Monday Mornings with Madison

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Business Development

January 26, 2015

The Challenges Ahead for U.S. Businesses in 2015

Issue #363

According to President Obama’s State of the Union Address this week, “After a breakthrough year for America, our economy is growing and creating jobs at the fastest pace since 1999. Our unemployment rate is now lower than it was before the financial crisis. More of our kids are graduating than ever before; more of our people are insured than ever before; we are as free from the grip of foreign oil as we’ve been in almost 30 years.” Indeed, just a few weeks into 2015, the nation’s economy does seem to be in the best shape it’s been since before the Great Recession (which is indeed good news, but certainly does not set the bar very high). U.S. employment increased by nearly three million jobs in 2014. Unemployment decreased a full percentage point between 2013 and 2014, dropping to the current 5.6% — the lowest rate since 2008 and the largest year-over-year decline since 1984. If things continue on this track, the U.S. is predicted to reach 5% unemployment by the end of the year, which is nearing that economic nirvana of “full employment”. Also, declining oil prices have helped bolster consumer purchasing power. The U.S. dollar is also at its highest value in many years. These are all good indicators.

Despite all the positive economic indicators, most U.S. businesses will still face certain challenges in the year ahead. Even as the U.S. enjoys a healthier economy than most any other industrialized nation in the world today, companies will have to contend with issues, many of which were carried over from 2014. Companies that ignore these problems do so at their own peril. However, recognizing what issues lie ahead is the first step to either tackling them head-on or sidestepping them altogether. Continue reading →

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January 12, 2015

Handling Competitors

Issue #361

There is no business that exists anywhere in the free-market world that is without competition… at least not for long. The moment a product or service is invented and sold, someone somewhere opens a business that rivals it somehow. The competitor’s delivery method might differ. Or its service and support might be better. Or the competitor’s product might be slightly improved. Competition is inevitable.

Since part of being in business includes having competition, businesses must decide how to contend with competitors. Is there a right way to handle business rivals? Some entrepreneurs approach competitors like arch enemies. Others see competition as a good thing, driving companies to continually improve. Still others see competition as a non-issue. And there are some who – at their own peril — dare to ignore competition altogether. Which approach for dealing with business rivals is correct? Is there a right way to view competition and handle competitors? Continue reading →

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December 29, 2014

A Time to Plan

Issue #359

In the course of an ordinary day, most business people rush from meeting to meeting, call to call, and task to task at a frenetic pace. There simply are not enough hours in a day to do everything that needs to get done. The here-and-now is both emphatic and demanding. This relentless focus on the immediate makes it nearly impossible to plan for the future. Moreover, the future is so vaguely ambiguous. In the present, everything must get done now, but even when current needs have been met, the future remains distant and fuzzy. Notwithstanding, planning ahead is among a business owner’s most essential responsibilities, and this is the time of year when most companies should take time to look ahead and consider goals for the future.

Indeed, there is a tremendous value in planning. Planning helps provide guidelines and goals for future decisions. It also helps managers exercise more control in a situation, establish goals “proactively” and consider contingencies. Likewise, planning can help quantify goals and establish a means to measure success. It also ensures that a coherent set of actions are implemented that are consistent with the values and priorities of the leadership and organization. Planning also helps allocate limited resources like staff, materials, and time in an orderly and systematic manner. Last but not least, planning each year helps a company take advantage of changes within its industry. Given that planning is so helpful and necessary, how does one find the time to plan? And what exactly should annual planning entail? How complicated does this need to be? Continue reading →

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December 1, 2014

The Business Conundrum of Quantity or Quality?

Issue #355

About 2000 years ago, Roman philosopher and statesman Lucius Annaeus Seneca was quoted as saying “It is quality rather than quantity that matters.” Some 1900 years later, Scottish author and poet George McDonald agreed saying “It is our best work that G-d wants, not the dregs of our exhaustion. I think he must prefer quality to quantity.” Mohandas Ghandi also said that “It is the quality of our work which will please G-d and not the quantity.” These learned men agree that when it comes to work, excellence trumps volume. Less is more.

Yet, the focus of most businesses is to improve productivity, increase output and amplify profits. For businesses, the goal is quantity… more volume…. greater capacity. In the world of work, more is more. That, then, brings us to the age-old argument of which is better: quantity or quality? Is one deal that generates $1 million in revenue and takes six months to close better than 10 deals that close within a six-month period and each generate $100,000 in revenue? They sound like the same thing, but are they really? Is faster manufacturing with more mistakes better or slower production with fewer errors? Should a company do more content marketing (blog posts, articles, press releases, tweets) or fewer but better quality content marketing initiatives? It is a question that business owners, leaders, and managers alike debate. With 2015 just around the corner, it is a good time to consider whether new business goals and plans should focus on increasing quantity or improving quality. Continue reading →

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November 10, 2014

Writing a Great Resume and Cover Letter

Issue #352

Writers and marketers are often asked to help write, revise or review a Resume and/or Cover Letter. Sometimes, it is for friend in search of a new job. Sometimes, it is for a business owner who needs to raise capital or increase a line of credit. Sometimes, it is for a colleague being considered for a seat on a company’s Board of Directors. Resumes and Cover Letters are the most basic, fundamental tools used to speak on behalf of professionals today. After all, what is a Resume and Cover Letter but self-marketing… an individual’s own personal brochure and commercial.

After decades of helping others to draft or tweak their self-marketing documents, the average writer or marketer becomes something of a Job Connoisseur or Resume Coach. In providing this support, the seasoned Resume Coach sees a lot of the same mistakes over and over. Regardless of age, experience or occupation, many people — from the greenest up-and-coming novice to the most experience executives and professionals — commit the same errors on their Resumes and Cover Letters. The most common errors are basic fundamental glitches having to do with grammar, spelling, syntax and punctuation. Another common error is overstating or saying too much. Another common mistake has to do with the mindset or perspective with which the documents were written. For anyone in the process of writing or updating a Resume or Cover Letter, here are some words of wisdom to consider. Continue reading →

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November 3, 2014

Basic Marketing Tips for Startups

Issue #351

As a result of the downturn in the real estate and financial markets beginning in 2007-2008, many professionals changed careers. From realtors to lenders and from developers to appraisers, people left the lending, construction and real estate industries in droves. As the market contracted, many small companies went out of business. However, in recent years as the market has rebounded, professionals are slowly returning to these industries. Many are starting new businesses. Also, the adult children of real estate moguls and successful entrepreneurs see this as a good time to leave the parental nest and start businesses of their own. Moreover, changing market conditions has created opportunities for new businesses that never existed before such as crowd funding and trailer document tracking. For these reasons, real estate, building and lending startups are springing up at every turn.

Even though many of these startups are being led by seasoned professionals, starting a new business can be a challenge for even the most experienced businessperson. It is especially true for any startup on a tight budget which, let’s face it, includes most startups. While professionals launching a business in real estate, construction or finance may have a lot of technical knowledge and industry experience, they may not necessarily have much marketing know-how. Here are some basic marketing tips to keep in mind for any folks starting a new company or expanding their business with a new division.
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September 29, 2014

The Power of Promises in Business – Part 2

Issue #347

Research by Accenture has confirmed what most smart business people have long believed to be true: broken promises hurt business. Day in and day out, many businesses make overt or implied promises to customers. Often, those promises are intentionally, carelessly or inadvertently broken. In any given year, nearly half of customers have a promise broken by a company with which they do business. Of those, almost two thirds report companies breaking multiple promises. Some industries are more habitual in breaking promises than others.

What is the actual impact of broken promises on business? Logic dictates that broken promises erode trust between the customer and the business. But do broken promises actually cause customers to stop doing business with a company? Is just one broken promise enough to cause a loyal customer to go elsewhere with his business or does it take multiple offenses? Research indicates that this is an area that should be of prime concern to business owners, CEOs, CFOs, Controllers and anyone who is focused on a company’s bottom line. There is a very strong, direct relationship between customer erosion and broken promises.
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September 22, 2014

The Power of Promises in Business – Part 1

Issue #346

Every day, businesses make promises to its internal and external customers. Throughout the relationship life cycle, from entry level clerks to the top brass, employees at every level of every company make promises to customers regarding work to be done, deadlines to be met, or issues to be resolved. Some of those promises are explicit. “I give you my word….” “Count on it.” “Rest assured, it will be there on time.” Other promises are implied. Implied promises can be just as powerful as expressed ones. Everyone recognizes a commitment has been made when a business advertises that it has “the fastest turnaround times in the industry,” or a salesperson says “I’ll send you that proposal by the close of business today.” There are countless implied promises that a business makes in its marketing materials, sales pitch and customer service.

It is fairly well-accepted wisdom that each promise made ultimately affects the success or failure of the business. Indeed, it is commonly understood that while nothing builds customer confidence and loyalty more reliably than a history of well-kept promises, it is equally held as truth that nothing undermines a business’ brand or bottom line more than a string of broken promises. That imparts a great deal of power to promises… promises kept and promises broken. But is that really true? Do broken promises impact business? Is just one broken promise enough to lose a customer or does a business have to repeatedly break promises in order to impact loyalty? And do broken promises impact all businesses and industries the same way and to the same extent? Just what impact do broken promises have on sales, repeat business, and customer loyalty? Research sheds some light on this commonly accepted yet little understood occurrence.
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September 8, 2014

The Most Underestimated, Undervalued and Needed Skill in Business – Part 2

Issue #344

Imagine this. An employee has to write a proposal for a prospective client. The proposal is not something that can be copied from something else online or taken from another sample. Now imagine that the proposal goes out to the prospective client, filled with spelling, grammar and punctuation mistakes. In the proposal, the company’s values and services are unclear. How would that employee’s manager feel if he got wind of that document? Embarrassed? Humiliated? How would that proposal affect the company’s ability to land that client? How would that proposal impact that employee’s upward mobility?

Good writing skills are imperative for any professional’s toolbox. In business, there are letters, memos, reports, presentations, company publications, emails, advertisements speeches, press releases, proposals, five-year plans, and so much more which must be written. Each document needs to be clear, concise, grammatically correct, and fluid. Each written piece should engage the attention of the intended audience, fulfill the intended purpose – whether it is to persuade, inform or engage — and conclude effectively. An employee’s writing skills represents the company or organization for which he or she works. If the writing is not professional and clear, it reflects poorly on the company. But good writing also serves other business purposes as well.
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September 2, 2014

The Most Underestimated, Undervalued and Needed Skill in Business – Part 1

Issue #343

What skill is the least venerated, most underrated and yet most essential skill in business today? Is it the ability to speak clearly and connect with people? No, although it is a vital skill and most people think the best leaders are those who can deliver a rousing, engaging speech. Is it excellent resource management? No, even though managers who can get the most productivity out of their team generally get the best bonuses. Is it the ability to crunch numbers and data in order to maximize profitability? No, but the number-crunchers definitely have the most power and control within most organizations. Is it the ability to persuade and sell? No, even though salespeople are treated like royalty at most companies. Actually, the skill that is probably the most valuable for managers, leaders and business people at all levels in all industries is the ability to write well.

As a writer, it may sound a bit boastful to say that good writing is the most underestimated, undervalued, and sorely needed skills in business today. Personal experience aside, while the ability to write well may seem like a mundane skill (after all it is not taught as its own subject in grade school or at most colleges), it is one of the most crucial skills any exec, manager or leader can bring to the table, regardless of industry or occupation. From engineers to educators and from real estate brokers to investment bankers, practically anyone in business today needs to be able to write well…. to deliver written information in a crisp, clear and concise manner. Says who?…. Well, just about everyone.
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