The Obama Brand

The world woke up this morning to hear that President Obama will serve a second term in the White House.  After what we were led to believe was a close fought campaign, Obama romped home with a comfortable majority.

It got me thinking about the similarities between political campaigning and ordinary straightforward marketing.  Not that anything is ordinary or straightforward in today’s marketing world of course!  A lot has changed in the four years since Obama first took up office; at that time he was well ahead in the use of social media but in 2012 both candidates used every possible method to engage voters….including Facebook, Twitter, et al.  

But what really interested me was the way in which the two presidential candidates ‘lived’ the brands that represented their campaigns.  It raises all sorts of questions about where brands and what we might call ‘public personalities’ start and end.  Could they be one and the same thing?  Do we want them to be?  Think about Richard Branson or the late Steve Jobs.  They’re so synonymous with Virgin and Apple, respectively, that they seem to embody the values of those particular brands.  Branson and Jobs have been nothing but fabulous ambassadors but we can all think of instances where one person has single handedly brought down a brand through careless actions or words.

Is there anything we can learn from this I wonder?  I happen to be a one-man band (well, a one-woman band to be accurate!) so I guess that my ‘brand’ is me.  There is no one else to represent my business; I create the values that underpin it and I promote those values through the way I work.  But I used to work for a multi-national company – in my office alone there were roughly one thousand people.  How can a brand possibly remain strong in the face of such diverse values, personalities and aspirations?

I think the answer lies, at least partly, in defining the brand, championing it at every possibility and being true to the values that it represents.  Actions always impact a brand!  It’s what we do that gives our customers the opportunity to adjust their thinking, positively or negatively.  Our marketing may be spot on but if a disgruntled employee lets loose on Facebook or a senior executive’s rude comments end up in the press, that single action will have substantial repercussions.

The truth is, it’s the opinions of others that build our brand – whether we are aware of it or not.  Now that’s food for thought!

Be safe on the road this winter

Basic maintenance

Engine oil: Use a good quality oil which matches the specifications in your vehicle manual. Check the levels regularly to identify unusually quick usage early, preventing long-term engine problems.

Tyres: Check tyres for worn-out tread, bulges or lacerations. Consult the vehicle manual for the correct tyre pressure and use a reliable gauge to check this. Over-inflated tyres can cause wear around the centre of the tyre, while under-inflation results in wear around the outer edge and poor fuel efficiency.

Servicing: Get the car serviced as regularly as the manufacturer recommends to maintain engine efficiency.

When should I change gear?

“I tend to say that, in a petrol engine, a gear change should be done at 2,000rpm. Diesel cars need to be worked a bit harder, say at 2,500rpm, before moving up a gear.” 

Not sure how to carry out these checks?

Before you set off

Remove excess weight: Unnecessary weight in the boot makes your car work harder and consequently uses more fuel. Remove anything you don’t need for your journey.

Prevent drag: A roof rack or box adds wind resistance, resulting in drag at high speeds on the dual carriageway or the motorway. If the roof rack or box is not being used, take it off.

Leave straight away: Idling wastes fuel – don’t start the engine until you're ready to go.

On the road

Plan for the road ahead: Look at the road ahead, as far as you can see, for any potential or developing hazards and take early action by easing off the gas pedal and braking gently. By slowing down in good time, you’ll lessen wear to your tyres and brakes and conserve fuel.

Easy on the gas: Use of the accelerator pedal, which is very sensitive, should be smooth and gentle. Harsh acceleration

Slow down in gear: Advances in engine and braking technology mean that it is no longer necessary to change down into lower gears to slow down. Release the accelerator in good time to slow down smoothly and prevent unnecessary braking.

Change up gears earlier: Correct manual gear changes when speeding up, rather than labouring in the wrong gear, can have a significant impact on fuel efficiency.

Drive at appropriate speed: Driving faster requires more fuel. In fact, driving at 80mph, apart from being illegal and dangerous, can use as much as 20% more fuel than driving at 70mph. Stick to the limits and considerable fuel savings can be achieved.

Cut unnecessary electricals and air con: Don’t use the fan heater or air conditioning when they’re not needed, as they draw their power from the engine. 

Thanks to Tariq Musaji for this post - Tariq is a member of Colbea's Business Innovation Group, and a Driving Standards Agency-approved driving instructor and managing director of Farrah Driver Training Ltd based in Wickford, Essex.

Lending to small businesses - here we go again!

Some of you may have read my earlier piece on the Government’s scheme for solving the problem of banks lending to small businesses and the way billions of pounds would be made available under a scheme to encourage bank lending to small businesses OR for mortgages.  Sorry if you thought me cynical but now I feel vindicated in saying that, at best, the money would go on mortgages.  Why?

You will have heard Vince Cable and his latest announcement on lending to small businesses to his party conference – not Parliament as I would have thought more appropriate. This got my cynic-ometer running again and made me think - oh well, the last idea didn’t work so they thought they had better announce something else!  In fact, this is the second time this ‘something else’ has been announced but I assume he thought the media might notice it this time if he announced it at a conference.

With these announcements there is usually not much detail and this is true of this one in as much as further details will be released later in the autumn.  This one was a few phrases for the party faithful to applaud and a few headlines for the media.  The reality is that the idea has not yet been submitted to the EU for its permission for us to implement our own economic policy, so that could stop it in its tracks.

Additionally, the idea will have backing of some Government money (10%) but the rest will come from private capital from investors.  I cannot make out how this will be achieved as the “bank” will not deal direct with borrowers but through normal banks – this of course means two bites of the cherry before it gets to the small business owner.

Finally, Vince Cable has got to get it past his new Conservative guard dog – Michael Fallon – and I think this will be even harder than it was with Mark Prisk!!!

The Treasury response to the report on small business finance from Tim Breedon (BOOSTING FINANCE OPTIONS FOR BUSINESS) states:

“The Government also welcomes the suggestion of a single delivery agency for Government support schemes. This provides a welcome contribution to the debate on the role of Government finance interventions in tackling market failures. The comparison with state-supported agencies in other countries shows the different models available. The Government will examine the options and will need to consider the evidence and rationale carefully, balancing any proposals for change with the need to ensure continuity for existing schemes that work well, reporting back later this year. “

This doesn’t look like that single delivery agency for small businesses so will other suggestions follow?

My view still remains that it is up to us to sort out the question of finance ourselves – the current Government cannot understand what a micro business is, let alone the problems it faces.

Posted by Advisor Keith - 26 September 2012 

HELP....I need somebody!
HELP...not just anybody!

Austerity.  If I hear that word one more time I might just have to scream.  It’s on almost every news bulletin, in almost every business article and is so engrained in my mind I even felt compelled to start my own blog with it!

None of us needs reminding that we’re in hot water, economically speaking.  The question is not what we can do about the situation but what we can do despite it.  Where can any of us turn when resources, grants and government backed schemes for small businesses are melting away faster than a scoop of vanilla ice cream on a hot apple pie?

As a marketing professional myself, it’s no surprise that I rate marketing as a priority area.  But despite, or perhaps because of, my professional bias, I feel strongly that new and small businesses don’t, in general, pay sufficient heed to marketing.  I’ve been lucky enough to see some excellent marketing theory turned into even more excellent practice, but I’ve also seen some mammoth blunders!  It’s my belief that even those lucky enough to get work via word of mouth or from a regular and stable client base must examine their marketing practice all the time.  Why?  Because there are always hungry competitors out there waiting to pounce.

So where can businesses turn for marketing advice when times are tight and cash is strapped?  Here are my thoughts:

-           The Chartered Institute of Marketing (the professional body that champions best marketing practice in the UK) has heaps of information in the knowledge centre on its website – www.cim.co.uk.  You’ll have to register if you’re not a CIM member and want to download survey results or white papers. 

-           Buy a book!  A book on marketing theory may sound dry as the Atacama Desert but it will be invaluable.  You don’t have to read it cover to cover (no one’s asking questions afterwards!) but dip in and out and you’ll discover some fascinating stuff that will help you spend your limited marketing budget wisely.  ‘Sticky Marketing – Why everything in marketing has changed and what to do about it’     by Grant Leboff gives a good background to modern marketing, but it’s just one of many accessible books.

-           Open your eyes!  Question what you’re doing, why you’re doing it and what the likely effect will be.  Look at your competitors and try to evaluate their actions.  Get to know your customers; find out where they are, what they’re doing and what you can do for them.  Once you know that, you’re on the marketing road to success.

-           Recognise when you need professional help.  Damaging a brand is easy.  Rectifying that damage is lengthy and costly at best, impossible at worst.  If you engage professional help from a business advisor or marketing consultant look for appropriate qualifications from bodies such as the CIM and/or a business accreditation and quiz them about their own business experience.

Questions about marketing?  If so, post them here.

Austerity or fiscal stimulus

The jury is still out, although it seems clear that the current Chancellor appears to favour the former.  

As I type this, a survey from the Institute of Directors (IoD) has just been released, which is critical of the Chancellor’s ‘belt tightening’ policies.  Sadly, the IoD members conclude that the country will still be in recession at the end of 2012. 

Whether that will be the case remains to be seen but as the Labour PM, James Callaghan, admitted in 1976, additional spending only worked by injecting a bigger dose of inflation into the economy, followed by a higher level of unemployment.  At the moment both of those factors are just about under control and no one wants them rise.

Much of the capital injected into the banking system through quantitative easing has ended up there – with the banks…which has increased their capital base significantly.

In spite of claims that lending has increased, small businesses are still not getting the funding they require.  A recent Bibby Financial Services survey suggested that less than one in ten small businesses succeeded in gaining finance from their Bank. Could it be that banks are not lending because they have hidden liabilities?

Unfortunately the whole economical situation is extremely complicated.  But without funding for business where can the country find an impetus?  Rather than pussy footing around, shouldn’t the Government step in to sort out the banking sector once and for all.

Posted on behalf of Advisor Angus.

Going for gold

What fantastic success from Team GB!  If there’s one thing we can learn from the Olympics it’s got to be the concept of commitment.  I don’t know about you, but I’ve been struck by the lengths that athletes go to in order to achieve their goals.  There are no half measures!

I guess business is much the same.  If you’re committed to your business idea you’ve a much greater chance of success.  But there are important considerations that no amount of commitment can replace.  Sadly, for every business that succeeds there are many others that don’t.  ‘It seemed like a good idea at the time’ is on many a business tombstone.  Here’s my checklist for evaluating your business idea.  It’s not definitive and I’m sure you’ve got other thoughts, so let me know!

-           What’s different?

           You have to compete on something, be that price, quality, delivery mechanism, etc., etc.  It’s hard to find an original idea but it needn’t be hard to out-do your competitors.

-           Is there a market?

            What seems like a really cool idea to you might not have the same appeal to everyone.  Before you start selling hand knitted cat cardigans make sure there are lots of pet owners out there clamouring to buy them!! 

-           Where are your customers and how you will reach them?

            Amazing though it sounds, many people just launch into a business without doing any research.  You might get lucky, but you probably won’t!

-           What price will you charge?

            If people can get the same elsewhere for less, they will.  If your price doesn’t cover your costs and leave a profit margin, you’ll fail.  ‘Simples’ as the meerkats would say!

-           How will you grow?

            If you are a one man (or one woman) band that’s fine, but you’ll soon reach a ceiling beyond which you can’t take on any more work.  Is that your plan, or are you aiming to be the next Richard Branson?  Knowing if you are going to grow and if so, how, should be something you consider at the outset.

-           Where are your knee pads and helmet?

            In other words, how will you protect your idea?  Your intellectual property is often the most valuable business asset you have.  Ask how easy it is for others to steal your idea and get legal advice on how to protect it. 

-           And finally….do you have the commitment of an Olympic athlete?

            Starting a business is hard work.  It will have more lows than highs, especially in the early days, and there will be times when you wonder whatever possessed you to be your own boss.  Do you have the attitude, skills and, most importantly, the commitment to make it work?

Mentors or Advisors?

Some while ago the Government decided that there was no longer a need for the physical entity called Business Link. As they had already spent £34million on its website they said that was enough information. They were persuaded that occasionally people starting a business would want to talk to someone so they added in a call-centre facility as well.

As it happened the British Banking Association had also persuaded them that they could provide 30,000 Business Mentors who would all work for free and therefore why would new and developing business have any need to go to an Enterprise Agency for help? Obviously this was seen as a great way of saving money by the new Government who had begun to realise that providing support for the new growth businesses that the economy needed was going to cost money they could ill afford.

Naturally, they could trust the banking profession to deliver on a promise, and they look as if they will have done so; the Mentorsme website shows an increasing number of mentoring organisations as well as individuals available. Whether all of them are free is a bit questionable.

My argument is not with the numbers or the cost, or how that relates to the initial promises made, but to the actual concept.

In my time helping small businesses I have acted as Consultant, as a Business Advisor and as a Mentor and I am qualified in all three areas so you could assume I know the difference. Unfortunately those organising help for small businesses do not, particularly the difference between an Advisor and a Mentor.

You can illustrate the difference by asking a question. Someone is starting a small business and goes to someone for help. They first ask “ How do I register as self-employed?” The Business Advisor says “You need to register with HMRC for two reasons, because you need to pay class 2 National Insurance and you need to register for Self Assessment Taxation. There is a form you need to download and complete on the HMRC website so go to…” – you get the picture.

The Mentor, in answer to that question, should say “Well, what do you think?”

This is a simplified situation but, I believe, illustrates the misunderstanding between the two roles. The Business Advisor is there to provide answers, the Mentor is there to provide guidance. We should not confuse the two.

THIS BLOG IS FROM ADVISOR KEITH - Feedback welcome.

Solving the problem of banks lending to small businesses

I suspect that, like me, you listened to the recent announcement that the Government was going to arrange to lend cheap money to the major banks on the condition that it be loaned on to businesses with just a hint of cynicism.  We now have more detail and I am not surprised to hear that it is not quite as announced – what headline ever conveys an accurate representation of the content!

Leaving aside the Government’s definition of a small business – i.e. a business with a turnover of less than £10M and less than 50 employees – it would now appear that people who have mortgages are equally as important and therefore cheap mortgages are also included.  Put yourself in the position of a bank which has the chance of cheap Government money if it lends to either a small business or a small potential homeowner.

In the first instance you are depending on judging whether someone has a good business plan, a solvent business and an excellent reason for wanting the money – but nothing else in the way of assets.  In the case of the possible homeowner you can set the entry level as far as the deposit is concerned and thereby the percentage of the total value of the house at what you might regard as a reasonable level – commonly 25% (thus a 75% mortgage to value).  What this means of course is that you collect mortgage payments against this in the hope that the mortgagee’s circumstances do not change; if they do and they can no longer afford the payments you then repossess the property and put it up for auction with a reserve of 75% of what it is worth because that is all you need to cover your loan.

Where would you lend the money?

So let’s not be negative about lending to businesses, let’s be positive and not just knock the Government but offer an alternative.

The main reason the banks will not lend is because of the situation above.  There is not as much security lending to a small business and therefore they might lose their money.  In view of all the criticism they have had in the past about bad debts they are wary of incurring more, so, better safe than sorry, no lending without assets to back it so we can recover our money.

Why doesn’t the Government, instead of printing money to lend cheaply to banks where the best bet is that it will help the building industry, just say, lend if you think the business is properly run and has a good business plan and, if it goes wrong we will not blame you for lending the money and will make the deficit good.  The Government then becomes the small businesses’ security.  I am not saying that they can just give out the money without looking at the proposition properly and they would have to prove they had done so to get a BIS refund but we need innovative thinking if we are going to solve this problem.

What do you think? 

THIS BLOG IS FROM ONE OF COLBEA'S BUSINESS ADVISORS - We welcome your feedback.

Not so sweet tweets

Lots of businesses have found value in using Twitter to tell customers, potential customers and business partners about what they're up to, where they are and what's new with them.  Effective use of Twitter can help build loyalty and inform about your brand but it's important to remember that there are still some 'no go' areas that make tweets less than sweet!

The problem seems to be that when it comes to social media we're all inclined to forget the 'rules' that apply in other areas of marketing.  And make no mistake - using Twitter for business purposes is marketing.  By its very nature, social media doesn't carry the conventions that we probably take for granted in other forms of marketing; it encourages us to write as we would speak and this informality can mean we get a little carried away.  For example, it's unlikely you'd take out a half page advert in the local press trashing your competitors but, for some, this type of message seems acceptable behaviour when tweeting.  Whether it's a print advert or a tweet, a "look how awful they are" approach to marketing never works!

In the same way, don't cross the divide between work and social life.  It's fine to invite your customers to join you in the Kings Arms after work but it's not so good to rave about the bar in Spain that you visited on holiday, nor to tell everyone what an enormous hangover you had the following morning!

Use tweets to inform, inspire, reinforce your culture, build your brand values and build your reputation.  The message here is very much "if in doubt, leave it out".