September 22, 2009
Social Media & the Beatles are Just a Fad…
Social Media has the power to change the world. Or at the very least, the small business owner’s world. I was at a Social Media event recently and heard this question: “How soon can I expect to see ROI for a social media campaign?”
My initial reaction was, “What investment? Social Media is FREE.” But as I thought more about it, I wondered if the real underlying questions was this:
“Is Social Media really worth the investment of my time?”
Consider these Facebook statistics:
- More than 300 million active users
- 50% of active users log on to Facebook in any given day
- The fastest growing demographic is those 35 years old and older
Now compare Facebook stats to American Idol’s 2009 Statistics:
- The American Idol finale averaged 28.8 million and a 10.0 rating among adults 18-49
- The 2009 American Idol finale draw was 40 million people for the last 7 minutes
It costs Huddle Productions $1 per day to advertise our FSN show, Gameday Rivals on Facebook. It costs us nothing but time to post an article or respond to a question on LinkedIn. The cost for a thirty second ad on American Idol? $900,000+ in 2008.
Is $900,000 worth the investment? Absolutely. There are reasons why the corporate conglomerates have hundred million dollar ad budgets. It is an undisputable fact that advertising works. So how can small business compete with the big dogs? In the past, they couldn’t. With Social Media they can.
Big companies are scrambling to figure out how to leverage Facebook and YouTube to reach audiences who are turning more and more to on-demand content for entertainment. Or worse: they are denying that social networking is a threat to their business model.
Would it surprise you to know that some corporate giants dismiss Facebook because they think it is just a fad? They could be right. Then again, that’s what they used to say about Rock & Roll… and if by fad they meant that forty years later the Beatles would be producing the hottest toy for Christmas….count me in.
Social Media levels the playing the field. Why is this good news for small business? Because kicking off a Social Media campaign is easy, cheap and truth be told, fun.
Almost too much fun. Tweeting and blogging hardly seems like work – but I can attest that at Huddle Productions, our Social Media strategy is bearing fruit. What’s it worth to you to have an opportunity to reach 150 million customers EVERY DAY? What about having the ability to slice and dice that demographic until you know for sure that you are only promoting your product to customers who are mostly likely to buy what you’re selling?
My humble opinion is this: The big dogs are over thinking it and making Social Media way too complicated.
Entrepreneurs have the definite advantage over big business in this arena. They are used to rolling up their sleeves, jumping in & taking a chance.
The true value proposition of Social Media is this: Small Business owners now have a way to get the attention of consumers who were previously distracted (and frankly dazzled) by dancing Polar Bears and talking Gnomes.
Licensed under a creative commons share-alike. Use freely and link to huddleproductions.com
For the Love of Sushi…
I am fanatical about Sushi Sake. They have the best sushi in the Dallas Fort Worth Area. Period. In fact, they are the best sushi restaurant I have ever been to, including the chic sushi bars I’ve frequented in Los Angeles, New York and Houston. My brother tried to convince me that “Sushi on McKinney” is better. Some of my friends really like “Blue Fish.” But not me. I am a die hard, perpetually loyal, absolutely raving Sushi Sake fan.
What would it take for your customers to be this fanatically loyal to your company?
Sushi Sake is a great example of what to do to gain & retain a strong customer following. Their business model shouldn’t work – but it does. I’ve never seen an advertisement for Sushi Sake. Their location is difficult to find. They refrain from marketing blitzes, gizmos and gadgets. They don’t offer discounts, happy hour or customer loyalty points.
So what are they doing right?
They deliver a high quality product at a reasonable price. And they keep doing it over and over again.
It is that simple.
The chopsticks are of a slightly higher grade than ones offered at other restaurants. The staff is always efficient, professional and polite. The sushi is of impeccable quality, and I’m told that they even have some of it flown in first class from Japan. The ice cream is always fresh and delicious. Their prices are reasonable. The décor is traditional and the ambience has an almost zen like quality.
They were viral before viral marketing was a thing. I found out about Sushi Sake via word of mouth about nine years ago. Back then they were in a small, unassuming retail space off Campbell Road and 75. The seating was limited, the restaurant was always crowded – but the sushi and the service was superior.
I was hooked.
Now they are in a much larger space off of Collins near their former location. Their new place can only be described as, well, stealthlike. One has to actually be looking for the restaurant to find it. I went to Sushi Sake last night and as always, I left feeling very content and completely satisfied. I’ve come to expect these things from Sushi Sake – and they NEVER disappoint.
- High quality
- Consistent service
- Affordable prices
Can your customers say the same things about your business?
If so, well done. I suspect you have customers like me, who obsess and wax poetic about your company.
If not, well, maybe it’s time for an honest assessment of where you can improve. Here are a couple of suggestions to get you started:
- Read the book, “Raving Fans” by Ken Blanchard & Sheldon Bowles. This little gem offers a practical, no nonsense approach to converting your customers to raving fans.
- Read Ray Silverstein’s article on entreupreneur.com, “Four Ways to Gain Customer Loyalty” (His article is the anti-thesis of mine – he discovers a favorite restaurant that is, well, lacking. Sorry Ray! Next time try Sushi Sake….)
(By the way, if you’re looking for Sushi Sake, don’t be fooled by Sushi Sake’s competitor on Campbell, who include the words “Sushi, Sake & Steak” on their sign. The real Sushi Sake is at 2150 N. Collins Boulevard in Richardson.
July 16, 2009
Do You Really Know What Your Selling?
Want to get a jump start on your Business Plan? Start by describing exactly what you are selling and what you are not selling. Sounds simple, right? It’s harder than you think.
Huddle Productions would have missed a revenue opportunity if their plan only focused on marketing the company’s core product: selling sponsorships for shows they produce & televise. The seven time Emmy award winners began dabbling in online videos & social media as something to do between seasons. Huddle Productions is able to quickly produce compelling video for small businesses because they have an extensive background in broadcast news. Adding it to their official product offering was a no-brainer.
Need help deciding what business you’re really in? Try these tips:
- Avoid defining your product in terms of the value it brings
- Describe the product & services you sell
- Identify the product & services you don’t sell
Avoid describing your product in terms of the value it brings. Disney doesn’t sell magic, memories & happiness – they sell theme park tickets, hotel accommodations and very expensive t-shirts, among other things. Magic and memories are strategies Disney employs to market their products. Why is this important? Try doing a competitive analysis on the sale of magic & memories.
Describe the products & services you sell in clear, direct language – but don’t under think it. If you blithely state that you sell widgets, it would be hard to believe. Does anybody just sell widgets these days? Think about Sprint – they sell widgets, and service plans for widgets, and accessories for widgets, and insurance plans for widgets and – just in case you’re not having enough fun with your widgets – they sell applications for widgets. Is there an additional product or service that your company already offers to customers? Is this something you should be marketing?
Identify related products & services that you don’t sell. Why is it important to know what products the company does not sell? In this economy, diversification is tempting when customers are asking for services that we’re not accustomed to offering. Sprint can afford to introduce and managing multiple revenue streams. Can you? Before jumping into a new line of business, take some time to analyze the opportunity before investing time and money.
- Is there a market for the product?
- If you pursue the opportunity will it distract you from your core business?
- Is it a natural fit for your background and talent?
A thorough and honest evaluation of what business you’re really in can save you money and time. Your business plan will start to take shape once you’ve clearly described what you are actually selling.
July 14, 2009
Is Writing a Business Plan a Waste of Time?
We’ve all heard the familiar mantra: write a business plan or plan to fail miserably. Business failure is a scary thought, but who has the time to produce a business plan? After all, isn’t this business planning activity taking time away from actually making money? Producing a business plan can feel like a frivolous exercise, especially if you are not applying for a bank loan. The endeavor can be overwhelming and confusing even with the aid of software and templates. The real truth is this:
- your business can flourish without a written plan
- it is very possible for your business to fail even if you have a well defined plan
So why bother? Here’s why: your chances of success will increase exponentially if you spend some time mapping out a strategy.
Imagine taking a road trip from Texas to Washington State without a map or a clear plan. Much like in business, you know what the ultimate goal is, you have a general idea of how you’ll get there, and you even know how much money you can afford to spend. Can you succeed without a roadmap? Absolutely – but be prepared to throw money at any of the inevitable problems that will arise. (Sound familiar?) It is also likely that the trip will be exhausting, expensive, stressful and overwhelming – much like in business.
Having a business plan is like having a solid roadmap for your business. You’ll write about where you are going, how you are going to get there and you will identify the possible obstacles that could prevent you from reaching your goal. You’ll spend time thinking about how your cash will flow: you’ll identify when and how the money is coming in and you’ll determine ahead of time when and how the money will be spent.
Your business plan does not have to be overly complex. It should at minimum include a marketing plan, competitive analysis and financial model. A successful plan will also include a strategy for keeping your plan current and measuring results. One of the best resources for generating and refining your business plan is the SBDC http://www.sba.gov/aboutsba/sbaprograms/sbdc/index.html. They have templates and resources available to guide you through the process. Another great resource is the SBA online library for documents & information: http://www.sba.gov/tools/resourcelibrary/publications/serv_pub_mplan.html
Still unconvinced? Read Tim Berry’s article, “15 Reasons You Need a Business Plan” http://www.entrepreneur.com/startingabusiness/businessplans/businessplancoachtimberry/article83818.html
