No Business Is Successful Right Away

Chances are, you’re going to fail a lot before you build a successful business. Everyone has heard the numbers before:

95% of all businesses fail within their first 5 years

If you know people who started their own businesses, they are probably just getting by or they have already boarded up and shut down their business. It’s just the reality of running a business.

Why Do Most Businesses Fail?
I’m sure that there has been plenty of research and analysis into why businesses failed but if you just look at it objectively, I think it makes sense.

  • Most new businesses are coming into an existing market and their competitors have a big head start on each part of the business
  • Any obvious profit opportunities have probably already been discovered and exploited by these competitors
  • Competitors in the market have real experience with what works and what does not
  • While the product is the most important part of the business, entrepreneurs need to know how to do everything in a business (accounting, marketing, sales, customer service) and there is a bit of a learning curve with these activities

You Don’t Know What You Don’t Know
One of the biggest things to remember when setting up your business is that you don’t know what you don’t know. As much as you plan, you can’t plan for things that you don’t know you need to care for.

You Need Money
One of the things that I get asked the most is how to take some of the first steps without any money. Unfortunately, I don’t think it’s very possible. With all of the mistakes that you make, you’re going to need money to help get you through the bad times until your business finds its way. Your competitors probably have more experience, more time, and more resources than you so you need some money to keep up with them.

The advantage that you have is that you’re more nimble and don’t have as much of a cost structure that they do. It is much easier for you to change direction until you find what works for you and your business. If you’re using your only resource, time, instead of money, you lose that nimbleness, your only advantage.

Some Businesses Get Lucky
Some businesses are successful when they start but this is usually because they were able to change their direction as they went. If you look back on them, they didn’t have the answer but they were able to buy enough time to figure out how to get their operation running successfully:

  • TiVo’s initial business model was based more around of the concept of being able to apply super-targeted advertising options to clients. Now, they’re more of a subscription-based option, which is much simpler than the original vision
  • Google was always a search engine from the beginning but there was never any plan on how they would capitalize on their search engine for several years. Even their Adwords program, which is their primary revenue stream, took several iterations before they got it to work successfully.

If you talk to just about any successful entrepreneur, I’m sure you’ll find that there original vision didn’t match up to what they became. There were changes that they made along the way to get to that point.

Accept that you will make a lot of mistakes (whether it’s multiple decisions in your businesses, or multiple failed ventures) until you gain the experience you need to be truly successful. And don’t be afraid to drop some of your ideas as soon as you realize that they aren’t going to work.

Keeping up with business rivals

It’s much, much harder than keeping up with the Kardashians.

No matter how gifted you are at your craft, someone somewhere is better. And it’s immensely depressing when you meet that someone.

I’ve just spent four days at one of the prettiest places on earth, thanks to a generous client. We were having what is called a moderation workshop. The author of a book, as well as a team of teachers, editors, and sometimes potential clients, sit together with the manuscript and point out the pros and cons.

It’s a very intensive process, and often, participants don’t sleep – which is ironic because you’re put up in the prettiest places, with the prettiest beds. My room, for example, was right at the beach, so I could hear the waves  and smell the fishermen. The resort also had a disco, seven pools, 25 water slides, go karting, and a gym … none of which I used.

Anyway, the people at the workshop were very, very good. They pointed out things that I’d never have thought of. They’re not quite rivals, since they don’t work freelance, but they had me reconsidering my vocation. It was like jogging with Usain Bolt.

Fortunately for me, these team members live far, far away, and we’re unlikely to fight over clients. But it did make me wonder about other freelancers within the same work pool.

In any field, you’ll have thousands of competitors. A lot of them will be better than you. But that doesn’t mean they have to earn more than you do. You just have to stand out. Find what Kelvin calls your Unique Selling Point.

When I first read that article, I got slightly depressed, because I couldn’t really think of one. But the thing is you don’t have to spot one. You just need to make one.

Case in point. My ‘rivals’ are brilliant editors. Yet the client included me in the team. Why? Well, for one thing, I’ve handled previous projects in the series, so I have some experience with it. Also, I’m a writer as well as an editor, so I can bring in some flair and creative license.

It might also help that I’m assertive, cheeky, and have purple hair. I admired the put-together look of a fellow editor – she’s so beautiful and stylish. She’s a total MILF, and you can’t tell she has teenage children. Although she’s a lot of fun, she’s quiet and reserved, and it takes some coaxing to bring her bubbly side out. Conversely, it’s easy to get some pep out of me, and when you’re working 12 hours straight for days in a row, it helps to have pep[si] in the room.

There’s someone else I look up. She’s efficient, professional, and very grown up. We recently got pitched for different parts of the same project. She won quality control, because she’s got that no-nonsense thing going. I got creative … mostly because I have purple hair. The client saw each of our selling points and used them to build a cohesive team.

As a business person, be sure to floss your USP. It could be speaking politely, finding out the kids’ names, getting some nail art, wearing a power suit, walking in rollerblades, or riding a bicycle to work. Find the one thing that makes you different from other people in your filed.

Me, I like nice people. I’ve often bought a basic product from a nice salesman instead of a perfect one from some guy with ATT.  So build that thing that makes you seem different. It could be what wins that tender.

Crystal Ading’ is a professional author, editor, rock lover and mother. Her work is available through www.threeceebee.com.

DukaPress

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Websites Are Overated

When setting up a website, it will be more profitable for you on the whole if you prioritize getting good content down before you go into the nitty-gritty of what the site should look like. Most people spend too much time worrying about how the site looks and fail to give the same attention to the content of the website.

Advertisement experts recognize the value of quality content. It is best to get your message out to people in a clear way so that they can understand. In the ad world, ads are constructed around a central concept. This concept must be translatabled into language your customers can understand before you even begin to elaborate on it. Unfortunately, many people spend too much time on fancy designs and features when they move into online marketing tactics. This is reflected when customers visit websites seeking more information about a good or service of interest and find the sites useless.

Since this is such a basic principle of advertising, it is difficult to know why companies have not integrated the formula of great content/good design onto their websites immediately after creating them. The best designed website in the world will fall flat if its content is nonexistent or poorly written. Especially when pitted against an ad with simply “good” copywriting.

So, why invest more time and effort into your content before you have constructed your entire website? People are sophisticated. By throwing up a smokescreen of flashy design and empty content you are ultimately discrediting yourself and your product, as your customers will be able to see through the show to the lack of content within. When people are making decisions about items important to their lives, they like to feel as though websites have informed rather than entertained them.

Also, writing is a solid foundation for anything online. Your main mode of interaction with your website-browsing customer is the content he or she is reading online. Think about it: would you rather buy from a website with beautiful graphics that offers no real information? Or would you rather buy from a website with rather plain design but clear and thorough information about its wares? In this situation, it almost seems as though the ill-designed website practices modesty while the well-designed website compensates for something (Kizuri cha jiuza, kibaya chajitembeza). Whether this is true or not, a customer’s perception that he or she is on firm footing when making a decision is paramount.

If you are not comfortable writing your own content, it can be easily accomplished anyway. Writers are there for hiring, whether you want to add one permanently to your staff or hire freelancers from project to project. It is usually best to hire a writer to work with your art people, or to use the same freelancers on a consistent basis. You must find a writer who understands the voice you want to have in your copy and who is able to put ideas in a way that explains them exactly how you would like. This is not always quick or easy to find. It is worth the expense and search, however, to have someone who is aware of your organization’s current and future goals and who is familiar with your staff.

Content is King.

Fundi wa maneno

I picked this line off some song by Jua Cali … I think … it sounds like something he would say. And it’s a fairly good description of what I do. However, being a fundi is rarely a compliment.

‘Fundi’ is a generic Kenyan term for anything from a tailor to a plumber. They usually work off the street, in little stalls, sheet-metal shacks, or low rent premises. They generally have a specialist trade, but they will fix anything. That’s why the furniture fundi owns a sewing machine, just like the tailor fundi and the shoemaker fundi. Similarly, the electronics fundi will claim to fix anything from your short circuited TV to your overflowing sewer system.

Being a yuppie fundi – like me – means I will willingly handle anything from transcriptions to instruction labels on a VCR. This can be good thing, because I’m versatile. But it can also go terribly wrong. Allow me to demonstrate.

My daughter is at an age where her shoes [and bags, and socks, and white stockings] need repair every day. So two days after I bought her Bata Prefects, I was at a fundi asking him to reinforce the stitchery.

He was drunk, did a shoddy job, and overcharged me. So even though I was unusually polite, and I chat with him every day, I’ve never taken him anything else to fix.

A few weeks back, the shoes were spoilt again so I went to a second shoe fundi. This one has a sewing machine. He made me wait a while as he conversed in vernacular. I understand the language quite well, but I didn’t join in.

Slight digression: when dealing with fundis, it helps to speak their language. They will claim you as one of their own and give you a better deal. Ignore this at your peril. Sadly, I am sometimes arrogant among ‘my own’. Mostly because I’ve seen the negative side of ethnicity, so I prefer to ignore it. I didn’t identify myself as ‘theirs’.

Despite the long wait, he did a good job, so I gladly went again.

On the second visit, I took a school bag to have the zipper fixed. Again, I ignored the language factor, and again I was kept waiting. This time, he charged me for a job he didn’t do – he struggled to fix the zip for ten minutes, concluded that it was impossible, suggested I buy a new zip, then didn’t refund my money. Hmph.

So yesterday I went armed with the new zip, the shoes, a jacket, and two more damaged bags. I budgeted 200. He quoted 250. I offered to sit and wait, he stubbornly declined. We compromised – I could sit and wait for half the work, then I’d come get the rest later. Fair enough.

Lesson two in Fundi Mangement is to sit there until your work is done. Firstly because everybody else does, so the moment you leave, the fundi will serve another sit-in client. Secondly because it’s extremely annoying, and will therefore get the job done faster. Nobody likes you watching while they work. Except maybe footballers. And porn stars.

I came back promptly at 3, and in true fundi fashion, the fundi told me that he was ‘almost done’ and that I should sit for just a few minutes. Luckily for him, I was in major PMS, so I lowered my head and grumbled on the inside, but I didn’t say anything out loud. Yet.

After maybe ten minutes, I asked him what was going on. He said his sewing machine was broken, so he had given my jacket to the fundi next door to mend. Fair enough. At least the shoes were done.

I waited ten more minutes before telling him to give me my jacket and I’d get it done elsewhere. He spoke through the wall – in the secret language that I fully comprehend – and asked his fellow fundi to hurry up. Then he went next door to see what was going on. I followed him.

The work hadn’t even started.

I calmly asked the man to give me back my jacket. He started to protest, but was instructed – in the hidden language – to comply, so he did. I then asked for the shoes, only to see my fundi pick them up and begin to stitch frantically.

Nkt.

He tried to calm me down, but I stood over him until he was done, yelling a few choice words in a voice far calmer than I thought I was capable of. The man was afraid, I could see that. I wonder how he’d react to my standard temper tantrum.

Actually, I wonder why I didn’t throw my standard temper tantrum. I must be getting old.

In the end, I took my barely finished shoes and my barely started jacket to a second fundi – who, again, spoke the secret language – and sat while she stitched it. She was all smiles at first, but hiked the agreed price halfway through because ‘the fabric was messing her machine’. I was too tired to argue.

A simple two-minute collection run ended up in an hour that was so frustrating, I ended up needing a drink.

When you run your own business, do not be mistaken for a fundi – ever. Be versatile, have affordable premises, provide many services, learn many trades.

But when it comes to delivering on time, having endless excuses and doing shoddy work, do not be the quick-fix guy.

We often go to fundis because we have no choice. I used three neighbourhood people and got equally disappointed. But I’ll keep going back to them because living with an almost-tween, I will constantly need stuff fixed on the cheap. That means I either buy new items all the time, or I go to the fundi since ‘I have no otherwise’.

But to thrive in your business, don’t be your customer’s otherwise – be their preference.

Crystal Ading’ is a professional author, editor, rock lover and mother. Her work is available through www.threeceebee.com.

Easily Replaceable Employees

If you’ve been running a business for any length of time in Kenya, you probably already know that it is extremely hard for a small business to get good employees. Yet, a business needs skillful and dependable employees to succeed. However, one of the keys to running a highly profitable and low-headache business is not depending on key individuals to make or break a business. While it would be nice to hire a bunch of overachievers to build and run your business, it’s a shaky strategy to rely on.

Searching for a Sales, for example, All-Star is not easy or cheap. The process to find good candidates and put them through the interview process can be very expensive and time-consuming. Even if you take months to go through a rigorous hiring process and think you found the person you were looking for, there is no guarantee that that person is even going to live up to expectations.

But let’s say that you do find that “diamond in the rough” – someone who is highly energetic and can bring in new business for you. You will have invested a decent amount of time training them and getting them ramped up. Everything has started running smoothly. Your new employee is bringing in a ton of new business and you don’t have to pay any attention to what they are doing or how they are doing it.

All of a sudden they drop a bomb on you. They got a better offer at another company and will be leaving in 2 weeks. You’re frozen in panic. You knew that it took 2 months to find this person and you were extremely lucky to find them. You went through 2 other people and wasted 8 months to get your “All Star”. Now you have to start all over again and be ready in 2 weeks. On top of that, you just kicked off a huge new marketing campaign that’s going to run but not have anyone to follow up and do the sales work. There is no way you’re going to be able to get new clients any time soon.

Enter The Real “All Star”
Here’s a slightly different situation for you. You’re tired of going through the crapshoot hiring process and praying that you get lucky and find a salesperson that can keep your business afloat. Instead, you decide to take matters into your own hands. You’re not going to rely on having the best talent, which is extremely hard to retain and keep happy. You’re going to depend on more readily available resources – lower wage employees.

How can your business do as well with someone who isn’t as talented compared to a rainmaker? Simple – you create processes that anyone can follow. You don’t leave your business up to chance. You create systems that you can constantly modify and tweak to make better and then you find people who can execute them.

Humans aren’t robots so you need to provide motivation to ensure that they do their job well. You can start providing incentive-based bonuses that are tied in with your revenues and profits so that everyone wins.

Now you have employees who are sufficiently motivated and happy because they are making more than they would with other similarly-paying jobs and you have turned a risk and a headache into a reliable and consistent system within your business.

What Kind of Systems Should You Put In Place?
Throughout this post, I’ve referred to salespeople when I talked about employees. That’s because they can have the biggest positive or negative impact on your business because sales and marketing for a small business has the biggest impact on the success of the business. And what we’re trying to avoid is the unpredictability that good and bad employees infuse into your business.

Your Sales and Marketing is the first part of your business from which you should remove the unpredictability of star employees. Here are some suggestions how to do that:

  • Create a Follow-Up Sequence that details every single contact you will have with leads from the day they become a lead, until a year later.
  • Write scripts and create every single marketing/sales piece that goes out to prospects. You should drive the sales message so that it’s not who gives it but what’s being communicated.
  • Add “Call-To-Action” in every sales and marketing piece that goes out. You shouldn’t have messages that say “are you ready to buy yet?”. They should spur on the prospect so they are calling to purchase from you.
  • Automate your sales presentations. Create web bases sales presentations that prospects can view at their leisure. This removes “bad days”, “being off your game”, etc. that affect even the best of employees. Nickel Pro can help with this, incidentally.
  • Create targeted marketing campaigns that deliver interested prospects. This way, you aren’t dependent on your employees ability (or inability to generate leads).

These are just a few examples of how you can replace highly skilled, valuable, but hard-to-find salespeople with replaceable, easy-to-find, and less expensive employees who provide the benefits without the headaches. Many of these ideas can be applied to your operations, customer service, and accounting. It’s all dependent on YOU setting up the repeatable systems that anyone can execute and not relying someone to just “get it done”.

Fake it Till You Make it

As a new business owner, one of the biggest problems that you’ll face is proving to new clients that you have the experience as a business to meet their needs. It’s just human nature. Everyone is careful with their money and they would rather go with a company that has a proven track record and not someone doing the work “on the side.” In some ways, it becomes a Catch-22. You can’t get clients until you have experience, and you can’t get experience until you get clients. As a new business, we faced similar problems and had some tough times getting clients for a while. We learned some “tricks” to make our business look bigger than it actually was – how to “fake it till you make it”, to borrow the saying

How to Make Your Business Look Bigger than it Really is

  1. Give Away Your Service for “Free” – This is a common piece of advice that you’ll see and something that I don’t really like, so we put a little spin on it. You don’t want to attract people who are just looking for a deal. It’s the wrong kind of client who will take advantage of you and never be happy with the service that you provide. However, it’s still a good way to get the credentials you need to refer to when selling your product or service to other businesses. What we did is give away our products to our clients at our “expense”. Usually, there was some sort of “Cost of Goods Sold” that we incurred and we told them up front about this. They were willing to pay this token amount because they knew it was still a great deal, and we got some money, and the test clients that we wanted. In fact, we often used these clients to test our product (again, we disclosed this too) so it was actually just part of product development.
  2. Hire a Receptionist – This is one of my favorite tricks that we used. By having someone answer all your incoming calls, your business suddenly gains a huge amount of credibility. Once businesses can support someone to answer the phones, most people will think that it’s successful. So what we did was hire someone at Kshs 10,000 per month to answer any incoming calls that we got. She would answer the calls and just e-mail us the messages or call us back if it was urgent. It didn’t take too much time for her and it was cheap enough for us. We just provided her with a mobile phone.
  3. Outsource your Work – One of the more subtle ways to look bigger than you actually are is to outsource your work and then refer to them when talking to clients. If a client is asking you to complete some work and you say “I’ll have to check with my designer to see when I can get that to you”, it sounds a lot better than, “I’m really swamped this week – I’ll try to get to it when I can”. You also can say that you have several people working in your business. Probably a little too much in the gray area, but if you’re asked point-blank and saying you’re a one-person shop won’t work, it’ll do. Even if you tell clients you outsource most of the work, it’s usually ok, because it sounds like you’re a growing business.
  4. Work with Partners – Besides coming with a stable full of qualified clients, one of the reasons that we wanted to work with partners when selling our products was that it afforded us the chance to build up our client list on our partners’ back. While we can’t refer to these clients directly when talking to prospects (or we just say that we have them through a partner agreement), we can still cite experience that we have working with clients.

Lying directly to your prospects isn’t a good idea because they’ll figure you out eventually. But if you can fake it till you make it by using the tips outlined above, you will find that it becomes much easier to attract new clients as prospects know that you are a successful business with a good track record.

How else can you fake it?