Entrepreneurs Adjust Strategy When the Federal Reserve Promotes Inflation | STRATEGIC BUSINESS AND MARKET TRENDS

Strategic Business and Market Trends with RD Watkins

Federal Reserve Mandate and Tactics

Consumer Prices Before and After; the Federal Reserve Created in 1913

The Federal Reserve System acts as the central bank of the United States and "manages the economy" using inflation management tools. The private company was given special powers and duties by Congress in 1913 to provide the nation with a safer, more flexible, and more stable monetary and financial system. Over the years, its role in banking and the economy has expanded.

Although they have four areas they are tasked with managing, we will discuss only one today. Here is a quote of that mandate from the mission statement on the Fed site, "conducting the nation's monetary policy by influencing the monetary and credit conditions in the economy in pursuit of maximum employment, stable prices, and moderate long-term interest rates". Simply put, they control the interest rate and the money supply with the purpose to deliver "maximum employment" and "stable prices". How are they doing so far?

The tools they use are money supply, meaning printing or destroying dollars in circulation and raising and lowering the interest rates so businesses and consumers are encouraged to change their borrowing and spending habits.

Who’s Affected by The Fed Policies & Inflation?

Entrepreneurs and growing small to medium businesses make up the largest portion of the inputs to productivity. Centrally managing their ability to grow through Fed Policy has a global affect on GDP of a community or group of exchange partners. If you are living and doing business in an "industrialized nation" you are part of the G20 partnership of central bankers who have a similar mandate to the Federal Reserve and affect you.

• Entrepreneurs (business venture capital, CapEx costs, payroll)
• Small to Medium Business (credit, materials costs, payroll)
• Consumers (increasing cost of living, healthcare, retirement, insurance, decreased investment return)

What Trends Should Entrepreneurs Care About?

Business people of every size should have their eye on the changing or trending of markets as well as global policy makers like the Fed. You may think it’s a political thing, and it is but, that does not negate the fact it will affect you and preparation is the only prophylactic. If you are in business with a significant CapEx and asset purchase requirement, the PPI and CPI are to be closely monitored. These are the first place federal agencies begin letting the “cat out of the bag” that inflation is increasing. Closer to home, just watch gasoline prices and consumer goods. You family grocery & utilities bills will likely indicate much more than you give them credit for.

Related Links to Use as an “Inflation Dashboard”:
• PPI Chart Link (supplied by seekingalpha.com)
• CPI Chart Link (supplied by forecast-chart.com)
• 10 Yr Gold Chart Link (supplied by kitco.com)
• Light Crude Oil (CL, NYMEX) Chart Link (supplied by futures.tradingcharts.com)

Strategic Changes to Your Business Plans

Now that you monitor inflation, what can you do when the trend turns upward? Use your common sense, your past inflationary experience, study and adjust your product or service lines to suit the inflationary environment. There are features of your business that suit this environment, expand those, and reduce those that are at risk. Hedge your bets to ensure not losing ground at a minimum. If your business as a whole is entirely at risk during inflationary periods (study history), then consider major changes or offsets to alternate sources of income and growth with a new business that thrives when inflation rises.

You, as entrepreneurs, are the primary driving engine of all economies globally, no matter what country you reside in. It is the central planners, who believe they can change the course of supply and demand to their will and purposes that are afraid of you. Observe and monitor trends, trust your instincts and be willing to modify your strategy and plans to mitigate the threats and exploit the opportunities they provide for those willing to live and do business in this ever-changing environment.

Chaos can be your friend if you follow the example of nature. Fires, earthquakes, tornadoes and man do damage to her everyday and yet, the tree bends, the seeds replant themselves and bloom and landscapes come to rest; always settling back to a state of equilibrium. That equilibrium state always has a trending element of growth in it, albeit a slow one. It is natural law; as dynamic and evolving beings we must grow and adapt or die and become extinct.

RD Watkins brings value and builds productive and collaborative relationships by "Applying Common Sense Project Management Principles in a Virtual World". He fills the role of Senior Project Manager, is a PMI certified PMP® (Project Management Professional) and holds CompTIA IT Project+™ credentials. You can connect with RD to discuss his capabilities in cost effectively managing and enhancing productive consensus on your virtual projects through his LinkedIn.com profile at http://linkedin.com/in/rdwatkins or contact him via email at rd@rdwatkins.com.

For more information, please visit RD's TNNWC Bio.

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Entrepreneurs Adjust Strategy When the Federal Reserve Promotes Inflation | STRATEGIC BUSINESS AND MARKET TRENDS

SALES AND MARKETING: Yes, The Medium IS The Message!

Sales And Marketing with Bill Doerr

Revenues reflect the extent to which people understand and desire what you can do for them AND you make it easy for them to take action to enjoy that value you offer.

The key to success in marketing is communicating effectively. It's also where the sale is "lost" more often than not.

A new tool for rendering complex ideas known as a Gist Video is making it easier than ever to communicate effectively and generate revenues handsomely.

What's Your MACRO Message?

"What do you do? More importantly, what can you do for me? Why Should I Care?"

Aren't these the questions every prospect for your business is asking you?

These questions come up each time a prospect makes contact with you or your business. So you need to:

1. Be crystal clear about what you do, and,

2. Be highly effective when you communicate it in those "moments-of-truth."

Your elevator pitch, or commercial message, addresses these two points. (Or it should!)

That's your Macro Message. It's the Big Picture about why your business exists, isn't it?

What's Your MICRO Message?

Now I'd like you to go beyond the first encounter and consider how your typical prospect learns about the specific solutions you offer them: products, services, etc.

Are the kind of people you'd like as customers really grasping the beneficial difference your services can create in their life and business? If not, you may be losing out at the box office. . . big time!

For example, one of my clients tells people she meets that she's in business, "To help clients create a business where their employees are happy, their customers are loyal and their competitors are very, very nervous." I'd say that's a "good start." But that's all.

It simply triggers a more meaningful conversation if her statement means something, and has value for the person she shares that with. In which case, that's where the fun begins!

Rendering a Clear, Concise and Coherent Message

As soon as a prospect realizes that what you do for a customer or client is attractive, you drop down from a high altitude abstraction to a low level run where not only you reveal your mission in a context of meaningfulness defined by your prospect, but they are invited and assisted in taking appropriate action to enjoy the beneficial difference your product or service can create.

In my own case, as a certified Duct Tape Marketing coach, my macro message is this: "We help our clients market their business simply, effectively and affordably." That's a good starting point. But it's abstract. I need to make it more concrete if I'm going to get anyone to take an action that could produce a client or customer for my business.

I'll come back to this in a moment. But first, we have to isolate the gist of a message.

What's the GIST of What You're Talking About?

Has someone ever asked you, "Just tell me . . . what's the GIST of this idea you have?"

That's telling you something! They don't know three (3) key things:

1. Why they should even care if you have a solution - Consequences.

2. How your specific solution would be meaningful to them - Benefits.

3. What they should do, NOW -- if they really, really want the benefits! - Action to Take.

Let's suppose someone hears your macro message and it triggers their interest to know more. What then? That's where your ability to communicate the specific benefits you offer will become the basis for you getting someone to take an action you want, hopefully, in the very near future!

The Medium is The Message

Marshall McLuhan wrote a book on this topic a long time ago. (I don't want to date myself!) Today the medium you choose to use to convey your message can still be a powerful key to help you break through the clutter of daily distractions and get your message across to your prospects.

Consider my own mission again, "To help our clients market their business simply, effectively and affordably." One of the many ways we do that is with a simple, effective and extremely affordable service known as The Stay-In-Touch Machine™.

Assuming you revealed enough interest in our mission and sufficient facts to justify revealing one of our solutions -- let's say, The Stay-In-Touch Machine™ -- to you, I'm faced with a dilemma: "Do I attempt to communicate with you verbally or visually?"

The Verbal Medium

Using a verbal medium, I must have a well structured, well practiced and consistently presented message. Even if I could do all that (doubtful), what if someone else in my company isn't as ready and polished as I would be (oh, the hubris!) to present that same information to you in a manner that's equally effective? Yes, that is a challenge!

The Visual Medium

In contrast, rendering a micro message using a digital medium (i.e., video) will produce a consistently delivered message that's polished and impressive.

Plus, due to the viral nature of digital media, it's far more likely to reach more people, more easily, too.

So, rather than subject you to the verbal-only mode of message delivery, try this:

Video: Sellmore Marketing - Gist Video #5

In less than 2 minutes, you've just enjoyed an entertaining (I hope!) and informative experience of a marketing service we offer that addresses a real need of small and medium-sized businesses -- to keep-in-touch and stay-in-mind so you build a preference for your brand and a decided edge over your competition.

Overall, the point I'm making is that the visual medium of video -- of a unique kind of video -- a GIST Video -- can play a significant role in getting your message across in a compelling and highly effective way.

Summary

Marketing messages are rendered on two levels:

1. Macro, and

2. Micro

Macro messages address the BIG picture of WHY someone would have any interest in what you can do for them.

Micro messages address the details of WHY a specific solution would be of interest, HOW you do what you do for a client or customer, and WHAT you want them to do if they'd like to enjoy your benefits.

Think of these two kinds of messages this way: A macro message is like getting the cap off of a soda bottle. Nothing can or will happen if you don't do this. But that alone isn't going to get you any soda to drink on a hot day!

A micro message is like you tipping the bottle and getting the soda to come out into your glass. It's where the solution you're offering is most likely to be understood and acted upon.

In a world where messaging is prolific, time is precious and attention spans are all too short, the more creative you can be at getting an action-able message across to a qualified prospect for your business, product or service, the better off you'll both be!

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If you'd like to learn more about the GIST Video concept and how to get one (or, several) you can use in your business, please click here

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Bill Doerr is CCO of SellMore Marketing. He helps professionals and other service providers to market their problem-solving expertise simply, effectively and affordably. You can reach him at www.sellmoremarketing.com, or by phone at 860-798-6964.

For more information, please visit Bill's TNNWC Bio.

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DOING BUSINESS IN CHINA: The Company You Keep

Doing Business in China with Dan Paulson

A recent survey by Healthy Companies International states that three out of every four CEOs working in a Fortune 100 company today have spent at least two years in a senior leadership role. Larger companies understand the importance of having international experience, but it shouldn’t matter what size your business is. In today’s business world, and in the foreseeable future, we will require a better understanding of business from a global perspective. Some of the greatest opportunities for business today may exist outside country and it all starts by the relationships you keep.

In business, relationships are everything. Relationships are your most effective marketing tool. They open up networks. They allow you to connect with new ideas. You can get new business, from a referral, or you can increase your work with a client just through the relationships you keep.

In China, relationships are critical. Without good relationships, you may find it difficult to do business there. China is a country rich in culture and much of that culture is reflected in the way they do business. Your success in China depends on the relationships you build. Here are some things to consider:

Enter the market with a good strategy. Know what you want to achieve. Have a clear vision and an understanding of what you need to do to get there. Many opportunities exist in the world market. Seize these opportunities, but do so with a plan. If you don’t, it could be costly.

Know the connections you need. In China, government connections are just as important as business connections. Rules and regulations change often. Having a connection into different government entities can help you cut through the red tape and get your business going. Other countries have their own rules as well. Find the local resources to guide you. Additional relationships that are good to have are in market research, advertising, logistics, travel, health care and manufacturing. Find the resources necessary to build these connections. It may involve a few trips and several meetings, but it will be well worth it. Find someone who can guide you through the process to help you get the right connections faster.

Connect with other economic development centers. Be sure to check out the US Chamber of Commerce or other economic development groups. In addition, find the local chambers of commerce and seek to build relationships there. In larger cities such as Beijing, Shanghai, and Hong Kong, these Chambers can have a great deal of influence. They can also be another resource to help you start your growth oversees.

Be a capitalist. We can learn so much from other cultures on doing business, both the good and the bad. You want to be associated with reputable business partners so it is necessary to do your research. Have other trusted partners help you as well. Get someone who will look out for your best interests. In China, they are extremely capitalisitic. Poor relationships may help your connection make a buck, but could leave you out in the cold. We often fail to recognize cultural differences and interpret them correctly. Think win-win, but know what’s in your best interest as well as the interests of your client. Understand the cultural differences and how that relates to capitalism for you and for them.

Treat business like a marathon, not a sprint. Learn, learn, learn. Take cautious steps in the beginning. Try not to do too much too fast. The Chinese culture has been around for thousands of years.. It can be a difficult market to break in to. Pace yourself. Take the time to understand how and where to play. Know what you need to do to make in-roads to the market. Find those who can help you grow. Often these people are nationals. They understand the culture the best and can help you maneuver through the business challenges. Seek out loyal partners.

Bring value to your business relationships. In China, business partners, associates, and network connections all seek value in the relationship. Not too different from here, you need to be able to answer the question, “What’s in it for me?” Know what value you bring and use that to start building trust.

Following a few simple steps here can get you on your way to business expansion. Knowing the culture will make a tremendous difference in your success. Whether your expansion plans include China or another part of the world, be prepared to do business a little differently than you have in the past. It’s the little changes that can spell the difference between success and failure.


For more information, please visit Dan's TNNWC Bio.

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DOING BUSINESS IN CHINA: The Company You Keep

SALES AND MARKETING: Appreciation Marketing

Sales and Marketing with Bill Doerr

15 Second Executive Speed-Read

In the highly competitive, over-crowded marketplace of 2009 where more media seems to produce fewer results there's a growing concern among small business owners about how to best use increasingly limited resources to achieve their marketing objectives. Enter Curtis Lewsey, author of his latest book, Appreciation Marketing / How To Achieve Greatness Through Gratitude. The principles and practices he shares may hold some of the answers that many, perhaps even you, are seeking!

The Magic Wand of Marketing

If I gave you a 'magic wand' for your marketing, you'd probably use it to create a steady stream of highly qualified prospects who all know you through the influence and prestige of people you know in common. That's the positive consequence of having developed a network of people who know, like and trust you personally and respect you professionally. Over time, you'd find you have more people to process than time to do so. Nice picture, right?

The Reality of Marketing

Wake-up time! If the above scenario doesn't exactly reflect your own reality, take heart. It doesn't have to stay that way. But you do have to do something differently in the future than you've been doing in the past.

Curtis Lewsey and his new book Appreciation Marketing may hold the answer to what you need to do to get better marketing results.

I met Curtis over a year ago at (what else!) a business event. Everyone I was meeting was buzzing about "that guy" across the room.

When I got the opportunity to meet him, I understood why everyone was his 'raving fan'. He was on a personal mission to enjoy the reality suggested by the old saying, "See 2 people a day to bring (financial) freedom your way". Curtis believed it and was living that truth with everyone he could at every chance he got.

As a recent Sacred Heart University grad, Curtis was developing quite a business for himself. Like Johnny Appleseed he was committed to 'sharing the word' about keeping-in-touch to stay-in-mind and create value-for-all with his people -- small business owners and self-employed entrepreneurs.

Since then, he's impressed me more by his actions than his rhetoric. Although both are very impressive!

Common Sense and Common Practice

Curtis shared that, according to a recent CNN poll, a majority of smaller firms are expecting a decrease in revenues for 2009. Most also indicated that they plan to invest less on their marketing in 2009, too. Folly? I'd say so. Understandable? Absolutely. On the surface, it seems to make sense. But, it's a costly strategy in the long-run.

The problem isn't that an investment in marketing is bad. Investment in bad marketing is bad! And, in 2009, a throwback to the 'good old days' where marketing meant building relationships with your market members may be back in style.

It's The Relationship That Matters!

Curtis has achieved a level of success at an age when most people are still trying to get traction on their careers. Part of why he has achieved so much so quickly is his network of people who know, like and trust him. "I've got close to 4,000 people in my database whom I've met personally in a 1:1 setting and I know a) what they do and b) who is most likely to benefit from their expertise". That . . . is awesome!

Connecting is Not Enough

As laudable as knowing 4,000 people is, it's not enough to realize value from those relationships. Curtis also knows he must stay 'top-of-mind' with these people or he risks falling off the 'mental shelf' in the category he wants to occupy with them.

Old School is Cool

"In a Google age, you can always find a cheaper alternative for anything". So we're all at risk of being viewed as a commodity. And the only way to differentiate a commodity is on price -- and a lower price is a sure-fire strategy to marketing Hell.

An alternative approach is to develop a personal relationship between you and your prospects, clients and centers-of-influence so you can leverage the relationship in a mutually beneficial manner.

Curtis likes to say, "Success reflects the connections you make and the relationships you maintain over time". It's the quantity AND the quality of your relationships with people that matter, isn't it?

Tomato Gardening

One chapter in his book is called Growing a Tomato Garden. The term 'Tomato' stands for 'Top-Of-Mind-Awareness-Through-Others'. The garden is your network and the fruit of your labor in the garden of connections is very, very sweet indeed!

Attitude of Gratitude

Curtis says, "Basic etiquette -- recognizing people and appreciating them is a key factor in building a relationships. You need to be thankful for the people in your life. You also need systems to help you implement and maintain an appreciation strategy".

Chocolate-Frosted Dog Crap

Curtis cautions, "Once you're committed to TOMATO, it's imperative not to lose your authenticity as you implement a keep-in-touch communication strategy".

One of the book's chapters is "Chocolate-Frosted Dog Crap". It sums up what doing the right 'thing' without the right 'attitude of gratitude' is all about.

Keeping in touch just to keep-in-touch, without the requisite commitment to the relationship you have with someone is hollow and mechanical -- just like putting chocolate frosting on 'dog crap' and then calling it 'chocolate cake'. Sooner or later the subterfuge will be painfully obvious.

Resources

If you're interested in leaving more about the Appreciation Marketing principles and practices, get yourself a copy of Curtis' latest book: Appreciation Marketing. It's due out in early July 2009 and addresses the topic in greater depth and detail than space allows here.

Visit www.appreciationmarketing.com as well. There you can register for The Apppreciator e-newsletter that features case-studies and 'best practices' you can use in your business. Of course, you can contact Curtis directly at: 203-331-2575 or email him at: curtis@appreciationmarketing.com.

Epilogue

Sensing our time was running out, I asked Curtis for a 'parting word of wisdom'.

"Never lose sight of the importance of making connections and building relationships. It's not all that difficult but you must do a little bit every day".

In the last chapter of the book, "The Popcorn Principle", Curtis explains how a system to do something like popping pop corn or keeping-in-touch . . . asks that you have faith . . . that you trust . . . the system will work.

You may not have connected with as many people as Curtis Lewsey, but if you adopt the principles and practices of his Appreciation Marketing, you can enjoy more success than most.

Thank you Curtis. I appreciate the time and wisdom you've shared here with us all.

Curtis Lewsey is an author who shares business wisdom that builds relationships and revenues for his small business clients. His latest book: Appreciation Marketing is coming out in July 2009. For more information, call him directly at 203-331-2575, email Curtis or visit his website: www.appreciationmarketing.com.

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Bill Doerr is CCO of SellMore Marketing. He helps professionals and other service providers to market their problem-solving expertise simply, effectively and affordably. You can reach him at www.sellmoremarketing.com, by email at billd@sellmoremarketing.com or by phone at 860-798-6964.
For more please see Bill's TNNW Bio.

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