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Buyer beware: underhand pricing strategies

Flying Solo - 4 hours 12 min ago

After I recovered from the shock of the quote for some minor orthodontic work, I realised my orthodontist had used some very savvy pricing strategies on me, some of them not very ethical.

Deceptive pricing

I was presented with a hand-written note outlining the cost of the proposed treatment. At first, second and third glance it appeared to be around $2,000 (which I admit I thought was a lot of money). I repeated this figure out loud to the orthodontist and he sat absolutely still. I then systematically worked through the calculations, and gasped when I realised the quote was actually for $6,000. Again I queried the orthodontist, and he still didn’t move a muscle.

I repeated my question a second and a third time before he finally came out and agreed that the confusing hand-written numbers actually resulted in a proposed total for the work of $6000.

Personally I am not a fan of 'buyer beware' pricing, I like it to be plain and simple. Many successful (read ruthless) businesses employ this strategy to their profitable advantage, but I wonder how satisfied their clients are?

Price fixing

In shock I returned home and started ringing around for different quotes. Every single practice I spoke to quoted $6000. Of course they dressed the proposed cost up differently, but it still came back to the same original quote.

Cartel pricing or price fixing is illegal and can be reported to the consumer watchdog, but is difficult to prove – as in this case. I’ve got no evidence that the orthodontists are all in cahoots together, but you can understand why it smells a bit fishy, can’t you?

On the other hand, successful businesses are aware of what their competitors are charging and what the client is prepared to pay. Are you?

Divide and conquer pricing

The original quote was divided up into an initial consultation and a final consultation, with the remainder of the costs divided into monthly charges - even though we would only be seeing the orthodontist every six weeks!

This is a strategy in which the price is broken down into a seemingly insignificant amount, so that the whole procedure appears cheaper than it actually is. If you’ve ever seen anything advertised as costing 'less than a cup of coffee a day', you’ve seen divide and conquer pricing in action.

Pay for a quote

Although it was dressed up as the initial visit, I had to pay for the quote. This process actually made me reluctant to undertake proper price comparisons in case having more ‘initial consultations’ meant I was throwing good money after bad.

Interestingly the consultation was actually the pre-initial consultation; I still have to pay for the initial consultation!

Do you charge a flag fall when you provide a consultation for a larger project?

Share the cost

The orthodontist was quick to point out that my private health insurance would cover part of the cost, again trying to instil the perception that the procedure is cheaper than it actually is.

Are there factors that could offset your prices? Are their government incentives? Are there ways your clients can minimise your costs?

What do you think of these pricing strategies? Do you utilise any of them? What pricing strategies have you had success with in your business?

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The easy-entrepreneur boom

Flying Solo - 7 February, 2012 - 06:30

It’s a wonderful thing that we live in a time where the lure of the entrepreneur is at such a high. But is ease of access coming at the cost of creating businesses with staying power?

Cropping up all around our cities are fashionable and funky incubators and co-working spaces where shiny Macbooks whirr alongside takeaway lattes, smartphones and single speed bicycles. 

Sadly though, recent ABS stats suggest that while there’s an increase in new business registrations, there’s also a spike in closures. 

For anyone who’s been flying solo for more than a couple of years – and we know the majority of you have – you don’t need me to tell you that it takes much more than a spunky Wordpress site and a crowdsourced logo to create a business that puts food on the table week after week. 

I’m concerned that what looks like an easy-entry into the world of working for yourself is actually setting up a lot of our new found entrepreneurs for failure. 

What’s going to happen when the App doesn’t rock the world, when the trending on Twitter runs out of steam and the fandom on Facebook grinds to a halt? My guess is a couple more stabs at catching the wave, a bit more pressure on the credit card and a sheepish look through the job ads. 

But does this mean entrepreneurs shouldn’t give it a red hot go? Of course not. Passion is what got me started all those years ago and it’s a flame that burns strongly to this day. 

I am worried, though, that this trend is a version of the property investment boom where the dream being peddled is ‘build it fast, sell it for a motza’. 

To those who pull it off, fantastic, congratulations. To the greater majority who don’t, please don’t give up on the idea of flying solo. Instead take your time and develop something that will last. I know of around 43,812 individuals who are willing to chip in and help. 

What say you? Share your wisdom below.

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Get the IT support you've always wanted

Flying Solo - 6 February, 2012 - 06:28

Flying Solo's Member directory has over two hundred IT professionals, many of them offering a mobile service. Check them out and solve your IT dramas once and for all!


Check out the IT Support category of the Flying Solo Member Directory.

Or, see all categories here.


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Podcast: How to use blogging for your business

Flying Solo - 4 February, 2012 - 06:30

In this podcast discover how to make blogging a part of your marketing arsenal.

Tim Reid and Luke Moulton talk to Darren Rowse (AKA ProBlogger), one of the world’s most prolific bloggers on well … blogging! Listen in and you’ll discover exactly how to use blogging for your business.

About these podcasts: The Small Business, Big Marketing podcasts are characterised by plenty of banter between the hosts Tim and Luke who’ll typically kick off with nuggets of advice and tell shaggy dog stories as they warm up to the episode's topic. Sit back, relax and enjoy! And share your feedback below.  

Duration: 52 minutes 

Links to resources mentioned in the show: http://smallbusinessbigmarketing.com/blogging-for-your-business/ 

To subscribe to this show in iTunes, please head here.

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Introduction to cloud computing

Flying Solo - 3 February, 2012 - 06:30

Proponents argue that cloud computing will deliver wonderful productivity gains at low costs. So what is it, and could it be useful for your business?

The cloud is arguably top of the list of seismic shifts in the computing world in recent times. Having grown from the fringes just a few years ago, cloud services were valued at more than $70 billion in 2010, and are projected to grow by almost 20 percent per annum for the next 5 years. It’s anticipated that cloud services will contribute more than $175 billion to the global economy by 2015. That’s a lot of dollars!

But what is it? The name “cloud” is taken from those cute little network diagrams with a couple of computers, a couple of squiggly lines and a fluffy cloud in the middle joining them all up.  In reality there is something in that cloud, and for most small business users that will be a bank of computers in a server centre hosting your application.

In the past, businesses of all sizes have installed computers to store their data and run their applications. Businesses with more than a single employee have installed servers (and hired IT people to manage them) to allow their employees to share that data. With a cloud solution, organisations are able to effectively rent a small slice of capacity in a server centre (via the apps they sign up to), taking away all the issues around maintaining their own hardware.

This might mean paying for a hosted email service (rather than installing your own exchange server), paying for a file data storage service rather than storing data on your own file server (and managing security, backups and so on), or paying for an application such as customer relationship management (CRM), payroll or accounting rather than installing the equivalent applications on your PC or server.

This is generally taken to mean a little bit more than simply taking an existing (desktop) solution, putting it on a remote server, then paying to access that on a monthly basis. The ability to do that has been around for a decade or more, and you may have heard suppliers of this option referred to as application service providers (ASPs). Cloud solutions differ from ASPs in a number of crucial ways:

1. Most cloud apps involve sharing of the actual software. For example, with Gmail (one of the most widely used cloud solutions) users are moving from each having their own copy of a mail program (such as Outlook) installed locally on their PC, to sharing a common instance of an email solution hosted somewhere in the cloud. This is commonly referred to as “multi-tenancy” – lots of different users with their data in the same database, running on the same program (rather than lots of copies of the same program).

2. Most cloud apps allow you to sign up for a monthly fee, and exit again anytime you want to.  This is very different from having to buy software upfront, which if it is not suitable for your business you are then stuck with (it is often very difficult to sell software second hand).

3. With what are generally referred to as “web 2.0” applications, users are able to share data on-line, in real-time. In this way the cloud opens up opportunities for collaboration (either within a business, or with clients or external service providers).

This is the first article in a three-part series. The next article will cover some of the claimed benefits and potential dangers of the cloud, and the final article in the series will look at some specific applications, and compare desktop and cloud solutions that might be suitable for small businesses.

Have you embraced cloud computing yet, or are you still considering your options?

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How to hit the headlines

Flying Solo - 2 February, 2012 - 06:30

You’ve perfected the content for your brochure, blog, newsletter or media release, now it’s time to craft a headline that stands out and draws your readers into your message.

Your headline should:

  • Grab your readers' attention
  • Engage them
  • Intrigue them
  • Compel them to read on 

The power of a headline shouldn’t be underestimated. Use intrigue to lure your readers into your article or blog; a ‘How to…’ to resolve a problem; or a summary to set expectations. 

A headline can be used in conjunction with an introduction or an image, and should be tailored accordingly – just as it should for the audience it’s targeting. 

It may be short, but a headline is arguably the most difficult and creative part of the writing process. Here are a few tips on writing powerful headlines. 

Know your readers

Who is your audience? 

Your answer will determine the style, tone and length of all of your written content – including your headline. Just like the rest of your marketing communications plan, your headline should be tailored to meet the needs of your audience. 

Characteristics

Always short and sharp, a headline should reflect the objective of your communications piece, whether the objective is to educate, persuade or inspire. 

Your headline should suit the style of the content – it could be quirky, intriguing or motivational. Or you could simply go for the shock factor. 

And to create impact, your headline could incorporate a notion of time, emotion, humour or urgency. Here are some examples:

  • Ask a question: Does your webpage contain a glaring mistake?
  • Solve a problem: Overcome writer’s block in seven easy steps
  • Arouse a passion: Help fight poverty now
  • Give a reason to read on: Ensure your business reaches its full potential 
Context

Your headline could be a link on a webpage without accompanying text – your challenge is to stimulate enough curiosity or give a compelling enough reason for the reader to click through. 

Or, it could be displayed alongside an image or above an introduction. This allows for more creativity and ambiguity. 

How to write a killer headline

Allow your world to inspire you. Look at magazines. Listen to music. Look up some famous sayings. 

Identify your keywords and relate them to back to your inspiration. Use a thesaurus. 

Brainstorm and write down as many potential headlines as you can. Then play with the words – mix them with your other options or shuffle them around. 

Try to find rhyming words or use alliteration. Or convert your keywords into a metaphor or well-known phrase. 

Put yourself in your readers’ shoes – what would make you read on or click through? 

Give yourself time to review your headline choices – and use the one you keep going back to because it has a great ring. 

What techniques do you use to come up with hard-hitting headlines?

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What’s your story?

Flying Solo - 1 February, 2012 - 06:30

A week at a creative writing festival in Ubud got me thinking about the parallels between good copywriting and the craft of storytelling.

It felt rather self-indulgent to spend a week surrounded by inspiring ideas and mingling with creative minds, with daily massages thrown in for good measure - but it was just what I needed to recharge my soul and my laptop fatigue, and it also recharged my thinking about my copywriting business.

I’d always thought of creative writing as the opposite of what I do everyday, which is write the persuasive messages that other businesses need me to write. I assumed that fiction authors get to write about whatever pops into their imaginations.

But I’ve now realised that the ‘rules’ for telling stories are the same across all genres, from novels to websites. And perhaps if we focus more on telling stories about our businesses, we might make our marketing messages more compelling, and less like they fell off a business jargon production line.

What is a story?

To make a piece of writing or communication a story, something has to happen. Let’s think about the typical ‘About us’ page, which is one place where a business can tell its story. Does anything happen?

More often than not, ‘About us’ pages are self-absorbed twaddle about ‘driving shareholder value’ or ‘delivering on our promise’. There may be unsubstantiated claims, or abstract ideas like ‘excellence’. Without a story these have no meaning to the reader, who has typically arrived on that page looking for a reason to be interested in what you do.

Don’t be boring

Business clichés like the ones above are boring and lack substance. Give your story a hook and lure the reader in with concrete examples.

I recently met someone at a networking event who ran a small business developing software. Refreshingly, his first words to me were not “I deliver innovative end-to-end custom-built state-of-the-art software solutions”. They were “I just helped someone save two days a month on their accounts invoicing.” Now, that interested me – I wanted to find out more about how he did that and what his customer now did with those two days a month.

Give your story context

One of my blue-chip clients just won a global award for best website at a US digital summit. I’m not going to pretend I wrote that site, although I wish I had. But I did ask them what made their site stand out, and the answer was story-telling.

They are part of a huge multinational business, but this site tells local stories in a local context. Real stories about opportunities, risks and issues the reader – their local customers - can identify with. Exciting ways this business is making an impact. Tangible results that have made a difference to their clients.

Instead of having long navigation pages about their products and services, they’ve brought the business to life.

They could have talked about innovation until they were blue in the face, but instead they simply illustrated the idea with a few good stories – the who, where, why, what and how of innovation.

Why are stories important?

Stories keep us interested. They make things clear and easy to understand. And most importantly, we remember them.

You can use them just about anywhere in your business. An elevator pitch in 30 seconds? The introduction to a proposal? Your website landing page? A PowerPoint presentation? Yes please – keep those stories coming. Especially in presentations.

Putting your story together

Since time began, the equation for telling stories has been hero + obstacle + resolution = happy ending.

So, make your business the hero. Your customer’s problems or needs are the obstacles. How do you resolve them to create a happy ending? There’s your story.

How do you use storytelling in your business, and what response do you get from your customers?

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"Time for a change around here."

Flying Solo - 31 January, 2012 - 06:30

If you feel hungry for a change within your current solo venture, it could be time for a radical reassessment of your strengths. Here’s how it’s worked for me.

At the start of my solo career I offered copywriting services with a bit of editing on the side. I soon realised I much preferred editing to writing, so reworked my marketing to reflect this and thereby attract clients who needed a fix it up chappie rather than someone who can weave magic on a blank sheet of paper.

To this day, editing remains my strong preference.

Soloists shift around like this all the time. A fellow writer friend has gone from writing a variety of marketing materials to specialising in SEO friendly web copy.

In theory, you should identify your area of specialisation before embarking on your journey, but in reality you can’t always know what you’re really good at til after you’ve set sail. And surely ducking and weaving is part of what makes flying solo such fun.

The process of changing tack and figuring out strengths and preferences enables you to develop a niche, a Very Good Thing because as Tom Peters says, you’re either ‘distinct or extinct.’ Soloists are nothing if not distinct!

Sometimes a preference doesn’t find you, but a malaise within your current workstyle does. In that case it’s time to go back to the drawing board and re-examine your values, mission and purpose.

Once you’ve drilled down to the finer points, ask yourself “what am I good at?” rather than “what do I like to do?”

There’s a subtle but crucial difference here. When I did this exercise recently, I identified that I was really good at financial control, even though I’d have denied ‘liking’ this forever and a day. After all I’m a word person, right?

Also turns out I’m good at operational planning and strategic thinking. Me! Miss Head in the Clouds! Who’d have thought?

And I do love these areas of the business, just not by default. I’d have struggled to identify them had I not stopped to think in my quest for a refresh.

So armed with this new enlightenment I’m making a radical change to how I work in our little business and am handing over the role of controlling Flying Solo’s voice to someone new.

Yes, Flying Solo is looking for a new editor to stir things up and of this minute, the position is advertised and the search is on!

Having sat in the hotseat for five years I can tell you it’s a cracking role and I promise I’ll be a very cruisy Editor-in-Chief.

Have you made a similar shift in your work, or do you have plans afoot? Share your story below and don’t worry if you ramble on too much, I’ll tidy it up…while I still have the power to do so!

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Is your free offer irresistible?

Flying Solo - 28 January, 2012 - 06:30

So you want to capture people’s details when they land on your website. What should you offer in return? And how can you best position it to entice people to subscribe?

Why you need a free offer

We’ve all heard about the importance of building a database, but simply putting up an opt-in form for a newsletter these days is just not going to cut it. Email addresses have the same value as your personal home address, which is not something people are willing to give out to just anybody.

To have the honour of someone giving you their email address, you want to make sure you give something of value in return. There are many ways in which you can offer this value: a special report, an audio CD, an introductory teleclass, a workbook, an e-course, a downloadable audio, a video or a checklist. The possibilities are endless.

If you don’t already have an offer of value on your website waiting for your clients to download it, then over the next week, I’d like to encourage you to spend time developing your free offer. And yes, I did say a FREE offer!

Deciding what to offer

If you’re not sure how to begin, then think about your ideal clients, and identify some of the challenges they’re currently facing. Make your offer something that will solve one of those challenges.

From there, consider which delivery mechanism would work best for those potential clients. Would they prefer to receive an audio download or a white paper? Perhaps they might prefer a workbook or simple checklist. Because you know your ideal clients so well, you’ll easily know which method is more likely to incentivise them to opt in quickly.

Boost your credibility

There is now so much information out there on the web that it would be easy for your prospective client to do a search and find the information they are after. But who knows whether the information they stumble across will be the right information? They don’t.

You do. You know that when they land on your website, your offer is not only of high value and content, but it will give them the results they need. Your past clients have proven that your information works. Part of the role of your offer is to demonstrate your credibility.

Be generous

There may be no charge for your offer, but that doesn’t mean it’s not of high value. Don’t be scared to give something away that is of extremely high value and quality. You want your potential clients to remember you, and not your competitor up the road!

Now I’m not saying that you give away the whole box and dice. That just wouldn’t be a good financial move. What I am saying is that you give away the ‘what’ of what they want to know, but not the complete ‘how’. You want to engage them so that they come to you for assistance in the execution.

Make your offer easy to access

Your offer is created to bring prospects into your community so that you can stay in touch with them, continue to add value to their day through your services and products, and build a strong, trustful relationship with them. In addition to creating the offer itself, you may like to tweak your website to boost subscription rates.

Don’t forget that your offer can be promoted in more places than just on your website. For example, you could add it to your Facebook reveal or like page, as well as anywhere else you encourage people to opt in to your newsletter.

Do you offer freebies on your website? What advice can you give those considering one for the first time?

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Creating a credit policy

Flying Solo - 27 January, 2012 - 06:30

Every time you provide goods or services before you receive payment, you’re extending credit to another party. Having a credit policy in place will help make sure you get paid.

Many soloists extend credit to clients and customers so frequently that they sometimes forget to manage it like they should. If you’re not careful, things can get a bit out of hand and you’ll be faced with slow payers or even worse, non-payers. 

Here's how to develop a credit policy that shows your customers you mean business. All it takes is a few key ingredients. 

1. Debtor assessment

Run a check on every potential debtor to ensure they’re still in business and have the ability to pay you. Sounds simple, but you'd be surprised to learn how many creditors do business with a failing business or one in default. You may also consider asking for credit testimonials.

2. Set a credit limit

Only extend as much credit as you can afford: after all, you have expenses to pay too. Your risk appetite will determine how much fat you want to build into this amount. In your debtor assessment, you may also have identified a ceiling for a particular debtor based on their ability to pay. 

3. Develop payment terms

You need to balance attractive credit terms for your client with your own need for a short cash flow cycle. Set out how long you are willing to wait for invoices to be paid and build in a little time for follow-up. You can also create penalties for late payments and incentives for early payments. At this point, consider laying out the consequences for late or non-payment: for example, not doing any more work for the debtor until all overdue invoices are paid. In more extreme cases, you may decide to defer the debt to a collector.

4. Communicate with your clients

Ensure your clients understand and agree, in writing, to your payment terms. Don't just put the terms on the base of your invoice - that's harder to enforce

5. Monitor debtors and enforce your terms

Keeping track of your debtors is a key factor in getting paid sooner rather than later. Your tactics may vary depending on your relationship with each customer, but examples of methods you might use to secure payment include calling a week prior to the invoice falling due to remind your debtor of their obligations, or sending an email the day after a payment has failed to come through. The idea is to make sure they know that you're monitoring the agreement and that you expect them to do the same.

6. Communicate your terms with your team

If you outsource your accounts receivable department, ensure that your bookkeeper or accountant is familiar with your credit policy and the terms of your agreement with each debtor so they can act appropriately on your behalf. 

Having a credit policy lends a degree of professionalism to your accounts receivable, which makes it more likely that a debtor will sit up and take notice of your business and its invoices. 

Have you ever found yourself wishing you had a better credit policy in place? Please share your learnings with us below.

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Soloist success in uncertain times

Flying Solo - 26 January, 2012 - 06:30

The media may be talking about economic doom and gloom but there’s still money to be made and it’s still possible for a soloist business to thrive.

Don’t buy into the media mood

While the media is constantly creating panic in the minds of the consumer, I want you to think about your own situation. The last time you went to the shopping centre, was it empty? When you visit your favourite restaurant, are you the only one there? 

Personally, everywhere I go, I still see people waiting in line for a coffee, I still see people waiting to buy. There are still sales to be had and people still have money to spend. 

I’m telling you this to point out that the media wants you to be scared. Why? Because fear sells newspapers and boosts ratings. The media doesn’t focus on good healthy corporations, entrepreneurs starting new businesses and launching new products and doing well, or the many other successful small business stories in this country. That wouldn’t sell. 

So, don’t let the media dictate your outlook. Relax. And if necessary, completely disengage from the media. Otherwise, your marketing decisions will be negatively affected and you’ll start acting like many other people out there: freaked out. 

Don’t be manipulated and scared beyond belief when the reality is that your clients are still buying and are still interested in what you offer. In fact, they still need you! 

Turbo charge the value you offer

If you’re prepared to adapt, change and create a new strategy, then there’s no reason to worry about your financial future. 

The bottom line is you can make money, but you may need to approach things differently to the way you’re approaching them now. Your prospective clients still need your information, still need your services, and are still spending money. But, they’re spending it with businesses that provide fantastic, irresistible, wonderful value. 

To be irresistible, you MUST make yourself more valuable. I’m not talking about the amount of value you think you’re offering now (which may have been enough in the past. when the economy was strong). I’m talking about adding so much value that people don’t have any choice but to work with you. 

A solopreneur who creates more value for their clients both personally and professionally, and creates it in new and different ways will prosper regardless of whether the overall economic conditions are good or bad. 

Marketing is more important than ever

When you’re of service in a BIG way, you make money. Yet, the only way to be of service in a BIG way is to let people know what you are doing. 

You’re going to need to get out there and let people know what solutions you provide. You’re going to need to create compelling marketing that works. (If you’re not sure where to begin, asking yourself these marketing questions is a good starting point). 

Reposition yourself and present yourself as THE expert with THE solution to your customers’ needs and desires. Demonstrate how valuable you are by showing your prospective clients that you bring strategies to the table that others don’t possess. (And if you don’t know what those strategies are, then it’s up to you to do whatever you can to discover them, learn about them and apply them). 

Most importantly, stay optimistic. The times may be dark and gloomy, but if you’re the person with the light you’ll have everyone following you. 

Have you got any tips for helping soloists thrive despite economic uncertainty? Please share them below.

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Business lessons from rock and roll

Flying Solo - 25 January, 2012 - 06:30

I didn’t know it at the time, but spending years in a rock and roll band proved instrumental in turning me into an entrepreneur. Here’s what I learned from the experience.

Tenacity pays off

From the moment I discovered the electric guitar at the age of 12, playing in bands was all I did; I was obsessed. The bands were pretty ordinary initially, but by investing every single spare minute of my time both they and I became better.

Rehearsals became gigs, gigs became tours, and through a miraculous combination of circumstances we managed to get signed by a record company. Calling myself a professional musician was a dream come true.

Passion makes everything worthwhile

The job was very enjoyable when I was in my early twenties. (Free booze! Travel! Attention from girls!).

It became less so when I started to grow up. (Crappy hotel rooms! Smelly tour buses! Waiting around all day!)

By the time I hit 28 I was done. I remember the exact moment: I was doing a gig in Amsterdam, on stage at 4 o’clock on a weekday morning, looking over the crowd and asking myself ‘Why did I want this again?’

I really couldn't remember, so it was time to move on.

No experience is wasted

So there I was, in my early 30s, in need of a career change. Had I just wasted a decade of my life? Absolutely not!

If getting four guys in their early 20s onto the same page and working very hard without pay to create a product that you're not even sure anyone wants is not a management achievement, I don't know what is.

Aside from people management, being a musician involves a host of skills that proved to be a great stepping-stone on my way to becoming a serial entrepreneur. Negotiation, IT, workflows, project management. It’s all part of being a music producer.

Diversity is good

It’s very tempting to surround yourself with people with whom you have a lot in common, and who agree with you on everything. The problem is, that doesn’t create great music, or a great business.

The Beatles were much better than the sum of their parts because of the tension between the band members.

Of course, I don’t mean that you should be throwing stuff at each other. It’s challenging to find a way to accommodate people with differing viewpoints, but the rewards are often worth it.

Money doesn’t motivate people

Some of my soloist friends tell me that they would never want staff, because it’s such a major headache. I don’t agree.

After managing to keep four young 20-somethings focussed and happy without being able to pay them anything near what they were worth, I can safely say that money doesn’t keep people going. The ability to grow professionally, to self manage and to learn new things does.

Don’t get caught up in the competitor noise

When you meet other bands backstage there are two types: the ones who genuinely loved your gig, and are not afraid to tell you so, and the cagey weird ones who won’t talk to you.

Being obsessive about your competition diverts far too much attention and energy away from your efforts to be outstanding. Sure, compare prices and do a bit of research, but don’t pore over your competitor’s Twitter feed every day.

You don’t have to be the best

One of my favourite quotes of all time is from Ty Tabor, the guitarist of King’s X, who said, ‘You don’t have to be the best, just different’.

There’s always a competitor who’s willing to work longer hours for less money, who outsources to overseas companies, or who has more money to throw at AdWords. The trick is not to try to undercut or outperform them; it’s about being compelling, so your prospective customers don’t want to shop around.

Kill your darlings

Despite only the ten best songs making it onto an album, every good record is actually made of the 40 songs the band wrote that no-one will never hear.

Allow yourself space to try out new things, and then throw out what doesn’t work and refine what does.

Keep some of the rock and roll alive

Most of all, I learned that the same elements that drive bands drive good businesses: fun, a sense of being part of something important, and creating something that's unique to you.

Have Robert’s rock and roll insights left you like a star struck groupie? Send your fan mail below.

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Tablet And Ebook Reader Uptake Explodes

Taming the Beast - 24 January, 2012 - 18:43
While I’m still holding off on buying a tablet computer, millions of others have acquired one in recent months. According to the Pew Research Center, the number of adults in the USA who own tablet computers nearly doubled from 10% to 19% between mid-December and early January this year – and uptake of e-book readers [...]


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When golden ducks kill the golden goose

Flying Solo - 24 January, 2012 - 06:30

Do you struggle to get runs on the board for your business under the relentless barrage of distractions? It happens to the very best.

Captivated by the drama of fading veterans, floundering newcomers and stunning collapses, I’ve been watching far too much cricket this summer.

How is it that such skilled professionals can deliver such haphazard performances? My theory is that with so much happening off the field it’s easy to lose your concentration on it.

The blur of media, endorsements, lavish parties, adoring admirers, self-doubt, temptations and lucrative deals that surround cricketers, for example, are all periphery to delivering results on the field. Without those, the whole juggernaut slams to a halt.

If the results dry up, the golden goose is cooked.

Like besieged sports people, business owners must find a way to consistently get runs on the board despite the powerful battery of distractions that fire in from all sides. Every day brings a fast-paced serve of pinging emails, social media, marketing campaigns, media interviews, phone calls, shiny new opportunities, bills, paperwork and all the rest.

As important as these things can be, they are all secondary. Long-term business success boils down to getting the basics right – delivering quality products and services every day.

But how?

Back to the cricket for a minute. Listening to the coaches and experts, I consistently hear the same advice given to players in a rut: “Clear your mind of distractions, and focus only on playing the next ball.” In other words, first make sure you get the basics right and the rest will follow.

This is a theme we’ve embraced at Flying Solo for 2012. We’ve strongly renewed our commitment to producing quality content, enhancing member benefits and nurturing an even more supportive community. We’ve ruthlessly reviewed our business plan and dropped many actions that don’t align with this focus.

Personally, I’ve translated this into three themes for my year ahead:

  • Health: Turn up ready to play with regular exercise and earlier mornings.  
  • Focus: Work in blocks without email and eliminate non-essential tasks.
  • Patience: Trust that if you score enough runs the selectors will call.

One in a million will burst onto the scene Dave Warner style, the rest of us must grind out the runs like Ed Cowan. Both of them open the batting for Australia.

What’s your focus for 2012? Get on the front foot by posting it below. 

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Maximising your free Flying Solo membership

Flying Solo - 23 January, 2012 - 06:30

Whether you’re new to Flying Solo or already a member, chances are you’re not aware of all the benefits of free membership. Here’s a guide to the basics.

Free Flying Solo membership brings you exposure through our business directory, a subscription to our popular email newsletters, invitations to events and access to a library of member-only downloads.

That’s on top of hundreds of articles, videos and podcasts.

But the most powerful benefit of free membership is that it enables you to participate in the community by connecting with other members: gaining exposure through commenting on articles and posting on the forums.

Here’s how it works:

Start by joining up – it’s quick and free!

If you haven’t already, the first step is to become a free member. It’s fast, free and easy to sign up. You’ll get instant access to the full features of the site.

List your business in the directory

All free members have the option of adding a basic business listing in Flying Solo’s directory which includes a link to your website, space to talk about what you do and contact details. You can create this when you sign up and add & edit later in the ‘My account’ section of the site.

Add a comment, share your expertise

Leaving a comment on a site article is the easiest way to connect with other members. When you are logged in, you can have your say by simply typing and submitting your comments via the form at the bottom of every article.

This is an ideal way to build your profile because not only do you get to have your say, every comment displays a link your directory listing, your profile and your own website. There’s no better way to gain exposure!

Join our lively forum discussions

With thousands of friendly, helpful and generous members, on Flying Solo’s forums, there’s always someone to bounce ideas off, swap advice with and share expertise.

The depth and variety of discussions and the generosity of fellow members is astonishing. We also have informal meet-ups being arranged around the country via the forums. Yet another great way to build connections.

Download your specialist reports

Based on key findings from our last couple of Understanding Micro Business national audience surveys, we’ve pulled together a number of reports for members that address hot small business topics.

In case you’ve not checked them out, here’s what’s waiting for you:

You’ll find a link to these at the foot of each of our newsletters, it looks like this: 

 

Click here to become a free member today.

But wait, there's more!

If you’re ready to take things to the next level, you should really check out Business Class. For under 70 cents per day you'll get all the benefits of free membership, plus a more visible directory listing; a Google indexed backlink (to give your SEO a shot in the arm); promotion through Flying Solo's social networks; access to exclusive business resources, discounts and special offers.

And for the next 350 Business Class Members a FREE copy of the latest edition of our bestselling book Flying Solo - How to go it alone in businessFind out all the details here.

Questions? Send them this way and we’ll respond pronto.


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Google’s “Page Layout Penalty” Algo Tweak

Taming the Beast - 21 January, 2012 - 18:39
Google is starting to whack more web sites that have too many ads above the fold (ATF). Acting on complaints from users who land on sites and find they need to scroll down a fair way to see the actual content, Google has announced an “algorithmic change that looks at the layout of a webpage [...]


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Podcast: How to have a difficult conversation

Flying Solo - 21 January, 2012 - 06:30

In this the episode of the Small Business Big Marketing podcast Tim and Luke discover how to have a difficult conversation.

Plus they discuss what makes for a good pitch, share their very early thoughts on Google Plus and talk about Google Grants – $10,000 per month for any charity to spend advertising on Google!.

About these podcasts: The Small Business, Big Marketing podcasts are characterised by plenty of banter between the hosts Tim and Luke who’ll typically kick off with nuggets of advice and tell shaggy dog stories as they warm up to the episode's topic. Sit back, relax and enjoy! And share your feedback below.  

Duration: 57 minutes 

Links to resources mentioned in the show: http://smallbusinessbigmarketing.com/54-how-to-have-a-difficult-conversation-google-plus-pitching/

To subscribe to this show in iTunes, please head here.

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Five tips to help your sales letter get opened

Flying Solo - 20 January, 2012 - 06:30

A well-written sales letter can generate loads of sales, but only if the envelope is actually opened. These strategies will help boost your success.

1. Address the envelope to an individual

If your envelope is addressed to ‘The Manager’, then it may as well be emblazoned with a flashing neon sign that reads, ‘I am junk mail. I am junk mail’. Wherever possible, address an envelope with the full name of the recipient, and make sure you’ve got the spelling right.

2. For small campaigns, handwrite the envelope

A handwritten envelope sparks curiosity because it reminds us of a bygone era when we used to solely receive personal correspondence via snail mail. Most handwritten mail gets opened.

But please only handwrite envelopes if your writing is neat. If your handwriting makes the envelope look like a ransom note, then it won’t be good for business.

3. Use a coloured envelope

Standard, white, DL-sized envelopes smack of sales letter, and as a result, can sometimes get smacked straight into the bin. However, if the envelope is coloured, it hints that there could be something exciting inside.

4. Mark the letter ‘Private and confidential’

In theory, any envelope marked with ‘Private and confidential’ should only be opened by the actual recipient, but if your recipient has a secretary or PA, those words might actually be interpreted as, ‘Dear Gatekeeper, I am a sales letter’.

5. Include an item that creates a bump in the envelope

I’ve used this approach many times, with great success. Last week I sat down with a person I’d been trying to arrange a meeting with, and he said, ‘I get hundreds of emails every week that I never read, and I get junk mail that I never open. But I loved your card with the gift inside’.

Be creative with the item you include, and ensure that it ties in with the theme of your sales letter.

Here are some ideas:

  • A life coach might include a mini Toblerone in each letter, with the theme being, ‘Mountains are easier to climb with a life coach by your side’.
  • A de-clutter consultant might include a promotional pen, writing something like, ‘Lost another pen? Use this one for now, and we’ll help you find the rest’.
  • A professional cleaner might include a sachet of bath salts in every letter, writing, ‘Don’t you have better things to do than clean your house?’

Including an item in your envelope might cost more in postage, but it also might inspire more prospects to contact you.

Consider following these tips to the letter

The next time you’re considering sending a sales letter out in a flat, white, DL-sized envelope, consider adopting some of the bin-busting strategies above. But remember, your sales letter is only the first step in your direct mail campaign; be sure to follow it up with a friendly phone call.

Do you think the above mailing strategies would flop or fly? Post your comments here.

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Congratulatory Comment Link Spam

Taming the Beast - 19 January, 2012 - 18:18
Most blog owners would appreciate positive comments about their posts. However, sometimes these glowing glumps of text are nothing more than link spam. Weeding out this sort of thing is a good idea as the more of us who do it, the less attractive it will become as a spamming technique. Some of it is [...]


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Profitability and cash flow checklist

Flying Solo - 19 January, 2012 - 06:30

Profitability and cash flow are everything in business. What can you do to improve yours? This handy checklist is sure to give you some areas to think about.

  1. Raise your prices: You’ll be surprised how few complaints you get if you increase your prices by 5-10 percent. A slight increase each year is less noticeable than one large increase.
  2. Sack a customer: You know those demanding customers that take up all your time but buy very little? Ask them to leave so you’ll be free to focus on your top customers. (Not sure how to start? You’ll find some tips here).
  3. If it's not selling, drop it: There’s no point offering a product or service if it doesn’t sell. Get rid of it and either try another product or put more emphasis on the products and services that do well so that you can sell even more of them.
  4. Shop around and negotiate: This goes for your bank and all your suppliers. Any savings you make on costs go straight into your pocket. After you’ve identified the supplier with the best price, bargain with them and try to get an even better one. Don't pay their first price without seeing if it’s negotiable.
  5. Put lots of information on your website: This will help reduce the amount of time you spend on the phone answering customer queries.
  6. Issue invoices promptly: Get your invoices out as quickly as possible so you get paid quicker.
  7. Incentivise creditors to pay faster: Offer a small discount to clients prepared to pay within a week and your cash flow will improve.
  8. Take advantage of discounts: You love prompt payers and so do your suppliers. Take advantage when companies offer discounts to customers that pay quickly.
  9. Run credit checks: Before taking on a major new customer, check their credit worthiness and references.
  10. Use email: Cut postage costs by migrating customers to email.
  11. Don't overstock inventory: You can free up cash flow and profit by not holding excessive stock.
  12. Add a new product or service to your range: Then bundle the new product or service with your existing offering and watch revenue grow.
  13. Consolidate your loans: Transfer the balance on your credit cards to save on interest, or consider getting them all rolled into one loan.
  14. Cap your phone: Capped phone plans give you a fixed monthly cost and offer great value.
  15. Stay abreast of technology: New technology can make your business run more efficiently and save you money (even though implementation is sometimes expensive).
  16. Check your invoices: Don’t just pay up blindly, make sure your suppliers aren’t over-charging you.
  17. Re-use: Reduce costs by re-using any materials you can.
  18. Buying power: Team up with another business and use your combined buying power to get discounts.
  19. Standardise and simplify: How do better systems and procedures improve profit margins? Fewer mistakes lead to less wastage.
  20. Clean up: A tidy, organised work environment means you’ll spend less time dodging obstacles and finding lost files and more time attending to customers.
  21. Survey your clients: Finding out what your clients like about you and what they don’t will help you decide where you should invest your time and energy.
  22. Outsource: Outsourcing key tasks can free you up to focus on the most profitable areas of your business, without the expense of hiring staff.
  23. Form a joint venture: As a soloist you might be too small to compete for large contracts, so find businesses with complementary products or services and bid together.
  24. Make an acquisition: Buying another business can be a quick way to grow revenue. The key is managing the integration.
  25. Go global: Australia is a relatively small market and taking your business offshore can open huge sales opportunities. There are even government grants available to help with the costs.
  26. Buy second hand: You don’t always need the newest, shiniest gizmo in order to run your business. Second hand purchases cost significantly less and are fantastic value.
  27. Copy: There’s no need to reinvent the wheel. If you see something that works for someone else, incorporate it into your business.
  28. Customer satisfaction: The cheapest and most reliable form of advertising is word of mouth.
  29. Say no: Some jobs are marginally profitable or high risk. Don’t be afraid to avoid them.
  30. Go upmarket: Customers are prepared to pay for high-quality products and services. Make sure you’re seen as the premium alternative and set your pricing in a way that reinforces this.
  31. Advertise online: Online advertising is relatively cheap and its effectiveness is much easier to measure.
  32. Benchmark your business: Comparing your business to competitors will show you what you’re spending on certain items versus your industry norms, and will point out where you need to cut expenses.
  33. Develop and maintain your customer database: Selling to your existing clients is far cheaper than trying to find new ones. A good database is a big asset you must exploit.
  34. Sourcing: See if you can source products directly from the manufacturer at below wholesale price.
  35. Logistics: What does it cost you to fulfil customer orders? How could you reduce that?

Phew. What a list! Have we forgotten anything? Please add your tips below.

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