Author: Paul Wallbank

  • Social media’s greatest enemy

    Social media’s greatest enemy

    Last week Google launched their business Pages function for Google+, which required a business owner to type in almost identical information to the parallel Google Places service.

    In the same week Facebook turned off RSS feeds into their status updates, meaning that new pages added to a website now have to be manually entered into Facebook. Tumblr did the same some time ago.

    Across the social media industry, the various services are asking users to manually enter updates and details into each platform under the belief that unique user generated content will increase the value of their sites.

    That’s all very good for the sites but for those using several services it’s becoming a tiresome chore.

    One of the biggest barriers to social media adoption – particularly among time pressed small business owners – is the time involved in maintaining these different services. With the exception of Twitter, most of the services are trying to increase people’s time on their platforms.

    For social media services the key measures of how much time users spend on the site is becoming a game of diminishing returns, people have only so much time in the day or so much inclination to spend a large chunk of their free time online.

    As the burden of maintaining a digital footprint increases and the value proposition becomes less compelling, particularly as the privacy costs becomes more apparent, more people are finding it all too hard.

    Social media services are going to have to show some value for the investment in time and the privacy costs incurred by users, it may well be that many just don’t offer a good enough deal.

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  • The dummy email address

    The dummy email address

    A little while ago I was lucky to hear an excellent, well informed speaker give a great presentation.

    Following the talk, myself and a few others were able to grab him and have a quick chat before he vanished out the door. When we exchanged business cards it was noticeable how he carefully chose careful which of his cards to give us.

    Later I sent a follow up email thanking him for his presentation and was surprised to receive a “not known at this address” reply.

    As someone who’s used to being given fake phone numbers scrawled on beer coasters, this is not an unknown disappointment but it was still surprising to receive it from a professional.

    For busy people it’s understandable not wanting to give out a personal email address to someone you barely know. But giving a bogus address seems to be very risky.

    In my case, it’s just a matter of slightly hurt feelings, although I wonder how many opportunities that person misses because they misjudge the value of the person they are speaking to.

    A better option is to have a professional email address that your personal assistant monitors and deals with as they see appropriately.

    Manners, respect and not burning down bridges before you’ve even approached them are all good ways of working in the business world.

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  • Is your business killing you?

    Is your business killing you?

    It’s hard work running a business and often we hear stories of the tycoon who drops dead from a heart attack or finds themselves divorced, friendless and penniless at the end of many hardworking years in building up their venture.

    Being an entrepreneur means you live in your business as much as work in it, but it if we’re not careful it can kill us.

    Know your finances

    There are some who believe that a business plan and cash flow projection are unnecessary, they are wrong and at best are falling for survivor bias.

    Insufficient capital is the main reason why good businesses fail, it’s also the leading cause for marital breakdowns and the failure of business or personal relationships.

    Not understanding your finances means you have no idea whether your business is really profitable or if those returns are sustainable. If you don’t realise the cash position of your venture than you are at real risk if there’s an unexpected change in the market should an unexpected event like sickness or a tax bill arrive.

    Take a break

    If you don’t take an occasional vacation you are at risk of genuinely going mad. You need some time away from the grind to recharge your batteries.

    Getting away from daily work issues also helps your business as it’s an opportunity to see the wider perspective of the markets and society you operate in.

    Exercise

    Many of us don’t get time to exercise, which starts to slow us down both physically and mentally. Even if our businesses are a success, we may not have the health to enjoy the benefits. Remember the guys who die of a heart attack at 50.

    Eating

    Coupled with not exercising is having a bad diet, because we don’t have time to eat well we often end up eating convenient junk or not have a balanced diet. Take time to grab a healthy breakfast and lunch.

    Poor work practices

    When we stressed, racing to get a job done or under pressure, we often take shortcuts or break regulations. This can be anything from a truck driver not respecting driving time limits, a plumber not lifting heavy goods properly through to a consultant not changing the tyres on their car because they didn’t have time to be off the road.

    Either way, not respecting safe working practices can be catastrophic for the business person and those around them.

    Have an objective

    Your business plan should have objectives for your business on a 12-month, one year and three year horizon along with an exit plan.

    An exit plan could be building great apps, revolutionising your industry, amassing a retirement nest egg, handing the operation to the kids, franchising the business, a stock market float or making a trade sale.

    Whatever your reasons for being in business are, having a clear objective to work towards helps guide you through the morass of daily tasks in running a business.

    Ditch the negative people

    Whingeing, whining negative customers will drag you down, similarly with business partners and employees who will bitch and moan about customers, the government or staff. Successful businesses are run by optimistic people.

    Be objective

    The flip side to negativity is undue optimism and a lack of objectivity. It pays to have a realistic view of where a business is going and often that vacation helps you get the objective view needed.

    When you get a great business idea it can difficult to let go, so that’s why we need the ability to step back and understand who we are, why we are doing this and where we’re going with the project.

    Even if our businesses are successful, we need to be a position to enjoy the hard work and return on our labour.

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  • Is Google drowning business?

    Is Google drowning business?

    The launch of a pages function for Google+ allowing businesses to create a profile on Google’s social media and identity management service is welcome.

    What jumps out immediately is there is no integration with Google Local, meaning that businesses will have to create another online profile and learn the nuances of it.

    Right now big and small businesses are being confused by the proliferation of online tools and the problem is made worse by advisors maintaining you have to be on each service actively talking to your customers. That’s nice for a corporation with unlimited funds and resources but a tough ask in the real business world.

    By adding another service – that doesn’t integrate with Google’s myriad of services let alone outside platforms like WordPress, Facebook and Twitter – Google are making it hard for businesses to allocate the time and resources to the online world.

    What’s more, the terminology is confusing; Google’s rebranding of Local to Places started this and now we’ll see business owners and managers confusing Google+ Pages with Google Places.

    That confusion will be understandable as right now the terminology between the two overlaps and it will be difficult to explain the difference to business people who have many other issues to worry about along with this.

    One thing we can be sure of is there will be a whole range of strategies tied into Google+ Pages that might, or might not, affect search engine results and – given the ongoing nymwars debacle and the similar mess with Google Places listings – there’s a strong likelihood this program is going to get bogged down in opaque bureaucratic procedures.

    It seems different divisions within Google are running their own races; Adwords isn’t talking to Blogger, Analytics aren’t talking to Local and the team running Google+ are taking advantage of senior management’s obsession with social at the expense of Google’s core competencies and their advantages in the local and mobile sectors.

    Right now businesses are struggling with the plethora of online services and how to use them in their organisations, Google have to break down their own silos and start integrating their services to make it easier for managers, entrepreneurs and proprietors to use these platforms.

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  • Mad, bad or dangerous: The One Percenters we need to avoid

    Mad, bad or dangerous: The One Percenters we need to avoid

    “I’m not going pay you, your technician was constantly looking at his watch,” growled the customer when asked why she’d stopped a cheque for some work we’d done for her.

    There’s many excuses for not paying your bills but a tradesman trying to keep the client’s bill to a minimum is an excellent dodge.

    Over the phone call’s ten minutes, it was clear this lady was going to be a tough customer.

    First the job wasn’t done properly, then the charges were too high, she accused us of taking advantage of vulnerable women and finally she was going to complain about us to her union.

    It was clear we were in for a fight to get a hundred dollars from her, so I let it go. She went away believing she was right.

    The saying “the customer is always right” was coined by US retail pioneer Marshall Field and exported around the world by Harry Selfridge, one of his employees who also founded a business empire.

    We can be sure neither of them actually meant that customers are always correct in what they do, just that the key to successful service is the client walking away believing they are right.

    Regardless of how well we deliver on our promises, there are always going to be some that aren’t happy. In most cases this is due to misunderstanding, or just a bad day on our part, but sometimes there’s the one percent of customers who are mad, bad or dangerous.

    The Mad

    Some customers just aren’t quite with us. These people, some of whom have genuine psychological problems, simply aren’t going to be reasonable.

    There’s no point in fighting them as that’s only going to make their issues worse and maybe even transfer some of their problems to you.

    Fortunately as you become more experienced in business you get better at detecting and avoiding these type of customers although there’s always the odd one who sneaks through.

    The Bad

    There’s a certain breed of people – and businesses – who don’t pay their bills, seeing their suppliers as banks and an invoice as an interest free loan.

    Often these customers are charming and the perfect client before the bill is presented then they string you out for months of years before paying your invoices.

    For these people and organisations, who are genuine deadbeats, there’s the fool me once, shame on you; fool me twice, shame on me philosophy. It’s usually better to write them off rather than sink hours of management time.

    The Dangerous

    Of all the bad payers, the most dangerous is the game player. To these people, not paying debts is an intellectual challenge which they enjoy and play for fun.

    These folk will just as happily mess around the phone company or the tax office as much as the local plumber or newsagent, it’s just a game which they’ll play to their maximum enjoyment and your frustration.

    For the big companies, these people can be a benefit as they justify the existing of entire bureaucracies dedicated in getting them to pay; small business though don’t have the time and resources to spend the hours of work over years to extract payment from them.

    Thankfully these folk usually stonewall as the first invoice so there’s early warnings you’re dealing with trouble. Resist the urge to play the game with them as they are usually better at it than you.

    Regardless of which category these bad debtors fall into, in each case it’s better for your valuable time and sanity to let them believe they are right, write the debt off and move on to helping customers who really matter.

    Fortunately these people really are the One Percenters and only representative of a tiny proportion of our customers.

    The taste of copping a loss is always painful, but at least we get good stories from the excuses they give. What’s the best reason you’ve heard for a customer trying to dodge a debt?

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