Get the Word Out- Using Public Relations to Promote Your Business

Bill Corbett Jr., President of Corbett Public Relations, Inc. wrote the following article for Kensington Comapny & Affiliates.  We are happy to share the article with you.

Few business owners want their businesses’ to be known as “the best kept secret” in their industry.  If you own a business or manage one the goal is simple, grow and make a profit.  To grow businesses owners need to communicate regularly with their customers, prospects and referral sources who can impact the bottom line. 

Does your company have the best product in your sector?  Does your business offer industry leading services with innovative approaches?  Do clients benefit more when they choose to work with your firm versus engaging your competition?

If you answered “yes” to any of these questions or perhaps all of them your marketing program should contain a public relations component.  Marketing a business can be done in many ways, all have their benefits and drawbacks.  E-mail and direct mail campaigns bring customized messages directly to specific individuals.  The problem is that direct mail is expensive and yields low results.  Marketing via e-mail is less costly but must be personalized and reach many prospects to be effective.  While, advertising brings messages to millions, the cost is very high and consumers often mistrust advertising claims.  For professionals, speaking at seminars and networking both offer the chance to communicate directly with prospects.  The drawback is that audiences are often very small.  

This brings us to public relations, the process of working with the media to get your message out to key audiences.  Public relations program objectives are to build name recognition for a company, product or service, educate prospective customers and inform referral sources.  All of these efforts support a company’s overall marketing goal, which is to create more leads, support sales teams and drive sales.

What is public relations?  Public relations is a systematic approach of placing stories about companies, products or individuals in the media.  Examples include a review of a new electronics product in a magazine, an interview with a labor attorney in a newspaper about a sexual harassment case or a live television broadcast at a music festival.  In each case the media is used to attract attention to a specific business. Whether it is selling a product, promoting a service or seeking to bring consumers to an event, each of these vehicles will accomplish the objective.  Although being in the newspaper one time or doing a radio interview is helpful, a public relations program seeks to position a company in a mix of media outlets over time.  Programs will include different messages designed to reach key audiences.  Over time, prospective customers will become more familiar with products and services as well as the company’s name.  When prospects are comfortable with a company or brand name they are more likely to be receptive to choosing the company’s products or services when it comes down to making a decision for a purchase or entering into an agreement.
 

Media relations programs lead to publicity in newspapers, magazines, on television and on the web.  With the explosion of the internet, opportunities for publicity have become almost limitless.  The internet is where most people start looking for products and services.   Failure to have a web presence beyond your own website in today’s business world is a competitive disadvantage.  Media relations is one of the best and most cost effective ways to get your company name out on the web and spread it around the world.  The more websites, blogs or online communities where articles, interviews and information about your business can be found, the more likely potential customers will be able to find your business.

The value of media coverage should not be overlooked.  Because media coverage comes from independent third parties it is often regarded highly by customers and prospects.  When reporters offer their independent views on products or services, consumers perceive this as a tacit endorsement.  This type of coverage carries a significant value and strengthens corporate credibility.  When competing for a contract or a customer, having a sales package that includes articles that have appeared in the media can be a significant advantage.  

Today media coverage comes in many forms; regardless of the vehicle, having been covered by the media provides the recipient with tremendous value which will positively impact the bottom line. 

This article was provided by Bill Corbett, Jr. President of Corbett Public Relations, Inc., an award winning public relations and marketing firm based in New York.  Mr. Corbett has developed hundreds of publicity campaigns for clients over the past 20 years.  He can be reached at wjcorbett@corbettpr.com or visit his website www.corbettpr.com.

Marketing as a Customer Driven Process

Kensington Company & Affiliates offers this marketing advice prepared by the New York State Small Business Development Center.

 

The American Marketing Association defines marketing as the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives. 

Marketing includes diverse disciplines like sales, public relations, pricing, packaging, and distribution. In order to distinguish marketing from other related professional services, S.H. Simmons, author and humorist, relates this anecdote, "If a young man tells his date she's intelligent, looks lovely, and is a great conversationalist, he's saying the right things to the right person and that's marketing. If the young man tells his date how handsome, smart and successful he is -- that's advertising. If someone else tells the young woman how handsome, smart and successful her date is -- that's public relations."

Marketing is all about the art of persuasion.  In business, there exist individuals who want to make money, and marketing is finding those people to persuade to purchase their good or service. Without identifying the right customers, a small business with the greatest product on Earth is destined for failure. 
 

The four P’s of marketing, product, price, place (distribution), and promotion are very much alive.  Though it may seem counter-intuitive, good marketing isn’t about finding the right product and to promote it at a good price at the right time.  Rather it is about finding those customers who will need or want your product and will go out and purchase it.  In terms of the four P’s then, it is the customers that should be the driving force behind them. 
 

What are your customers' needs? What do they expect to get when they buy your product or use your service? The right product is the one that best fits their requirements. People who eat in restaurants want more than a good meal. They might expect value, quick service, beer and alcohol, a vegetarian menu, a children's menu, entertainment, a drive through window, or to be identified with a trendy crowd.  It becomes a difficult and probably an unprofitable venture trying to satisfy everyone's needs.
Once the customers have been identified and listed their expectations, a small business can design its product or service around their requirements.  Too many small businesses owners are in love with their ideas, and they should be. After all, why would anyone commit their energy, life savings, and no small part of their sanity to anything less than a consuming passion. Because entrepreneurs are passionate about their idea, product, or service, they innocently assume other people will feel the same. Here's the bad news, it just doesn't work that way!
 

People have their own unique perceptions of the world based on their belief system. The most innovative ideas, the greatest products, or a superior service succeed only when you market within the context of people's perceptions.
 

Once you have identified your customer and listed their expectations, you can design your product or service around their requirements. The more you fulfill your customer's expectations, the better the quality of your product. Think of your product or service as more than just what the customers pays for. When you are planning your business consider how the whole transaction meets the customer's needs.
 

So what is a small business owner to do?  Plan, plan, plan. A good marketing plan can help you focus your energy and resources. But a plan created in a vacuum, based solely on your perceptions, does not advance the agenda. That's why market research, however simple or sophisticated, is important.   The Small Business Development Center can assist entrepreneur’s with creating an effective marketing plan in order to locate their customers to insure success. 

Prepared by Ritu S. Wackett, Senior Advisor
New York State Small Business Development Center
Farmingdale State College

Financing in Today’s Economy, Beauty is in the Eyes of the Beholder!

Beauty is in the eyes of the Beholder!!!  What looks bad in the eyes of one institution may look good to other companies that have the flexibility to be more creative. 

Due to regulatory requirements banks must be conservative and generally do not lend to companies with consecutive years losses, capital deficiencies and those that are too highly leveraged.  The good news is that there are many non-traditional financing sources that are very creative and flexible and specialize in distressed and special situations.  These Beholders see beauty in a Company’s collateral.  These lenders include asset-based lenders, real estate lenders, inventory lenders and leasing companies.  Other Beholders see beauty in the credit worthiness of a Company’s customers.  These lenders include factors, and companies that specialize in purchase order financing, trade finance and inventory financing.  There are even finance companies that will advance funds against streams of periodic and balloon payments one expects to receive over time or in the distant future.  Examples of these payment streams include; lottery winnings, tax refunds, structured court or insurance settlements, inheritances, annuities and royalty payments.

There are also many Beholders that will make equity investments in a company.  Venture Capitalists (VC’s) like to invest in start-up companies with a new proven product or service that has demonstrated customer acceptance.  VC’s look for unique products/services with huge market potential.  They frown on “me too” products that lack barriers of entry and protection of intellectual property.  There is a group of Beholders often referred to as “Angel Investors”.  These Angels tend to be very wealthy individuals who seek to invest seed money in start-up companies often overlooked by VC’s.  Angels often like to invest in companies that are in industries in which they have experience.  Angels will generally invest less money than VC’s.

Other Beholders that make equity investments are groups that specialize in buying or investing in “troubled companies”.  To these Beholders or “Opportunistic Investors”, the more troubled and the more problems the better, as a small investment can result in a significant ownership percentage in this scenario.  A troubled company with few remaining problems may not be as attractive as a company that still has numerous problems as there is less upside potential after fixing the few problems that may still remain.

While Opportunistic Investors take risks with troubled companies, there are still other types of  Beholders that prefer successful companies that require additional assistance to get to the next level.  These Beholders are referred to as either “Equity” or “Buy-Out” groups.  These Groups seek companies that operate under constraints that often hamper their growth.  These constraints may include, lack of adequate capital for expansion and growth, limitations on managerial or operating resources, excessive financial leverage or poor capital structures, or neglect from parent companies that no longer deem a division or subsidiary important.
This Beholder’s goal is to identify these constraints, alleviate them, and fund the opportunity to unlock its potential value. Thus, the goals of these Groups is to take an already "good" company, limited by financial or operational constraints, and make it a "great" company. 

There is another group of Beholders called “Mezzanine” lenders.  Mezzanine lenders are riskier than commercial banks and asset based lenders as they are not the “senior” lender and therefore are not in the first position with respect to a company’s collateral.  In the case of a liquidation, a Mezzanine lender would only be entitled to collateral after the senior lender is made whole.  To compensate for this risk, these Beholders charge very high interest rates and are often given warrants to purchase equity in the companies they invest in.  Mezzanine lenders will give a company the right to buy back equity at a hefty price.  These Beholders are expensive due to the additional risks they take. 

The process of raising capital is very complex and time consuming.   When company personnel devote too much time to this process they often take their eyes off of running the business.  Companies should consider using financial consultants to assist in managing this process for their company from start to finish. Remember, Beauty is in the eyes of the Beholder!  An experienced financial consultant will know where to find the appropriate Beholders for the appropriate situation.

__________________________________________________________________________________________
Kensington Company & Affiliates would like to thank Neil A. Seiden for contributing this informative article.

Neil A. Seiden, Managing Director, Asset Enhancement Solutions, LLC
neil.seiden@assetenhancement.com - 516-767-0100 – www.assetenhancement.com

Startups Need Defined Goals. And Deadlines.

Startups Need Defined Goals.  And Deadlines.
Contributors:
Lucille Wesnofske, Director
Small Business Development Center at
Farmingdale State College
Doug Boyce, Director,
Small Business Development Center at Binghamton University

Sitting on the fence is not living on the edge.  For start-up businesses, the clock begins to tick as the idea begins to form.  One of the most difficult processes for any start-up businessperson is turning an imaginary concept into an action plan.  “How do I get from A to B?” is the common question.  And, by the time a would-be entrepreneur has made the decision to go for it; the dream may have become obsolete either through technological advances or even new local competition.  If the decision is to proceed, there are goals that must be defined.

In the United States, about 675,000 new businesses are created each year.  Unfortunately, more than 80% of start-up businesses do not make it to the fifth year.  The primary reason is lack of planning.  Dreams evolve into goals with the development of a business plan.  This concept of business plan can not be overly stressed.  It is a road map, a timeline and a deadline.  It is a feasibility study in which dreams are broken down to nuts and bolts.  It is a working document which requires periodic review and revision as the business progresses.  Too many entrepreneurs fail to develop and follow specific short and long term realistic goals – the business plan. 

Most successful entrepreneurs are self-motivated, energetic, creative, visionary, profit–oriented, above average in communication skills and controlling.  Although these characteristics have a positive impact during the conception and birth phases of development, several can become negatives if not recognized for what they are.  Entrepreneurs have a tendency to need to be in control and many have difficulty in delegating.  They go into business and quickly lose focus as they become all things rather than concentrating on core competencies. It is important that a full self assessment of skills be done to help recognize what areas are weak and will need outside help.  i.e.  The entrepreneur may be strong in marketing and weak in finance.   Staffing needs should be identified.

Competition is always underestimated.  A startup businessperson may not realize how difficult it is to convince customers to change vendors or how deeply entrenched competitors are in the marketplace.  An analysis of the market will help determine if there is sufficient unfulfilled need.  A product or service must have a “unique selling proposition” that differentiates it from the competition.  The startup businessperson must answer the question “Why should I do business with you rather than your competitors?” 

Other considerations in setting realistic goals should be: prior experience in the type of business being started; family requirements and expected support; the economic outlook for the industry as a whole, and the personal sacrifices the startup businessperson is willing to make.

Finally, of all other things considered, cash flow is the most vital component of any startup.  Few new businesses are properly capitalized and most do not realize a profit through the first or even second years.  Capital sources can vary from personal equity, to friends and family, to lending institutions.  Lack of oversight or sloppy control of expenses can choke any startup business and prior to raising outside capital, an accurate assessment of capital needs is required.  Planning cash flow needs and sources should warrant a separate section of any startup businessperson’s plan.

Wesnofske is Director of the Small Business Development Center at
Farmingdale State College and can be reached at
SBDC@farmingdale.edu or 631-420-2765


Boyce is Director of the Small Business Development Center at Binghamton University and can be reached at sbdc@binghamton.edu or 607 777-4024

Control, Don't Cut Costs

 Control, Don’t Cut Costs
By Gregory Bavaro

In these times of economic woe, controlling costs is essential to the survival of your business.  When sales are down and expenses are up, we as entrepreneurs are forced to take a closer look at how we can run our businesses more efficiently.  This simple analysis can do so much more than get you through this recession; it can create a windfall of profits when the economy rebounds.

Many “old school” business owners, all too often, focus on cutting costs.  This can be detrimental to your business, and it is important to know and understand the difference between cutting costs and controlling them.  When costs are cut, quality and service are sacrificed and your customers suffer.  As a result, you lose customers.  Loss of customers equals loss of sales forcing you to cut more costs and creating a vicious downward spiral ending in another store available for rent.  However, if costs are simply controlled, you are able to maintain the same service and quality your customers know and expect while spending less to do so.

Easier said than done, right?  Wrong!  It’s simple.  Open up your checkbook or general ledger, whether you use Quickbooks or a composition notebook; take a look at your expenses.  Start with your biggest numbers.  If you are in a service business it will probably be your payroll, utilities, and rent.  What can you do about these?  You’re already short-handed, and neither the local utilities nor your landlord want to negotiate. 

First, stop letting your business run you for a moment and take a look around.  Is your business really short-handed or is it just you?  Look at your staff.  Are all of your hourly employees really necessary at all times they are present or can their shifts be staggered so they only overlap during peak hours?  What about your salaried personnel?  Are they managing their time properly or are they robbing you blind?  (I could virtually guarantee that time is the most pilfered asset in your business.)  Take a look at their computers (hint: check their internet history).  I’m sure there are plenty of more productive tasks they could have been performing instead of all that online shopping and personal emailing.  In addition, this might not be the right time to dole out raises.  You’d be surprised at how well you staff will handle a pay freeze when tens of thousands of jobs a month are being cut nationwide.
Concerning utilities, rates may not be negotiable, but you’d be surprised how helpful the local gas or electric company can be when you express interest in an onsite consultation on preserving energy.  They will send an expert out to your location and inform you as to how your energy costs can be drastically reduced.  In addition to the money you will save, your customers will be thrilled to hear you’ve “gone green” to help save the environment! (Make sure you capitalize on that one too!)  With regard to your rent, contrary to popular belief, most landlords are reasonable businesspeople.  They would much rather renegotiate a lease to retain a reliable tenant and continue receiving rent than sit with a vacant space.

If you’re a seller of products as opposed to services, take a look at your suppliers.  If you can buy from other suppliers, through co-ops or direct from manufacturers, do it!  There is no doubt that keeping your suppliers honest will save you more than any volume discount.  It doesn’t matter how many “rebates” and “discounts” you’re receiving, that is just your suppliers’ way of saying, “thanks for paying too much for the products you’ve been buying.”  It is important that the products you are purchasing are less expensive, not cheaper.  Also, eliminate items that aren’t selling. 

Simplify your operation and trim the fat, too.  In every business there are some luxuries you just don’t need and now is the time to find them.  If it doesn’t generate income or improve your service, you don’t need it.  Assess the services you pay for.  Can any of them be performed by your employees?  Some people enjoy cleaning, landscaping, and even doing repairs.  If there is someone in your organization who can help out with some of these tasks, not only can it save your business money, but it can also make employees feel more secure in their position.  If an employee can pick up a couple of extra hours performing a task they enjoy, it can break up the monotony and boost morale. 

The list goes on and on, and controlling costs becomes addictive.  Stay in discount hotels while traveling and compare airfares and car rentals.  Join business associations to receive group discounts on insurance.  Sublet any unused space you may have.  Cater meetings in-house instead of in fancy restaurants.  Shop shipping rates, webhosting, etc.

Controlling just your top three or four expenses can keep you out of the red and in the black right now.  As your competition falls by the wayside and your business grows, you will soon be rolling in the green. 

What You Should Know About Buying a Food Franchise

What You Should Know About Buying a Food Franchise
By DAVID STEIN

If you have the capital, there is no better time to buy a franchise than right now. While many potential franchisees dream of owning their own restaurant franchise, there are a few things to note prior to venturing down the path of franchising.

IS RESTAURANT EXPERIENCE NECESSARY?
My experience says yes, especially for those wanting to buy into the major brands. Some lesser known concepts may be willing to overlook this, specifically if you have extensive experience in corporate America on the management side. But major brands, especially the ones seeking multi-unit candidates, are looking for some type of restaurant managerial experience.

The food business is a management business. Having management experience is important, especially in dealing with unskilled labor (vast majority). If you have mastered management at some point in your career, you have an edge in opening your concept. Your hands-on education will also be valuable in your selection of the right manager to operate your location and future locations.

These days many major brands only want multi-unit operators. This means you, and your management staff, will be responsible for potentially hundreds of employees (based on owning 3-5 units). You must have the ability to improvise when someone calls in sick or quits. These are headaches business owners face daily. Understanding how restaurants operate will ease the execution of your team, which will become much smoother as you become a more established franchisee and restaurateur.

IS MULIT-UNIT OWNERSHIP THE BEST ROUTE?
Multi-unit operators strike franchisors as their top option when looking for franchisee candidates. For franchisees, taking the multi-unit road is also the most financially sound. When you become a single-unit franchisee, it will take longer to reach financial freedom (if that is what you are looking for).

This brings me back to my first point – the need for restaurant experience. With restaurant experience, and a good manager in your first location, you will be set up for continued success, as that manager can become a part of your multi-unit development team. That manager can then manage two locations as you focus on finding your new real estate, extended financing options, and marketing your business.

Multi-unit goals will impress franchisors and will set you up, if done right, for better success and a better exit strategy.

WITH THE DOWN ECONOMY, IS FINANCING STILL AVAILABLE?
Financing is more difficult to come by than it was a year ago, but for the major brands, banks are still somewhat friendly. If you are joining a lesser established restaurant concept, you should be prepared for a longer fight for financing. Banks will look at your plans similar to how franchisors will. Banks want to see restaurant experience. They want to see long-term goals. They want to make sure you are set up for success so that you will eventually have the best chance of returning their loan.

DO I NEED REAL ESTATE EXPERIENCE?
If you have it, it will help you to understand location and lease negotiations. Experience is the key word in venturing into restaurant franchising. The more you have, the easier business operations and growth will be. In my days at Dunkin’ Donuts, we found that the best candidates for new development were the ones who understood at least the basics of real estate and construction. We also found that the best candidates were the ones who had good partners. It was always attractive to us, the franchisor, to see two sides of a team: one that understood real estate and construction, and one that understood operations.

If you have limited real estate experience, franchisors, in most situations, will hold your hand throughout the real estate process, but you will have to rely on your own skills to make the best real estate decisions. And the good thing about today’s economy is that landlords are hurting too. They are coming down to reality and are bending over backwards to have major brands fill their spaces. Think about that when you start your brand search.

EVENTUALLY I WILL SELL MY CONCEPT, HOW DO I PREPARE FOR THE END?
Every good beginning has a great end. Your plan should include an exit strategy. Sure, you will want to build your 3-5 units to the top, but then what? Think about the end sale. Think about setting your franchise empire up for the end.

Keep in mind it is much easier to sell a franchise that has brand awareness and name recognition. You will have a much bigger pool of applicants when selling an established concept. However, if you choose to go with a relatively new brand, remember, if you use your experience and your success and continue to connect with your consumers through strong local store marketing, you can be influential in taking your younger brand to an established brand. This will be big as you eventually look to mature your concept portfolio by becoming a multi-unit/multi-concept franchisee.

Tips For Successful Cold Calling

Being successful in sales as in most things, requires two key ingredients- a good attitude and positive energy. We have all heard the expression attitude is everything. That saying could not be more true then when engaging a prospect in a sales process. No one likes working with people who have a negative attitude. Attitude is contagious; if you are upbeat and positive this will help create positive, upbeat relationships with your prospects.

 It is, however,  difficult  to be positive and upbeat day after day when you are in sales. After all sales is rejection and hearing ”NO” all day can wear on even the broadest shoulders.

If you are a telephone sales warrior, there are ways to help keep your energy and attitude upbeat and positive throughout  the day. Kensington Company & Affiliates offers these three tips to help keep your head in the game:

Make your difficult calls first:   If you have challenging or difficult calls that you need to make, make them early in the day. I think of those calls much like the dreaded visit to the dentist. If you have a dentist appointment in the afternoon, you spend most of the morning feeling anxious and unfocused. Make those challenging calls early in the day when you’re full of positive energy and then you can quickly put them behind you and move on with your day. . 

Break up your cold calling:  The law of numbers says you are going to hear more “No’s” then ““Yes’s” when calling. And that’s only when you actually get someone on the other end of line vs. the endless voicemails you leave all day.…. Break up the cold calling,  and reach out to prospects that you know are tracking in your process so you can get some engaging conversations into the mix. You will have rejuvenated energy after speaking with a live voice that is appreciative of the information that you are passing along.

Motion creates emotion: Stand up, get out of your chair, pace the floor,  do what ever you need to do to get your blood flowing. No one wants to speak to someone who has no pulse, no energy and no passion. If you are half dead on the phone, you are creating a situation for the prospect on the other end of the line to reciprocate that low energy. Be upbeat, it is contagious and your prospect will instantly feel that energy.

You have the power to change your attitude and energy. They are easy simple steps that can be embraced and brought into your sales process that will help keep momentum moving.