. I do recall my dad telling me when I was young, ?Son, if you had a brain you?d be dangerous.? I suppose my manager was simply trying to relay the same message. ?Shut up and go to your room/cubicle like a good little boy/company drone before you get on my nerves and get spanked/fired.? Within a few months I decided to take my overactive brain and put it to work for myself. After 10 years of business success, I think I made the right decision.To promote innovation and entrepreneurship big companies must encourage everyone to think like innovators and entrepreneurs. Make it a company policy that such thinking is required, expected and rewarded. Pose these questions: (1) How can we improve our current products and services; (2) What new uses can you think of for current products or services; (3) What new products and services can you think of that would be good additions to our current offerings or perhaps even launch a new line; (4) What new opportunities do you see in the market place that might be worth pursuing? Get Outside HelpMost large companies find it difficult to develop and implement an innovation plan simply because they refuse to devote the time and resources to getting it done. And since most executives have never been entrepreneurs, they do not know how to encourage entrepreneurial thinking among their ranks. If your company needs help with innovation and entrepreneurship, bring in someone from the outside to direct and manage the effort for you.You should never be embarrassed to ask for help, no matter how big you are. Here?s to your success!
Article Source: www.iSnare.com
Okay, so your worst nightmare just came true. Your business was destroyed by forces beyond your control ? by the forces of nature, a freak accident, a crime or maybe even a terrorist attack. Now what? Is your life over? Can you ever recover from this? Yes you can! There are three things you can do to determine the final impact that this tragedy has on your life. No, you can?t make it go away, but you do have the power to make an internal choice of how it will affect you. CHOOSE TO BELIEVEIt is essential that you stop and get your bearings. Assess where you are and what resources you have around you. Stop and assess the damage for what it is. Acknowledge it, but make a verbal declaration ? out loud ? that you will survive it. Yes, cancer and hurricanes are still terminal, but plenty of people survive them. Just a few days after Lance Armstrong was diagnosed with cancer, he held a press conference in which he boldly announced, ?I want you all to know that I intend to beat this disease, and further I intend to ride again as a professional cyclist.? That was back in 1996, when most people were predicting his early demise.Was he a prophet? Did he receive a message in a dream? Did he know something that we didn?t know? No. None of the above. Lance Armstrong made an internal decision to believe and to survive. Then he announced it publicly. This public verbalization of his belief seared it into his brain and his very soul. It came to pass because he really believed it and this undying belief helped him bring it to pass. You can do the same thing. Acknowledge your opponent for what it is and then calmly, but firmly announce to the world that you will beat this thing!CHOOSE TO FOCUS ON INTANGIBLE VALUES When everything is taken from us and we are left standing naked among the tattered ruins of our life, we suddenly realize what life is really all about. It?s not about how much money we have, what kind of car we drive, or how big our house is. All that stuff can be wiped out in the blink of an eye. It?s about something bigger than that. Something we can?t see and can?t measure. We can?t put our finger on it. We?re just glad to be alive. We?re just glad the sun came up this morning. Is that a bird we hear singing? It suddenly sounds sweeter than we?ve ever heard it before. Is that a child we hear laughing? It somehow tickles us deep in our soul.True survivors focus on intangible values above all else. It may sound trite and over-stated, but when you?re sitting among the ruins of your life, sit down and count what you have left. It will refresh your soul and give you the energy you need to start over. CHOOSE TO FOLLOW THE HEROE?S PATHAs shocking and incomprehensible as your tragedy may seem, remember there are many survivors and heroes who have gone before you who have survived worse. It is up to you to follow their path. Soichiro Honda is a classic example of a true survivor who suffered repeated tragedies and kept coming back. In 1945, Soichiro was making piston rings at a small plant in Japan. But then something much worse than a hurricane destroyed the plant ? it was a U.S. air raid. The bombs dropping from U.S. planes destroyed not only the plant, but most of the city. But Soichiro was a survivor. He chose where to put his focus. He collected the metal from left over military vehicles and airplanes and moved to a new city to open a small factory and continued production on a small scale. The end of the war brought an end to his piston ring production business. Even though he survived the war, he could not survive the end of the war. At the end of World War II, Tokyo and most industrial cities had been destroyed. Gasoline was rationed and sometimes impossible to find, so he came up with an idea. In 1946, he took regular bicycles and installed small, military surplus engines on them and started selling them. But he soon ran out of military surplus engines. It looked like another dead-end. Did this stop Soichiro? No. He decided to start making his own small engines. However, there was one small problem - he had no money! So he wrote letters to bicycle shop owners throughout Japan, explaining his idea to make motorbikes and asking them to invest. With the money that a few of them invested, he started manufacturing his own engines and motorbikes. The first motorbikes he made were too big and bulky and very few Japanese bought them. Was this another dead end? No. Soichiro listened to the feedback and adjusted accordingly. Soichiro changed his approach. He stripped his motorbike down and made it much lighter. The new design won the Emperor?s Award. In time, this little motorbike captured 60% of the Japanese market and Soichiro began exporting them to Taiwan. In 1948, Soichiro established the Honda Motor Company, which is one of the biggest manufacturers of cars and motorcycles in the world today. What can you learn from Soichiro Honda? A total loss is an opportunity to start over with a clean slate. Have you ever wondered what you would do if you could start life over? Well, here?s your chance. Life has just handed you a golden opportunity. Start with a fresh vision. Make a decision to start a new life. What if you say, ?But I?m not a very creative person. I?m out of ideas.? Take comfort - there is no reason to reinvent the wheel. Find people who are already succeeding at what you want to do and learn their secrets. Read books and articles about the legends in your industry. Get into the minds of these icons. There is no excuse for blindly stumbling in the dark to find your way. Find and follow the path of those who have gone before you. If there is a method or system to their success, then it is capable of being learned. If it is capable of being learned, then it is capable of being duplicated. Study it. Duplicate it. Then improve upon it.Remember, you may have lost your house, your car, your health or maybe even your spouse. But no one can take away your determination to succeed, your inherent abilities, your intelligence or your creativity. These gifts, talents and abilities haven?t gone anywhere. Wherever you go, they are still with you! These are your sails. Your belief in them is the wind that will blow you around the world. Copyright 2005. All rights reserved. Daniel R. Castro, author of Critical Choices That Change Lives: How Heroes Turn Tragedy Into Triumph. To download the first chapter free, go to: http://mycriticalchoices.com
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