Every small business owner, consultant, sale person, or online business should have this new book in their library.

The Referral Engine is an easily read book (233 pages) with a great summary at the end called, Workshop which is a convenient list of those strategies discussed throughout the book in a short, easily reviewed format.

The work itself starts off with a not-so-startling statement,

Despite what some might suggest, there are no real secrets in business–only truths you haven’t yet figured out how to apply.

That statement made me laugh because it is so simple and so true!

Before I get into my gushing over this book, here is what you’ll find:

The Realities of Referral
This chapter gets into defining referrals, why people give them, what motivates them to do so while giving you a foundation to understanding them. The formula I enjoyed seeing outlined? Innovation + Action = Growth

The Qualities of Referral
This had some great gems and I couldn’t help but reflect when a local business began hiring teens to handle their clientele—and sadly within a year she was out of business. Jantsch talks about the link between customers and your staff and how hiring the right people, giving them the right training, and other components play key roles in getting better quality referrals and leveraging them. The take away from this section? Give to Get.

The Path to Referral
Now Jantsch gets into strategic and tactical applications with the Four Cs of Marketing: Content, Context, Connection, and Community. Basically there are two groups—the traditional and the tech savvy. However learning how to combine these for optimal results while targeting specific groups ( prospects, customers, providers, staff, partners) is a great suggestion. The take away in this chapter is the customer life cycle: Know, Like, Trust, Try, Buy, Repeat, Refer.

The Referral System View
Lately there has been a lot of talk about transparency (or authenticity) and this chapter ties it in to innovation, core differences (such as a unique sales position) and leveraging your networks. Discussed are referral entry points and how to use them effectively.

Your Authentic Strategy
Referral brand elements are included in this section and defining and visualizing aspects of the business and customer is only one piece of the puzzle. Defining how things work in your world is referred to as the “secret sauce” aka “This is how we do it here” (or TIHWDIH) but I enjoyed how it presented the strategic action plan which is valuable for any small business owner.

Content as Marketing Driver
Leveraging content, speaking opportunities, using advertising and public relations are a few of the tips in this chapter but the examples of how they can be applied can help any small business spark additional ideas. The testimonial gathering party idea was unique but there are also many good resources in this section (and in all sections of the book).

Convergence Strategies
I’ve heard the term, “hub and spoke” before but using it both online and offline is an action that helps visitors, customers, and prospects. Power tools, blogging, podcasts, videos, and elunch ideas are introduced here. Again, some great tools are resources are listed to help you get started. One of the things I recently started in 2010 was a schedule of tasks for each week and month so I was glad to see John’s example and glimpse into what his efforts look like…and you get some suggestions as to how to create your own action plan.

Your Customer Network
Do you know your number for referrals? This is the number of people (friends, neighbors, and colleagues) referred to your business by clients. Basically, if you are not getting lots of referrals this chapter can help you determine why and help you fine tune that process. Again, the chapter ends with a customer network action plan that can help you outline the process or implement one.

The Strategic Partner Network
Businesses that have a common customer base make up part of your Strategic Partner Network and this chapter discusses how to identify, build, and activate this referral network which is one I think a lot of people overlook.

Ready to Receive
This chapter gets into the how and what that is involved in revving up your referral machine and includes resources and tips on how to get it (and keep it) going.

Referral Specific Campaigns
This is a fun collection of real life examples of the referral cycle and what happens when you set up and start up the referral machine.

Snack Sized Suggestions
This will make niche specific businesses jump for joy since examples from specific businesses are shared in short paragraph form.

Workshop
A nice summary of the entire book can be found in this chapter and makes it an easy reference point for those who might not like taking notes in the book.

John Jantsch spent a lot of time pondering this topic and put pen to paper to produce a book that should end up being a well worn, well marked up resource for anyone in business or sales.

Although he is well known on the web for being an award winning social media publisher, this book can be a vital tool for both online and brick and mortar businesses.

It would be best put to use if it was kept open on their counter (or desk) during the day to read, review, and to remind you of some important business concepts that many overlook or forget. (Hey John–now you need to produce one of those flip over perpetual desk calendars–just give me a credit blurb for the idea. LOL)

One of the great things within this book is that all the resources and sites of those businesses that are included in the book are also right on The Referral Engine book’s website.

This provides a great resource online and also a clever strategy for generating referrals—and for creating goodwill. (I hope the businesses listed will track the referrals coming from that website.)

The powerful piece of work can be used as a lifetime reference addition in any small business library–because although the world may change, certain principles remain the same and those principles are outlined well within The Referral Engine.

What I liked about it (and what I think you will too) is that it is engaging and filled with interesting stories, case studies and examples.

Again, it is in a simple format so that you can implement and remember what was presented easily so don’t be surprised if you power through it in a day.

However, I would recommend that you use sticky notes, a highlighter, and be sure to write notes in the margins so you can take full advantage of the contents so you can adapt them for personal use.

In my experience, I find people always miss the point by focusing too much on the niche specific information.

Marketing and referral strategies work the same way across industries and business types but what John Jantsch does well is to address this “niche mindset” by using examples from a wide variety of retail shops, service businesses, and from other professionals, consultants and sales teams.

I think this work would be of vast value to the small businesses here in the mountain region because most fail to collect any customer data or fail to follow up with customers to bring them back or to reach out to ask for more support or for referrals.

Right now we are in one of the “dead zones” of the year and many of the small business owners are crying but doing nothing to change this process—and it has been that way for the twenty-something years that I’ve been associated with the community.

The Referral Engine would be a great book to read now so that some of the suggestions and strategies within the book could be implemented before the next “dead zone” in the fall.

John Jantsch did an amazing job of presenting concepts clearly and in an easy to digest format so I highly recommend that you add The Referral Engine: Teaching Your Business to Market Itself to your library–and while you are at it, consider adding Duct Tape Marketing to your cart as well.

Does your business need an online presence?

Absolutely!

Get a professional web team to help you. I recommend that you do a bit of exploring:

• Become A Blogger Premium or Become A Blogger Free Tutorials
• Word Press TV
• Get a Green Domain Host
• Hire Tiffiny for Web Design
• Hire SEO Specialist

Especially since I find comments like this one:

I would estimate that currently at least 95% of new customers tell me that they find my business online by doing a Google or Yahoo search.

Yikes! That is huge.

So how much business are you losing because you don’t have a website–and if you do have a website just how wonderful is it?

Most people want a bargain but don’t know enough about the Internet to know what constitutes a good deal.

For instance, someone is calling Big Bear Businesses with a “deal” for setting up a website with video–which is pretty easy these days.

The cost? I believe I heard $1500 for the video and $750 for the website.

Now that might sound good to some but it probably isn’t a good deal for most business owners around here because it has to be optimized and you have to define what you want from your website…adding video might look nice but what does it do for your business?

Based on the service charges quoted it sounds like they are focused on the video instead of the website creation–I just wonder how they promise to optimize the thing.

But I digress…should you have a website or a blog for your business?

A blog is a type of website except that it is easily edited by the owner (instead of relying on a webmaster) and is optimized to be search engine friendly.

Today I believe you should use a blog to your advantage and save the webmaster’s work for things related to the site itself instead of updates and content.

Let me give you an example of a project I recently completed.

Not too long ago I was referred to a new business to help them fix their website. They had created a static site but needed one they could easily manage and that would get them some traffic.

Now on first glance you might think it looks good–and if you don’t know much about the Internet–it does! Want to poke around? Find the Holistic Wellness Center static site here.

The site was done by someone associated with the center using a very design template at Go Daddy. He did a great job considering the limitations he had.

However it was missing some key things.

First, it was not optimized for search engines to find it in order to generate traffic for the name of the center or the location.

Next, it was missing key terms for searches, page titles, and descriptions.

What is important about those things is that without them the site was not showing up for the terms they wanted it to–and more importantly it was not coming up on a search.

In addition, the class schedule was an image that didn’t allow editing and the services was only a listing of some of those offered.

Now back to one of the business owners commenting on her website:

I have all the details, policies, and prices on my website so it makes it easy for people to see what they will get with my service, and make a decision on which company they want to hire.

Wow, that can make it simple for potential customers–but more importantly people feel more secure if they can learn a little bit about you before they contact you.

Now the HWC was open to change, so we snagged a domain name that selected based on keyword search research and their location.

Next, the budget was for 15 hours of work (which included some content) so I found a look that fit in with their center instead of spending more money to have a specific look created which looks like this:

I set up the host and got the new domain and blog up within about four hours. Then my content and optimization work began.

No too bad.

Notice that the location, hours, and services are visible immediately to the right of the blog versus the static site. Plus the phone number and city are right up at the top.

This is important!

Within a week (and without a lot of content on it) the site is on the first page under, “Holistic Wellness Center” which is what they wanted.

Today the calendar is set up so that staff can edit it and is viewable online. View the Holistic Wellness Center Calendar now.

Staff can also check the email and edit the blog and customers can get the phone number and address easily. Customers can also leave comments right on the blog.

Another perk is that each practitioner at the center has a page on the website and a link to their specific website as well. This helps the center with further optimization.

PLUS I included search term phrases that would actually benefit the center.

The surprise–infant massage was a term that had not been considered highly important until I noticethe  traffic trend and researched the term.

In most cases, business owners don’t really know what people are searching for–it isn’t always what you think and you want to be sure they find you using the terms they will search for–not what you think they will search for.

Finally, another perk is that people who are searching on the names of certain practitioners are finding the HWC website in their searches.

So, my final though for you is YES, you need a website but I would recommend you get a blog going and get someone (like me) to help you get it up and running so that it will work for you.

Want my help? Just give me a call at (800) 818-7387 PST

One of the biggest complaints I’ve heard locally is about how business is so bad.

This surprises me because many of the businesses I know are showing an increase over last year from 15% to 30%.

These are brick and mortar stores and not internet businesses which are growing and doing well.

What is the difference?

I took some time to take a look around and to chat with a few successful businesses.

For instance, one of my favorite hangouts looks like hell. The parking lot is full of potholes and weeds. Cigarette butts litter the walkway to the entrance…and the owner is seldom there. When she is, she isn’t exactly amiable or friendly to those who want to chat.

Also, the product is inconsistent and her price point is steep…and they just announced they will be closing. Not a big surprise to some of us.

Down the boulevard is another establishment. The place has some of the same eyesore problems. Poor parking lot maintenance and trash and boxes stacked up outside make it look trashy. However, the business is up and churning in profits.

Here the manager is focused on customer service and pays attention to customers needs and wants. If a customer has not been in for a while–he or she gets a call. And nothing ever seems to be a problem.

No wonder the customers keep coming back.

Another business in a great location is up 30% because they are under new ownership and let the manager do what she needs to do to make customers happy.

Personally, I quit shopping there under the previous owner because she was penny wise and pound foolish. It was great news to hear that they are doing great.

The two establishments that are doing well each track their profits and their inventory. They know when a customer is going to need something and if they don’t have the product, they usually have it within 24 hours and at least one will drop off the merchandise to the customer’s home if they desire.

I know other businesses that do well simply because they really service their regular customers. About 80% of all business seems to come from 20% of their customers.

If you want to attract and keep customers present a good front–a clean and tidy store and a smiling staff member and personal service can go a long way to establishing a regular customer base.

Don’t forget to find ways to provide extra service to your customers and find out what they might like and offer to meet their needs with new products and services…it could make all the difference on your bottom line.

I’ve spent some time spouting about common business mistakes–and trust me, I’ll get back to that later. You cannot fix something unless you know it is broke…

However, how can you be a successful mountain business?

Here are five networking tips to get you started.

Make & Keep Lists
Most people forget to take advantage of those they know. Yes, yes–even I make that mistake. (I was just pondering some interview prospects and did a big forehead slap–”duh,” I know a lot of famous people who could share things people would be interested in hearing.)

So, figure out what type of networking you can do. List friends, business, and professional contacts. Don’t forget to start getting information from your current clients or customers.

Start a database with a record of their names, addresses, phone numbers, and emails. Then schedule time about once a week to randomly select one and contact the person by phone–or get together for coffee or a snack. Doors will open!

Don’t Procrastinate
Start now and develop a daily habit of networking and building your network. Explore how you might be able to work together for dual benefits. A little step each day does wonders in the long run…and it isn’t so overwhelming.

Maintain Contact Relationships
I just finished working with an awesome crew. When payment was received, I took the time to send the corporate office a Thank You note expressing how great the team was–and naming them. At the same time I offered to help them find future resources AND offered my services for future work–enclosing my card.

Usually I try to do something unique to anchor my brand and services in my contact’s brain. Not many people would send Thank You notes–that is why it works for me.

Today you can use the internet to help you keep this strategy from becoming too overwhelming but that is for another post.

Provide Resources
You’ll be warmly remembered if you provide resources or are helpful to prospects, customers, or competitors. This generates goodwill and buzz which results in increased visibility. You may find that people will come to you for suggestions, ideas, and will reciprocate with referrals or favors.

Mind Map or Set Goals
Set networking goals for yourself and map out just how to accomplish those goals. Take a moment to stretch at business functions or even by introducing yourself to a new business owner. Date the goals and make them concrete–maybe you want to meet one new person outside of your business a week or perhaps you want to find out more in depth information about a neighbor or customer.

Decide what will work for you and take action. If you have any other tips, just click the icon to your upper right and leave them.

I’ve been spending time talking about business mistakes and sharing tips for mountain business owners specifically because so many fail so quickly. This post focuses on why many fail before they even get going.

For some reason, people decide they are going to move into the mountains, buy a business and succeed.

Many fail.

Take for instance the numbers from Small Business Statistics and Trends–where 1/3 of all new businesses fail within the first two years.

National Federation of Independent Business’ (NFIB) estimates that over the lifetime of a business, 39% are profitable, 30% break even, and 30% lose money, with 1% falling in the “unable to determine” category. Read more at Business Week.

Personally, I came to the mountains and decided that I wanted to move up and live there full time. However, the difference was that I researched the area first.

• Most people fail to research the area, the businesses already there, and the business they plan to open.

It took a year of planning and budgeting before I decided to move up part-time. Then I was ready to launch into full-time work within a year–but only after discovering that the winter proved to have unique challenges AND that things slowed down.

• Many new business owners miss identify the cycles in the community and so fail to plan for those hiccups.

There are several times a year when local mountain businesses feel a crunch. Things slow down or stop based on seasonal lulls or challenges.

For instance, during one weekend a major forest fire broke out and the roads were closed to visitor traffic. This stopped most of the local commerce dead in its tracks.

This last Memorial Day weekend was a disaster for local businesses–except hotels and some of the restaurants. Why? Because we had an unexpected snow fall which required vehicles to chain up down around Running Springs–many never made it past that little town.

Since I’ve lived in the area snow loads, mud slides, and lulls between seasonal activities prove to be difficult for some businesses because they don’t calculate those problems.

Not to mention that there are many businesses that fail to identify the community they are in and what unique challenges or perks it can have.

For instance, we had a new business open up in our sleepy little town–a town whose sidewalks usually roll up about 9pm.

Some locals are alienated now because the noise levels from the establishment are disturbing the neighborhood well into the wee hours of the morning.

Although it might not matter to them now, when things slow down and the locals boycott the place because of the inconsideration–it may be a different story.

In our area locals are loyal to a fault–but you have to earn that loyalty. Poor behavior or business practices spread like wildfire and can damage a fledgling business.

Having said that, local marketing is different from the regular model found “down-the-hill,” too.

For instance, locals told me I was too professional and polished when I got here. I toned it down and found that my business thrived because of the tip. I listened and took action.

• New businesses should ask for feedback and get to know other businesses so they can learn what works and what does not–quickly.

I still was professional but simple changes found me embraced the community. I listened to what they wanted and learned what made them comfortable.

Unlike bigger urban sprawls, the quaint mountain resort towns are not anonymous and that is an important piece of information to know.

Another oddity is that business tends to be very local centric. If you ever lived in the suburbs where you had the corner store and service shops–it is much like that in many locations here in the mountains. Efforts to attract locals out of the area work, but require strategy.

• Many residents are fiercely localized–and this can be good or bad depending on your business.

There are also some other factors needed for success such as having good capitalization, selecting good employees, and renting a good location…but you can get those in other articles.

If you want to have a successful business in the mountain resort area–take some time to plan, make sure you have the capital to stick it out, and get to know the community before you take the plunge–you’ll avoid headaches and hopefully will be around long enough to reap the benefits.

When I first moved to the mountains I was shocked at the reception. Other chamber members and residents told me in no uncertain terms–”We will see if you are around in a year and then will do business with you.”

Wow, talk about a negative reception! Can you imagine everyone refused to do business with a newly opened restaurant, shop, or service?

What I discovered was that many new businesses and residents head for the hills (mountains really) and then are gone in under two years time.

But even though they shocked me with their statements, the attitude of established residents is one of loyalty–but you have to EARN it and keep it.

There are many businesses who don’t think that is part of the business model and so they sabotage their success.

The point?

Simple mistakes can sabotage your business success.

Here are a few real life examples of businesses that have lost a lot of regular customers…and their referrals which is a HUGE traffic builder in this area.

How is this for failure? A recent pet business closed down in about six months after opening.

They failed to study the location and the demographics of the area and so failed miserably. In the end, the store was bringing in less than $50 per day–not enough to make rent, utilities, payroll, or inventory costs.

Number One:

As a business owner in an area that is vulnerable due to low visitor counts, inclement weather, and road conditions–I try and support the local small business owners as much as possible.

One of the local stores sells business supplies and pricing is steep when compared to online options or trips to larger stores down the mountain. Even so, I find things to purchase anyway.

So I didn’t worry about it when one of the clerks sold me the wrong lead size for my mechanical pencils. She said I could bring them back if they didn’t work out–and boy was I surprised when the owner pitched a fit over my attempt to return them.

Total cost to her? About $5 for the product–lots more for due to the ill will created. She lost my business forever. You see she didn’t want to take them back and made it into a big drama.

As I was leaving–only then did she offer me a store credit

At that point I didn’t want it because I can go to the local mass market store or order online easily and there isn’t any drama.

Was it worth it to be penny wise and pound foolish? I doubt it.

Number Two:

Not too long ago there was a scene locally straight from the set of No Reservations–a movie about a temperamental chef that gets so upset that she takes a raw piece of meat out to a diner and slams it down in front of him before walking out.

In this case, it was fish and the patron was a female. The chef splashed the diner and harsh words were hurled at the couple.

In most cases, if there is a problem the restaurant should see if they can make some type of amends to fix it–not alienate the customer–or abuse them as in this case.

Cost to the business? Loss of a couple of regular customers AND their referrals.

Number Three:

After purchasing a new business location the new owners closed without notice and it was hard to get in and out when they were open (due to remodeling). Then they quickly changed policies and hours.

The result? They lost patrons that had been store supporters for years.

Even today people complain because the hours are odd and do not sync with the adjacent business under the same ownership. One guy was trying to get a boycott going against the place.

Then it looked like the place was going to close down and a flood of people that had been avoiding the store came through the doors to use their credit during the sale.

Over and over again I heard from these customers that they had stopped doing business with the store because it was too difficult.

In these times, it is important to gain the trust and loyalty of your customers. Change is good–but not always before you have earned the trust and loyalty. With online options and mega stores not too far away–people have more choices and if you make it hard to do business with you–you may lose valued clientele.

Number Four:

Two similar competing businesses had the same problems–they sold inventory that was outdated or substandard and then did not allow customers to return and obtain credit nor would they let them exchange the product.

Today one of the stores is under new ownership and the other seems to have a large amount of ill-will spreading through the valley with threats of lawsuits and other actions.

In all of the above cases, these businesses failed to understand that they will only be as successful as their customer base will let them. Drive away the customers, create ill will with your clientele and you will lose not only their business–but that of their friends and acquaintances.

If you are a business owner, take a look at your policies. Are you customer friendly? Are your employees?

As one customer said, “I always know when a place is going down hill around these parts. They always seem to hire teenagers that can’t stay off the phone.”

Treasure your customers. Take a look at your customer service practices and make sure your employees know that their jobs depend on those customers.

A few common sense tips?

• Greet each and every customer–by name if you can.
• Get off the phone, off the computer, or off of your project to help them.
• Say, “Thanks for coming in” whether or not they purchase.
• Have a business card, magnet, or some give away item for every person or group that comes into your store–you’ll remain in their minds.
• Develop trust and a database–call them on their birthdays or send them a card. Later, you can use this database to track their habits–and find additional items they “must have.”
• Help a customer find another resource or give them directions without attitude. They’ll remember the gesture and that word of mouth will do you more good than you can imagine.

If you find these tips useful leave a comment by clicking on the balloon in the upper right. Do you have a question or comment? Leave one now!

One of the mistakes many businesses make when things are slow is to stop promoting.

Yikes! What a mistake.

This is a time when you should be promoting your business diligently. If you are not attracting new customers you have to ask, why not?

There are several answers to that question. If you are a brick and mortar store–the problem could be your location or the traffic.

In the Big Bear Valley there are two times in the year where tourist traffic slows down–but what about locals?

One of the easiest strategies to attracting more business is to maintain contact with your existing, loyal customers.

For example, I know one business that was bustling with customers when the rest of the businesses around her were empty. Why?

First, she has a great location.

Next, she is always thinking of what new items she can suggest to her current customer base–who are usually thrilled that she called or thought of them when they are presented with the idea on their next visit. This usually results in an additional sale–plus customer loyalty.

Also, she changes her window displays and decorates her store in conjunction with the seasons or holidays.

Contrary to popular belief a lot of tourists are repeat visitors and they know they will always find something new in her store–AND the biggest reason they go in–she remembers them.

Did I mention that each and every person who walks in gets greeted? Not only that, they also are thanked for coming in as they leave–whether they purchased or not.

So, if things are slow for you–figure out how to reach out to your existing customer base and engage them by reaching out or “wowing” them with personal attention or ideas to help them.

Need help with marketing or writing–give me a call. Or if you have any other questions or ideas–feel free to comment just click on the bubble on this post to your upper right!