The best business phrase ever – update

Incentives shape behaviour.

It’s true of all people, at all times. It’s deeply coded in our DNA, and unlikely to change anytime soon.here’s some thought starters on the depth of the phrase.

Incentives: are not necessarily monetary, rather ideas which will improve the perceived situation of the decision maker.

Shape: for things to be shaped it takes time, they must be moulded, caressed, developed and iterated.

Behaviour: is action related. It is about what people do, not what they think about or like, it’s about motion.

Whenever I make a decision as a marketer and an entrepreneur I think deeply about these 3 words.

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Q & A – New Media and Small Business

I was asked to answer a few questions at a talk I gave last week at the Nationwide Networking Event. It was aimed at Small businesses with the topic about new media and the advantages of being small. I thought it was a nice snippet of ideas worth sharing here.

Q: What type of changes can we expect from media in 2010 and how do we need to prepare for it as business professionals?

A: Media will fragment further, it’s increasingly like fashion with new ideas appearing daily. The art of value, like with fashion is by going with the classics and choosing the right style for the brand you want to build. Match your environment, by being involved in the right channels.

Q: Where do you see the role of the blog in the future?

A: Increasingly important. Blogs are a trusted source, because bloggers become, or are an expert on their topic of choice. This is because all good blogs are topic specific. And people want to deal with experts.

Q: What can we expect from the evolution of twitter and our capacity to use it as a marketing medium?

A: If we use it as a marketing medium we’ve already lost. It’s a conversation…. Conversation can turn into business, but it is primarily a conversation. First we need to be a resource. A resource to others, from which we can build trust and valued relationships. These may eventually lead a business relationship.

Q: What trends are coming from America that we need to be aware of?

A: Trends are global now. We don’t have to look overseas to see it. Things arrive simultaneously. It’s not like it was 20 years ago where our friends return from sojourns overseas to tell us all about the cool things they saw, and we have to wait for them to appear in our market a few years later. Now it’s on our desktop the day it happens. This is been further facilitated by web tools such as Springwise, Twitter and Youtube.

Q: How do we (small business people) benefit from the changes in the media landscape?

A: Barriers to entry have been removed so anyone can play. But it requires a long term consistent effort. New media requires a low financial investment, and large human capital input. Where as old media requires a large financial investment with little human effort. At least now we have to choice. In addition large companies have been (so far) pretty bad at using new media. It creates an advantage for us.

Q: How can we better utilize technology tor reduce our costs and increase our profits?

A: Shift from being doers, to becoming project managers. Outsource where ever possible. It’s easier now with all the tools we have at our disposal like elance and skype. Why do we even need an office? Is it because we need to, or because we don’t trust the people we work with?

Q: Your blog has 50,000 readers a month, how did you do that?

A: Two simple things. One blog entry every day. Staying on topic (entrepreneurship / startups). Then wordpress and Google did the rest. It’s not a trick, it just takes consistent effort.

Q: What is the meaning of micro brand building and how would it be relevant to soloprenuers?

A: Build your personal brand first. That’s the first part of micro branding, becoming known for something. Having a skill you can share with others. Then eventually cross fertilize to your business brand.

Q: What are the simplest things we can do to build a micro brand?

A: Have a tight focus area of interest. Share our lessons honestly and openly. Frequency of output.

Q: How do we protect our brands?

A: Not with IP and legal stuff…. Most of that is a simple waste of money.  We protect it with customers, innovation and reliability.

Q: What one piece of advice would you give to those of us that need clients and need them quickly?

A: Cold call. Not on the phone, but turn up and talk.

Q: What books have influenced  you?

The Cluetrain Manifesto

The Purple Cow

The art of the start

22 Laws of marketing

Q: What marketers / speakers have influenced you?

A: Steven Wright (comedian) he taught me how to flip my perspective for alternative solutions.

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The end of television

There’s been a lot of talk about the end of television lately. You’ve heard it all. But one simple fact I heard today reminded me today of why television is doomed.

The end of the ratings period.

Yep, that old chestnut. But let’s stop and think for moment what it means and the legacy issues associated with the concept of the rating and non-rating periods.

It was something television could do. It could ‘have a holiday’. It could do this for one simple reason, it had no real competitors. TV broadcasters justified their actions too. They told us that their TV stars needed a break. They told us they were getting ready for the new season with great new episodes and shows. They told us we could enjoy our favourite re-runs. Sure we could go down the the video rental store, but it was much harder than turning on a television and a poor substitute at best.

Today, the end of the ratings period is a continued legacy which proves that broadcasters still don’t get it. We don’t care what time of year it is, we don;’t have to. We still spend money. The economy keeps churning. We still want current, new, exciting information and entertainment. Good news for us is that now we can go elsewhere to get it. And it’s more convenient than TV. It’s on demand, and uninterrupted. The fact that the ratings period still exists today has me flummoxed.

And as long as the television broadcasting industry thinks it can get away with it’s ‘holiday’, it is yet to understand what is happening. It alone is proof TV as an industry, is doomed. This little thing, the non-ratings period, is proof they don’t believe that is the end of their cosy little attention monopoly.

Good bye television, hope you enjoyed your stay.

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Unexpectedly Awesome – BBC

Sometimes it’s worth being even just a little bit awesome. We don’t need to change the world, maybe just having a little bit of public fun is enough. The usually conservative BBC did that for me today when I realised the following: The BBC video player has a volume which goes to 11.

It’s what I call unexpectedly awesome. I was delighted. So much that I’ve linked here to little video of Warren Buffett being interviewed. Upon which you can learn something and also pump the volume up to 11.

Startups – do something a little bit awesome.

turn-the-volume-up-to-11

Decision intertia

I was having an interesting discussion with a colleague Cris Pearson (founder of Skitch & Comic Life) about pricing models on the web – as soon I’ll be changing the rentoid model.

I asked his some advice and his response was so simple it is till ringing in my ears.He said;

The more choices you give consumers, the less likely they are to do any anything.

Cross road decisions

He then went on to say ‘choose a price’ not multiple options, to avoid decision inertia. The question for startups is – what complexity barriers have we created which stop our people from buying from us?

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Risk Taking

As an entrepreneur I’m not afraid of ‘considered’ financial risk. Just like any Plumber or Electrician would guarantee their workmanship, we must provide a satisfaction guarantee. It’s a great way to reduce purchase barriers. Something most successful brands do…. here’s a little exercise for you: Next time you a buy a household cleaning product or chocolate bar, flip it over and read the fine print and *bang* you’ll see a money back satisfaction guarantee. We must provide that too.

I’ve also done this on my latest little project Startup School. Here’s a recent conversation I had with my wife over email:

ME: Hey check out my Startup School receipt – pretty cool huh? (below is a part screen grab of said receipt)

Picture 69

Wife: As a law graduate of course, I would nervous about making guarantees but up to you… Like the poetry!

Me: One must embrace risk in entrepreneurial fields and guarantee work, or revenue wont happen. it’s that simple. It’s a risk I’m prepared to take.

Wife: I know….that’s why YOU’RE the entrepreneur!

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Micro Fame

Recognition of effort is an important to the human psyche. We actually don’t like money as much as society would have us think. We what like is the recognition that people believe money buys. In this sense the human brain of the ‘uber consumer’ breaks it down a little like this:

I want to be recognised as a worthy

I want people to know I have achieved

If achieve I will be rewarded with payment in the form of money

People can’t see my bank account and wont know how successful I am (my self worth)

So I’ll buy things with my money which are on public display (car, house, holidays, clothes)

People will know these things require lots of money

People will know I have earned lots of money

Only people who are successful at ‘something / anything’ get lots of money

I can be happy that people will know ‘I am somebody’.

I am a worthy person

Then there’s people who know all this but take the short cut and just buy stuff they can’t afford on credit cards to define their success through consumption.

Smart startupss can use this human pshyche to their advantage as well. Rather than the success, money consumption trail, they can provide something much more immediate and altruistic. They share reconigition. The reward and promote their people as part of the success process. They provide micro fame.

This can be done is so many simple ways. Ways which rarely have a large financial burden on either party, but create a union between the two players for mutual benefit. Stuff not limited to but including:

– Member ratings

– Access to exclusive services, parties, insider events.

– Recognition in digital and print media

– Crowd sourcing & revenue sharing of such User Generated Content

– View counts

– Followers / friends / subscribers

– Most forms of social quantification

– Overt branding which has ‘user personlilty rub off’

obama girl

So the question then begs:

What sort of Micro Fame is your startup or business providing its people?

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