May 19, 2009 | Management
How often have we heard this expression describing the role a small business owner fills?
However, it trivialises the difficulty in remaining on top of the strategy issues and implementation, as well as the tactical demands of a business, putting out the inevitable day to day fires, and just ensuring things get done.
The skills to play all of these roles effectively, and provide the leadership necessary for success are not often found bound up in the same person.
Owners of SME’s are often reluctant to bring in assistance, but the skills necessary are now relatively abundant on a part time basis, and can add considerable value for a relatively small cost.
May 18, 2009 | Management, Sales
Spin Selling, written by Neil Rackham probably 30 years ago is the best sales book I have ever read, it has spawned an industry, along with the follow up books.
However, it is not perfect.
In my experience, most businesses of sufficient size to have a purchasing function have a process that drives the progress of a purchase, particularly new items, or those from an alternative supplier.
No matter how well drilled, how empathetic the questioning, how well they seek and find the points where you offering could add value to a customer, falling foul of the purchasing process is most often the end of the line.
The lesson is no matter how well you do your research, ensure you include the mundane details of the potential customers purchasing processes, identifying all the people, understanding the role they play, and identifying the opportunities and circumstances that may lead to “No” and accommodating them in your process.
May 12, 2009 | Management, Marketing
Category Management is an FMCG term being bandied around so much that is coming to mean nothing in particular, because it is so widely used.
In its genesis, it was an expression used to describe the manner in which retailers managed their limited shelf space and range in such a manner to maximise sales and margins while best meeting their particular customers needs.
However, it has since evolved into another tool in the retailer arsenal to extract “rent” for shelf space from manufacturers, which often has little to do with meeting customers needs. This focus has left suppliers, particularly those to FMCG retailers, building a management and marketing infrastructure that focuses on the demands of the retailers, often to the detriment of their consumers. The rise of housebrands is evidence of the abrogation of FMCG suppliers around the world from the task of innovating to engage consumers, and putting resources into paying retail rent.
In many countries the power of the mass retailers is daunting, but they should not absolutely dictate, after all they are essentially sales orgainsations, not marketing ones, they rely on their suppliers for the bulk of their marketing, and have little interest in developing market and consumer behavioral intelligence .
Focus first on what your consumers need, both today and as their needs evolve, and the rest will follow.
Apr 6, 2009 | Demand chains, Management, Marketing, Strategy
The most difficult word in the English language for a small business owner is “no”. In most cases, it needs practice, the customer,(or worse) the potential customer is not always right, at least, right for you.
Be careful, be consistent, be firm, and know which customers add more than the take, not just from the cash account, but from the energy, commitment, and time of your biggest resource, your people.
