business advice | Paul Wallbank - Communications Professional

Why online listings are an essential business tool

Online listings with the major search sites are free and effective. Even more importantly, those listings form the basis for many of the location based services that are springing up on Smart Phones. You need to list your business on these sites to make sure they are appearing in the searches customers increasingly rely upon.

Online listings with the major search sites are free and effective. Even more importantly, those listings form the basis for many of the location based services that are springing up on Smart Phones. This article originally appeared on the 19 January Smart Company Business Tech Talk column.

Since Global Positioning System (GPS) equipped smartphones arrived on the market, we’re seeing all kinds of location based phone applications springing up.

Recently I’ve been playing with two of these services – Foursquare and Urban Spoon to find there are some lessons for businesses in how these products work.

These services are terrific at telling you where the nearest cafes, service stations or places of interest are, although at the same time I’ve noticed how inaccurate some of the business locations can be.

Often, particularly in the case of Foursquare, the wrong spot has found its way into the system because customers have taken a guess at the address, added the details while on the way to or from the business or just simply got the location wrong. Which can be awkward, particularly if your competitors are closer to the incorrect location.

So it’s worthwhile getting your businesses address correct on these services. Fortunately, it isn’t as hard as having to track down every single one of these new services and spend hours plugging your details into them.

The most important single service is the Google Local Business Centre, as many of these location based services use Google Maps. Every business should be on this already as the listing is free and the information also feeds into Google search results. If your organisation is correctly listed here, it will appear in all Google searches for your product in your neighbourhood.

Microsoft are in this market too with their Local Listing service which feeds into Bing results in a similar way to Google’s service. Like Google Maps, it’s free and listing only takes a few minutes.

The traditional advertising medium for most Australian small businesses has been in the Yellow Pages. Sensis also offer a free listing which will get you in their maps and directories (although to get a priority listing you’ll need to pay more).

So check your details are correct on all these services, it only takes a few minutes and given most customers, particularly in the business-to-business markets, use the web to research potential suppliers you’ll probably pick up a few customers just by having the right details online.

With mobile internet usage expected to overtake desktop surfing in the next few years, it’s critical your details are correct on these phone applications which customers are going to increasingly rely upon.

How marketing and business are interwined

Entrepreneur magazine discusses changing your definition of marketing. While Dan Kennedy has some good examples of businesses that have used tools such as membership and market positioning to grow, I’m not sure they can be treated as marketing.

Entrepreneur magazine discusses changing your definition of marketing. Dan Kennedy has some good examples of businesses that have used tools such as membership and market positioning to grow, but I’m not sure they can be treated as marketing.

All of the examples; Starbucks, Disney, Florida timeshares, barbers and gourmet pizza shops illustrate some great business models which is exactly what they are; ways of doing business that engage the customer and sell a better product.

The marketing aspect is simply telling the story of why the business is better, unique or why it does something so well.

One of the problems with marketing is it’s often about telling porkies, not about describing the product or why the business is unique. This type of marketing fails when the customer finds they’ve been sucked in.

In the past, big brands have been able to get around this by using mass media to shout it louder and stronger on the idea that if you repeat the lie often enough, people will believe it.

Marketing is part of your business DNA, you have to tell your story to get business. The key is to be telling a true story based on your product’s strengths.

The new business tools

Probably the biggest highlight of a fast, hectic 2009 was November’s X Media Labs in Sydney which illustrated just how the world is changing as a result of new media channels, faster Internet and more powerful computers.

The organisers of X Media Labs, Brendan Harkin and Megan Elliot, describe it as “a meeting place uniquely designed to assist companies and people get their own creative ideas successfully to market, through concept development, business matching, and direct access to world-class networks of creative professionals.”

Brendan and Megan held the first event at the Sydney Opera House in 2003 but have since relocated to Shanghai. The Chinese connection was strong with the guest speakers including property developers and social media entrepreneurs.

Wang Xing, founder of Chinese social networking sites, Fanfou and Xaionai impressed everyone with the size and growth of the Chinese Internet market. It left no doubt where the eyeballs and where the wallets will be as we continue into the 21^st Century.

More challenges were presented by Zheng Xaioping, founder of property developer BAZO, who went through the growth of Chinese cities and the directions government and investors are taking within those cities.

A local success was Zareh Nalbandian of Sydney’s Animal Logic who showed some behind of the behind the scenes footage of Happy Feet and a US advertising campaign for fast broadband featuring a jet engine assisted shaved rabbit. It illustrated how exciting, quirky and innovative work is being done in Australia.

To show the US isn’t out for the count, Susan Bonds, president of 42 Entertainment, showed how bringing together many strands of the online digital media tools created a massive alternative reality game for the movie Dark Knight.

Probably the most exciting presenter was Professor JoAnn Kuchera-Morin from the University of California’s Santa Monica Nanotechnology Allosphere. Her talk, a version of which is on the TED website, showed the possibilities in the new economy as arts, science and technology come together.

Not everybody has the resources of the US National Science Endowment, a big movie studio, or the Chinese government to support their projects, but as Brasserie Bread showed a few months back you can create a buzz using some of these tools quickly.

That’s the challenge for all of us over the Christmas break – to figure out how we can harness the power and opportunities the second decade of the 21^st Century is going to present us.

Riding the hype cycle

Despite the Google Phone only existing in a couple of photographs, the device is making headlines as the new “iPhone killer” and there’s no doubt early adopters are asking “should I wait for this new phone?”

It’s a tough life on the bleeding edge – the life of an early technology adopter features long days breathlessly waiting for the next hyped up product with short periods of extreme disappointment when the latest uber toy fails to live up to the marketing promise.

To explain how hype works in the tech sector, the consultants at Gartner invented the Hype Cycle. The cycle explains how a typical product is released in a wave of publicity that drives it to the “peak of inflated expectations”.

Eventually the bubble pops and the widget plunges into the “trough of disillusionment” where users either abandon it or suffer the taunts of their friends and workmates.

Over time, those persistent fans find what the widget does well and it begins to crawl up the “slope of enlightenment” as the believers convince others the product really is good for something.

When enough people accept the widget as the best tool for a certain job it settles on the “plateau of productivity” where it happily sits until a better mousetrap comes along.

In reality some widgets move faster than others and not all make it over the peaks and plateaus. A look at the 2009 cycle shows some products that have taken a decade to approach the peak of inflated expectations while others have simply been abandoned by their makers or the market before they’ve completed the journey.

For business owners, most focus on the tools that have reached the plateau of acceptance. This is partly because wasting time on a new device that doesn’t do what it’s supposed to squanders an entrepreneur’s scarcest asset.

The other main reason for avoiding hyped products is they carry risk and most business owners have enough risk in their lives to satisfy even the most adventurous tech warrior.

None of that means we shouldn’t be looking at new gadgets and ideas – the world is moving fast and those who don’t adopt new technologies and concepts will be left behind. But just be a bit careful of the hype and unrealistic expectations of what the latest new thing can do for you.

Quality: The essential ingredient

So it’s worthwhile thinking about the raw materials in your business. Are you providing your customers with a quality product? Or is your only selling proposition cheap, cheap, cheap?

“We can’t pay for speakers, we have to cut costs!” said the conference organiser when asked if the day’s presenters were being paid for their time.

Most of the event’s sessions featured speakers who were at best going through the motions. Thankfully no-one on stage had a book, training course or a box set of DVDs to sell.

The sad thing was the event itself was a great idea and the organisers have a genuine belief and passion for what they are doing, but I’m not sure that came across to the day’s participants.

What this showed is how important quality raw materials are to a product or service and if you skimp on materials, you end up with an inferior product. in the case of conferences and conventions it’s the speakers who are the materials.

This is as just as true in any business and if you’re in a market where there are lots of inferior products, and there is no shortage of third rate conferences out there, then you just commoditise your product.

Every day we see this in the technology industries – cheap, me too products and services that have no differentiation from the competition except on price.

So it’s worthwhile thinking about the raw materials in your business. Are you providing your customers with a quality product? Or is your only selling proposition cheap, cheap, cheap?

The basics of service

Cathy’s saga shows how people skills are as important as competency when you’re running a service business. You need manners and respect to match your skills.

Of course, if you don’t have any skills to start with, you might want to consider doing something else.

Recently I wrote about the things you should look for when choosing an IT service provider. Shortly after writing that column I caught up with Cathy (names changed to protect the guilty) and found out what happened in her search for a tech.

The results weren’t pretty and the reasons why are a lesson for anyone in a service industry. Let’s start with the most fundamental.

Respect
I find it hard to believe I actually have to write this, but I’ve seen it too often myself. Cathy’s first computer tech treated her with contempt and didn’t listen to her problem and needs.

You might think your clients are beneath you and maybe you are right. After all, that dumb customer doesn’t know how to use a mouse, fill in a BAS, fix a cistern or carry out root canal therapy.

But that dumb customer also pays your wage, so quit the attitude and show some manners and respect.

You should also respect your competitors, a point I forgot in last week’s column. Scoffing at the previous guy’s work is bad form and good clients will show you the door if they have any sense.

Competence
Don’t take on jobs you don’t understand. This is particularly common with computer techs who have a habit of saying: “yeah, I can fix anything” when a client calls.

In Cathy’s case she had a Windows 2003 Small Business Server which superficially looks like Windows XP but is a very different beast under the bonnet. The tech was experienced enough to know better.

Funnily, the tech I referred to Cathy declined the job because he felt her requirements were outside his skills. If the first guy Cathy called had shown the same humility and competence it would have saved everybody a lot of distress.

Appearance
In an industry known for cowboys, wearing boots that would look straight out of Rawhide is a big mistake. Clients are conservative creatures and many will turn away if you are too different to their expectations.

Dress how a customer expects you to dress- an accountant wears a suit, a computer tech has the blue shirt, dark pants combo and a bricklayer wears a pair of stubbies revealing more than you care for when the brickie bends over.

When you’re in an industry where people are afraid of being ripped off, showing up in a flash car confirms their fears. Leave the Porsche at home and show up in a cheap hatchback, the things are easier to park anyway. As you’ve probably guessed, Cathy’s tech drove up in a Mercedes.

Billing
Last week I advised avoiding the “no fix-no fee” crowd. However, that’s different from standing by your work.

If you’ve screwed up, as Cathy’s tech did, then bleating: “I sweated for you” is plain silly. If the customer is unhappy, waive or discount the bill.
Sure, sometimes you end up copping the pain when an unreasonable customer complains but billing issues are a reliable early warning a client is going to be a major pain. Refund their money and get them out of your lives.

The story does end well though. Finally Cathy found someone who was polite, competent and barely raised an eyebrow when they saw the mess made by the first tech.

Cathy’s saga shows how people skills are as important as competency when you’re running a service business. You need manners and respect to match your skills.

Of course, if you don’t have any skills to start with, you might want to consider doing something else.

Saving your technology relationship

Like it or not, your businesses is married to technology and often that marriage is not a happy one. Tech support is like a counsellor to your IT relationship; a good one will save you a lot of drama, stress and tears.

When a friend asked about changing IT support for her organisation last week I had to give the question some thought as switching service companies isn’t something you do rashly.

The first problem she presented was price. She was worried the quotes she’d received and the hourly rates were more than her own charge out rate.

On that front the advice is simple – get over it. Your doctor and plumber charge more than most peoples’ hourly rates and a good tech will save you a fortune in therapist and data recovery charges. So we’ll leave price to last and look at the other factors;

Confidence

Do their staff inspire confidence? The truth is support is as about trust mort than it is about competence. You have to trust the tech with your valuable data and systems.

The first step in establishing confidence is how they answer the phone. Are they polite, informed and prompt to return calls?

If they don’t care about you when you make a sales enquiry, you can be pretty sure they aren’t going to be helpful when you have a computer disaster.

So if you don’t like their phone manner, look elsewhere.

Presentation

They say looks don’t count for much. They are wrong when it comes to support.

Tidy, well dressed techs and a well presented web site indicate a business that takes itself seriously and is more likely to treat your needs as important.

Curiosity

Every business is unique in its own way and a good support company will ask lots of questions when arriving at a new site. Confidence inspiring questions include your business objectives, how you use technology and where it is currently frustrating you.

Questioning along those lines indicate people who want to know where technology fits in your business and how you can get the best return on your investment. Techs that ask those questions are worth a lot to you.

A good tech isn’t a “yes” man or woman. If your brother in law who knows something about computers has suggested something truly stupid then a trustworthy advisor will point you in the right direction rather than just agree with you. So take polite disagreement as a very good sign.

Training

It never ceases to amaze me how the tech support industry doesn’t train people. The vast majority of techs don’t get formal training and most support companies, particularly at the SME level, give their staff little preparation for new systems.

This means lower charges for you, but lousy service. Which is another reason why price should be the last of your concerns. Ask your prospective support provider what training they give their staff.

Outrageous claims

Be careful of silly claims. One of my favourites was a dodgy business a few years ago that claimed “all our technicians are qualified computer programmers” which is the same as an electrician advertising “all our staff are licensed forklift drivers”.

A similar thing applies to “no fix, no fee” claims. Avoid any company advertising they won’t charge you if they can’t figure out the problem as you’re paying a new operator to learn on your system.

Claiming to support big corporations is often the mark of a new, naïve business. Usually that indicates the owner once worked as a contractor for a company that setup that BigCorp’s desktops. Treat those claims with disdain unless it is a big support outfit with accordingly high charges.

24/7 service and two hour callouts are fair enough if you are prepared to pay for them. Be careful though when dealing with smaller support outfits as they can struggle to meet these promises.

Charging structure

Unethical support companies love the large billing unit. So avoid companies that charge in 30 or 60 minute blocks as these encourage techs to pad out basic jobs. A fair unit is ten or fifteen minute periods

The best plan for a business is a regular support contract which includes a basic level of services per month. These often include a base number of technician’s hours, either onsite or remotely. Review the hours regularly as you can overpay for time you don’t need.

Price

Finally we get to where most clients fall down. Good support companies that train, support and reward good staff have high overheads and the corner cutters will always be substantially cheaper.

You should be prepared for rates in excess of $150 an hour, with discounts for bulk purchase and fixed fee support contracts, the longer you are prepared to enter into a contract for the better the discount.

By all means shop around but don’t fixate on price, the company that charges $180 an hour to provide a qualified, experienced tech is far better value than outfit charging $60 an hour to provide a part time student working for beer money.

Don’t be surprised or offended if the really good support companies tell you they can’t help. Many choose businesses they can help and decline those who they don’t believe are a right fit for their skills. If that happens, ask them if they know of someone who is a better fit for you.

The relationship between technology and business is often complex, but its not one most businesses can neglect. Make sure you’re investing the right people and expertise in your systems.

Why innovation rises during a recession

Steve Lohr in the New York Times looks at how innovation rises in downturns. Are the various stimulus packages a roadblock to innovation?

Steve Lohr in the New York Times reports R&D budgets increased for 900 of the United States’ 1,000 largest corporate spenders on research and development.

What stands out is how patent applications rise during economic downturns with an increase of 25% in the 1929-32 period. Steve goes on to point out;

The Depression years yielded fundamental advances in technologies of the future like television, nylon, neoprene, photocopying and electric razors, according to the Thomson Reuters analysis.

A similar trend is true around later, far shorter recessions, when basic work on personal computing and later Internet-related technologies were done.

In this respect, economic downturns are necessary as they clear out the old, inefficient industries and allow new ideas and businesses to take hold.

While governments had to do something to avoid a massive depression when the capital and trade market froze in late 2008, is the propping up of debt laden industries like banks, housing companies and auto manufacturers going to act as roadblock to new ideas and businesses?

Just a thought.

The Depression years yielded fundamental advances in technologies of the future like television, nylon, neoprene, photocopying and electric razors, according to the Thomson Reuters analysis.

A similar trend is true around later, far shorter recessions, when basic work on personal computing and later Internet-related technologies were doneThe Depression years yielded fundamental advances in technologies of the future like television, nylon, neoprene, photocopying and electric razors, according to the Thomson Reuters analysis.

A similar trend is true around later, far shorter recessions, when basic work on personal computing and later Internet-related technologies were done.

The value of communities

Businesses are just as much a part of the community as individuals. Cherishing and growing your businesses community of friends and supporter can reap big dividends.

Sydney’s Growthtown evenings are an irregular gathering of entrepreneurs discussing challenges facing fast growth businesses, and always a stimulating night with founders telling how they dealt with issues as diverse as setting up US operations, finding investors and exiting a successful venture.

Last week’s event featured Marketing Angels’ Michelle Gamble explaining how she uses the brand pyramid to help her clients and Kylie Little, founder of Essential Baby, describing the journey from a business idea to exiting from a big business buy out.

Kylie’s story of Essential Baby’s early days resonates with anyone who has started a business after the arrival of a baby. It’s always a relief to find you’re not the only one who thought it’s possible to run a business while your blissful cherub sleeps contently for most of the day.

In many ways, Essential Baby’s story describes the dream exit for many entrepreneurs, or at least most venture capital funders, with the website being bought out by Fairfax.

Interestingly, Kylie’s tale about what happened after a big organisation bought her business has some similarities to Lars Rassumussen’s experience of Where 2 Technologies’ absorption into Google.

The cultural shock of moving from an independent start-up to being part of a bigger organisation is huge and the problems can’t be underestimated. So there’s a lesson on being careful what you wish for.

One part that shone through both Kylie and Michelle’s presentations was how important communities are to a business. It’s often easy to think businesses are stand-alone entities, proudly independent of the world around them.

In reality every successful businesses relies on groups of supporters, be they customers, suppliers, financiers or just simply fans. Businesses need communities just as the community needs them.

Communities aren’t just generated by Twitter followers, witty blog entries or clever search engine optimisation, it takes credibility, honesty and doing the right thing by those around you.

So who are your communities and what are you putting into them? You may find those groups are your business’s most important assets.

The new global businesses

The business of going global is even easier than before. Services like Magcloud, Createspace and remote access tools are making it easier than ever to get a product out to the world.

It’s old hat to point out the internet is changing business and globalisation is making the world smaller. But last Tuesday I saw three businesses that showed just how profound these changes are.

That Tuesday morning Mark Fletcher’s Australian Newsagency Blog had a post about the Strange Light Magazine, a collection of photos around Sydney during the recent dust storm.

Some notable points about Strange Light – it was self-published in 31 hours using HP’s Magcloud, the photos were all sourced from Flickr and Derek Powazek, the publisher/author, did everything from San Francisco.

Publishing on demand using services like Magcloud and Amazon’s Createspace is worthy of many blog posts in themselves. Derek’s story of Strange Light on his own blog is a terrific step-by-step guide to creating a self-published magazine. Notable are his points about obtaining permissions and proof reading.

It isn’t one-way traffic between California and Sydney, Australians are also doing business in the US without leaving home. The same day I read the Strange Light story, I had a coffee with Andrew Rogers from Sydney’s Anchor Systems, who set up a new data centre for US-based developer management system, GitHub.

All of GitHub’s hardware is in the US and their new data centre equipment came completely bare, without operating systems or software. Andrew’s team was able to build, configure and test the systems from their Sydney office.

The fact GitHub were prepared to accept a quote from a business 11,000km away and have full confidence the job could be done from across the world shows just how distance no longer matters to forward-thinking enterprises.

Finally, that day I managed to catch up with an old contractor who now runs a remote support business for homes and small offices. You call him and he logs into your computer to fix the problems.

Nothing particularly special there except he operates out of Thailand. So he gets to run an Australian business from a Phuket beach hut. He has business he enjoys without sacrificing the lifestyle he wants.

These entrepreneurs are showing how the globalised economy is really working. Each are using freely available tools that allow individuals and small teams to offer their talents across the world.

You might want to have a look at the tools which are revolutionising your industry, you can be sure your competitors around the corner and around the world are already doing so and might soon be offering innovative new ideas to your customers.

Growing your business with Tweetups

Like most social media meetings in any big town these days, people from all walks of life gathered to meet and become more than just a Twitter handle or obscure forum name.

It’s hard to resist the offer of a free sandwich in Sydney’s Hyde Park on a beautiful spring day, so a“tweet up” offering was always going to be successful.

Like most social media meetings in any big town these days, people from all walks of life gathered to meet and become more than just a Twitter handle or obscure forum name.

Any idea that your average internet user is a pasty, overweight, underemployed 20-something is quickly dispelled as you meet all sorts of interesting people who are doing interesting things.

The hundreds of “tweet ups”, coffee mornings and social media dinners across the land are creating new networks which are changing business and society.

This is opposite of the stereotype being used to reinforce the mindset that blames the internet and social networking sites for everything from schoolyard bullying through to street riots and arrested brain development.

Over the last few days we’ve been treated to stream of stories about the views of professors and researchers detailing how the world and our minds are being destroyed by the internet.

My favourite is an English professor currently visiting Australia who claims computer game addled 20-something market traders may be responsible for the global financial crisis.

Perish the thought that good old-fashioned greed and hubris, the cause of every market crash since the Bronze Age, may have had something to do with the GFC.

The weekend press mentioned the professor applying for a study grant from an American university to prove her theory.

If that is true, it’s a shame the she didn’t take the time to check out the Twitter hashtag to join us for a sandwich in Hyde Park.

Had she done that she’d have had a nice sandwich, caught some sun and seen her theory disproved.

She would have met a far more diverse group than a bunch of stuffed shirts huddling in a cosy lunch club, desperately trying to validate their deliberate ignorance of the changing world outside.

It’s those stuffed shirts, along with their newspaper columnist friends, who are isolated. By choosing to demonise the internet and ignore the opportunities social media tools present, they are being left behind in a fast changing world.

The options for entrepreneurs and business owners are clear – you can lock yourself up with the stuffed shirts and rage about your dying business or you can use the net to help your business grow. The choice is yours.

Buying friends online

Over the last few weeks we’ve been treated to the running saga of a Brisbane-based service fighting the big social media sites over their claim to have thousands of rent-a-followers available for businesses wanting to build a quick fan base. The whole idea of this sort of business baffles me as I can’t see where the benefit lies in buying a Twitter or Facebook following.

At school, kids who tried to buy friends always found it ended badly. There is little reason to believe things are any different for grown ups running a business.

The whole idea of this sort of business baffles me as I can’t see where the benefit lies in buying a Twitter or Facebook following. The only scenario I can think of is where somebody is trying to boost the value of a business to a gullible buyer on the basis of how many Twitter followers the enterprise has.

This sort of thinking is a fallacy – social media isn’t some sort of contest to boast how big your following is, it’s about being part of a community that trusts and values your contribution.

If you’re really trustworthy and have something useful to offer then a community will grow around you. Buying followers runs counter to that as it shows you’re not really trustworthy and what you have to say offers so little value, you have to pay others to be your friends.

Noone has to be on Twitter, Facebook or LinkedIn and it isn’t compulsory to have a blog or even a website. As useful as all these services are, they remain simply tools to get a job done.

When your business has to buy fans, it’s worthwhile asking if social media offers the right tools for your company, as the best thing that will happen is you’ll be ignored.

If you have to stoop to gaming the system, then perhaps it’s quicker and easier to stick to traditional forms of advertising which offer less risk and will probably be cheaper.

The most popular kids in the playground didn’t have to buy friends, while those who did found their friends didn’t last. The same applies for businesses.

In a world where a few blog posts or tweets can expose an untrustworthy business you need to have genuine fans and friends.