Danger signals

This guy makes some sense

Danger Signals:
Sounds of Circling the Drain

These are the noises companies make
as theyï¿Â½re going down the tubes:

1. ï¿Â½Our only problem is traffic.ï¿Â½
Slow traffic is a symptom, not a disease. Look for its cause. WHY is traffic slow? Is it because the public doesnï¿Â½t know about you, or is it because they do? Is the problem with your advertising, or is there something wrong inside your business?

2. “Thatï¿Â½s not our customer.”
The businessperson who says things like, ï¿Â½Our customer doesnï¿Â½t care about price,ï¿Â½ is usually surprised by how quickly he runs out of prospects. Are there customers out there who donï¿Â½t care about price? Sure there are. But what percentage of the population do you think it is?

3. “Our advertising is reaching the wrong people.”
Iï¿Â½ve never seen a company fail because they were reaching the wrong people, but Iï¿Â½ve seen hundreds fail because they were saying the wrong things. Do your ads speak to the felt needs of your customers, or are you answering questions no one was asking?

4. “I donï¿Â½t worry about what the competition is doing.
I only worry about what weï¿Â½re doing.”
Is there a game that rewards a player for ignoring the moves of his opponent? If there is, Iï¿Â½ve never heard of it. Business is competitive and youï¿Â½re not the only player in the game. Like it or not, youï¿Â½re being compared to competitors in the mind of your customer.

5. “There’s enough business out there for all of us.”
A limited number of dollars are going to be spent in your business category this year. Are your competitors going to make sure you get your fair share?

6. “We canï¿Â½t compete with the internet.”
The idea that the internet is a low-overhead business environment is a myth. Other than the cost of occupancy (rent,) the costs of doing business online are essentially the same as for brick-and-mortar businesses. The average brick-and-mortar store spends about 5 percent of its annual sales on rent. If online companies had no offices, no shipping facilities, no warehouses or other physical presence, they could still offer only a 5 percent price advantage to your customer. If youï¿Â½re not competitive with the internet, you need to take a close look at how youï¿Â½re buying. You need to comb through your payroll, your miscellaneous expenses and your G&A. Your problem is inside your own house.

7. “Our secret is our people.
No one provides as warm a customer experience as we do.”
In 30 years as a consultant, Iï¿Â½ve known dozens of business owners who have convinced themselves that having ï¿Â½better peopleï¿Â½ was their storeï¿Â½s primary advantage. In every instance, the storeï¿Â½s prices were high, their merchandise was unremarkable and their people were average. (Even if your staff is exceptional, the worst thing to advertise is remarkable customer service. The expectations of the public will be raised to impossible levels. Promise it and youï¿Â½ll hear nothing but endless complaints. Iï¿Â½ve made the mistake more than once.)

How Did You Score?

Youï¿Â½re Average if youï¿Â½ve heard yourself say just one or two of these things. Hopefully, youï¿Â½ve recovered from your wrong-headed thinking and are on the road to right action.

Youï¿Â½ve Got a Problem if youï¿Â½re guilty of saying three or four of these things. If you want to recover, you need to start associating with people who will smack you when you start talking nonsense. Surround yourself with friends who wonï¿Â½t let you slide sideways into delusional excuses.

Youï¿Â½re in Real Trouble if you’re saying five of these things. Itï¿Â½s like a drug habit. You say these things to reduce your anxiety and ease the pain of failure much like an addict takes a perspective-altering pill to help him make it through the day. Rehab is going to be tough, but you can survive if you dig deep and awaken the tiger in you. Clean out the closets of your mind, throw out the trash and gain a clean perspective. Fight to survive.

Youï¿Â½re Not Going to Make It if youï¿Â½re making six of these statements. Can you hear the fat lady singing? I donï¿Â½t mean to be harsh, but you really ought to throw in the towel and find something to do with your life that will make you happy. This obviously isnï¿Â½t working.

Youï¿Â½re Not Saying Any of Those Things?
Excellent! Go, the world is yours for the taking.

Roy H. Williams