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Showing posts with label business success. Show all posts
Showing posts with label business success. Show all posts

Insights From Science Lead to Business Success

If you are a business owner and could prove to yourself that the right logo would increase sales, would you make your logo a high priority?

To help keep things clear, let's define some terms. Brand is a big buzz word, and it's important. It's also important to know that your brand isn't your logo.

The brand is what people think and feel about your business, product, or services based on what they see, hear, and experience. The logo is a slice of the brand experience. But it is a very important slice... like your first piece of hot pizza!

Your logo is the face of your business. It's how people recognize you and your business or product. The logo identifies: it's the face of a business or product.

Imagine networking in a room with 200 people, and you glance over and see someone you know walk in the door. You know instantly who that person is. How? You have identified them by their face. Things you know and feel about that person come flooding into your mind and emotions in a moment without saying a word. That is the brand experience.

That's an example of what a logo does for a business. When people see your logo-the face of your business, what people think and feel about your business follow.

What if a person doesn't know anything about your business except for the logo they see on a business card, a sign, or brochure?

Here is something every business owner should take note of: The importance of a face.

Psychological Science published an article in July 2006, summarized by Eric Wargo, with the results of research by two Princeton psychologists Willis and Todorov. In a series of experiments, they showed respondents photographs of strangers and asked them to measure specific character qualities, such as competence, attractiveness, trustworthiness and aggressiveness. Two qualities that people felt the strongest about was attractiveness and trustworthiness. So, without any information, except for the person's face, respondents strongly judged whether a person could be trusted.

Q: How long do you think it took them to look at a photograph of a stranger and come to that conclusion?

A: One-tenth of a second. In the blink of an eye!

Furthermore, the longer the respondents were able to look, the more solidified they became in their opinion! Their first impression remained the same and even grew more resolute.

Now, we don't like to think of ourselves as judgmental, but we must face the music: we are a judgmental species and we DO judge a book by its cover. (So, when you write a book, make sure you have a good designer because the right cover will drive sales!)

People will judge a stranger's trustworthiness without any facts, just their face-in 1/10th of a SECOND! One of the fundamental factors in business is trust.

    We often hear the phrase that Bob Burg turns in his book, Endless Referrals, "People do business with people they know, like, and trust."

    Marty Neumeier, in his book, The Brand Gap, says that "Trust is the ultimate shortcut to a buying decision, and the bedrock of modern branding."

What does trust have to do with your logo? Since the logo is the identity, the face, of your business, people are making judgments about the quality and trustworthiness of your business.

I have heard business owners declare that it's only price and service which matters and that a logo is just "fluff." If that's true, then why do the big guys spend the big bucks to get it right?

If your logo is out-dated or amateurish, you risk communicating that you are a novice or that you are not progressive or a leader in your industry. Your customers have to "get past," even on a subconscious level, that message in order to do business with you. Or, they may be going past you to your competitor who looks more competent, professional, reliable - someone they can trust.

Getting back to the phrase, "People do business with people they know, like, and trust," If a logo communicates trust, can it also help your prospects and customers know and like you? Sure!

Can your logo help people feel comfortable, like they know you? People will relate to a feeling and personality and feel like they know your business. Will your target market relate to your product or service if you look more relaxed & approachable, or strong and loyal, masculine or feminine? The right logo (identity) will communicate the right brand message and credibility that will give people the right impression and confidence to buy from you.

Attractiveness was the second strongest feeling that was measured in the Princeton study. We like what we find attractive. A logo that is busy rather than sophisticated, dull rather than dynamic, or common rather than memorable will not be as attractive and "liked."

If a prospect knows little about your business, and their first impression is your logo on a business card, stationery, vehicle, trade show display, sign or brochure, they will likely make the same judgment as the people in the study...in the blink of an eye.

It takes years to build a solid brand and a lot of work to keep it. Your logo can help build a solid brand, or work against it. Like a well-dressed and personable salesperson-- who never sleeps--it can get you in the door and give you the advantage.

Identity Graphic Design gives you the Remarkable Advantage of a credible visual brand...in the blink of an eye!

The remarkable advantage is the perfect impression created without saying a word. It's instant credibility, in the blink of an eye.

Make the investment into your business that will yield returns for years to come.

Reference, July 2006 www.psychologicalscience.org

Linda founded Identity Graphic Design with her husband in 1993. Her focus is new business development and assisting in the creative and marketing process for clients.

Her favorite part of her work is meeting entrepreneurs who strive against all odds until they succeed. "I meet authentic and exceptional people with inspiring stories. It's a privilege to help them promote their business and achieve new levels of success."

Linda also likes making homemade pizza and mouth-watering foccacia bread. Together, Bill and Linda have four adult children and one son-in-law, who are a never-ending supply of love, inspiration and fun.


By Linda M Kleist

Discover 10 Steps to a Successful Business Turnaround


By David Willetts


In all business turnaround situations there are certain steps that are commonly taken to change the fortunes of a failing business.

The owner of a less than successful business may require professional expert help to arrest the business demise and to create value for the organization. The task of managing the required change may be beyond the owner's skill set or too much emotional sentiment may exist that may preclude the owner from taking the tough ‘business saving decisions'.

Is there a standard process to be adopted in business turnarounds?

All business situations are different and, therefore, merit different approaches and emphasis on different aspects of the work. However, there are some steps that are generally considered in many successful business turnaround situations and ten of the most relevant are given below:

1. Review and Assess the Present Situation
In a business turnaround it is important to understand fully the starting position. It will be important to gather objective and anecdotal data in order to review the situation and to determine the causes, as well as to comprehend the immediate effects, of the issues impacting the business.

Management accounts, the sales order book, financial arrangements, internal controls, customer service levels, quality and leadership skills are typical areas that will require evaluation and a view taken on.

2. Develop Plans and Business Strategy
After assessing what is required to be changed for the business turnaround to be successful, it will be necessary to develop robust plans and strategy that will achieve success.

Without doubt it will be necessary to comprehensively document the actions to be taken, the timings, the financial impact of those actions and to obtain ‘buy-in' from the business owner.

The benefits of writing the business plan include that of a reference against which actual results can be measured and an indication to third parties that the proposed business turnaround plan has been carefully evaluated and is a viable proposition that should be supported. This will be an important and relevant form of communication to investors, staff and others who may need to know what the businesses future plans are.


3. Communicate With Key Employees
For the business turnaround to gain momentum it will be necessary to meet with managers and key personnel. The current business affairs should be explained and the consequences of not taking corrective action should be made known. An outline of the proposed actions to be taken should also be communicated and a request for comments should be sought.

Whilst it may not be possible to answer detailed questions it will be important to elicit the concerns of this group and address them as positively as possible.

Members of this group will critical to the success of the business turnaround. They will be charged with taking the planned actions and delivering the results; consequently it will be imperative that the group act as a team and are committed to the future plans.


4. Communicate With Other Employees
It will be necessary at the earliest opportunity to meet with all employees or their union representatives, particularly if job losses are planned.

A prolonged period of uncertainty, fuelled by rumour and counter rumour, will not be beneficial to the business and whilst bad news may not be easy to deliver, the communication of it in a timely sensitive manner is desirable.

The meeting will also be the opportunity to provide an insight into the future business plans and the part the remaining employees will play.

5. Meet the Bank
The bank and other parties with a financial investment in the business should be advised of the business turnaround plans. If possible meetings should be arranged to discuss the plans and to seek assurances of continued, and maybe, more support for the business.

6. Meet Customers
Dependent upon the severity of the situation within the business it may be necessary to reassure key customers of the business turnaround plans and the benefits that will accrue for them.

This action should be considered mandatory if the cause of the business demise has been poor customer service, poor quality product or any other matter not meeting the expected/agreed customer satisfaction levels.

Begging for a second, third or even fourth chance to ‘get things right' may be embarrassing but remember: no customers - no business. Learn from past mistakes, do not promise what cannot be delivered and ensure internal systems, processes and communication channels are raised to a standard that will seamlessly allow business to be conducted in a timely and efficient manner.


7. Meet Suppliers
If the business has failed to settle payable accounts on time, even the murmur of business turnaround activity taking place may result in suppliers imposing draconian payment terms that may jeopardize the business turnaround recovery plan.

If support for the turnaround plan has been gained from the financial institutions and investors, it will be advisable to actively seek meetings with vendors to outline the plans and to seek their continued support.

Re-establishing trust will be critical. Negotiating new or even the continuation of existing, payment terms from a weak position will be difficult, however, all promises made should be honoured or if failure is imminent inform the vendor in advance of how any debt will be discharged.

8. Conserve Cash
Review and improve if necessary the credit management procedures. If possible negotiate extended payment terms to suppliers; examine thoroughly all unused assets of the business and liquidate if necessary.

Options that may be available include selling unused buildings, renting out spare office space, selling unused plant and office equipment, disposing of excess or redundant stocks, factor sales debt and if unavoidable make excess employees redundant.

In addition the elimination of all unnecessary overhead cost should also be actioned.

9. Implement New/Update Systems and Procedures
A thorough review of existing systems and procedures will be required to meet the goals of the business turnaround plan. Implement change if necessary; it will be noteworthy to recall that a continuation of old practices will almost certainly result in the same old results.

Positive and profitable change may be required and this should be communicated to employees, so that they understand their roles in the new business environment.

10. Monitor, Measure and Take Action
Throughout the business turnaround process, results should be regularly measured against plan and corrective actions taken if required. Key performance indicators (KPI) should be determined that will give a snapshot of the business performance and be available on a daily, weekly or monthly basis.

The KPIs should include financial and non-financial measures and reflect the important aspects of the business that will determine success or failure.

Finally it will be desirable to pro-actively communicate the turnaround progress to all interested parties - employees, customers, suppliers as well as the financial institutions.

Provided sound business management principles are employed, results measured and positive trends reported, control of the business should be re-established. However, the business turnaround work should not be considered as a one-off. The experienced gained during the turnaround process should be adopted to avoid a repetition of the earlier mistakes made.

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