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Finance For Buying A Business Raising finance for any purchase is never easy, but the current climate makes raising large amounts of cash particularly difficult. With banks very risk averse, finding £100,000 + loans at a reasonable rate is a struggle. The main way out of the challenge is to recognise that risk is the concern and...

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Getting the Contract Right When Buying A Business Ask any professional advisor involved in buying businesses and they will tell you that the contract is of critical importance. Of course the size of the transaction means that you need to make sure that your interests are well represented in the formal expression of the deal. You also need to know that...

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Business Advice When Buying A Business Our team at the business advice blog has just finished our weekly review of the post bag and the most popular topics this week has once again been buying a business. We havev received over a hundred queries this week with people looking for advice on all aspects of this theme. I guess it is not surprising...

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Getting Loans For Buying A Business As we move out of this recession (we hope!), some business leaders are starting to think about investing in expansion again. Still others are loking to get back into the market in new businesses. One option that is a shortcut to both of these objectives is to find a business to buy. While it does offer...

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Three Men Were In A Bar......(fiction)Three Men Were In A Bar......(fiction) Martin took a moment to look closely at his two friends and he began to wonder how things had ever got this bad. Anyone looking at the three o them would assume that they were three wealthy businessmen enjoying the end of a day’s golf. Certainly they all looked the part, but things are not always as...

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Landing Page Optimisation

Category : Business In General, General Thoughts, Marketing Advice, Small Businesses

optimisationSome marketing consultants believe that the highest form of the direct marketing art is the tweet or an Adwords advert. They believe that because the text is so limited, that only the best will get their messages across effectively.

Having spent years in the direct business, I believe that this is wrong for a simple reason. Catalog and internet marketing are graphically driven media, so the ability to grab someones attention with a short headline is not a test of skill in this area.

On the other hand, the ability to construct a landing page or to structure a product page on an e-commerce site relies on skills in graphical layout, customer understanding, eyepaths, and copywriting. With so many things in play, it is easy to see how people simply copy other models, resulting in the templates and idoms that we see on the net today.

One man with a deeper understanding of what lies behind these structures in Bryan Eisenberg. Here is a recent video interview that he did with Dr Ralph Wilson in which he discusses how he restructured a slaes page for Lands End at an internet conference. If you summarised the things that he did, then you might think: “pretty obvious stuff”. However, if you listen to the thinking behind his suggestions, you will see a deep understanding of how customers buy off the page. This understanding is the key to creating great web and landing pages so I think it is worth studying.

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Global Confidence Grows

Category : Business In General, General Thoughts, Marketing Advice

confidenceThe latest Neilsen Global Consumer Confidence Report makes for encouraging reading for those seeking a return to economic growth. They are reporting data from June 2009 which shows that their index has grown five points, from 77 to 82. The gain has been attributed to a growth in consumer confidence and to stock market gains in the BRIC countries (Brazil, Russia, India, China). They also report that the number of consumers believing their markets to still being in recession has declined. Overall their conclusion is that consumer and market sentiment has switched from recession to recovery – signalling a runing point in the Global Financial Crisis.

Looking at the detailed data, you can see how much the sentiment is being skewed by parts of the devloping world. Expectations of recovery are very strong in places like India and the UAE. Consumers in Russia and China are confident that the worst is over and that thier recoveries are well underway. This confidence is matched by a willingness to return to old spending ways. The survey data shows that a significant number of consumers in the BRIC countries intend to revert immediately to old spending habits on clothes, energy, entertainment. This is in marked contrast to Western Europe, North America and the Pacific, where consumers are indicating that they will retain their frugal buying behaviour in these areas even after the recession ends.

So if you have the opportunity to target more than one global region then China, Russia and India are most likely to be your target hotspots in 2010, with bouyant markets for most goods and services in a return to pre-recessionary times.

If you are stuck in more developed markets, expect an emphasis on value for money and deals to prevail for some time yet.

Getting Rich On Twitter?

Category : Business In General, General Thoughts, Marketing Advice, Small Businesses

I had a coffee yesterday with a client. He is a pretty smart twitter1businessman who has run several companies and eventually started his own.  It quickly become clear that he wanted to talk about Twitter and how he could use it to develop his market and to grow sales. He had been reading interesting articles about how others in his industry had been using the tool to offers promotions to their customers and he had looked at the approach that they had taken. He had asked his marketing team to take a broadly similar approach ( not copy it exactly), and the results had been poor. In fact they had been non-existant.

So now it was time to talk to the marketing consultants  to find out how to improve things. It wasn’t very hard to identified the issues:

1 They had just jumped in, collected followers, and had pimped their products very blatently.

2 They offered no value-adding information to followers.

3 They had built a collection of followers who were not a community and who did not share a common interest (rent-a-follower).

The remainder of the conversation was about two things: understanding that social media is about creating an fulfilling an interest in a subject or an activity and having long-term plans and expectations about what it can deliver. Businesses need to understand that they need to build a community of followers in social media before they can exploit it and that this takes time an some up-front investment.

One of the best lists of things to do on Twitter is a good place to start and I recommended it to my client and his team. If you have other experiences of Twitter, please feel free to share them.

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France Telecom Suicides – A Change Too Far

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Category : Business In General, General Thoughts, Marketing Advice

There has been a lot of speculation recentlyft about the spate of suicides at France Telecom. The former state giant has been undergoing a transformation over the past ten years from a monopoly to a market-led business. Like all Telecoms businesses, it faces significant change. Users are switching from fixed lines to mobile technology, billing and pricing models are changing and competition is very stiff.

In terms of history and market pressure, there are strong parallels with the Royal Mail in the UK. A state owned business faces competition from private businesses and must transform itself quickly and under the control of a market regulator.

While staff at the Royal Mail are going on strike and complaining of intolerable stress, there have been a recent spate of suicides among workers at France Telecom. Of course I am not comparing the decision to go on strike and the decision to take your own life, but there are parallels between the situations that the employees find themselves in.

Some Anglo-Saxon commentators have sought explanations for this extreme reaction to change in national culture. They cite high power distances between workers and managers, rigid work structures based on tradition and protocol and a culture of not wanting to work (35 hour week). Having worked in a french company, I recognise some of these features, but some of them I do not. One description of a national culture is always to simple to be of practical use. Also the parallels with Royal Mail mean that culture is not going to be the only answer.

At the level of the individual, there seems to be a deep discontent in both businesses. People who joined FT, joined an organisation that offered a job for life in a business that was not market driven. They joined a company where doing things according to the procedures was at least as well rewarded as taking initiatives. Their social pact with the organisation was follow the protocol and we will give you a job for life.

Neither France Telecom nor Royal Mail can offer their part of this deal and so the workers feel frustrated. In fact there are almost no organisations that offer such employment terms these days outside of the civil service. The first step in bridging the chasm between what these employees expect and what former state companies can deliver is some honesty from the political class that opened the businesses to competition.

Until we hear Brown and Sarkozy tell the workers that at a global level that those days are gone, then disputes of this nature will simmer on for years as the managers in individual commercial businesses will never be able to fulfil employee expectations that were built up in state monopolies.

The Good, the Bad and the Feline

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Category : Business In General, General Thoughts, Marketing Advice

catMarketing Consultants have no problem assessing a market or a customer segment. They quickly begin to classify by all manner of traits and after a quick survey – hey presto – a segmentation that explains a lot about what happens when people get their wallets out ot buy a product.

Where they tend to be less astute is in classifying customers. For those people who have not been in marketing consultancy for too long, there are usually those clients who deal with me and those who deal with someone else. For more established consultants, the client world divides into those that can pay your daily rate and those who cannot. If you have been around the marketing world for even longer, you may think about those clients who can pay, those who cannot and then of course, the russians.

Getting paid is important. but it is not the only criterion that you should think about. When I am assessing the potential of a marketing client, I like to think of them in terms of the type of pet they would be – a dog or a cat. Cats are low maintenance animals, who make few demands on their owners in general. Dogs need to be excercised, watered, fed regularly. However the defining feature of your relationship with your cat is that it is one-way. They mostly take and you mostly give. Dogs, on the other hand, are pack animals and they want and need to belong to your pack. They want a two-way, long-term relationship with you and they are prepared to do what needs to be done to have it with you.

Next time that you are faced with a new client, think about fees and payment issues, but also think about the nature of the relationship that you could have. You can do much better marketing for a dog than you can for a cat and the rewards will be significantly greater.

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