There must be a better way. And, I went tonight to see if I could find someone to lead the way.

I was invited by Bijoy Goswami of Bootstrap Austin to attend an event sponsored by the Entrepreneurs’ Organization (EO) in Austin that was billed as an “Intimate Conversation with Bill White”. Bill White, former mayor of Houston, is running against Rick Perry for Texas Governor this fall. It turns out that White is an honorary EO member.

Former Houston Mayor Bill White is running for TX Governor

It was intimate as promised. I was about two feet away from the man who started by saying that he was pleased to be here for this “job interview” which brought some chuckles. In his prepared remarks, he said if he were “hired”, he would run the state like a customer-centered business. He would focus on what people want, not what the state wanted to “sell”. Sounds pretty good.

When Q&A time came, I asked Mayor White a question about how he viewed the state’s role in something that is near and dear to my heart: the role of government especially in hard economic times when there are tough decisions to be made.

I referred to what the state should do when you have warring factions and differing interests when it comes to economic development and property rights. I should know. I have spent three years of my life focusing with a great group of people, my neighbors and fellow business owners from Responsible Growth for Northcross, an organization that was formed to try to keep our neighborhoods livable and our independent businesses sustainable against WalMart, the biggest corporate giant since the Roman empire.

In addition, during that fight I found my own city government allied against us instead of being neutral or acting as a facilitator. I also saw them take a more appropriate role over a similar redevelopment issue with a neighborhood  in the university area that did not have Allandale Neighborhood Association’s reputation of fighting changes that it felt would destroy the quality of life and the safety and well being of those who live there. The outcome of this fight was viewed by all as a precedent for the future of other neighborhoods in other parts of Austin and in other cities that faced this dilemma of redevelopment vs. retention.

White’s response to my question about economic development controversies

Perhaps Mayor White misunderstood my question about the state’s role in this aspect of economic development. First he asked me if I wanted the truth. I said “yes”. Then, he said that he did not think that the state should take sides but should let this be decided locally. I appreciate his honesty because I do believe he really does feel that way.

I agree that the state should not take sides in this kind of issue although in Texas, Austinites frequently feel like the District of Columbia, that there is a lot of “Austin-bashing” when it comes to legislation that only applies to us.

But, I disagree on the “no role” to play. What I hoped he would say is that he thought, like a well managed business, that the state should take the higher road and seek ways for the parties to get to know each other and arrive at some mutually agreed upon points so they can reduce the mistrust and anger and get something done.

White says he is a doer. I thought he would want to do something. Guess I was wrong. Texas has an $18 million shortfall. To get through this, we all need to cooperate and find a way that neighbors and businesses large and small, local and recruited can be heard and have a mediator, even an ombudsman to discuss things safely.

For a few years, Texas did have a small business ombudsman under the Department of Economic Development. Not that this lone person got involved in these kinds of issues, but maybe they should have. Of course, with just one person to cover the whole state, that was probably not reasonable. But, maybe as White touted when talking about his accomplishments in Houston, one person could focus on finding others to help out and together they could get things done.

What I think the government’s role should be in economic development controversies

How do I view government’s role? What is my expectation? It is one based on my experiences. I worked for the state before starting a business. I have worked on political campaigns. I have helped with voter registration and for years kept these forms available and visible for anyone who came to our offices. I have walked door to door. I have been a delegate to local, state and national summits. I have been and am a small business activist.

I don’t believe in big government. I don’t believe in small government either. I do believe in adequate government and that there are some issues that require a 40,000 foot view just as it takes a 40,000 foot view to run a successful business.

In regard to the issue of economic development, I believe we need to attract business. We also need to retain, sustain and grow our local businesses while protecting the integrity and safety of neighborhoods. We have limited resources and we will be borrowing from Peter to pay Paul. Maybe though, Peter and Paul could agree to share and play nice if there were someone setting the rules and guiding the process. Someone who had that vision. I am not sure White is any different than any of the other politicians current and past.

I do have one hopeful memory to draw on. When the Americans with Disabilities Act was signed into law twenty years ago this week, there were a lot of mad and confused people. Some thought it was the end of  business as we knew it, businesses would go bankrupt trying to comply, and that the goals were unattainable and unreal. The Governor’s Office on People with Disabilities with support of  Governors Ann Richards (D) and later George W. Bush (R) and under Virginia Roberts, its wonderful executive director, brought together a charter group of businesses to create the Governor’s Business Leaders Network. My company was part of that charter group. We were all volunteers. Together, we came up with ideas that we could disseminate to our peers and make this transition easier and better for all. I am proud of what we did. I think this is a good pattern to follow.

Call me Goldilocks if you like but fairy tales have lessons to learn in them. And, if you remember, Goldilocks did find things that were just right because she kept looking. (Yes, there was some damage along the way.) Well, nothing is perfect.

What is your opinion?

How do you think we could build a better Texas for us all; something neighbors and businesses could live with and coexist? Maybe we can give whoever becomes governor some better ideas. I’m game are you? It might even help out other parts of the country or the world.

I want to thank Mr. Goswami for the invitation. I learned a lot and was inspired to raise some issues that I think need to be considered before we vote in November.

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4 Traits Make Sure You Have the Right Customers

by Jan Triplett on July 9, 2010

Don't give your hard-earned pennies away to just ANY customer.

Everyone wants and needs sales to have a profitable and successful business. But, sales from the wrong customers can kill a business.  If you doubt me, read Angel Customers and Demon Customers by Larry Selden and Geoffrey Colvin.

What should you look for? Basically, there are two options:

  • Low hanging fruit — the most responsive, easiest sale, shortest sales cycle
  • High value  —  the most lucrative, harder sale, longer, requires more thorough sales process so longer sales cycle

How do you decide who is right and who is wrong? Focus on customers who are worth your sales staff’s time and efforts. The right customers have the following four traits. They:

  1. Add more value than just the dollars they spend.
  2. Contribute to the reputation of the company by their presence or referrals.
  3. Are enjoyable to work with.
  4. Match the culture of the business.

A penny saved attracts other benefits.

There are major benefits from concentrating on finding and keeping the right customers. If you have hired the right sales staff, they will close more new sales and better sales if they can point to and use what they learned from existing  “right” customers.  They can get upsell and get new sales from existing and even former customers when they are starting from the best.

If you are worried about reputation and the value of the company, the right customers are your best answer. With the right sales process and continued high touch attention and reinforcement, they bring in others like them. Why? Because, they can’t resist bragging or sharing their good fortune.

You will get customers who are not a good fit. If they are really a bad fit, even if money is tight, fire them. They take energy away that is not replaceable. They take time that you can’t afford to waste. They are not satisfied and they attract others like them.

A Case Study of Angel and Demon Customers is Still Relevant

New money can learn from experience. (This is the back of the new 2010 penny.)

Wall Street Journal staff reporter Gary McWilliams, in January 2005, wrote an article, The Customer Isn’t Always Right on Best Buy’s efforts to attract and keep the right customers. Its CEO Brad Anderson said he wanted to separate “angel” customers from the “devils”, the 20% that drove profits down.

To do this, its store clerks were given hours of training in how to identify desirable customers according to their shopping preferences and behavior. This was based on an examination of sales records and demographic data and sleuthing through computer databases to identify good and bad customers.

Other changes were also put in place. To lure the high-spenders, it stocked more merchandise and provided more appealing service. To deter the undesirables, it cut back on promotions and sales tactics that tend to draw them, trimmed them from marketing mailing lists, changed store policies based on the “bad behavior” of  “demon” customers that cost the stores time and money. The trickiest challenge was to deter bad customers without turning off good ones. But, the results were worth it, with sales gains running nearly double of what they were before this policy was put in place.

Older, wiser money

Certainly, the economic situation has changed. But the premise remains valid. In good times or bad, focus on the best and forget the rest. You may not be as big as Best Buy or think like a mass retailer but can you afford 20% losses from the wrong customers?

What can you add to this discussion?

See a penny, pick it up and all day long you'll have good luck.

What are you doing to protect your business from attracting the wrong prospects and keeping the wrong customers? Please share your successes so that we can all benefit from what you have learned. I would like to do a followup post based on reader input.

Photo credits: flickr.com/photos/sjsharktank,  /nrossi, /bad9brad, /opensourceway, /stevendepolo

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4 Concerns about the City of Austin’s March Small Business Summit

April 22, 2010

I would like to congratulate Austin Mayor Lee Leffingwell and the  City Council for holding its first Small Business Summit in March.
Forty of us were invited by Council Members and the Austin Independent Business Alliance to come and give our thoughts on the major ways the City could address business owners concerns. I was invited [...]

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Business Owners Should Celebrate April 1st

April 1, 2010

It’s April 1, April Fool’s Day, a day to be silly and cut loose. A must for those of us carrying the weight of being the nation’s economic engine because we have a small business. I could get into talking about “running out of gas”, “not running on all cylinders”, “breaking down”…but I will resist [...]

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Does Your Business Need Glasses? A RISE Austin 2010 Presentation

March 2, 2010

Proud to be green. Here’s my paperless slide presentation, “Does Your Business Need Glasses”,  from RISE Austin 2010 on a better way to get better sales by using niche marketing aimed at a platinum customer. It makes positioning, pricing, and sales procedures more approachable for independent businesses.
It also includes details on the Business Success Center’s [...]

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22+ Reasons Your Small Business Is Keeping You Up at Night

February 16, 2010

News 8 reporter Harlan Schmidt interviewed me about why Austin is a good place to start a business. I told him it was Austin’s “can do & it’s ok to fail” culture. And it is also about the fact that we have a highly educated population which means we can learn from our mistakes.
Then he [...]

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My cat gets better care than people do

February 9, 2010

If my cat is sick. I take her to  Dr. Roy Brenton Smith, at Central Texas Cat Hospital. He’s great and used to host weekly sessions where vets shared information on tough cases.
If he needs a specialist, he calls one or gets me into the wonderful folks at Texas A&M Veterinary Hospital. They have served [...]

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Urbane Direct Mail Piece That You Gotta See

February 5, 2010

I have done direct mail pieces over the years that I liked and got great results with. One memorable black and white piece even got a 20% conversion  because we had the right list, the right offer, as well as the right creative graphic.
You may not agree, but I really think direct mail still has [...]

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Fox TV Interview on WalMart at Northcross in Austin

February 3, 2010

It’s been a long fight as Fox 7  Reporter Rudy Koski pointed out in this interview with me and people who were pro or anti a big supercenter in the center of Austin at Northcross Mall.
Are people tired of it? Some are. Almost five years is a long time to keep volunteers working together on [...]

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Selective Marketing

January 29, 2010

Below is a presentation I gave at a local Austin meetup. It deals with how to use sales and marketing strategies and processes to save money and increase sales.
Selective Marketing

View more presentations from Business Success Center.

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