Wednesday, August 31, 2011

What Beer Taught Me About Business!

I love my business and I love beer....both in moderation!  I don't want to work all the time and I don't want to drink beer all the time.  The reality is that I work far more than I drink beer and that is probably a good thing. It's definitely a good thing.

But there are many business lessons we can learn from beer and here are a few:

1. Too much pressure can bring things to a head.  If you allow the stress and pressures of your business to overwhelm you, that is bad.  Step back, consider what is causing the pressure and try to address it calmly and directly.  Communication, reflection and reviews are all tools  which can alleviate pressure.  "Tilt the Glass" if you will!

2. One great product is not great for everyone.  If you go into a bar and they only have the World's greatest Pilsner on Tap, you will probably be disappointed if you don't like Pilsners.  People want a variety of products and services available to them so they fell they can make a choice based on their needs.

3. Great Marketing is essential.  Knowing what a demographic desires is essential to your  success.  In the beer business, people want fun associated with flavor.  That is why folks will order brews with names such as "Mad Elf", Wailing Wench" and "Yellow Snow". Names like this would not necessarily work for automobiles or patio furniture.  So know your market and appeal to it.

4. Too much of a good thing can be a bad thing.  Don't oversell your clients to make a quick sale.  In the long run, you may have alienated them as they realize they have more than they need of a product or service and have overspent.  At least in business they probably won't throw up on your shoes!

5. Sometimes mixing can be a good thing.  It is good to want all of your clients' business, but sometimes you have to cooperate and work well with other service providers.  Be supportive of this and as professional as possible.  There are many occasions when I have to work with other Designers or Developers that a client has enlisted.  I make sure to be respectful of their visions but also make sure I have a valid objection if one needs to be taken to the client.  Be professional and care about the client's needs and everything will be fine.  Why can't we all just get along?!  Shot and a beer anyone?

So until next time, have a great business week, enjoy the Labor Day Holiday Weekend and PLEASE don't drink and drive!

-Pete

Monday, August 8, 2011

With friends like you....

Ah, the old adage: "With friends like you, who needs enemies?!"  It speaks to the hurt you may endure when a friend does you wrong.  There are many great small businesses, which were started by friends and have thrived. But you also hear horror stories about how a business and a friendship was lost.

Another angle is when you start off as a client and a vendor and become friends.  The down side can be allowing receivables to slip off and guilt over charging  from the "rate card".

Here's a third scenario: ignoring your friends when a client is around.

Let's address these one at a time.

If you are considering going into business with a friend, make sure you put everything in writing.  Do not think your friendship puts you above security and organization.  Establish your roles.  Who is the idea person and who is the implementer?  Who is the sales person and who is the collector? What is the revenue share and how much will be reinvested into the business?  You may also want to consider taking online personality profiles to see if you would mesh in a business environment.  If you think you can handle it, then go for it.  But remember, money and friendship don't always mix.

It's a great thing to develop relationships with your clients.  It makes it harder for them to fire you when the competition comes around with a stronger offer.  But on the other side of the coin, it makes it harder for you to say no when they ask for a payment extension or some freebies/favors.  It takes discipline to say no when a client/friend asks for a favor.  Be flexible when you can, but remind them that this is hurting you and needs to be a one-time favor.  Again - the best thing you can do is to put everything in writing.  It shows up front that you are a professional and keeps everything above board.

Finally, if you really value your friends, be loyal to them.  If you are out with your friends and you bump into a client, introduce them.  It doesn't matter if your friends are being a drunk idiot or not.  They are your friends..the ones you can count on through thick and thin.  Your clients will understand if your buddy has his underwear on his head and a shoe missing because somewhere out there they have a friend who is doing the same thing!

So the moral of the story is this: Friends and business make strange bedfellows, but if handled properly and with respect and constant honest communication, can be a formula for success.

Until next time my friends,

Pete