Marketing - The Bold Approach Method

Why Small Businesses Fail

Grains of Montana is a small restaurant and bakery franchise that opened up about a mile and a half from my house. It was located in the back of a business complex on a very busy corner between two Marriott hotels. It was difficult to see from the road but they did occasionally put up a roadside sign talking about breakfast.

They were open for several months and I finally stopped in (It took me a long time because I incorrectly thought they were Montana Wheat, another group of restaurants in Boise which were in and out and which served primarily high carb meals which I don't eat regularly. When I stopped in, I found out that they actually had a very extensive menu plus the best non-fat, sugar free Chai tea I've ever had. Two days later I went back and they were closed . . . for good. I decided to do a little research to learn more about the chain. I looked at their website and there are only three (now two) locations and the cost to open a Grains of Montana restaurant $551,00 - $684,000! Over half a million dollars to open a restaurant that serves pizza, sandwiches, and coffee drinks. I don't care how good it is, the amount you have to sell to make that make sense is tremendous, especially for a chain that isn't well known like McDonalds or Burger King or even Baja Fresh. But here is the kicker, after you spend all they say (from their website FAQ) this:

"What about other costs? There are additional costs such as advertising, licenses, utility deposits, uniforms, food and small wares inventory, and working capital. These costs should be $22,500 to $27,500. If you choose to obtain a beverage license, additional costs will be incurred."

Ok, here is the problem, if you spend $684,000 on building a restaurant, you need to spend more than $27,500 (less licenses, utility deposits, food and small wares inventory and working capital) on advertising! Come on, really? After you take away all of those other things you have maybe half of that left, to spend on advertising. This is a recipe for failure fast.

Here are some ways to kill your small business quickly.

1. Choose a poor location - Sometimes the best use of your marketing budget can be to get a better location than the one you are in. In the case of this restaurant, they were in what would appear to be a busy area but they were in the back of the strip mall area, hidden behind a Taco Bell, a Qdoba, and a Pita Pit.

2. Don't advertise - If you build it, it is very unlikely they will come if they don't know about you. I pay a lot of attention to ads because that is a big part of my business, other than their sign and one mailing, I never heard about Grains of Montana when they opened or after. I'm not going to say they didn't do more but if they did it wasn't effective at getting my attention.

3. Create poor advertising - If you let the advertising media (radio, newspaper, mailer, tv) create your ads they are very unlikely to be effective. If you use the same people who write, create and voice ads for every other business in your category, you'll end up with ads that look and sound like every other ad in your category.

4. Don't create an experience for people to remember - Sandwich/pizza/coffee restaurants are a dime a dozen. If you just think that your signage and decor are going to cause people to get excited you are wrong. If you think that your food alone will do it you are wrong. There are too many choices, many that is similar to yours. Having a good product or service isn't enough anymore, exceptional is the expectation.

5. Over invest in the business up front - Spend like you are a thriving business and don't act like a start up is one of the fastest ways to fail. In the case of the local Grains of Montana, the franchise is very new and the investment is very high. If you invest most of your money in opening and not enough in promotion you are most likely short lived.

So what to do to Instead?

1. Choose your location well - Especially in the case of retail and restaurants, location truly is everything, get in the best, most visible location you can find. It would appear that Grains of Montana would have been in a good location between two hotels but they were hidden from everyone but one of the hotels. If your business relies on impulse, fast repeat business and ease of access, spend more on that. In this case, not only were they hidden, they were hard to get into and out of.

2. You have to be seen to sell - Budget enough money and talent to impact your marketplace. Marketing is a marathon not a sprint, you need to have enough resources to last through opening. You also need to leverage current influence technologies like social media. It is important that you hit your potential market from as many different media as possible to create effective long term memories. You must also create a real reason to believe what you say is true and the experience had better prove it.

3. Create ads that matter - Ads have to cause people to stop and listen or read. You must spend time creating ads that are different and bring a different message to the market. The time you spend really thinking about what matters to your potential consumers and giving them a real reason to believe it is true will pay off in sale after sale. Don't use overused voices and talent in your ads. When you use voices on the radio or television that are on radio and television every day (for example disc jockeys or newscasters) you lose. Their voices are so over saturated that they simply move into the background. Hire the best talent you can afford and leverage it.

4. Create an experience to remember - People want to be amazed, amused, entertained, shocked, surprised, and thrilled. They want their expectation to meet the experience. Think about how you can create an environment, a culture, an experience that people can't forget. Not to beat a dead horse, but Zappos does it extremely well. Zero in sales ten years ago to over a billion in sales now. Experience is everything and it doesn't happen without a great deal of thought and dedication to implementing not only with the customer but empowering every member of your staff to be sure the expectation is met with an incredible experience.

5. Act like a bootstrapping start up - Even if you have the money to buy the franchise, ask yourself the question "If I hired the top consultant in the industry to help me start this business could I be as successful and save much more than I'll spend?" This is especially important in the case of buying newer franchises. If I were the Grains of Montana people I would have purchased as much used equipment as possible, I would have negotiated every dime of the contract and every single purchase. The more money you take away from the top line investment you add back to your ability to market sell, or extend operating capital. I'd also compare very closely the cost of hiring the best consultant or start up restaurant person for six months to help me create my own restaurant versus buying a new franchise with such a large investment up front. For a unique look at how Brandon Wright owner of Ultra Clean a disaster clean up company gets others to pay for his advertising right click here and choose save target as to download the mp3, this is a great study in how to make things happen and how to market well.

There is plenty of money to be made in this economy in any business but there is no room for silly mistakes. Small businesses have to focus on doing things right, doing them better than the competition, and doing them ruthless consistency.

Joe Vitale and Life's Missing Instruction Manual

I just finished reading Life's Missing Instruction Manual by Joe Vitale and it was a wonderful read.

I returned after traveling for over a week and my Amazon box was sitting there begging to be opened. I played with my two year old daughter until she was tired and wanted to go to bed and then watched the new episode of the Sopranos. But as I watched, the Amazon box kept screaming to be opened.

Finally, I did and I pulled out Life's Missing Instruction Manual and started to read . . . and I continued to read non-stop for the next hour and a half, until I was finished with the book and much too soon I might add.

This book is a great collection of insights, wisdom and opportunity from Joe and some very interesting characters from across the globe. I mean really, who would have thought to look to a world famous Blues guitarist for lessons on life . . . and they were great.

Get this book today, you'll enjoy it - a lot.

Selling To Big Companies

Nearly every day I get a call from someone wanting to know how they can sell their products or services to big companies. Almost every time the challenges are the same.

• How do I get a big company to pay attention to me?
• How do I get past the gate keeper?
• How do I get to the real decision maker?
• Should I really start at the top?
• What would make my small company interesting to a big company?
• How do I find out who the buyers are in a company?
• How do I negotiate with a big company?

The list goes on and the challenges are very real. I used to share a lot of ideas and insights until I read Jill Konrath's new book Selling To Big Companies.

Jill's book answers all of the questions about how to sell to big companies and addresses many issues I'd never have thought to cover.

What I really like about the book is that it is not rehashed, warmed over sales advice, it is in the trenches real life strategy and tactics that will work for any business no matter what the size. And, it answers every question I've ever been asked about selling to big companies.

From now on my answer to the question "Can you help me get my products or services in front of buyers at big companies" will be: Start by reading Selling To Big Companies.

This book is so good it goes on the mandatory reading list for all my client's and their sales teams.

Meet Me At Big Seminar

I'll be speaking at Armand Morin's Big Seminar this year along with Declan Dunn, Alex Mandossian, Mike Filsaime, Morgan Westerman (He created the viral video "Interview With God.") Stephen Pierce and more more over three days.

Big Seminar is the only Internet Marketing Seminar that I paid to go to two times a year before I was a speaker there. I strongly recommend that you at least check out the free advance marketing training that you get in advance of the seminar whether you go or not.

Last night I spent an hour training people on traffic driving PR strategies that anyone can use to create a landslide of traffic to their site and there are more than 10 calls left. Be sure to get on them. I also gave them a preview of part of the PR strategy that I'll be teaching at Big Seminar that can explode your Google Adsense revenue.

I look forward to seeing you at Big Seminar, be sure and introduce yourself and let me know that you read my blog!

The Anthony Robbins Team and Kevin Hogan's Influence Bootcamp

I just got back from speaking at Kevin Hogan's Influence Bootcamp and it was an amazing experience, I'll tell you more about that in an upcoming post. But, while I was there, I met Gene, the VP of Sales for Tony Robbins and his top performers Roberto and Jason Sisneros. Jason is the one the left who shares my haircut, Roberto is on my immediate right and Gene to the far right in the picture.

Now, I've got to tell you, having a bunch of Anthony Robbins' guys in the room was awesome, what a way to keep a room fired up. I loved it. Thanks Jason, Roberto, and Gene, you guys are a three man packed stadium cheering section, you know how to make speakers feel great! Thanks!

While I was talking to them, I got to know Jason Sisneros a little better and he shared his amazing life story with me. He is not only alive (when just a few years ago he sat on a cliff with a gun in his mouth about ready to give up) but he has lived a real story of transformation and it is inspiring.

His book Destiny's Doorstep is a wonderful read. Jason gave me a copy at the event and I read it in the evenings and finished it on my extended stay at the Las Vegas Airport (more about that and Hooters Hotel in a future post as well).

I'd like to strongly recommend you get Jason's book and read it, it will give you not only a giant does of hope, but 7 powerful steps for transforming your life or making it better no matter what your current situation, you are going to love this book and be forever changed.

Check back often, I'll be telling you more about Kevin's Influence Bootcamp and another persuasion event that I spoke at the same weekend!

Updated Information On My Interview With Robert Greene Author of The 48 Laws Of Power and The 33 Strategies of War

Because of the amazing demand to be on this call, I've added more phone lines. So if you wanted to hear me interview Robert Greene, but were not able to sign up because of the lack of lines, please go to www.boldapproach.com/33strategies right now and sign up.

The call is at 3:00pm PST today, Wednesday, February 8th, 2006.

I'll make the replay of the call available online for a very limited time, but you must be signed up to get notice of the replay.

I look forward to having you on the call, I just talked to Robert and he has some amazing stuff prepared for you.

The United States Postcard Stamp Crisis

This is just too funny not to mention.

There is an unspoken crisis of astronomical proportions going on in this country, one that is being carefully hidden and it may be a sign of the impending Apocalypse or at least some nefarious plot.

There is a critical shortage of $0.24 cent postcard stamps in the United States.

It's true. My wife went to the post office today to buy postcard stamps to mail her Valentine's Day postcard to advertise her Spa and was told there was not a postcard stamp to be had in Boise, Idaho because there is a nationwide shortage of postcard stamps.

My wife said she thought this was some sort of Allen Funt or Punk'd moment. She smiled and politely waited . . . the postal clerk reassured her that she was dead serious.

She then called all the surrounding post offices and no luck. She said that "might" be able to have some overnighted in, but she didn't know if she could get enough for her mailing.

Now, there are obviously a few ways around this, one is to meter the postcard, but it had already been set up and printed to take a live stamp, which my wife always uses. The other option, to print out postage from www.usps.com, but that same problem exists, covering up part of the sales message.

When she called me I sat in stunned silence for a moment, but then, I realized I was not at all surprised. Why would the United States government be sure to do any analysis to see how many postcard stamps had been used before and print an appropriate amount. I'm sure that the logic was that people could just buy the old $0.23 cent stamps and put a $0.01 cent stamp with it. But in addition to the aforementioned problem of covering up part of your sales message there is another more pressing problem.

There is also a shortage of $0.01 cent stamps.

I have to wonder if anyone has alerted President Bush or sprung his father and Bill Clinton into action? Louis Fericon should be outraged and mount a march. For that matter has anyone asked "What would Scooby Do?"

This is actually very laughable and not at all surprising considering the amount of forethought government agencies put into changes.

It would be too much to ask for to have the government do the right thing if they can't provide you with their "product," and allow you to use the old stamps minus the nearly extinct $0.01 cent stamp. I know, it would cause chaos rivaled only by filling your mouth with pop rocks and washing them down with Coca-Cola (Mythbusters evidence to the contrary aside).

Alas, my wife was able to solve her dilemma by imprinting postage on the cards even though it did make them somewhat unattractive when the imprint covered some of the printing. Ultimately it wasn't an advertising piece killer, but we'll be watching the response rate closely.

I simply felt it was my moral and patriotic obligation to let you know of this crisis so you can avert disaster by NOT designing mailing pieces that require $0.24 stamps until mid-March, when, we've been assured that the crisis should resolve itself.

So sayeth the Postmaster.

And you know he won't get THAT wrong.

P.S. I checked the USPS website and there was no mention of this crisis that I could find. But, a quick call around to several post offices nationwide with a request for 2500 postcard stamps netted similar responses to the one in Boise.

Listen in as I Interview Robert Greene Author Of The 33 Strategies of War and The 48 Laws Of Power

On Wednesday February 8th at 3:00pm I'll be interviewing Robert Greene, author of "The 48 Laws of Power," "The Art of Seduction," and his newest (and maybe best) book, "The 33 Strategies Of War."

This is very exciting because Robert has never done a teleseminar before. He is very private and it is nearly impossible to get him to do these kind of events. But, since I'd interviewed him for my last book, he agreed to do a one time teleseminar where he will answer all your questions. You should know that there will be no selling, no bonuses, no limited times (only limited phone lines). This will be a pure content call. I highly recommend his books and I've linked the books above so you can easily find them

If you'd like to be a part of this very exciting and informative event, please go to: http://www.boldapproach.com/33strategies right now and sign up. Once you've signed up you'll receive an email with all the details of the event including the call in number and the pin number. You'll also find out where to submit your question to be answered by Robert Greene.

Howard Stern Marketing Vs. Movie Marketing Or, The Mistake Quentin Tarantino Is Making

I was reading an excellent post on Ted Goodier's Blog "For Your Consideration" yesterday. Ted was talking about being disappointed by the promise of a movie based on his belief about what the movie was from watching the trailer. He was talking about the movie Lord Of War with Nicolas Cage. To add to that movie, I'll add any movie not actually directed by Quentin Tarrantino. Hostel being the latest to lead people to believe it was a Quentin Tarantino directed movie when in fact it is just an endorsed movie. I'm a huge fan of his movies, but hate his tactics for promoting movies not his own. I have a message for Mr. Tarrantino and other producers later in the post.

I've long been of the opinion about movie promotions: "Fool me once shame on you, fool me twice, shame on me, but fool me thrice and I'll forever wait for DVD."

Marketing is about being relevant, truthful and compelling. Quentin Tarantino is compelling to me the movies he makes are relevant to me, the movies he openly and outright clearly endorses are important to me. But, the ones that lead me to believe maybe he made them or maybe he is endorsing them leave me flat and impact his credibility with me. I'll never go to another Quentin Tarantino movie on opening day, and probably not opening week, until I'm 100% sure that he made it.

Howard Stern leaves no quesiton about who he is, what he is, who he is trying to be relevant to and what his intentions are. You never have to wonder if Howard is misleading you, he tells the bald truth good or bad. You either like him or you don't, you either buy him or you don't. There is little middle ground with him. He makes buying him easy if buying him is your thing.

If you are a marketer, small business, entrepreneur, author, speaker, consultant, or coach, you have to decide what you want to be to whom and then be that 100%. Don't try and be everything to everyone. Don't lead pepole to believe you are something you are not. You are what you are and perfect for those people who want you. Those people will buy more and their frequency of purchase will be much higher too.

Oh, and they'll give you that illusive best kind of advertising everyone wants, word of mouth.

Take the time to look at you rmarketing and your message. What you are saying? Then ask, what are you doing.

When they match, you profit.

This is one of the coolest sites on the internet

If you haven't seen In Bubble Wrap yet, you should check it out. Every day they give away free books and trainings. You simply have to answer a couple of quick questions and they choose several people a day to get the books.

I provided copies of my book recently and they gave them to people on the site.

I did it as a test to see how this kind of promotion would work and so far it has been pretty good.

A couple of guys who have a very popular podcast called Lock Jaw Radio

my book and talked out it on episodes 12 & 13. I'll be very curious to see how much impact this has in actual sales. I'm a big proponent of podcasts and believe that most companies can use them to more effectively promote their business.

They also followed the In Bubble Wrap instructions very carefully (in addition to popping the bubbles) and crowned themselves winners. It is a great example of how you can even use your packaging to get people involved in an experience.

Take a look at the pictures here.

Many times giving away a sample of your product is the best way to kick off a word of mouth effort. Since I just started following the results of this I'll let you know how it turns out as time goes on.

What can you do to give your clients a taste or sample of what you do so that they can begin their relationship with you?

Enjoy the site and I hope we both win a book tomorrow!

P.S. Amazon reports that they just got a fresh new shipment of Persuasion: The Art Of Getting What You Want in their warehouse, now is a great time to get your own copy.