How to make your business appear smaller

I was inspired by a recent article from the Australian Anthill about making our business appear bigger than we are. But in the age of authenticity, do we really want that? Sure, appearing big can be a good thing depending on our audience. Certainly, the key point in the article to me was ‘How to appear professional’. But why should professional be inextricably associated with big?  Maybe the strategy should be to appear as small as possible. The current market place is not short of large corporates who are starting to understand the importance of personal service again. An example that comes to mind is the Bank of Queensland moving to a franchised branch model – where local ownership is of strategic importance to customers. Especially in such a tarnished industry as banking.

So why would we want to appear smaller than we are? Here’s a couple of thought starters:

Service – it is implicit that service is better when dealing directly with a small group of people rather than a faceless corporation

Trust – Smaller companies are way more dependent on you as a customer. You matter more, so you can trust the fact that they will do all they can to keep you.

Underdog – People love to support the up and comer. The person having a real go. Being small should be embraced and leveraged. Often this might be the only reason people do business with you.

So in the spirit of small = good, here’s the startup blog top 10 list of how to act small. Regardless of our actual revenue:

  1. Have personal contact details of team members on your website. Email, Skype cell phone.
  2. Remove pointless gatekeepers from your office who insulate hierarchy members from real customers
  3. Use real language in all written forms of communication. Use a human voice not corporate PR brochure parlance.
  4. Be honest when you stuff up. Admit it openly and quickly. Don’t make decisions based on repercussions, but on what’s right.
  5. Write terms and conditions (if you must have them) in a language anyone could understand
  6. Never call your audience your target. Business is is not skeet shooting, it is about delighting. You are performing for an audience, who can get up and leave at any time…. or even throw rotten tomatoes.
  7. Give responsibility to individuals not committees. Give them decision authority. It’ll get done quicker and better.
  8. Don’t gag your people. Allow anyone to comment on the company and what’s happening. It’ll be the best research you can ever do to find out what’s really going on in your company. No ships will be sunk.
  9. Have a policy of common sense. Not written manuals no employee will ever read.
  10. Say, “Yes we are only a small company…. and here’s why we are better…”

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Quote about design: Steve Jobs

In preparation for teaching a Brand Management Class today at Melbourne University when I came across an important quote from Steve Jobs about the industrial design of the iPod. When the first generation iPod was finally complete and ready to be unveiled to the public Jobs looked back on the process of how the iPod was designed:

“Most people make the mistake of thinking design is what it looks like. People think it’s the veneer – that the designers are handed this box and told, ‘Make it look good!’ That’s not what we think design is. It’s not just what it feels like and looks like. Design is how it works.”

Startup blog says: When it comes to design – it should facilitate function before fashion. After which time the human instinct takes over…. the function becomes the fashion.

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Brand definition

I’m sick of hearing crap definitions of what a brand is. Especially when they use words like marketplace and sellers, which can often be irrelevant. So here is the Steve Sammartino version:

Brand: A cognitive shortcut from which to make informed decisions.

That’s it. No need to mention selling. Brands don’t have to be sold. No need to mention a market place. Brands don’t just exist in markets – they exist in the total human experience. No need to mention logos, designs, names or symbols – these are part of the cognitive shortcuts. (which could even be a set of directions aboriginal used to locate a reliable waterhole, for which they probably had a name, in far reaching Australia over 1000 years ago). No need to mention products or services – brands can be concepts or ideas (Climate Change). No need to mention differentiation, loyalty or competitive preference – this is part of the informed decisions.

Our job as entrepreneurs is to build something which has meaning, and ultimately become the cognitive shortcut in the space we play in.

Feel free to discuss, agree or throw stones.

What they don’t tell you

It’s easy to get caught up in the brilliant stories of startups going viral to gain awareness, and the simplicity and usability of certain websites turning into large revenue streams. How cool the actual product is, the fact that the founders just built it and the rest just happened. This is the veritable entrepreneurial myth.

Here’s a few things to think about:

How many sales and business development people do you think Google has? Answer = around 5000. And we all thought their non human automated adwords system did it all.

What investment has Twitter made in Public Relations? You think Oprah and Obama just happened upon it? No they were pitched to heavily with a large investment in leading PR firms.

How many Youtube videos were posted by company created accounts? Answer = Hundreds of thousands.

Who seeds the quirky auction items on ebay? Answer = ebay started the game very early on and let the media know.

Everything is not as it seems. Push marketing is alive wand well, just the tactics have changed. It feels very organic and community driven, but the often the community is created by it’s founders and leaders. Nothing wrong with that, it is the job of entrepreneurs to invent said communities. But it makes for better business articles to talk of such things occurring naturally, so the real story is rarely told.

The question for startups is – what tactics can we employ to garner the same momentum?

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The white collar underclass

Before the Industrial Revolution the average number of hours worked in the western world was less than 6 hours per day. Some say we worked less than two and a half days a week.

I won’t quote what the average number of hours are today, but it’s more for everyone I know personally. I’m certain many people reading this would work in excess of 12 hours on certain days.

So what happened?

We got stooged. The  industrial revolution made it possible for a larger segment of the population to work year-round, since this labor was not tied to the season and artificial lighting made it possible to work longer each day. Peasants and farm laborers moved from rural areas to the factories and work times during a year has been significantly higher since then the important  innovation of piece labour. That is, the ability to earn income based on output. Think bolts in car doors.

Over time longer hours lead to greater amount of industrial accidents and workplace injuries. Unions formed and laws changed on the factory floor. But, the office was a different place altogether.

Office workers – salary based workers who where historically in management worked for salaries. A fixed wage for a fixed number of hours. My father constantly reminds me that in his day office workers only worked from 9am until 4.30pm. That tradesman and factory workers were the only people who did extra hours. And they did this to make up for the pay discrepancy which was favour of salary workers.

Clearly times have changed. If you are working in a large corporate, cubicle farm, in front of a screen or any place where you don’t get your hands dirty then chances are your are part of the ever growing white collar underclass. Here’s the some of stuff that defines members of the White Collar Underclass:

  1. A fixed salary with no overtime (factory workers, tradesman, retail staff all have overtime)
  2. Regularly working beyond the ‘official hours’ including weekends.
  3. It is expected that you arrive before and leave after your official hours.
  4. No representation in your industry to protect employment conditions.
  5. No tax benefits or uniform allowances, because your work clothing doesn’t have a logo on it. Even though it is in real terms a ‘uniform’ and costs you 10 times what hands on workers wear to work.
  6. Your annual performance review is based on the subjective assessments of your direct manager who may or may not like you.
  7. You work in a large building full of people who look and act like you do, and no one really knows what anyone else does.
  8. In an economic downturn, you panic, because you know what you do is essentially expendable.
  9. Large parts of your day are dealing with procedure, invented by other workers to justify their own existence.
  10. You look at a screen for large parts of your day, but have restrictions on what information you can bring onto the screen from the outside world.
  11. You feel as though your rarely use the skills acquired in the formal education you needed to get that job.
  12. You can work for days, weeks and months without any physical evidence of tangible outputs of what you have done. You don’t make or fix anything real.

If some of the above apply to you, chances are you are part of the white collar underclass. A group of people who have been victimized by efficiency. A group of people who don’t do anything real. Which is why there will be a significant value shift and higher pay going to people (like tradesman) who make stuff. Simple supply and demand. In the past 50 years companies have became so good at what they do, that very few people really do anything, including you. But you are giving so much of your time… you know it, and it eats at your soul.

Startup blog advice: Earn your living. Do something that adds value, not takes up space. Even if it must be done at nights and on weekends. Even if it provides no income. The human soul feeds on real activity, not simple economic existence. Feed your soul in 2010.

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You’re in good company

This blog is an example of compound effort. Yes, just like interest, effort compounds too. In the 4 years I’ve been writing it every month the readership has increased. With no real marketing of the blog. Just good solid writing, be open and honest, sharing insights, and letting the wondrous SEO of wordpress do the rest on Google for me. A few things worth considering if you’re into blogging and want to build an audience.

  • I have written 1 blog entry for every day this blog has been live. Consistency and frequency matter.
  • Every entry is on the same topic. Startups and Entrepreneurship. I stay focused by having one of these two words in every entry.
  • I love the topic my blog is about. I find it fascinating and would still write it if nobody was reading.
  • 70% of my traffic is Long Tail, which means that every entry increases my total traffic flow.
  • It taught me more about digital media and the internet that anything else I have done.

Of all things I have done in my career writing this blog has generated the most value. It has documented my thoughts, improved my thinking, built discipline, created a reputation, generated media coverage for rentoid, launched me as a business journalist in other business magazines, it places me number 1 in Google searches for the term startup blog in every country in the world and has built friendships and helped others.

If you read this blog regularly you are among 70,000 other people every month. So you’re in good company. Thanks for reading.

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beware of averages

If we added up all the men, and all the women on our planet, we’d find that, on average, the typical adult human being had exactly one breast and one testicle. Yet how many people actually fit that description?

Statistics are used the create meaning. Yet, very often they create the opposite. In a world for of numbers, statistics and analytics (yes, even the Google kind) we are better off deciding what we want to find out, than we are looking at the available statistics and asking what they mean.

Startup Blog says: First decide what you want to find out, then devise a way to measure it.

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