WHY does this happen? Simple, the great marketers first of all make greater investments in time, money and resources to ensure that prospective buyers are aware that they exist. They Plan to spend appropriately to achieve the sales results they want. Then, they HOOK buyers with a superior brand promise, competitive positioning and key messages that resonate well by tapping a strong need, desire, fear, uncertainty or doubt (FUD) and then RETAIN them with superior Customer experience by caring, communicating, working proactively and responding nimbly to solve problems as they occur. Your product or service is better? Well, the Customer won’t easily let go because they’re reasonably happy or at least not seriously dissatisfied enough to do something about it. If you’re 10-20% better, yawn. 40-60% or more? Maybe…

A Lucky Strike cigarette commercial from the 1960′s said it well:

“I’d rather fight than switch.” The law of Inertia (as applied to human buying behavior) means unless it’s really important, I’m not gonna switch!

What actionable steps for entrepreneurs does this imply?

• Make a Strategic Decision: you have a dramatically superior product and will live or die by that OR you have a really good product and need to dramatically improve your marketing, sales and service. Which is it? Your resources are limited.  Don’t sit in the middle – CHOOSE!
• If you choose to be a “best product” play, then your highest priority is to locate and start a conversation with buyers whose #1 criteria for purchase is already technical superiority, provide data that “proves” your superiority and capture external validation/testimonials from technical experts whose opinions matter to the target market
• If you choose to be “Good Enough Product” play, then you want to find a niche where you can dominate or you’ll never go far
  • Research your Competition so that you know what they are promising and to whom so that you can create a messaging platform that is superior to your competitors for a specific niche (subset) of prospective Clients. Don’t go head to head against an 800 pound gorilla unless you have high confidence that your “counter offer” to the niche they dominate will resonate well
• Determine the essential Marketing and Sales activities that you must invest in to meet the Goals you’ve determined… and then make those investments.
  • This may mean diverting funds away from product development to capturing sales
  • This may mean investing in a salesperson or outside business development resource even knowing that it could be a year before you break-even on that investment

Singer Sheryl Crowe posed a question in one of her ballads: “Are You Strong Enough to be my Man?”

My question is: “Are you Good Enough to be my Product?”

• Establish the amount due: provide written documentation to the Client and ask for confirmation that the amount is correct
• If they agree to the amount, negotiate a payment schedule, send them notices in advance of due dates (requesting read receipts), call them right away if they are late or miss a payment – staying in touch with them throughout this process is key as you want to hold them as close as possible to their commitment. You are relying on their ethics. It’s easy to get fatigued and stop paying attention but don’t let that happen – stay vigilant!
• If the Client does not acknowledge the amount, engage them in a discussion to understand their point of view and consider the legitimacy of their claims. Try to find out very specifically the points of agreement and disagreement. Based upon a dispassionate consideration of their statements, was your Company’s performance worthy of the invoiced amount? Are you willing to accept a smaller amount either because they have a legitimate point or simply in order to move on?
• If you are not willing to negotiate, tell them so in writing with a request for payment. If they do not respond to this in a reasonable timeframe, ask your attorney to send them a demand letter – this will often do the trick and its money well spent.
• If you are willing to negotiate the amount and the timing of payments, tell them so. You may want to estimate your expected legal fees and the value of your time. Generally speaking, small claims are not worth pursuing from an economic and opportunity cost perspective. Large claims may be worth your time and money.
• Ultimately, if they won’t pay and the amount owed is large enough to justify your time and investment, you may have to pursue them via legal means.  Unfortunately, in our legal system, it is very unlikely that you will recover your legal costs, and the process may take 1-2 years to complete so make sure you have the stamina and wherewithal to go through it.

A year ago, a business advisory Client did not pay the final amount due on a business plan because he had cash flow problems in his business. It was disheartening because I had gone the extra mile on the Plan and really enjoyed working together. He was never willing to commit to a payment schedule despite my numerous repeated attempts but the amount was not large enough to justify taking him to court. So, I stayed very constructive in our communications – though I was tempted to not be civil – and a year and a half later he stopped by and made his first payment and handed me a note that said “This is a very small part of what I still owe you. You will have the balance in full soon.” Conducting yourself as a professional craftsman sometimes pays unusual dividends.

Business owners and Bruce Springsteen fans, check out the book “Born to Run: A Hidden Tribe, Superathletes and the Greatest Race the World has never seen” by Christopher McDougall. It will stretch your imagination, improve your stamina, help you sprint past obstacles, increase your appreciation for different running (your business) styles and remind you of just how glorious it can be to achieve great things.

This story of Mexico’s Tarahumara Indians, whose lifelong activity of ultra-running (more than 100 miles at a time, sometimes as long as 48 straight hours) in perilous conditions, will amaze you. And their climactic interaction with some of the most elite ultra runners in the U.S. will really have you huffing and puffing… with sheer joy.

This story reveals scientific evidence that the human race was meant to run – to outlast prey through superior endurance and despite inferior speed and that the introduction of the running shoe by Nike in the 1960s has led to a staggering injury rate for the reason that the supposed protection these shoes offer actually condition runners to not follow nature and do harmful things to themselves.

Business success is not a marathon but an ultra-marathon. You can survive on a minimum diet if it’s the right food (the right team, the right products, the right strategies). You can overcome great obstacles such as heat stroke (intense competition), dehydration (running out of cash) and getting lost (lack of a good business road map).

The camaraderie and shared values of the elite US ultra-runners with these tribal people makes me think of the value of a strong industry – competitors yes but with a healthy regard for the rights of others and an underlying knowing that a strong industry is better for all.

Your ultra-success can be found when you commit yourself to finding the hidden trails, learning the smooth motion of the Tarahumara runners and enjoying the journey.

Business owners like us, baby we were born to run!

I’m allergic to:

• Losing money
• Long sales cycles
• Low productivity
• Unreasonable expectations
• Lack of effort
• Poor listening
• Not learning from mistakes
• Processes that get in the way of customer service
• Negativity

What are your business allergies?

Well, Robin, we need you now to help wake up America! World War C (Cyber) has arrived on our shores, or more accurately to our computer infrastructure. It isn’t the British this time. And it isn’t visible, it’s digital. But it is serious in terms of the risk of economic damage and destruction.

Computers have changed our lives in wonderful ways but our move toward transparency has other consequences – opening the “computer door” to bad guys. The Intelligence Community is reasonably well prepared but make no mistake, despite billions of dollars already spent, vast portions of the U.S. government, State and local government and most of the commercial market are highly vulnerable.

Our key infrastructure industries pose the greatest concern – financial and utilities- as any disruption there can cause severe economic repercussions but every industry, every commercial business faces threats never faced before.

America’s physical infrastructure has suffered for years because, as a culture, we like to spend money on new, sexy things rather than on essentials.

Cyber security  IS sexy – spies, war, secret code, danger….  Got your attention?

There is a wealth of information available on how to protect your business. One good starting place is the National Cyber Security Alliance www.staysafeonline.org where a great deal of free information is available to start your own journey to better security.

Maryland Cyber Investment Partners www.marylandcyber.com is here to help. We can connect you with the very best resources, experts in cyber security, to protect your business.

Good Morning America!

You want your Company to be valuable?  Then you must generate a stream of consistent earnings growth over a period of years with performance better than most of your competitors.

There are exceptions to this but they are few: you may have assets i.e. intellectual property, products, land/building which are more valuable than your earnings stream or you may be in a hot market where, for a period of time at least, buyers will pay a multiple of sales to absorb your customer base and reputation. But, these are the exceptions. 98% of the time prospective buyers will value your business on expected earnings and they will base this largely on actual results.

So, business chefs, it’s all about Pi.

Here are some key ingredients:

• High retention rate of profitable Customers
• Selling more to existing Customers
• Steady addition of new Customers (efficient/effective marketing and sales)
• Maximize Gross Profit dollars (the right price/quantity balance)
• Minimize expenses (increase high ROI spending, limit low ROI spending)

Fire up the oven, it’s time to bake Pi!

Who is 6’ tall, weighs 175 pounds and frustrates the daylights out of the best basketball players in the world? Jose Barea, that’s who.

The pesty, faster than greased lightning, body contortionist was the game-changer that allowed the underrated Dallas Mavericks NBA team to beat the favored Miami Heat for the 2010-2011 NBA Title.The average NBA player stands 6’7” and weighs 221 which means, when you add on wingspan (he doesn’t have any), he is severely undersized and disadvantaged to defend an opponent, to take shots, to withstand body shots… you get the picture. Heck, most 6 footers would never attempt to penetrate the lane against large, muscled defenders who have no intention of allowing a shot and yet …

Barea is oblivious to this. He didn’t read the “conventional wisdom” beliefs that leave guys his size on the sidelines. He spins, whirls, dashes about, squeezes between large bodies where there is virtually no room and puts up shots that have never been seen. In one play, 6’8” Udonis Haslem practically smothered Barea and could only shake his head after the ball miraculously went through the hoop. His expression seemed to say: “I hate this. I can’t believe this. This pipsqueak is an out of control whirling dervish.”

Barea illustrates the lesson that even in a league of supremely gifted, tall, fast and well trained athletes, there is a way to succeed when you are short, can’t jump and make the referee look tall.

Find the Barea in you – the basis upon which to compete successfully – and steal the thunder in your market!

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Trying to build up the courage to take some risks in your business? On this page you’ll find free business assessment tools that will help you. They were inspired in part by reading “Shadow Divers” by Robert Kursonwill, which I’d recommend you read.

It will provide you with a compelling illustration of just what extreme risk looks like. A quick business assessment of this venture would have had large red letters marked “danger!”

What is Deep Wreck Diving?

Deep wreck diving is among the most perilous of human activities. These brave adventurers risk their lives – and often lose – in pursuit of glory, riches and perhaps simply to test themselves.

But what does deep wreck diving have to with business & corporate growth?

The business owner who considers such a risk is betting on his/her ability to win or, in the event of a loss, starting over. Is that you?

Important Questions: What are the risks?

This is one of the most important questions regardless of whether you’re doing a free business assessment or paying for one. In the case of deep wreck diving, for example, the risks are huge:

• Strong and very unpredictable currents,
• Limited visibility in which to get lost both inside and outside the wreck,
• Sharp edges and heavy objects on damaged/decaying ships and
• The almost inconceivable pressure on the human body when depths beyond 100’ below sea level are explored.

Every 33 feet you descend into the ocean increases the pressure on your body by one atmosphere. 95% of diving in the ocean is recreational and takes place in depths of less than 50’. Divers report that at 130’ the body starts rebelling, and at more than 200’ – where this story takes place – hallucination and even worse set in.

As if those problems aren’t enough, returning to the surface must be done very slowly – often up to an hour- with rest/recovery at specific depths in order to allow the body time to adjust. Those who return rapidly to the surface often do not survive.

Important Questions: What are the rewards?

What’s the Return on Investment (ROI) on such a venture? Financially, it would depend upon the value of goods salvaged from the wreck. The reputation or Brand impact for your Company would be measured in the ability to convert success into future business. The Personal Satisfaction from such an undertaking may also influence your go/no go decision.

THIS Opportunity

These divers report having explored the sunken U-869 60 miles off the New Jersey coast beginning in 1991 for 7 years! It was a boat that simply couldn’t have been there according to the war records of the Allies and German military. It was enticing yet far more difficult – 230’ below sea level – than other deep sea wreck explorations attempted by anyone. As a business owner, your assessment template should be based on the idea that you don’t consider something like this unless you truly understand the risks and are willing to take your chances.

How they did it

Meticulous planning, a very experienced team, operating as safely as possible and avoiding bad weather were just some of the keys to success. You can’t leave persistence out of the equation however. Lesser adventurers would have given up on this quest years before this team did. As you look at your own team, do they have the right stuff to attempt a major move? This is not a good time to perform an inaccurate assessment.

The Result

The divers ultimately did solve the mystery of the U-Boat. 3 diving companions lost their lives. The surviving families of the crew of the U-Boat were told of the fate of their love ones. Valuable items were recovered but the divers primary satisfaction came from solving the big mystery… by taking the big plunge.

Are you considering a big plunge? Think deep. And take this free business assessment that we developed just for you.

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You CAN set a higher bar, strengthen your sales team, your sales processes and drive higher sales in a matter of months! This straightforward PowerPoint presentation,“Build & Turbo-Charge Your Sales Team”, gives you a practical step by step checklist on what to do to make it happen.

Rank your current status A, B or C on each item. If you score an “A,” keep up the good work, if you score a “B,” focus on it & figure out how to do better. If you score a “C,” get some help re-engineering it or out-source it. Sell more right NOW! I’m allergic to long sales cycles… and you should be as well.’

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According to Laura Hillenbrand, author of “Unbroken: A World War II Story of Survival, Resilience, and Redemption” two factors are “defiance and irrepressible spirit.” If this story and that of Ms. Hillenbrand herself don’t inspire you, please check your pulse.

It’s the second best-selling story by the author of 2001′s “Seabiscuit: An American Legend” and what makes HER story triply impressive is that Ms. Hillenbrand suffers to this day from chronic fatigue syndrome. In the past twenty years, she has rarely left her home and for long periods of time, her bed was her world. In honor of Ms. Hillenbrand’s ability to overcome seemingly insurmountable odds, I’ve elected to work in her medium, the written word, and not record a video this month.

Louis Zamperini was a juvenile delinquent, turned world class runner who joined the Air Force, his plane crashing into the ocean and there ensued a gripping tale of survival followed by torturous years in a Japanese POW camp. Mr. Zamperini has been places that would break the best of us. Somehow, he remained unbroken. Studying Zamperini for years led Hillenbrand to the conclusion that a combination of defiance and his irrepressible spirit saw him through.

What do you want to accomplish this year and next? Just how difficult are the obstacles? Perhaps a touch of defiance can help. Do you have a bit of a rebellious streak that you can channel into positive results? And isn’t an irrepressible spirit going to lead to better outcomes, no matter how dark things may be from time to time?

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