What Is In A Name?

It is believed that Shakespeare asked, “What is in a name?”

Indeed, what is in a name? For the entrepreneur and for any other business, a name is valuable. It says something about that business. Whoever hears the name can associate with that business and associate with products, services, and value that are offered by the name. The name of a business can therefore be seen as an organizational mantra. The more the name is being heard by clients or by potential clients, the more the products, services, and value of that business are being reinforced in the psyche of the hearer.

From the principle of name recognition, it is very important for a business not to tamper too much with its name or the name of its ancillary businesses – especially when the ancillaries share a name common to the rest of the organization. As an example, if ABC Corp. has an ancillary named ABC Venues, it is easy for clients to associate with what ABC Venues does. It is also easy for clients to know that they are dealing with part of ABC Corp. The name thus creates a reassurance to the market. It sends signals to the market and the market will, potentially respond to those signals.

Unfortunately, there is a habit under some enterprises to change names more often than politicians may change affiliations. Said name changes are more common amongst the ancillaries of an organization. The pattern is that the parent name remains in tact but that the ancillary keeps on showing strong chameleon behaviours. The advocates of such name changes argue that the name change helps to make the organization help to keep the enterprise and its ancillaries competitive.

Is this true? Can a name change make an enterprise more competitive?

Consider the case of ABC Venues that suddenly decide to change its name to ABC Horizons, whilst is still provides the same products or services they had under the previous name. How will the market respond? Will they still associate with the products and services that are being offered? On the other hand, in the worst possible case, will the market be confused?

Perhaps a few simple principles should be considered.

·        Names should be consistent with products and services offered;

·        Names that have been used in the market for a long time may best be left alone, unless the enterprise rebrands the parent name. In this case, ancillaries should follow a similar change so that it can still be associated with the parent name;

·        Unless the ancillary is being unbundled from the rest of the enterprise, name changes may be inappropriate.

A well-known brand name has renamed one of its ancillaries no fewer than five times in the last eight years. The products and services of that ancillary have remained more or less the same for the past eight years. In addition, each time a restructure, (three in eight years) took place, a name change of that ancillary was a guaranteed outcome. Last, each time such name change took place, it was associated with a promise that the ancillary will become more competitive and that it will create more market share. Each of the arguments sounds noble at face value. Yet, this famous brand’s ancillary found that its market share dropped from 35% to less than 16% over the last eight years.

Of course, the loss of market share is or grave concern for this brand and its ancillary. Many causes have been offered for the decline in market share. Millions have been spent on expensive consultants that write tomes about all they leant in business school. Worse, despite the advice of the army of consultants and all the other restructures and name changes, the market share remains terminal.

Did anyone consider the effect that name changes have in the mind of the market? Enterprises should realise that one of the most important attractors of market share could be found in a simple name.

This is the official blog of Skopus Business Consultants. Visit us at www.skopus.co.za

Promises Made Are Promises Kept!

A few days ago, I visited my favourite little Bistro. They are known for good cheesecake and a pleasant lunch menu. Because it was nearly lunchtime, I ordered the Prego that was on the special menu. What made this Prego special is that the menu announced that it is made with a filet steak instead of the usual tenderised steak or a thin slither of shoe sole that one often encounters at little Bistro’s that offer Prego’s on their menus. At fifty-five Rands, for the Prego, small salad and French fries included, the price sounded reasonable; especially when one considers that the Bistro uses filet steak and nothing else.

Great was the disappointment to discover that the “filet” being used was actually a reasonably cooked tenderised steak. In spite of feeling a bit betrayed, the meal was well presented and flavourful.

However, this is not a restaurant review. I relate this story to highlight a few classic traps that entrepreneurs can avoid if they are alert. In this case, the owner of the Bistro stepped into a long isle of nasty bear traps. In addition, the most unfortunate of this fact, is that the owner do not seem to realise the damage being done to her business.

First, the owner is a restaurateur but does not seem to know a lot about ingredients. Any beef or pork presented as a filet cannot be tongue-shaped when the meat is cut cross-grained. In such as case, filet would rather be medallion-shaped. Second, the owner of this little Bistro told me in a telephone conversation that I was not the first patron who complained about not being served a filet Prego but something else instead. Third, the owner was not on her premises when the incident occurred. She was elsewhere and entrusted the whole restaurant to an inexperienced manager. Fourth, the owner has been using the same butcher for almost five years. This butcher has been selling her tenderised steak at the price of filet for that whole time.

Clearly, there are a few lessons that entrepreneurs can take out of this tale:

·        Know your product;

·        Select your suppliers carefully and make sure you pay what you asked for;

·        Do not hesitate to inspect goods delivered to you by your suppliers. Their dishonesty or incompetence can ruin your reputation;

·        Make sure that you actually sell to your clients what you offered to them. If a filet Prego is on the menu, then the client expects a filet Prego and nothing else;

·        Be at your premises as often and as much as you can. If you need to appoint a manager to take care of your business, make sure that manager is well trained and able to handle dishonest suppliers and irritated clients.

No entrepreneur can afford that your own incompetence ruins your business. It is even more unforgivable if clients complain repeatedly about the same thing and you do not replace that supplier. It is not worth it to let your business suffer to consequences of a dishonest supplier. No matter the level of the good relationship you had with that supplier. Once trust is broken, it is best to walk away in the interest of your own reputation.

This is the official blog of Skopus Business Consultants. Visit us at www.skopus.co.za

Tell It All By Being Different

In the previous edition of our “Tell It!” series, we indicated that the tongue is the most powerful marketing and promotions instrument for the entrepreneur.  We also said that one of the ways to promote your business is to follow up on remarks made to you by people during social events.  Responding to prompts received during social events may contain useful leads.  These are, however not the only source to find opportunities for promoting your business.

In subsequent series, we will discuss basic methods that the entrepreneur can use to promote and advertise their business.  Readers should not view these methods should not be viewed as the only ways to promote their businesses.

Management scientists, business strategists and marketing experts all agree that efficient marketing relies on a differentiation statement or unique positioning.  What does this mean in ordinary language?

Differentiation means that a business is better at some things than others are.  Think, for example of two restaurants next to one another.  Let us assume that both are French Bistros.  Let us also assume that both serve the same menus.  Visiting Bistro 1, the patron notices that an order arrives within twenty minutes after being placed.  The patron also notices that Bistro 2 ensures that an order arrives within twenty minutes.  So far, both restaurants are the same.

Let us now assume that the ingredients used in Bistro 1 are about three days old and that Bistro 2 uses ingredients that came in this morning.  In addition, let us assume that Bistro 1 buys vegetables from the market and Bistro 2 grows its own vegetables in a small organic garden.

Which Bistro differentiated it in the eyes of the patron?  Clearly, Bistro 2 has the so-called edge over Bistro 1.

Taking the example further, let us look at the wait staff at both Bistros.  The watrons in Bistro 1 are all well groomed and friendly.  The watrons in Bistro 2 are a bit dishevelled and passive aggressive.  Does Bistro 2 still have an edge over its competitor?  In the view of Skopus Business Consultants, we would not visit anyone of these Bistros.  We may want to consider a place where orders arrive on time, the food is well presented, the chef uses the freshest ingredients possible in a squeaky-clean kitchen, AND the wait staff is friendly and clearly has a passion for what they do.

Differentiation or unique positioning, in other words, is all about how a business can stand out far above its competitors.  And the funny things is that differentiation sometimes means more common sense than spending lots of money on décor, advertising or the clichéd “location, location, location”.  Location is important and we will talk about that later.

However, in our view, differentiation has a slight edge over location.

This is the official blog of Skopus Business Consultants.  Visit us at www.skopus.co.za

Tell It!

One of the main issues that a new enterprise faces is how to attract clients.  There are many books that one can read about the issue.  Despite what all the gurus say, there is one and only one resource at the entrepreneur’s disposal that will make a world of a difference to any business – whether it is a start-up or a business that has been running for years.  The remarkable thing is that this resource is free.  It costs the entrepreneur not a single penny to use this resource.

What can this magic formula be?  If it is free, then it cannot have anything to do with money.  In addition, how can something that is free, be trusted?  Free is the one word in any business owner’s mind that raises suspicion.  If something is indeed very good, why will the person that has a wonderful solution not add monetary value to it?

A wise businessman gave me a remarkable answer when I asked him what he would regard as the best method to market and promote Skopus Business Consultants.  This man was a retired marketing director at a very large international company.  A few years ago, he decided to leave the corporate world and the start a very successful distribution business.  Let’s call this man “Harold”.

After I asked Harold about the best marketing method, he was quiet for a while.  Then he made on and only one gesture.  He stuck his tongue out and put his finger on his tongue.  “Use this”, Harold said and started to talk about something else.

For a small business, the tongue is indeed a very powerful tool.  It is the quickest and most cost efficient way to promote one’s business.  It may not be as glamorous as full-colour brochures.  It is certainly not as attractive as a clever radio advertisement or a 30-second splash on television.  However, it can be very effective.

Talking someone else about out businesses, carries more power than we can ever imagine.  Telling our stories – how we started and what drives us to believe in our businesses – is a personal endorsement.  It is spoken with enthusiasm and with sincerity.  It compels us to BELIEVE in the success of our business.

Telling someone about our business does not mean it is the only thing we can talk about.  One has to be patient to tell about one’s business.  One has to be aware of situations around you.  One has to listen to what others have to say and one has to be attuned to possible needs expressed by the other speaking.

Of course, timing is everything.  When someone expresses a need at a cocktail party, it may not be appropriate to hog the conversation and tell about your business.  It may be more appropriate to say something such as “you know, I am very aware of the issue you just described.  Maybe you and I can talk about a possible solution at another time?”

If the person agrees, the follow up on the conversation and tell how your business may contribute to meet one or more needs that you were mentioned in passing to you.  Who knows what sales opportunity may arise?

The tongue is indeed a powerful and cost effective marketing tool.

This is the official blog of Skopus Business Consultants.  Visit us at www.skopus.co.za

The Journey Started!

Here we are.  New to the blogging community.  I must say, that it feels quite intimidating to create one's first blog.  It is a feeling similar to the day that we decided to start Skopus Business Consultants.  I am sure you can relate to that feeling.  You know that starting a new business makes sense.  After all, entrepreneurship is the new economy of the world.  And, even though you know that it is the right thing to do, you cannot help to feel apprehensive.  What if it does not work?  What if it is a failure?

All entrepreneurs are confronted with this dilemma.  In fact, I am sure that many good business ideas never got implemented because of a fear that the idea will fail.  For an entrepreneur, failure is always a threat.  After all, we do not have the same deep pockets as big corporates have.  We cannot afford to spend money on a venture that could fail.  If we loose a thousand monetary units, it could mean disaster for us.

If, however, we keep on procrastinating because we are afraid to start a venture, there would be no entrepreneurs at all!  Wouldn't life be boring if there are no entrepreneurs?

Entrepreneurship can be the most rewarding career in the world.  That is what Skopus Business Consultants is all about.  We teach entrepreneurs how to make a career out of their initial business idea.  We teach entrepreneurs to become resilient because entrepreneurship is not for sissies.

To use a very old cliche: "Watch this space for details!"

This is the official blog of Skopus Business Consultants.  Visit us at www.skopus.co.za