How to Create Luck – Fly High with Profits

 

Despite higher costs and a weak economy, some businesses are lucky in increasing profits. Often, it’s a result of success from competing in a zero sum marketplace. Companies survive and gain market share when their competitors fail. But that’s often because successful firms know how to create luck.

Fear is a factor when companies underperform. That includes fears about a continued tight credit, predatory practices in credit cards, mortgage delinquencies, gas prices, weak technology and equipment spending, high unemployment, and the trade imbalance.

But fear is also an acronym: Frantic effort to avoid responsibility. Fear is often the reason companies fail to perform.

Consider these typical situations:

• Do you let fear lead to paralysis from too much analysis?
• Do you give away your power when you encounter rude customers?
• Do you allow rejection in sales presentations to get you down?
• Do you idly sit as public officials create policies that harm your economic and political freedoms?

To create profits with strategic planning in a competitive marketplace and business adversity, here’s business advice to eliminate fear and create luck:

Create balance with an analysis and strategic plan. Don’t go overboard in planning, but look at your role in capitalizing on your strengths and weaknesses and identify opportunities and threats. Your best plans can go awry but you can minimize any challenges with the right amount of reflection for the performance of both you and your business, and execute with courage.

Invest in your education. Learn from others how they deal with uncertainty in business. I’ve had literally thousands of telephone conversations with great mentors. That’s right, just a few personal meetings and countless telephone calls.

I love the business philosophy of “Rich Dad, Poor Dad” author Robert Kiyosaki. Perhaps he’s been justly criticized for some of his investment approaches, but his anecdotal lessons are inspirational. For example, his ideas on networking are insightful and he’s got an unusual take on the Golden Rule: “He who has the gold makes the rules.”

Another great author: Dr. Thomas Stanley, who wrote “The Millionaire Mind,” is unassailable. The best-selling book has watertight insights on financial success.

So hang out with the right crowd to learn from them.

Focus on marketing and sales simultaneously. Marketing is vital in creating a brand image. That might include public relations, a Web site, online prominence or trade shows. Sales includes prospect and customer contact.

If time and budget issues are taxing and you don’t have the right staff, consider alternatives:

To make a productive sales call, good marketing materials are an asset. And marketing results are stronger if your salespeople are effective. But sales and marketing usually requires two different skill sets. So consider a part-time independent contractor for marketing and commission pay for results-oriented salespeople.

Remember sales require an “inside job.” If you’re selling value, and speaking and acting with conviction, you’re destined to attract the right customers.

Create opportunities with partnerships and centers of influence. Develop relationships with influential people or groups and ask them for referrals. Look for ways to reciprocate. Rotary Clubs and chambers of commerce are good places to look for people who can be instrumental. They’ll help when you need it the most. I got my first two consulting gigs after being laid-off as a newscaster, and started meeting businesspeople over coffee.

Create great PR. My favorite PR example is my second client, the Utah State Fair, which was part of state government. After leaving the airwaves as a newscaster, I was hired in a 1988 Utah recession to get a $2 million state appropriation for repairing deteriorated historic buildings. At the time, asking for $2 million would be like asking for $65 million today adjusted for inflation. Legislators had been ignoring the fair and even rescinded funds they appropriated the prior year.

Effective marketing is both public and private. Following the lead of every dignitary who visits Salt Lake City, I advised my client to make a call on Mormon Church officials. Officially, the church didn’t influence public policy, but as a relative newcomer to Utah, I realized the head of the church was Ezra Taft Benson, who had been Secretary of Agriculture under President Eisenhower. Soon, a Mormon-owned newspaper published the headline: “Our Crumbling Fairgrounds.”

We scheduled events nearly every day, for example:

We took horse-drawn carriages to the state capitol “to take lawmakers for a ride.” Every newspaper published pictures with the caption, “Utah State Fair takes lawmakers for a ride.” (Actually, the veteran lawmakers ignored our invitations but the rookie lawmakers eagerly climbed into the carriages. But after the old-timers saw extensive pictures of the rookies, they eagerly cooperated on other PR efforts.) We hand-delivered bouquets of flowers donated by a grower to the morning DJs at the top 10 radio stations on Valentine’s Day to entice them to “Love a Fair.” During lunch that day, we delivered bouquets and messages to every state legislator and capitol employee.

The result: $2 million. (The following year lawmakers appropriated another $1 million without even being asked.)

We got the money. As a thank-you to legislators and to prevent buyers’ remorse, we worked with the state’s musicians’ union to get federal government arts funding to stage free public music concerts under the stars. We promptly issued a press release detailing how the appropriation was efficiently being invested so lawmakers wouldn’t change their minds again.

Cost-effective Internet options. Advantages in online marketing include: 1. Low overhead. 2. An opportunity to offer a mega selection. 3. The Web is a great equalizer. 4. International trade keeps getting bigger – remember you have the ability to sell outside the Northwest.

A good barometer for advertising trends is national politics and how political candidates influence voters. Broadcast yourself. Check out YouTube. You’ll see an endless potpourri of video sales pitches.

Blog, publish or use online E-newsletters as options. Create effective press releases for your local media and don’t forget inserting them on the Internet.

There are numerous local e-marketing opportunities from Yahoo local listings to Craigslist. But if you want to reach prospects who are good citizens with positive cash flow, my preference is a good local media Web site.

Face adversity with courage and detachment. Many great strategies will trigger vindictive opposition. The competition in Utah for legislative funding was intense. We were victims of dirty tricks by other special interest groups. But we had fun and ran the race without ever looking over our shoulders. During that legislative session, I even gave a surreptitious sales pitch for my client when I served as the master of ceremonies at a sarcastic roast for a retiring lawmaker.

Stay focused like Ichiro. Practicing good habits makes for good performance. Respect your opponents. Be defensive — like a championship football or baseball team – with your prospects and customers – do not take them for granted. When businesses lose customers, my research shows 70 percent of the time it’s because their customers feel taken for granted.

Good luck with your strategies for creating luck to fly high with profits!

From the Coach’s Corner, don’t ignore your employees as opportunities for growth.

Here are some HR tips:

Recruit employees on the four A’s of Hiring: Attitude, appearance, ability and angle.

What the A’s mean:

1. Look for positive attitude. Will they go the extra mile and create opportunities to blog about your company on the Internet?
2. Make certain they inspire confidence with a professional appearance.
3. Make sure they have ability but be willing to hire someone with an aptitude and receptivity to training.
4. Research their empathy skills – will they understand your customers’ angle or point-of-view? Do they know how to say thank you to customers – instead of the boring phrase, “have a nice day.” Do they how to prevent buyer’s remorse?

Pay your employees well. Be as generous as possible. Recognize them publicly. Employees are often more productive when they have a life – or job flexibility.

Treat your productive workers like you would a good customer, such as baseball or football tickets, nice dinners or their birthday off with pay.

Enhance organizational moral by making certain employees are best-suited for their responsibilities.

Look for opportunities to create a culture of personal growth. You’ll inspire loyalty and minimize turnover, which is a profit-destroyer.