June
23
business development


Recently I presented a business development training session at a conference. The audience were managers from all across Australia. I gave them a 2-minute break and asked them to get up and talk amongst themselves.

When we resumed I asked how many of them made a point of meeting someone they didn\’t know. One lonely hand went up in the air. Only one!

This was particularly important as the conference workshop was about building effective business relationships.

The moral of the exercise was that we naturally gravitate towards people we know and like. And it is easy to stick with our current network of clients, colleagues and industry contacts.

It can get scary when we have to meet new people.

But – from a business development perspective – it is extremely selfish when we are not brave enough too reach out to people we don\’t know.

It is selfish for us to avoid engaging with people with whom we may be able to develop a mutually beneficial relationship.

I have spoken with many clients and training delegates who are reluctant to meet new people. They feel a bit awkward and unsure of themselves.

Does that sound like you too?

In many cases this reluctance is based on self-centred feelings such as:

They wont like me. I wont know what to say. I\’m no good at small talk. My business in new, and I\’ll look like a beginner. They will think I am boring. It feels weird talking to a stranger. They all seem to know each other. I\’ll be the odd one out.

It is ironic that most people feel the same way, and could easily comfort each other. Yet everyone keeps to the safe relationships they already know.

So, in our efforts to stay within our comfort zone we act selfishly and do not fully explore new opportunities.

This can be the kiss of death to a service business. Especially for new businesses or those that are trying to expand into new areas. Meeting new people is critical to the success of the organisation.

By meeting – and fully engaging – with new people (prospects, industry partners, or referral sources) we open the doors to:

Learning about other businesses. Learning about new opportunities for us. Learning how others achieve their goals. Learning how not to do something. Learning what to do from those who are more experienced. Learning that we can cope with expanding our comfort zone. Learning how to be more successful.

One of the greatest challenges for service providers, professionals, business owners, and new sales people is to have the confidence to strike up new relationships.

You owe it to yourself and to your business (or to your employer).

The tools you will need include:

Active listening skills. Flexibility and patience. A true interest in the diversity of other people. A good dose of self-awareness, to control your natural communication urges. A well rehearsed self-introduction; elevator pitch; 30-second introduction; or, audio logo (whichever you prefer to call it). Acceptable social etiquette skills. The discipline to ensure you follow up after the initial contact.

For those who muster the courage, and learn the necessary skills, a whole new world of possibilities and success awaits you.



Stuart Ayling runs Marketing Nous, an Australasian marketing consultancy that specialises in marketing for service businesses. He helps clients to improve their marketing tactics, attract more clients, and increase revenue. For additional marketing resources, including Stuart’s popular monthly newsletter, visit his web site at www.marketingnous.com.au

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June
23
business bankruptcy


There is an old axiom that goes along the lines of “it is not what you save, but what you earn.” While this commonly refers to personal savings it could also be applied to the business world as well.

Hmm. Perhaps when applying this saying to the business world it should be amended to the following: “It is not just what you save or what you earn it is also how much liability you protect yourself.”

Yes, as much as we are loathe to admit it, there is always the possibility of a business being sued.

A bad as such a situation could be it is still far better to have your business sued than to find yourself personally sued. This is why setting up a Limited Liability Corporation (LLC) is so important as it is a tremendous means of protecting your personal assets.

Remember, if you are the Sole Proprietor of the business you are responsible for all actions and debts of company.

That means you and you along PERSONALLY are left holding the proverbial bag if a bad situation arises…even if that situation was out of your control.

Needless to say, this is a lot to risk in a litigious landscape and that is why an LLC remains a better option.

In a nutshell, a Limited Liability Corporation allows all or some of the business owner’s personal assets to be protected in the case of legal action.

This is a critical form of protection because if a lawsuit is filed the business owner will not lose his or her savings or home. (Again, amassing wealth also includes protecting what you already have)

With an LLC, any negative or punitive judgment will be levied against the business entity. Now, this does not mean that an LLC gives an individual carte blanch to be negligent as a company that is on the wrong side of a liability decision may find itself in bankruptcy or a host of other legal problems.

But, there is a huge difference between a business bankruptcy and personal bankruptcy. Again, the reason you are going into business in the first place is to amass wealth. So, why would you not seek a method of protecting your personal wealth?

In addition to the personal protection available via an LLC there are other additional advantages as well. For example, an LLC is not a corporation and this means it is not required to pay corporate taxes.

As such, transforming your business ventures into an LLC may be sincerely beneficial.

It is highly advised to check out your local Secretary of State office and explore the formation of an LLC.



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