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Your EnterQuest Bulletin - 22 June 2004

Thought for the week: "I have not failed. I've just found 10,000 ways that won't work." Thomas Edison

In this week's issue:

  • what you should really learn from Gordon Ramsay
  • the value of customer testimonials
  • how the CAP Code applies to you
  • the difference between productivity and profitability

What you should really learn from Gordon Ramsay

There's been a lot in the media recently, following the success of Hell's Kitchen, about the effectiveness of Gordon Ramsay as a businessman and motivator of people.

Most of the press seem to be singing his praises. Which is fair enough, as he is obviously a very successful entrepreneur with the type of vision and single-minded obsession with quality that has driven him, and those following in his wake, to the level of achievement he has reached. And these are entrepreneurial virtues that we should all admire.

But as a role model for how to lead and motivate people? Perhaps not so clear-cut.

Let's get something perfectly clear. Despite the label "reality TV show", what you were watching was not the real world at all. It was a show, designed to entertain its viewers, and very cleverly done at that.

If you are about to launch your new enterprise, or are pushing for that extra level of growth or effort from your dedicated band of paid helpers, then shouting, screaming and swearing at them will almost certainly end up with one result.

You appearing in front of an employment tribunal.

If you behave like that with your staff, you'll clear out the good as well as the bad and the indifferent, and it'll only be a matter of time before someone sues you for stress, bullying or generally being an unreasonable and most likely an unlawful employer.

Treat them fairly and with respect and you'll get the right sort of performance in return.

As far as being obsessed with standards is concerned, well, we can probably learn a hell of a lot from our celebrity chef.

Marketing tip

Get your customers to do your marketing

In today's information-packed, advertising-led society, you can't blame consumers for being a bit jaded with the never-ending stream of TV ads, web pop-ups, mailshots and marketing calls they receive on a daily basis. You can't even watch a football match without being bombarded with advertising - whether it's on the players' shirts or plastered on billboards around the pitch. The sheer volume of advertising around these days makes people naturally sceptical. After all, why should they believe you over the hundreds of other businesses demanding five minutes of their time?

That's why customer testimonials are so effective. They overcome your prospects' natural scepticism and disbelief for one key reason.

Someone other than you is singing your praises.

You can say good things about your products or services till you're blue in the face - but you might never win over a naturally suspicious prospect who's had enough of meaningless ads. But if you can get someone else, someone totally unconnected with your business to recommend it, with no obvious gain to themselves by doing so, then your credibility will skyrocket.

So, Mrs G from Tunbridge Wells has just bought your product, and has rung you up to tell you how much she's enjoying it. You're halfway there - all you have to do now is thank her again for her custom, and for the time she's taken to make the call, and then ask her if she'd be happy for you to use her comments, together with her name, in your marketing material. Chances are, if she's taken the trouble to call you up, she's so over the moon with her new purchase that she'll be more than willing to help you out.

A few choice words is all you need from her, to describe how your product solved a problem she was having, how your excellent customer service made doing business with you a pleasure, or how an aspect of your USP (such as free same-day delivery) made the purchase extra convenient. If possible, ask Mrs G if she's happy for you to use a photo of her using your product, as this adds even more to your credibility.

An additional benefit of testimonials is that the customers who give them are likely to stay loyal to your business. After all, they've put their names and reputations on the line for you. Make sure you increase their goodwill by following up testimonials with a personalised letter of thanks.

Next week, we'll give you some great ideas for where you can use customer testimonials in your marketing activities.

For hundreds more tips and tactics for boosting your sales using proven marketing strategies that work no matter what product or service you sell, check out our UK Small Business Marketing Bible

Legal tip

Advertising and the CAP Code

Getting your promotion right is mostly a question of pitching a persuasive message to your customers. But it's also worth bearing in mind the legal aspects of advertising when you're preparing your campaign, and that means knowing a little about the CAP Code.

The Committee of Advertising Practice's (CAP) Code of Advertising, Sales Promotion and Direct Marketing is run by the Advertising Standards Authority. And as they tell us on the TV, advertising has to be Legal, Decent, Honest and Truthful.

This means a number of things: it should abide by the law, it should avoid including offensive material, it shouldn't exploit the consumer's inexperience or lack of knowledge, and it shouldn't be misleading.

This gives you a certain amount of freedom. You can say your product is the best in the world as long as you make it clear that this is your opinion and nothing more. You can point out that Mrs G from Tunbridge Wells wrote to let you know your business changed her life, as long as Mrs G really did send you a testimonial. You can even say that your goods are cheaper, go faster, and use less glue than your nearest competitors', as long as you can prove it's true.

However, there are certain rules you need to stick to closely. Your prices must be clear, and must include VAT. If you're promoting a limited amount of stock, you should say so, and you need to be clear about the nature of any guarantees you offer. You should also avoid causing confusion between your own products and your competitors', so marketing your Krunch-e-o breakfast cereal with a big red letter 'K' is probably not a good idea.

For the lowdown on the Code of Advertising, a visit to the CAP website at http://www.cap.org.uk should answer all your questions.

For hundreds more scenarios, frequently asked questions and tips on complying with and understanding the laws that apply to small businesses, check out our new service, the Red Tape BUSTER

IT tip

Going back to basics

Once in a while, amid the recurring panics surrounding computer security, it's worth going back to the beginning and thinking about the basic things you can do to filter out 90% of the risk to your computer.

As you'll know if you've been paying attention over the past few weeks, worms and spyware are the threat of the moment. Microsoft has bundled all its security information and updates into a single section of its site, which is at http://www.microsoft.com/protect, and you can set your computer to check for upgrades automatically, or ask them to send you a CD. It's no guarantee, but keeping your software regularly updated should get rid of the latest Sasser or Melissa.

Spyware tends to get onto your computer when you install shareware or freeware programmes but it can also be picked up quite easily from websites. Lavasoft (http://www.lavasoft.de) have a nice little programme called Ad-Aware which will get rid of a lot of it, and Spybot Search and Destroy http://www.safer-networking.org/index.php?page=spybotsd should take care of most of the rest.

You can prevent infection by most viruses if you follow basic precautions. When you get an attachment by e-mail, ask yourself if you were expecting something from the person who sent it to you, and before you open it, try to work out if it's a potentially dangerous file (something ending with .exe or .vbs, for example).

For many businesses, the computer is a vital (and expensive) investment, and business would stop without it. Panic and paranoia won't help, but the willingness to stop and think certainly will. A healthy suspicion of everything you put on your computer could save you the endless bother of putting things right later.

New business idea

Each week we provide you with summaries of some popular or emerging business ideas in the UK.

Here is this week's idea:

Just one word

Regularly improving your vocabulary is not just about learning a new word and its meaning. It will improve your general knowledge and make you feel and act smarter in all sorts of personal and business situations.

Do you know the difference between 'productivity' and 'profitability'?

Which word means a business's ability to generate revenues in excess of the costs of producing those revenues, and which means the rate of output per unit of input?

Answer at the end of Bulletin.

Did you know?

Have you had your chips yet?

Any business that allows customers to pay for their goods using a debit/credit card swipe machine needs to be aware that now is the time to upgrade to the new chip and PIN secure payment equipment being rolled out across the UK. Getting accredited by your bank as a chip and PIN-enabled retailer can take up to two months, and the banks are warning that they might not be able to cope with a rush to upgrade at the end of the year. In less than six months' time, from 1 January 2005, retailers that haven't upgraded their point of sale equipment could be held liable for fraud committed on their premises, so it's really not worth leaving your upgrade to the last minute.

The chip and PIN programme has published a guide advising retailers how to prepare for the new system. Download it here:
http://www.chipandpin.co.uk/info/reference.html

Net names sales boom

More Internet domain names were sold during the first quarter of this year than at the height of the dot.com boom, according to domain name registrar Verisign. Old favourite .com and country codes (such as .uk) are still the most popular suffixes, accounting for over 80% of registrations. Meanwhile, newer suffixes such as .info and .biz only share 4% of registrations between them. These new suffixes might represent the best choice if you're considering setting up a website and have your heart set on a particular domain name, as your first choice is less likely to have already been taken if it comes with a less popular suffix.

To download Verisign's full report, go to:
http://www.verisign.com/nds/naming/domainbrief/2004/report_200406.pdf

A new breed of worm?

A virus milestone was reached last week with the arrival of the first 'worm' directed at mobile phones. Anti-virus company Kaspersky discovered the worm, called Cabir, which only infects phones that run the Symbian operating system, are Bluetooth-enabled, and are manufactured by either Nokia, Siemens or Panasonic. Crucially, the virus can only infect your phone if you accept a call from an unknown source. Despite the fact that no infections have been reported at the time of writing, the arrival of Cabir might mark an unpleasant new chapter in computer virus attacks.

Meanwhile, a multilingual worm known as Zafi-B has been discovered. It spreads using e-mail and peer-to-peer file sharing networks, and uses languages including English, Hungarian, Italian and Spanish.

For guidance from Sophos on the Cabir virus, see:
http://www.sophos.com/virusinfo/articles/cabir.html

For more about Zafi-B, see:
http://www.sophos.com/virusinfo/analyses/w32zafib.html

Worth a visit

Warped approach to IT security

The Government has decided to roll out its Warning, Advice and Reporting Points (WARPs), currently being piloted in the London boroughs, across the rest of the UK. WARPs are basically trusted information exchanges, where details of new IT security threats, viruses, vulnerabilities and hoaxes can be passed on quickly between a network of users. A toolkit, including software donated by Microsoft, will also be freely available to businesses, organisations and communities wishing to set up their own WARPs.

Sample security policies, guidance on setting up WARPs, and general information are available at the following address:
http://www.warp.gov.uk

Get search happy

A recent survey revealed that British web users are more reliant on search engines than their European and American counterparts. UK users averaged around 41.8 queries per user during April, while surfers in France, Germany and the US only carried out around 31-35 queries each per month. Google came out as the most popular engine, with more than 93% of UK web users opting to conduct their searches there. Most people simply type their query into the box on Google's homepage, but there are loads of tricks you can try to get a more accurate result. If you have sites you search frequently, you can add custom searches to your Google deskbar menu. For example, if you trade on eBay, you can create a custom search whereby you type your code>puffin into your deskbar, and Google will go to eBay and ask about your latest auction for you.

For more of the same, check out:
http://toolbar.google.com/deskbar/help/cmds.html

Calling all crafty entrepreneurs

Based in a Grade II listed manor house in the heart of the Cotsworlds, the Stanton Guildhouse Trust is offering a range of residential or day-attendance courses this summer for aspiring entrepreneurs and hobbyists who want to know how to turn their passion into a successful small business. Topics covered include portrait painting, watercolours, creative writing, stone and woodcarving, stained glass design, pottery and patchwork quilting.

For full details, click on:
http://www.stantonguildhouse.org.uk

Worth a read

We've recommended the prequel to this book, Purple Cow, to you before for its inspirational guidance on how businesses can create, and successfully sell, unusual and remarkable products and services. This follow-up gives you a practical insight in how to think up new marketing ideas, and illustrates this with examples of well-known market-changing innovations and blockbusting promotional ideas.

Worth a read

Free Prize Inside: the Next Big Marketing Idea, by Seth Godin

 

Just one word answer

Productivity means the rate of output per unit of input. In practical terms, this can be measured as how much of a product a person can make in a unit of time.

To increase productivity means to produce more with less.

Profitability refers to a business's ability to generate revenues that exceed the costs of producing them.

The easiest way to increase profitability is to reduce your hidden costs.


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Good luck

The EnterQuest Team

This information is meant as a starting point only. Whilst all reasonable efforts have been made, the publisher makes no warranties that the information is accurate and up-to-date and will not be responsible for any errors or omissions in the information nor any consequences of any errors or omissions. Professional advice should be sought where appropriate.

 


© 2004 Cobweb Information Limited
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