It is a very common saying that first impressions need to be the very best impressions.   This is especially so when it comes to career interviews.

Most managers involved in hiring will tell you that they can tell from the first handshake and a little small talk whether they have an interest in hiring the candidate.  It takes hiring managers only about 10 minutes to form either a positive or negative opinion of that job seeker. 

This should tell you something about the approach you need to take for a job interview. 

It really means that the moment you arrive the interview is on.  You need to project confidence and enthusiasm right away.  You should pay particular attention to preparing for the first few questions to be asked. 

Be ready with your responses when they come to these topics.  Full Story »

Why Extend the Product Life Cycle?

 

The primary reason for extending the product life cycle is simply profit.  Extending out the life of a product gives the business every opportunity to exploit the markets opportunities.  It allows businesses to gain additional time to generate more profit by establishing a longer presence with the product.

 

When each stage of the product life cycle is extended it allows more exposure to every target market in that phase of the life cycle giving the product time to gain even more consumers.

 

Strategies to Extend the Product Life Cycle.

 

Full Story »

There are many stages to the product life cycle and they involve different aspects of business planning.  Based on where your product is in its life cycle there are going to be different sales and cost expectations along with different business strategies for maximizing the products profit.  The products profits and expenses will rise and fall as it progresses through its life cycle. 

When you accept that a product has a life cycle you also accept four additional truths about products.  That is they have limited life spans, sales fluctuate with the stages, profits will also rise and fall during the stages of life and lastly products require different marketing strategies based on the stage of their life cycle. Full Story »

Congratulations! Your application has made it through the pile and you’ve been shortlisted for an interview. Now the hard work begins. A job interview can be a nerve-wracking experience but if you spend time in preparation you’re sure to perform at your best. Here’s a quick guide to making the most of your opportunities at interview.

Ask questions: Toward the end of the interview you’ll be asked if you have any questions. Ensure you have some prepared before the interview and use the time to cover any important points you may have missed during the main questions.

Body Language: The way you hold your body says a lot about you and how you feel about yourself. Be aware of how you are presenting yourself through your body language and make sure you’re giving the interviewer the right message.

Clarify: In the pressure situation of a job interview it’s possible to misunderstand the intent of an interviewer’s question. If you think you haven’t understood a question, ask the interviewer for clarification before you begin to answer.

Dress Appropriately: Plan what you want to wear before the interview, keeping in mind the company and the type job you are working for. For example, a business suit is customary for a position in banking, but not necessarily for a job in childcare.

Examples: During the interview illustrate your answers by giving specific examples of how you have used skills and knowledge in previous work or study situations.

Follow Up: After the interview it is good manners to send your interviewer a short note thanking them for the opportunity. At the same time ask if it’s possible to get feedback on your performance at interview. This can be a valuable learning tool whether or not you are successful in winning the position.

Greeting: Greet your interviewer or interviewers with a firm handshake and a friendly smile. Use eye contact and most importantly, remember their names and call them by name during the interview.

Honesty: Answer all interview questions honestly and to the best of your ability. Don’t claim to possess a skill that you don’t have.

Interviewer: During your preparation for interview put yourself in the interviewer’s place. Anticipate the type of questions they may ask. Ask yourself, what could a candidate for this position do that would really impress me? Then follow through on that idea.

Jot Down: If it’s permissible for you to take notes during the interview, jot down key words and phrases used during the interview questions. This will help you to answer the questions plus give you material to on which to base your own questions to the interviewer.

Knowledge: Display your knowledge of the industry and company who are offering you the interview. If you have researched carefully you should have a broad knowledge of both the company and industry. Let the interviewers know that you do.

Listen Carefully: Listen to the questions being put to you during the interview. When you’re nervous it’s easy to let your mind wander. Maintaining eye contact with your interviewer helps you to stay alert.

Modulate Your Voice: Make your tone of voice sound interested and interesting. Interviewers are often dealing with dozens of applicants each day, so maintain their interest in you by using your voice effectively.

Nerves: Everyone is nervous when they are being interviewed. The secret is to stay calm and keep your anxiety in check. Breathe deeply and stay focused on the task at hand.

Organised: Know what you are going to wear, what you will need to take and how you will get to your interview the day before it’s due. If you have everything organised the evening before you are less likely to rush and forget something on the big day.

Preparation: Research the company and the industry. Think about the type of questions you are likely to be asked and have some questions of your own prepared. Use your written application to help you. Source information about the company from brochures, website and industry magazines. Make it your business to find out everything you can about the company and their competition.

Quality not Quantity: The quality of an answer isn’t judged by its length but by its content. Don’t talk yourself out of a job with rambling answers. The interviewer will not be impressed with your time wasting behaviour.

Rehearse: If possible, roleplay the interview with a family member or a friend. This is not to memorise your answers - you don’t know exactly what the questions will be - but to increase your confidence and help to clarify what you want to say and how you want to say it. Or try the ‘Virtual Interviewer’ on the Seek website. It’s an excellent way to rehearse your skills.

Smile: It breaks the ice and it will help you and your interviewer relax. Think about your answers: Take a few moments after a question has been posed to gather your thoughts. If you’ve taken notes, refer to them before answering the question.

Unique: If you have a quality that you believe uniquely qualifies you for the job vacancy, be sure to let your prospective employer know. If the opportunity doesn’t arise during the interview, mention it at the end when you’re summing up.

Value: Demonstrate how you can add value to the company. Be specific about this. You are competing against other candidates who are as qualified or more qualified than you.

Work Experience: Remember to tell the interviewer about all your relevant work experience both paid and unpaid. Include your involvement in community and sporting activities.

X Factor: It’s that certain something that some people have and some don’t. If you have it, great. Use it to your advantage. If you feel you’re one of the many without the ‘X Factor’ market yourself as if you do.

Yawn: Yawning is sometimes a nervous habit. Be aware and alert. If you notice your interviewer stifling a yawn, take note and keep your answers relevant and concise.

Zing: Add a bit of zing to your presentation. Be enthusiastic and let your personality shine through. You are an individual with plenty to offer so let the interviewer know it.

It could very easily be the most famous term in marketing and one of the first concepts learned by marketers.  It is also known at the Four P’s each representing one tactical component of price, place, product and promotion within a comprehensive marketing plan.

After all what is marketing if it is not putting the right product in the right place, at the right price with the right promotion?

You need a product that people want, offerer for sale in a place they frequent, at a time when they want to purchase, at a price they feel matches the value they will receive from it.

It is simple right?  Well at least the idea is.  It takes an enormous amount of work to actually identify what it is that the people want.  After you do that you still need to figure out where it is that they do their shopping.  In addition you need to produce the product at a cost they find value with.  And then make it all come together on time.

Get just one element of the mixture wrong and it could mean disaster.  If the price is too high it will not sell and if too low it will not be profitable.  No one wants text books after the start of the school year.  By working through the marketing mix you can avoid these mistakes.

The marketing mix as first expressed in 1960 by EJ McCarthy is your recipe to the success of your product.

Product / Service

The product is simply what is produced and offered for sale.  It could also be a service.  An example might be an automobile or laptop computer.  There are a few things that you need to take into consideration when developing your product.

• How will you differentiate your product/service from your competitors?
• What will your product/service be called?
• How will the product/service be branded?
• What need or use does the consumer need the product or service to satisfy?
• Does it have the features needed to meet consumer’s expectations?
  • Have you included expensive features that are not needed or wanted?
  • Have you included all the features that are needed to meet expectations?
• Does the cost of the product meet the expectations of consumer value?

Place

This represents that location where your customers will be able to purchase the product or use the service.  Another term associated with it sometimes is distribution channel.  It can be a physical location, but could easily be an online store.  When considering place you should keep the following in mind.

• Where will your customers seek out your product or service?
  • Is it online, in a store, via a catalogue or in a supermarket?
• Will you have channels to distribute your product?
• How do your competitors distribute products and can you differentiate yourself from them?
• Will you need a sales team?

Price

Made up of several factors price is really what a customer perceives the value of the product to be.  Factors that make up price include the cost of materials and production, competition, branding and your share of the market.  When setting price your business should consider the following.

• Where are you priced in comparison to your competitors?
• Will you offer discounts to any segment of your market such as tradesman?
• How sensitive to price are your customers? Will it be more profitable to lower prices to gain extra market share?
• How much demand is there for your product or service?
• Most importantly - how much do your customers value your product or service.

Promotion

The promotion piece represents how the marketer communicates within the marketplace in promoting the product or service.  There are four basic areas, those of point of sale, word of mouth, advertising and public relations.  Using all four areas of promotion will create a certain amount of crossover.  Here are some highlights for creating a campaign.

• Determine where and when to take your message to your customers.
• How will your each your target market? With television, radio, newspaper, billboards, direct mail marketing, press releases or internet marketing. There are endless possibilities.
• The timing of your promotion is important. Is your product seasonal such as trees or are there any environmental issues that affect your products sales?
• Where and how are your competitors promoting themselves? Will this affect how effective your promotions are?

The marketing mix model of the 4Ps just outlined is only one of several such lists which have been developed over the years.  No matter the model used, they are intended to provoke thought and probing into the core elements which lead to a successful product launch or re-launch.

Another version of the marketing mix is based on 7Ps developed by Boom and Bitner.  They use the original 4 and add people, processes (the customer experience such as Disney World) and physical layouts (examples include facilities or uniforms).

Implementing the Marketing Mix

After reading through the principals of the marketing mix, you are probably wondering where to start.  It can be used on either an existing offer or when bringing on a new product or service.  Start with the outline below.

• Decide on the product or service you need to examine.
• Keeping your product or service in mind answer the questions that relate to the 4Ps which we already covered.
• In addition to the 4Ps ask yourself questions that start with “why” or “what if”. Examples would be what if I offered my product in different sizes? Why is it offered in seven colors? You want questions that really challenge your strategy and force you to analyze every aspect of your product. Your answers to these questions should be well researched and factual.
• Test your theories and offers on the target market to measure the response.
  • Do the products features meet the customer’s needs?
  • Is the product available where the target audience shops?
  • Does the price represent a good value to the consumers?
  • Do your promotional methods get through to your target audience?
• Based on your answers repeat the marketing mix process until you have a program in place which based on facts is likely to be successful.
• External factors change with time so you need to regularly review your marketing mix to remain competitive in the marketplace.

Consistently using the marketing mix to develop new products and evaluate existing offers will help you to effectively manage your line.

 So you’re either thinking of starting your own business or have recently started one.  When you’re thinking of starting a business there are some questions that need to be answered.  Sit down and take a few minutes to consider them.

• Will you need employees and if so how many?
• How much capital will you need to get started?
• Who are the consumers for your service or product?
• What service or product will you be offering them?
• What is your competitive advantage?
• Where will your business be based or located?
• How large will your business be?
• What type of business structure will best suit your business?

You may be able to get through those questions easily or they might take some thought.  When you’re done considering them you will need to consider the following tough questions.

• Is there a backup plan if the market no longer demands your products or services?
• Can you survive the failure of your business?

Business owners know that they need a thorough understanding of their target consumers.  Demographics like their gender, age and trends are very important.  If you know your target market you can design your products and or services to appeal to them or fill a need that you have discovered in them.

Successful businesses don’t just rely on needed products or services location is also a key to success.  Your customers need to be able to find you in order to know about your services and products to purchase them.  A good advertising campaign is essential in getting the word out on your quality products and services.

Starting any business involves taking on risk.  Some of those risks are to your invested capital and time invested.  The best way you can minimize the risks you assume is through solid preparation.  Take the time to gain the knowledge to be competitive in your niche.  Knowledge of your product ant he market will give you an edge on your competitors.

If managing your time is not your strong suit you may need to hire someone to assist you in staying on track.

Business owners need to have thick skin.  Sometimes business ventures fail and you need to have a plan in place if that happens.  What will you do?  Will it be a change to the products and services you offer?  Consumer demands change over time and successful businesses adapt with those changes to stay competitive.  Don’t get left behind and find it has driven you out of business.

 Anyone who knows me understands my affection for Starbucks.  Those venti non-fat hazelnut lattes are definitely my friend.   At least I think they are anyway.  So when I found this recently released site called My Starbucks Idea the other day I was pretty excited about it. 

I have found that most businesses in the retail sector typically just put up with customer suggestions and feedback.  Starbucks has taken the bull by the horns and devoted an entire website to customer interaction by setting up a community where ideas are shared open discussions about ways Starbucks can improve.

When I saw the site I couldn’t believe it.  Who would have thought a company would set up systems to facilitate easy communication with their customers?  Seriously, there is staff from Starbucks on site and a lot of them too.

Each of the Starbucks Product Specialists that monitor the site pick out the best ideas which could be implemented to improve the products and service at Starbucks.  The best are then forwarded on to the upper management of Starbucks for evaluation and possible implementation.

The site itself is set up similar to social networking sites to allow visitors to post their ideas, discuss them with other customers and Starbucks product specialists, vote on the suggestions and see which are implemented.  It is online brainstorming at its best.

Within just a few weeks of My Starbucks Idea going live it has seen over 100,000 suggestions come in from customers and generated enormous traffic. 

Some of the suggestions so far include free Wi-Fi access, a punch card system, coffee ice cubes and more which can be found in a couple categories.  The first category allows you to view all the suggestions and the second allows you to see which ideas are under review.

Other companies have attempted to take advantage of customer suggestions in an attempt to make improvements.  So far Starbucks seems to be pulling it off.   

Your business may be small but it will need to comply with many federal, state and local regulations that govern its operation.  Trying to ignore the regulatory requirements may be the easy thing to do short term, but will come back to haunt you long term and make it difficult for your business to grow.  You will need to spend an equal amount of time learning the various regulations as you do studying your marketplace.

Next we will cover some of the more common regulatory requirements which could affect your business.  Regulations do vary as to the industry you’re in so don’t think that the list is all inclusive.  Just a couple examples to demonstrate would be restaurants need to deal with the health departments while environmental regulations also affect businesses that deal with solvents and chemicals.  You will need to research your industry and the regulations which affect it.  Ignorance is not an excuse and penalties could cause you legal jeopardy, penalties and legal expenses.

Licenses for Business

In order to legally run your business nearly every place will require a business license.  The location of your business will determine where you need to obtain your license.  A business in a city will require you to obtain a license from the city.  If the business is outside city limits you will need to turn to the county.  In either case you should contact the local office to determine the licensing requirements.

Business Structure

When you start a business there are many different legal structures which can be used.  Examples are Limited Liability Corporations, C and S Corporations, Sole Proprietorships and forms of Partnerships.  When choosing the structure of your business, you should consult with tax and legal counsel to determine what structure is best for your personal situation.

What is a Fictitious Business Name

When the owner of a business forms a company which is operated under a name other than the owners, the owner must register that fictitious business name with the county government.  There are exceptions to this rule for corporations that are operating under their corporate name and for partnerships that are practicing their chosen profession.

You May Need a Certificate of Occupancy

Some zoning agencies for local cities and counties will require a Certificate of Occupancy for a business that plans to occupy a new or existing building space.  To get more information on this you will need to contact your local city or county office.

Trademark, Patent or Copyright to Protect Your Concept

In some cases you may want to protect your business by filing for a Trademark, Patent or Copyright. 

A Trademark or Service mark can be either a name or even a symbol which are generally valid for 10 years and can be filed in your specific state or registered federally at the US Patent and Trademark Office.

In matters of thoughts or ideas Copyrights can be used for protection.  The owner of a Copyright should put notification on their works to hinder any un-authorized use.  To get additional information on Copyright you can contact the US Library of Congress.

If you have an invention you may need a patent and when it comes to patent procedures an attorney is highly recommended.  The process is generally complex and a patent search is completed to make sure the idea has not been previously patented.  You can find additional information at the US Patent and Trademark Office.

Tax Withholding

The law requires that any employer must deduct income taxes from any wages which are earned by employees.  Those taxes include Social Security, State and Federal income taxes.

A business is also required to pay income taxes on its own earnings and in some cases send in quarterly payments based on estimates for State and Federal taxes.  In addition, a self employment tax is assessed to the owners for their Social Security contributions. 

A good source for additional information is the Internal Revenue Service website.

Insurance

There are many kinds of insurance to protect your business against loss.  You should discuss you business and its insurance needs with your licensed insurance agent.  Some of the types of insurance coverage for businesses are listed below.

• Business insurance protects your businesses contents from losses due to theft, fire or other means.
• Property insurance comes in a variety of types to protect your business from damage or the need to rebuild.
• Liability Insurance covers things like product liability or injuries to customers on your property.
• Key Man insurance should be considered when a single key employee is so vital to the business that loss or incapacitation of that person could cause your business to cease operations.
• Interruption of business insurance is used to cover the fixed business expenses should it cease operations due to damage or destruction.
• Automobile insurance will provide coverage for any costs stemming from liability or repair and replacement costs due to damage.
• Officer Insurance provides coverage for any actions of office or director should they be held personally liable.
• Home office coverage will insure any office equipment used in a home office environment as most standard home policies do not provide coverage.

Sales Tax

A state sales tax number is needed to conduct business as nearly every tangible asset that can be sold is subject to a sales and use tax.  The number is used when reporting and remitting taxes to the state.  For more information on getting your sales tax number you should contact the government in your state.

Miscellaneous Items of Note

State and Federal agencies have set up regulations for to protect the rights and safety of employees.  Some of these are listed below with more information available from your local and state governmental agencies.  Federal information is available at the US Department of Labor.

• Unemployment taxes are required from businesses for the coverage of its employees.
• Employers must verify the employment eligibility of any person hired per the Federal Immigration Reform and Control Act of 1986.
• The Federal Occupational Safety and Health Administration was established to protect workers from unsafe work environments.
• Workers compensation must be carried by businesses employing more than 3 employees to protect workers injured on the job.
• Federal minimum wages affect nearly all businesses to establish rules for overtime, minimum age requirements and minimum wage requirements.
• Many businesses require bar coding to be placed on the packaged products they offer. GS1 US assigns an ID code for this purpose.

There was a recent article at Time Magazine Online that declared the end of customer service.  Self service is working itself more and more into our daily lives from the self check outs at Wal Mart, to grocery stores, to checking into a hotel at a kiosk.

The beginning of the end can be traced as far back as Piggly Wiggly in 1916 when the grocery store had the audacity to let the patrons select their own groceries from shelves.  Since Piggly Wiggly ushered in a new wave of self reliance customers have had to take on the responsibilities of pumping our own gas and going a step beyond self selection at retail stores to self check outs.

That brings up the question.  Does this trend with business going toward self service signal the end of customer service?

Where Time says yes, I say no. 

What has happened in business is evolution.  As times change so do the values of the customers.  With the advances in technology and our society going from a one provider household to two what has become scarcer and more valuable to customers is time. 

Customer service is evolving to provide customers what they value most and that is the ability to get what they want and get it quickly.  Customers don’t want to wait in the checkout line.  They would rather check themselves out quickly and be on their way.

Our society in general has gotten busier and business has responded to that trend with drive thru services for prescriptions, banking and food.  Companies using technological advances to find ways to serve customers how they want to be served is a good thing.  But there are some exceptions.

There is a big difference between giving customers choices they want in service and forcing service changes upon them in an effort to save money.  The difference between the two can be seen in the choice.  In a grocery store are they giving you a choice between a self check out and a normal checker or is the only option available a self checkout? 

Customers will reward companies that focus on serving us better in response to our needs because those companies are listening and responding to us.  Their focus is on offering choices in an effort to improve service.

Forcing service level changes upon customers in cost saving efforts are doomed to failure in the long term.  Be wary of these companies who are using new technology to try and make our lives more difficult and frustrating.

The companies which will still be standing in the future are the ones who have listened to customers and respond with the choices in customer service that we want.

A vital part of getting any start up business successfully off the ground is obtaining secure and appropriate financing.  Raising capital is a fundamental part of all business activities.  What every new business owner soon comes to realize is that raising capital is not necessarily easy.  Coming up with capital for your start up can be a difficult and frustrating process.  However, raising capital does not have to be painful if you are informed about the process and plan effectively.

Where to find the money you need.

You have several options which you should consider when searching for financing.  Take the time to research all of them prior to making your decision on the best course to take.

• Personal savings is the most common source of capital when for start ups. Some will even use credit cards to finance their business, but there are much better options available even when talking about small loans.
• Some entrepreneurs will turn to private sources for funding the start up that include relatives or friends. Many loans from these sources end up being interest free or very low interest rates that help to decrease the overhead for the new business.
• The most common source of third party funding of start-ups comes from credit unions and banks. They will often make business loans if you can show them that your business proposal is well thought out with good potential.
• There are also venture capital firms that will help fund start-ups usually in exchange for partial ownership or equity.

Borrowing Money

There is a misperception that it is difficult for start-ups to borrow money, which is not necessarily the way it is.  Banks want to lend money.  It is the business they are in and how they create earnings.  What makes the process difficult is that owners of start-ups are often times inexperienced in financial matters which can cause a bank to reject requests for loans.

If you request a loan for your start-up without being properly prepared you are sending a poor signal to the lender.  What you are immediately telling them is the loan will be a high risk.  To increase your chances of success you need to organize and prepare for the meeting.  Have a thorough understanding of how much money you will need, for what purpose and how you intend to repay the loan.  If have it well planned out you will present yourself as a better credit risk.

Loan Maturities for Start Ups

Loans designed for business are typically intended to be longer in duration, but are actually dependent upon the ability to repay, the assets useful life and the general purpose for the proceeds.  The maximum loan maturities have been set at 25 years for real estate and equipment can go up to ten years depending on its useful life span.  Working capital for the business is generally limited to seven years.  If a business has short term or cyclical needs for working capital short term loan solutions are also available.

Loan Types for Business

When it comes to business there are two basic types of loans available and the terms will vary by lender.  The two types are short-term and long-term.  Short-term loans typically mature in a year or less and are most often used for accounts receivable, working capital or may be held as a line of credit.

A long-term loan typically falls between a one and seven year maturity.  It the loan is for equipment or real estate the maturity might extend for up to twenty five years.  These long-term maturity loans are used for major business expense situations such as purchases of facilities, real estate, equipment or construction.

Putting Together your Loan Proposal

The presentation of your loan request will have a major impact upon its approval.  You need to present yourself and your business in a positive light with a thorough knowledge of your financial needs and situation.  Financial institutions are in the business of lending money, but they want to make loans which they feel will be repaid.  To impress this upon them and improve your chances of success make a written proposal.

A well thought out loan proposal will contain:

General Business Information

• Business name and address.
• The names of the principals and their social security numbers.
• Spell out exactly why the loan is needed and what it will be used for.
• Provide the exact amount of financing you need.

Business Description

• Give a history of the business.
• Describe the nature of the business.
• Include business details such as age, business assets and number of employees.
• Give specifics on the company’s legal structure.
• Provide details on the ownership structure.

Overview of the Management Profile

• For every principal in your business give a short overview that includes their accomplishments, skills, education and professional background and experience.

Overview of Market Information

• Describe the products of your company and the markets served.
• Offer a profile of your clients and customers while describing how your business serves their needs.
• Explain your competitive market. Identify your competitors and how your business competes including any advantages unique to your business.

Financial Information of Business

• Give the business’s financial information for the last three years or as long as in business including the statements, balance sheets and income statements.
• Also include a projected income statement and balance sheet.
• Give financial statement from all principals to the business.
• List any collateral you are willing to offer in order to secure the loan.

The Review Process for your Loan Request

The first consideration for any lender when reviewing a loan is probability of repayment.  A commonly used method to determine that ability to repay is for the loan officer to pull a credit report on the business from a credit reporting agency.  It is a good idea to work with these credit reporting agencies in order to ensure an accurate credit picture for your business.  The loan officer will take the credit report and the information provided by you to consider the following:

• Is there sufficient cash flow for the business to make the monthly payments timely?
• Are your background, education and experience sufficient to successfully run your business?
• Have you demonstrated your understanding of your business and a commitment for its success by submitting a professional business plan and loan proposal?
• Are your credit history and work history solid as demonstrated by a credit report and letters of reference?
• Have you established a personal stake in the business by investing personal assets or equity that amounts to 25% to 50% of the requested loan. You need to understand that an outside source will not risk funding 100% of someone else’s business.