FDIC: Dodd-Frank Permanently Raises Insurance Coverage to $250,000
The FDIC reminded bankers yesterday that the Dodd-Frank Act permanently raises the current standard maximum deposit insurance amount to $250,000. That coverage limit applies per depositor, per insured depository institution for each account ownership category, the agency said. The standard maximum insurance amount of $100,000 had been temporarily raised to $250,000 until Dec. 31, 2013.
Thursday, July 22, 2010
Monday, May 24, 2010
Spring Training- Practice Makes Perfect
Similar to baseball teams’ spring training to prepare for the regular season, the successful business needs to prepare for success through strategic planning exercises. A comprehensive strategic plan is your business’s game plan and should contain measurable actions that can be scheduled, practiced, observed, coached, and perfected.
This article is the second in a 3 –part series on strategic planning. Last month, with help from inspirational quotes by Paul “Bear” Bryant and Yogi Bera, the importance of strategic planning for your business was stressed. This month will focus on general guidance on how to create a plan. Next month’s article will demonstrate another correlation to baseball: businesses require not only the right plan but the right team and proper execution to win the game.
Batter Up. To get in the game, remind yourself of the purpose for which your company was founded, why it exists from the customers point of view, and then formulate a mission statement e.g.“We are committed to creating life time relationships with our clients that are based on mutual trust, respect, and the best customer service.” From the context of this overarching purpose formulate core values and beliefs of your business– the philosophy that guides your interactions and decisions as you carry out your mission.
First Base: After determining your mission, the first step in creating a strategic plan is to take a critical look at your business and determine exactly where you are as related to long-range goals and aspirations for the business. Yogi Bera comes through again with his own brand of brilliance regarding first steps. He said, “You can observe a lot by watching”. How true! An assessment of the current environment (market, competition, employees, and most importantly customer needs) serves as the foundation or starting point of the plan. A tool known as a S.W.O.T. analysis provides a simple formula to help identify business strengths, weaknesses, opportunities, and threats. Don’t make assumptions; instead, watch staff and customer interaction, seek input from staff, ask clients what concerns them about your product and what is most important in making decisions about purchasing your services, understand your competitors and what differentiates you from them, seek information. Once data is collected, document your S.W.O.T. findings to prepare for the next step –goal setting.
Second Base: Envision the future – set a course for where you are going in order to plot the best route for success. Yogi suggested that, “The future ain’t what it used to be.” Obvious? Perhaps for the future to really change, our notion of the future must change. The bigger the dream for what could lie ahead, the bigger the potential for what can actually be accomplished. Define specific growth, performance and financial milestones to be achieved along with dates for accomplishment. Understand the resources required to achieve the goals. Leverage the things that differentiate your business and make you desirable in clients’ eyes.
Third Base: Determine how you will get there. Review the S.W.O.T. analysis and set priorities in order to give form to a manageable execution schedule. Translate the priorities to logical short term goals. Create specific action steps including start and end dates, personnel responsible and a scorecard to track plan progress. Strategic planning consultant, Peter Drucker said, “What gets tracked and measured gets done.” In essence, the strategic plan is much like spring training – it needs to be scheduled, practiced, observed, coached, and then it will be perfected.
Spring is a time of new beginnings. Get into training now to strategically plan a successful future for your business.
Bring it HOME: Next month we will bring it home with the execution plan – the final step of readiness to “Play Ball”.
This article is the second in a 3 –part series on strategic planning. Last month, with help from inspirational quotes by Paul “Bear” Bryant and Yogi Bera, the importance of strategic planning for your business was stressed. This month will focus on general guidance on how to create a plan. Next month’s article will demonstrate another correlation to baseball: businesses require not only the right plan but the right team and proper execution to win the game.
Batter Up. To get in the game, remind yourself of the purpose for which your company was founded, why it exists from the customers point of view, and then formulate a mission statement e.g.“We are committed to creating life time relationships with our clients that are based on mutual trust, respect, and the best customer service.” From the context of this overarching purpose formulate core values and beliefs of your business– the philosophy that guides your interactions and decisions as you carry out your mission.
First Base: After determining your mission, the first step in creating a strategic plan is to take a critical look at your business and determine exactly where you are as related to long-range goals and aspirations for the business. Yogi Bera comes through again with his own brand of brilliance regarding first steps. He said, “You can observe a lot by watching”. How true! An assessment of the current environment (market, competition, employees, and most importantly customer needs) serves as the foundation or starting point of the plan. A tool known as a S.W.O.T. analysis provides a simple formula to help identify business strengths, weaknesses, opportunities, and threats. Don’t make assumptions; instead, watch staff and customer interaction, seek input from staff, ask clients what concerns them about your product and what is most important in making decisions about purchasing your services, understand your competitors and what differentiates you from them, seek information. Once data is collected, document your S.W.O.T. findings to prepare for the next step –goal setting.
Second Base: Envision the future – set a course for where you are going in order to plot the best route for success. Yogi suggested that, “The future ain’t what it used to be.” Obvious? Perhaps for the future to really change, our notion of the future must change. The bigger the dream for what could lie ahead, the bigger the potential for what can actually be accomplished. Define specific growth, performance and financial milestones to be achieved along with dates for accomplishment. Understand the resources required to achieve the goals. Leverage the things that differentiate your business and make you desirable in clients’ eyes.
Third Base: Determine how you will get there. Review the S.W.O.T. analysis and set priorities in order to give form to a manageable execution schedule. Translate the priorities to logical short term goals. Create specific action steps including start and end dates, personnel responsible and a scorecard to track plan progress. Strategic planning consultant, Peter Drucker said, “What gets tracked and measured gets done.” In essence, the strategic plan is much like spring training – it needs to be scheduled, practiced, observed, coached, and then it will be perfected.
Spring is a time of new beginnings. Get into training now to strategically plan a successful future for your business.
Bring it HOME: Next month we will bring it home with the execution plan – the final step of readiness to “Play Ball”.
Monday, April 26, 2010
The Game Plan of Winners
Creating a strategic plan seems like a daunting task and so, too often we rely on a “wing and a prayer” to meet our business objectives. Breaking the task into manageable bite-size steps can overcome the hesitancy to just do it.
This article is the first in a 3-part series on strategic planning in an effort to:
1) Demonstrate the importance of a strategic plan
2) Provide guidance on how to create a plan
3) Stress the role of execution
It is meant to help you tackle the project and hit one out of the park for your business.
Who comes to mind when the concept of strategic planning is discussed – Peter Drucker, Henry Mintzberg? I’ll bet it’s not Paul "Bear" Bryant, Alabama’s legendary football coach and it certainly isn’t baseball legend, Yogi Bera. Yet, these two sports standouts provided more salient thought on the topic than most other “experts” because strategic planning is really about having the right game plan in place combined with the right team members to execute the plays.
Bryant succinctly described his formula for winning this way: 1) Surround yourself with people who love football, 2) Recruit winners, and, 3) Have a plan for everything.
Business executives universally seem to understand the need to acquire talented employees and I’m sure in your office you have built a team of dedicated, competent, courteous professionals to care for your clients. But, the critical difference between winning and losing, between success and failure, between high performance and mediocrity is often dependent on your willingness and ability to define and execute an effective business plan. Indeed, Bryant’s comments sum up his feelings that good planning is the key to victory, "Have a plan. Follow the plan, and you'll be surprised how successful you can be. Most people don't have a plan. That's why it's easy to beat most folks."
For his part, Yogi came at the subject in his own inimitable way. Most of his comments sound idiotic at first, but his witticisms are actually very clever, full of insight, and very applicable to business. Yogi once said, “If you don’t know where you’re going, you’ll wind up somewhere else.” What a great argument for planning – setting a fixed direction and avoiding the inevitable drift that occurs when you don’t set a course in a fixed direction.
What both of these sports legends seem to know intuitively, and most of us have to learn is that only effective, efficient strategic planning can take your business to the level of performance you desire, especially during economic times as difficult and challenging as today.
But, just having a plan is not enough. Without incorporating a detailed set of tactics within the plan it will be difficult to execute. Further, the best strategic plan in the world won’t move your business ahead one inch if you don’t effectively communicate and reinforce it.
Having a strong plan for your business, means you and your employees know how their work contributes to a defined objective. The team will work together with energy and enthusiasm because they know how success is defined for each respective job and ultimately for the practice as a whole.
Yogi also said, “When you come to a fork in the road, take it.” In other words when you come to a place where you need to make a decision, don’t hesitate. Determine to develop a strategic plan, communicate it, reinforce it and your business will benefit from your discipline.
Stay tuned for “Spring Training” – guidance on how to create a plan…
This article is the first in a 3-part series on strategic planning in an effort to:
1) Demonstrate the importance of a strategic plan
2) Provide guidance on how to create a plan
3) Stress the role of execution
It is meant to help you tackle the project and hit one out of the park for your business.
Who comes to mind when the concept of strategic planning is discussed – Peter Drucker, Henry Mintzberg? I’ll bet it’s not Paul "Bear" Bryant, Alabama’s legendary football coach and it certainly isn’t baseball legend, Yogi Bera. Yet, these two sports standouts provided more salient thought on the topic than most other “experts” because strategic planning is really about having the right game plan in place combined with the right team members to execute the plays.
Bryant succinctly described his formula for winning this way: 1) Surround yourself with people who love football, 2) Recruit winners, and, 3) Have a plan for everything.
Business executives universally seem to understand the need to acquire talented employees and I’m sure in your office you have built a team of dedicated, competent, courteous professionals to care for your clients. But, the critical difference between winning and losing, between success and failure, between high performance and mediocrity is often dependent on your willingness and ability to define and execute an effective business plan. Indeed, Bryant’s comments sum up his feelings that good planning is the key to victory, "Have a plan. Follow the plan, and you'll be surprised how successful you can be. Most people don't have a plan. That's why it's easy to beat most folks."
For his part, Yogi came at the subject in his own inimitable way. Most of his comments sound idiotic at first, but his witticisms are actually very clever, full of insight, and very applicable to business. Yogi once said, “If you don’t know where you’re going, you’ll wind up somewhere else.” What a great argument for planning – setting a fixed direction and avoiding the inevitable drift that occurs when you don’t set a course in a fixed direction.
What both of these sports legends seem to know intuitively, and most of us have to learn is that only effective, efficient strategic planning can take your business to the level of performance you desire, especially during economic times as difficult and challenging as today.
But, just having a plan is not enough. Without incorporating a detailed set of tactics within the plan it will be difficult to execute. Further, the best strategic plan in the world won’t move your business ahead one inch if you don’t effectively communicate and reinforce it.
Having a strong plan for your business, means you and your employees know how their work contributes to a defined objective. The team will work together with energy and enthusiasm because they know how success is defined for each respective job and ultimately for the practice as a whole.
Yogi also said, “When you come to a fork in the road, take it.” In other words when you come to a place where you need to make a decision, don’t hesitate. Determine to develop a strategic plan, communicate it, reinforce it and your business will benefit from your discipline.
Stay tuned for “Spring Training” – guidance on how to create a plan…
Monday, March 15, 2010
The New Definition of Convenience…Enhanced by Relationship
It’s the modern-day driver of business improvement and has an impact on everything from business management to client interaction. Convenience is defined by expectation, influences how fast issues can be resolved, and is key in building a successful business.
The tools of the trade are heavily influenced by the demand for convenience by both entrepreneurs and their customers. In today’s fast paced society, we are all accustomed to instant gratification and real time results whether reviewing a customer order immediately or proposing an important relationship to a prospect. The expectation for the elusive convenience serves as the impetus for the development of services and products to support improved delivery. Today, computers and imaging technology deliver information more quickly and directly to the office. Customers experience faster, more accurate results. Appointment scheduling, order fulfillment and billing are processed at the push of a button. Technology can be our friend. But convenience is not just about technology and speed.
Convenience is also about a direct route to an empathetic listener rather than a voicemail prompt; a willingness to work through lunch to accommodate a client emergency; a knowledgeable and trustworthy referral for handling more of your clients business needs. In other words, having a relationship with a business or service provider who cares is convenient for the consumer. It saves them time, aggravation, worry, research, and maybe even money.
Business professionals like convenience, too. As service providers and often times business owners, too, convenience is a priority and has an enormous impact on quality of life. State of the art advancements in technology provide convenience and promote efficiency in customer care. And now, state of the art banking technology is available to manage your business more effectively. Banking can be done anytime – during evening or weekend office hours or at 6:00 a.m. – at the push of a button from your desktop.
“Remote Control Banking” is the term MileStone Bank uses to describe a convenient system they have customized for our business customers to help improve the bottom line. The special business package includes everything from free checking, free worldwide ATM access, courier service, online banking and online bill payment plus cash management to maximize cash flow. And now, with recent advancements in check imaging, MileStone Bank provides a safe and secure check scanning system to business banking clients so there is no need to leave the office to deposit checks – instead, simply log in to a secure, password protected website, feed checks into a special scanner, verify the total, and click “send”. It’s that simple and convenient and allows next business day availability for deposits made via Remote Control by 8:00 p.m. the previous night.
Just like technology is not the only definition of convenience for meeting customer needs, the same is true of business owner’s expectations for banking. Having a relationship with a knowledgeable, experienced banker who specializes in the business banking drives convenience as well. Amidst the changing financial landscape of today there is still a much desired need for personalized banking from a professional that understands economic and financial trends and the nuances of running a business. Nothing can replace the ear of a trusted business advisor when contemplating business expansion or the acquisition of another business or the voice of a personal banker to responsively meet operating account needs. At MileStone Bank, we bring the bank to you by coming to your office when needed; a real person answers your phone calls; a responsive banker services your requests promptly. So, take heart – you can have real time convenience and genuine relationship – still.
The tools of the trade are heavily influenced by the demand for convenience by both entrepreneurs and their customers. In today’s fast paced society, we are all accustomed to instant gratification and real time results whether reviewing a customer order immediately or proposing an important relationship to a prospect. The expectation for the elusive convenience serves as the impetus for the development of services and products to support improved delivery. Today, computers and imaging technology deliver information more quickly and directly to the office. Customers experience faster, more accurate results. Appointment scheduling, order fulfillment and billing are processed at the push of a button. Technology can be our friend. But convenience is not just about technology and speed.
Convenience is also about a direct route to an empathetic listener rather than a voicemail prompt; a willingness to work through lunch to accommodate a client emergency; a knowledgeable and trustworthy referral for handling more of your clients business needs. In other words, having a relationship with a business or service provider who cares is convenient for the consumer. It saves them time, aggravation, worry, research, and maybe even money.
Business professionals like convenience, too. As service providers and often times business owners, too, convenience is a priority and has an enormous impact on quality of life. State of the art advancements in technology provide convenience and promote efficiency in customer care. And now, state of the art banking technology is available to manage your business more effectively. Banking can be done anytime – during evening or weekend office hours or at 6:00 a.m. – at the push of a button from your desktop.
“Remote Control Banking” is the term MileStone Bank uses to describe a convenient system they have customized for our business customers to help improve the bottom line. The special business package includes everything from free checking, free worldwide ATM access, courier service, online banking and online bill payment plus cash management to maximize cash flow. And now, with recent advancements in check imaging, MileStone Bank provides a safe and secure check scanning system to business banking clients so there is no need to leave the office to deposit checks – instead, simply log in to a secure, password protected website, feed checks into a special scanner, verify the total, and click “send”. It’s that simple and convenient and allows next business day availability for deposits made via Remote Control by 8:00 p.m. the previous night.
Just like technology is not the only definition of convenience for meeting customer needs, the same is true of business owner’s expectations for banking. Having a relationship with a knowledgeable, experienced banker who specializes in the business banking drives convenience as well. Amidst the changing financial landscape of today there is still a much desired need for personalized banking from a professional that understands economic and financial trends and the nuances of running a business. Nothing can replace the ear of a trusted business advisor when contemplating business expansion or the acquisition of another business or the voice of a personal banker to responsively meet operating account needs. At MileStone Bank, we bring the bank to you by coming to your office when needed; a real person answers your phone calls; a responsive banker services your requests promptly. So, take heart – you can have real time convenience and genuine relationship – still.
Monday, February 22, 2010
CHOOSE RIGHT WHEN THE ECONOMY IS TIGHT
Business professionals know all too well that pulling together the most competent, caring and professional staff is vitally important to their growth and success. Equally important, but perhaps not as obvious is creating a team of knowledgeable, accessible and dedicated business partners. Not the type of partners that actually work at your company, but rather business partners such as attorneys, accountants, insurance agents and bankers. These relationships are the key to creating the business foundation from which your company is operated. Most business professionals have attorneys and accountants that were chosen through referrals and based on proven expertise. Unfortunately, all too often bank partnerships are chosen differently - based on geographic proximity or rates rather than effectiveness, shared business philosophy, and real value-driven convenience.
Developing and maintaining a relationship with the right banker has never been more important. An entrepreneur’s relationship with his or her banker is best when built on mutual trust and respect and based on value not price. The old adage “you get what you pay for” is applicable to most things in life and a business banking relationship is no exception. It may cost a bit more for a banker who is truly a valuable business advisor rather than simply an order taker, but it’s worth it!!!
Specific value that a banker can add to the business relationship, especially today, is to advise clients on how to choose the most appropriate financial services i.e. checking and savings accounts, and how to expedite the borrowing process for equipment loans, working capital lines of credit and mortgages to acquire offices, manufacturing or storage space or to start, purchase or expand your business. The right banker can allay fears and eliminate confusion that is compounded in today’s economy of tight credit.
Credit is absolutely available today (to qualified borrowers); and, the role of the professional business banker helps business owners demonstrate qualifications by guiding them through the credit process as outlined below:
· Be prepared to discuss the amount of the loan and its specific purpose (to purchase assets, consolidate debt, fund operating expenses, buyout a partner, etc)
· Identify desired loan repayment term and the collateral being offered to secure the loan
· Provide 2 -3 years of business and personal federal tax returns as well as business and personal balance sheet (personal financial statement) to facilitate the assessment of the financial condition of your business, past, present and projected future
Because lending money is all about managing risk, a good bank partner will evaluate risk completely and advise accordingly in the best interest of the bank as well as the prospective borrower. Beyond the quantitative information above, an experienced banking professional will also evaluate a loan request against the following qualitative criteria commonly known as “the 5 C’s of credit”:
1. Character – Business and personal character, integrity, reputation and credit history
2. Capacity –Sufficient business and personal cash flow available to make the payments and repay the loan
3. Capital –Sufficient business and personal cash for a down payment and for a cushion in case business gets slow
4. Collateral –Assets to secure the debt such as real estate, equipment, A/R or inventory
5. Conditions – Condition of the borrower, the borrower’s industry and the general economy
Make sure to choose your banking partner wisely. The right choice will ensure readiness that will improve chances for loan approvals and also provide guidance on smart structuring of deposit accounts and delivery systems to maximize business growth and success – even when times are tough.
Developing and maintaining a relationship with the right banker has never been more important. An entrepreneur’s relationship with his or her banker is best when built on mutual trust and respect and based on value not price. The old adage “you get what you pay for” is applicable to most things in life and a business banking relationship is no exception. It may cost a bit more for a banker who is truly a valuable business advisor rather than simply an order taker, but it’s worth it!!!
Specific value that a banker can add to the business relationship, especially today, is to advise clients on how to choose the most appropriate financial services i.e. checking and savings accounts, and how to expedite the borrowing process for equipment loans, working capital lines of credit and mortgages to acquire offices, manufacturing or storage space or to start, purchase or expand your business. The right banker can allay fears and eliminate confusion that is compounded in today’s economy of tight credit.
Credit is absolutely available today (to qualified borrowers); and, the role of the professional business banker helps business owners demonstrate qualifications by guiding them through the credit process as outlined below:
· Be prepared to discuss the amount of the loan and its specific purpose (to purchase assets, consolidate debt, fund operating expenses, buyout a partner, etc)
· Identify desired loan repayment term and the collateral being offered to secure the loan
· Provide 2 -3 years of business and personal federal tax returns as well as business and personal balance sheet (personal financial statement) to facilitate the assessment of the financial condition of your business, past, present and projected future
Because lending money is all about managing risk, a good bank partner will evaluate risk completely and advise accordingly in the best interest of the bank as well as the prospective borrower. Beyond the quantitative information above, an experienced banking professional will also evaluate a loan request against the following qualitative criteria commonly known as “the 5 C’s of credit”:
1. Character – Business and personal character, integrity, reputation and credit history
2. Capacity –Sufficient business and personal cash flow available to make the payments and repay the loan
3. Capital –Sufficient business and personal cash for a down payment and for a cushion in case business gets slow
4. Collateral –Assets to secure the debt such as real estate, equipment, A/R or inventory
5. Conditions – Condition of the borrower, the borrower’s industry and the general economy
Make sure to choose your banking partner wisely. The right choice will ensure readiness that will improve chances for loan approvals and also provide guidance on smart structuring of deposit accounts and delivery systems to maximize business growth and success – even when times are tough.
Monday, February 8, 2010
Time to Reflect and Refresh: Transitioning into 2010
What a year – one that most of us would not want to repeat. While 2009 certainly offered challenges, there were most assuredly events and people who made a positive impact for your business or for you personally. Reflecting on the positive generates thankfulness. Expressing thankfulness refreshes and creates new energy for the receiver and the giver. Your company may not be in the “smile business”, but why not start out 2010 by doing things that generate both emotional and physical smiles for your employees and customers. Showing your appreciation in kind little ways will help fuel grateful attitudes in the New Year.
Staff and customers always respond favorably to random acts of attention that are surprisingly received from the people that touch them throughout normal life (medical professionals, bankers, hair stylists, realtors, postal workers etc.). Admit it. Receiving something unexpected regardless of its value brightens the day. The traditional holiday greeting card only gets buried in a mountain of other mail, now that the new year is here consider doing something unique as tangible evidence of your appreciation. Reflect on what really matters, translate it, and share it.
A hand-written note to the families of your staff can express the value of their loved one’s hard work, dedication, and tender care of your customers and will have a long-lasting impact. The proud employee will truly feel appreciated and eager to face the New Year with a refreshed attitude and keener sense of commitment to you and the your customers – regardless of the economy.
Thanking your customers can also be done with a new twist that will touch their hearts - especially needed in our current environment. Consider an honorary gift (given in their name) as a way to show appreciation. For instance, brighten the smiles of U.S. soldiers serving overseas by shipping personal care packages along with small gifts and thank you notes on behalf of your customers. A special “Creating Smiles in the New Year” card can be sent to clients to communicate the initiative that was done as a symbol of your appreciation for them. Including your customers in this reflective and random act of kindness will help them feel like they’ve been part of something that matters and may refresh them enough to pass it forward and share kindness with others.
Mailboxes are filled everyday with bills and unwanted solicitations. What a pleasure it is to be the giver of a surprise “thank you”, regardless how small, to an unsuspecting staff member, customer, or soldier who may be a complete stranger. It brings as much joy to the giver as the receiver.
Best wishes for a New Year filled with Miles of smiles!
Staff and customers always respond favorably to random acts of attention that are surprisingly received from the people that touch them throughout normal life (medical professionals, bankers, hair stylists, realtors, postal workers etc.). Admit it. Receiving something unexpected regardless of its value brightens the day. The traditional holiday greeting card only gets buried in a mountain of other mail, now that the new year is here consider doing something unique as tangible evidence of your appreciation. Reflect on what really matters, translate it, and share it.
A hand-written note to the families of your staff can express the value of their loved one’s hard work, dedication, and tender care of your customers and will have a long-lasting impact. The proud employee will truly feel appreciated and eager to face the New Year with a refreshed attitude and keener sense of commitment to you and the your customers – regardless of the economy.
Thanking your customers can also be done with a new twist that will touch their hearts - especially needed in our current environment. Consider an honorary gift (given in their name) as a way to show appreciation. For instance, brighten the smiles of U.S. soldiers serving overseas by shipping personal care packages along with small gifts and thank you notes on behalf of your customers. A special “Creating Smiles in the New Year” card can be sent to clients to communicate the initiative that was done as a symbol of your appreciation for them. Including your customers in this reflective and random act of kindness will help them feel like they’ve been part of something that matters and may refresh them enough to pass it forward and share kindness with others.
Mailboxes are filled everyday with bills and unwanted solicitations. What a pleasure it is to be the giver of a surprise “thank you”, regardless how small, to an unsuspecting staff member, customer, or soldier who may be a complete stranger. It brings as much joy to the giver as the receiver.
Best wishes for a New Year filled with Miles of smiles!
Monday, September 28, 2009
“You Can’t Cut Your Way to Greatne$$”
What you believe will influence how you behave – true of many things – including beliefs about the economy and how you respond in your business. Recently an informal survey asked business owners their opinion of the U.S. economy and how it’s affecting them. Approximately one half of people surveyed expect the economy to improve over the next six months. Despite the continuation of the recession, many people feel the panic seems to be over. Improving trends in unemployment, national inventory, manufacturing and housing reports have provided a glimmer of hope for better times. Puzzling, however, is the fact that even though survey respondents feel confident their business will experience stability or small growth over the next twelve months, most of them cited their top priority is cutting costs. It is wise to cut the fat in today’s economy, but business owners should beware of cutting so deep that the business will bleed to death.
This is especially true when it comes to eliminating marketing efforts to save money. Amidst loss of jobs and the dismal economy, many customers choose to postpone or eliminate big purchases. By staying in touch with your customers, the importance of your product can be reinforced. You can stay top of mind with your customers by reaching out to them a minimum of 3 or 4 times a year. Simple contacts can be done inexpensively and will have an impact on customer loyalty and may even generate referrals to help your business grow.
If you’re struggling with cost-effective ways to stay in touch, start with the obvious by sending a hand written message vs. using generic post cards. Extend congratulations to new parents. Send a note to ask customer Jones how he is enjoying retirement. Have your office assistant review the local paper for customers that have made an accomplishment and send a note card with a few sentences to let them know you’re proud of them. Get creative with ways to stay top of mind and deep in the hearts of your customers.
While some businesses may find it counterintuitive to spend money (on marketing) while making less money building a business depends on building a “brand” which is a long-range strategy, not a short-term fix.
And remember…you can’t cut your way to greatness.
This is especially true when it comes to eliminating marketing efforts to save money. Amidst loss of jobs and the dismal economy, many customers choose to postpone or eliminate big purchases. By staying in touch with your customers, the importance of your product can be reinforced. You can stay top of mind with your customers by reaching out to them a minimum of 3 or 4 times a year. Simple contacts can be done inexpensively and will have an impact on customer loyalty and may even generate referrals to help your business grow.
If you’re struggling with cost-effective ways to stay in touch, start with the obvious by sending a hand written message vs. using generic post cards. Extend congratulations to new parents. Send a note to ask customer Jones how he is enjoying retirement. Have your office assistant review the local paper for customers that have made an accomplishment and send a note card with a few sentences to let them know you’re proud of them. Get creative with ways to stay top of mind and deep in the hearts of your customers.
While some businesses may find it counterintuitive to spend money (on marketing) while making less money building a business depends on building a “brand” which is a long-range strategy, not a short-term fix.
And remember…you can’t cut your way to greatness.
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