Latest News from the SBA Network

The Rules of Attraction

2008-12-15T18:25:00.000-08:00

As you can see, we've undergone some big changes here at the SBA Network, and have updated our websites (as you can probably tell). Our Executive Director, Mark Deo, also has some exciting news. His book The Rules of Attraction is being published by Morgan James Publishing. That's the company behind the Guerrilla Marketing series of books by Jay Conrad Levinson. To read more about this book and find out about how you can get a pre-release copy, head on over to: http://www.markdeo.com/2008/12/rules-of-attraction.asp

When great prices and great service meet

2008-11-24T13:49:00.000-08:00

With all the problems facing the transportation industry, most airlines are struggling to get passengers in seats. Some reasons are out of their control, but two airlines continually show that passengers will fly, and will choose a brand they like when given the choice. Jet Blue and Southwest have consistently attracted a loyal following of passengers, not just because they tend to be less expensive than major airlines (look at the struggles of Ted and ATA to see that price isn't everything when it comes to air travel.) Southwest and Jet Blue have service that is considered head and shoulders above the competition, and that makes the difference. They both have had major PR problems in the past year, yet they have engendered such good will with passengers that they have flown through these rocky times with little turbulence. To see a detailed discussion on why Jet Blue and Southwest are doing so well, see this article.

Causing Your Own Economic Crisis

2008-09-12T13:47:00.000-07:00

As the media touts the failing economy more and more vociferously, business owners seem to be pulling in their horns more and more. This means lay-offs, staff cuts and belt-tightening. That translates into owners and managers getting more involved in the day-to-day operations. Often times the result of this is that leaders take their eye off the big picture in favor of micro-managing the details. My conclusion is that the results of this action can be much more devastating than any so-called economic slow-down. We spend end up spending so much time working IN our business that we fail to work ON the business and cause our own personal economic crisis. Peter Drucker said that on the average one hour spent planning is worth 5 hours of execution. Are you spending enough time planning? Do you need to take a step back and look at the big picture and identify some contingencies? Read my recent article on No Time to Plan.

Globality

2008-06-21T06:01:00.000-07:00

I want to make everyone aware of an upcoming radio show with one of the most interesting business authors I have spoken with in a while. His name is James Hemerling and his book is called GLOBALITY: Competing with Everyone from Everywhere for Everything. Hemerling states that the old global business model (centralized, top-down, process-driven, with influence running from West to East) will recede, perhaps vanish. It is inadequate for a world in which every global company will be forced to compete: in every market, with everyone, from everywhere, all the time, for resources and market share. Unlike developed-market leaders, emerging-market challengers have evolved new management and governance structures that are ideally suited to this new competitive landscape. And it has enabled them to undercut, outthink, outwork, out-innovate, and generally outfox some of the biggest, most powerful names in global industry. What are these upstart challengers doing? And how are they winning?

Imagine companies that:
-Innovate at the rate of one new product development every 12 hours.
-Give up the notion of "headquarters" in a drive toward global expansion.
-Do away with titles and committees in an effort to improve staff development.
-Expand into 50 countries by satisfying global demand that no one else could see - at the lowest, cheapest end of the market.
-Hire thousands of people to staff assembly lines, instead of automating, to be more efficient, flexible, and profitable.
-Achieve such high efficiency that they can give away 60% of their services and still make a profit.
-Retrain workers by the tens of thousands to build a world-class capability, in less than a decade.

Listen to my interview with Hemerling at 4pm Pacific on July 11, 2008.

The Media is WRONG again, as usual!

2008-04-30T09:31:00.000-07:00

Have you seen the news? It must be KILLING the media-moguls to be reporting something positive. I'll bet they're getting physically ill just hearing about it themselves. Instead of seeing our first quarter of negative growth which would be sign of an impending recession, what do we see? POSITIVE GROWTH!! That's right, the Commerce Department today (Wednesday April 30, 2008) reported that gross domestic product or GDP expanded at a 0.6 percent annual rate in the first quarter, matching the fourth quarter's advance and handily topping a forecast for 0.2 percent growth in an advance poll of economists by Reuters. Not only that but personal consumption expenditures rose at a 2.2 percent rate after increasing 2.5 percent in the fourth quarter. This indicates that people are still buying stuff and are confident about the economy. Awe too bad predictors of doom, the economy isn't collapsing. My plea to entrepreneurs, who literally DRIVE this economy - STOP watching the news, STOP reading the paper, STOP exposing yourself to all the negative propaganda. START educating yourself, START believing in a promising outcome, and CONTINUE taking constructive action. This will have a positive impact on your personal economy and the entire economic structure.

Fuel for the New Economy

2008-04-19T16:44:00.001-07:00

I remember my 1966 Mustang. I sold it for $600 in 1976 before going to grad school and I'm still kicking myself over that! Everyone loved Ford in those days. But it's not easy to believe in Ford these days. The auto giant has lost over $15 billion, closed factories, shed tens of thousands of jobs, sold-off Jaguar, Land Rover and given-up the No. 2 position in sales to Toyota!

Their new Chief Marketing Officer, James Farley, formerly with Toyota was rehearsing for his speech to dealers, stockholders and company leaders. As the lights dimmed, Mr. Farley didn't calmly announce his future plans or quote statistics. Instead, he spoke from the heart, revealing a depth of passion for Ford that turned the room dead silent. He became swept up in the emotional power of the moment. "I believe, in many ways, the future of Ford is the future of our country," he said. "The work here is simply more important than the work I was doing at Toyota." When he finished, the dealers rose for a standing ovation that left Mr. Farley momentarily stunned. After the applause died down, he savored the reaction. They were waiting for someone to believe in.

Computers, automation and mobile connectedness has had a strange impact on people today. It has caused a desensitization of emotional response. We want to quantify and analyze everything. It is draining the passion and heart from all that we do. I would like to encourage business leaders today to let their true emotions show. Cry real tears, quake with true laughter and shake with anger if you must. Don't downplay the power of REAL EMOTION. Your team is depending on your genuine emotional display to motivate them. It is the fuel for their continued belief and a precursor to talking action!

Turning the Economy Around

2008-04-11T08:55:00.000-07:00

This is an interesting time. The recent layoff of 80,000 American workers has resulted in all of the financial gurus spouting their drivel about the global economic crisis we are facing. I have even heard some say we are entering another depression. Just a few days ago I appeared on FOX TV and discussed this with business expert Neil Cavuto. He asked me how I thought this was affecting small business owners and what they could do about it. My comments were that maybe we should put some of these gurus on the firing line of small businesses and see how they do. Their demise would be quick and final. Because as I told Mr. Cavuto, the most important asset that entrepreneurs have today is their attitude. Without a positive attitude we are doomed regardless of how well or how poorly the economy is doing. Many of us perhaps have heard the Serenity Prayer - "We must accept the things we cannot change, have the courage to change the things we can, and wisdom to know the difference." Surely we cannot individually change the economy but collectively it is certainly possible. We can do this by focusing on the critical business issues at hand like, delivering a higher level of customer satisfaction, creative product development and line extensions, smart financial management, getting longer terms on payables, building customer loyalty programs and penetrating new markets. We do have the ability to turn this economy around but we must first look in the mirror and begin the change within. Do you have the courage to take that challenge? I sure hope so. All of our jobs might depend on it.

TSA, Friend or Foe?

2008-03-02T15:11:00.000-08:00

I have nothing but respect for the TSA. That's right, while everyone else would like to wring their necks, I truely respect the position these poor agents are in. It's no win! If they uphold the stupid policies thay are bound to, they are hated and reviled by most travelers. On the other hand if they become lax or let travelers slide, their job is at risk and they are threatening national security. That being said I finally was able to get several TSA agents to agree that thier policies were idiotic. As you may be aware travelers can only carry with them small bottles of liquid in containers less than 3.5ozs. Unfortunately this rule slipped by us and we actually tried to take a container of liquid through security which was apparently 6.25ozs. We were stopped and told this is not allowed. So we took our carry on out of the security area and tranfered the liquid into ANOTHER caontainer so that we now had TWO 3.5oz containers of liquid. This seemed to be OK with TSA and proceeded onto the flight. On the way out of security, the agent stopped me and appologized for the "stupid rule."

Do you have any stupid rules in your company that your employees may be appologizing for? If so, admit it now and get it changed before ot impacts your brand, customer perception and employee loyalty!

Filling Big Shoes

2008-02-26T07:52:00.000-08:00

Last week, while on vacation I received the very tragic and shocking news of the death of Tom Kiblen, Sponsor for Dale Carnegie here in Southern California. Tom was just 52 years old and in far better health than most 40 year-olds so that fact the he could just expire after a tennis game was a shocking reminder of the tenuous grip that we all have on life. He was large in stature (over 6'2") but his heart was bigger. It will take quite a bit to fill those shoes. But most of all Tom was a mentor to me and a host of others. He once told me the job of a leader is to place the needs of those who look-up to us above the needs of ourselves. Tom certainly did this. He led by example and he was the first to demonstrate what could be done if we would just make a commitment and follow-through. As we walk on without Tom we sense that we have lost a good man; we say farewell just a little too soon. Our sentiments and loving good-byes assist us in accepting the truth that death is oh so real! We are somewhat shaken because only yesterday we were enjoying pleasant conversation together. But let it be the time that we say to ourselves, "We need to walk in bigger shoes and lead and mentor those who are depending on us."

WGA strike hurts small businesses

2007-11-14T16:07:00.000-08:00

Mark Deo has been called in as an expert to comment on the impact of the WGA strike on small businesses by numerous media outlets. Read Mark's comments on:
Entrepeneur.com
Business Week
Los Angeles Times
Hollywood Reporter

And watch Mark on the Fox Business Network below:

Little Guys Take the Biggest Hit From Writers’ Strike

2007-11-06T10:47:00.000-08:00

While writers are on strike and studios are shutting down production, who will most be affected? Small business. Like most industries, entertainment relies heavily on small businesses for many of the elements required to produce films and television shows.

According to the Los Angeles County Economic Development Corp. (LACEDC), on a "mid-budget" film ($17 million), 304 direct and indirect jobs are created and $1.2 million state sales and income taxes are generated. For a "large budget" film ($70 million), 928 direct and indirect jobs are created, while $10.6 million in state taxes are generated.

The bulk of these jobs are independent contractors and employees of small businesses. There are a myriad of companies that cater “on-set,” rent out lighting and camera equipment, provide locations for shoots, and perform virtually every function a production needs. Some will survive the strike but others will not.

Whether you are in entertainment or any other industry here's how you can practice attraction in order to thrive in a difficult market:

Connect with Super-users - Think non-traditional sales and marketing. Most broad advertising doesn’t work and traditional selling pushes more people away than it attracts. Identify a highly targeted audience and use the Internet, content malleability, affiliate and alliance relationships to dominate it.
Destroy and Rebuild -Use this targeted audience to help define the re-engineering of your products and services. Introduce innovation in everything you do. This is a good time to experiment with new approaches. Focus on getting the best people and creating the best product.
Create Standards and Systems – Developing systems allows you to maintain tight control of every area of your business while you are re-engineering. For example, establish a system for tracking and forecasting cash. This metric is more important than your profit and loss statement. Many companies can operate at a loss for years if they're able to manage their cash position. Know your projected flow at least 3 months from now. If you have a solid grasp on your income and expenses, you have a much higher chance of survival!

Market Sexmentation

2007-10-23T12:47:00.000-07:00

Have you seen the recent Carl's Junior ad featuring the schoolteacher who does a dirty dance for the class?

I guarantee she would never pass for MY homeroom teacher. Apparently this is the burger chain's latest promotion for their new Patty Melt (a patty with two flat buns) featuring the rap song I Like Flat Buns. This isn't the first racy exposure from Carl's. Remember Paris Hilton? If getting attention is the goal of this campaign, I'd have to give them a passing grade. The Tennessee Education Association demanded that they pull the ads and they have raised the ire of many in the advertising community.

Let's be honest, alienating the people outside of your target audience is a byproduct of controversial ads Often times campaigns such as these are aimed at highly profitable market segments such as teens. We may not realize it but teens spent $139 billion on consumer products just last year. So in essence this is just an ad campaign that is highly targeted to a very affluent, albeit young, audience. Carl's is just practicing well crafted market segmentation. Or is that market sexmentation?

Wikipedia defines "market segmentation" as the process in marketing of dividing a market into distinct subsets (segments) that behave in the same way or have similar needs. Because each segment is fairly homogeneous in their needs and attitudes, they are likely to respond similarly to a given marketing strategy. That is, they are likely to have similar feelings and ideas about a marketing mix comprised of a given product or service, sold at a given price, distributed in a certain way and promoted in a certain way.

Oh yes, these teens have similar feelings alright!

So what do you think? Did Carl's go too far with this ad? Should teachers be offended? Or is it just a funny commercial?

Take a look at the video here and give us your comments.

Supply Chain Management: We better HOP to it!

2007-10-19T09:13:00.000-07:00

We may be paying 30 to 50 cents more per six pack and several microbrewers will not survive the year due to the recent shortage of hops. Bad weather and poor planning left growers short on supply ratcheting-up the price of the little flowers that make beer taste good. All this goes to show that even small business players need to be concerned about supply chain management. Are you in touch with your suppliers issues? What contingencies do you have in place to ensure that you have the raw materials you need to ensure your market success? If not, you better hop to it!

Bernanke IS a Drag!

2007-10-13T08:20:00.000-07:00

Federal Reserve chairman Ben Bernanke warned this week that the slump in the US housing market will prove to be a "significant drag" on economic growth. If that news isn't bad enough for you he followed-up with his brilliant observation that that economic confidence is still fragile. Of course it is Ben and we're all counting on YOU to give us some confidence. Cutting interest rates is a symptomatic cure. It's hard enough for small business operators to succeed in a highly competitive arena. Confidence is our most valuable asset. Isn't it about time that our economic leaders gave us some tools for growth rather than predictions of gloom and doom. Quit being such a DRAG Ben.

Virtual Workforce

2007-10-08T12:23:00.001-07:00

Mere virtual assistance is passé. Small business operators must commit to a future virtual workforce. Better get on-board now!
Why engage in a virtual workforce?
1. Avoid intrinsic employee costs such as workers comp, insurance and benefits.
2. Reduce compliance and entitlement issues
3. Eliminate time wasters associated with the traditional office social structure
4. Enjoy more freedom, independence and a "blended (work/personal) lifestyle"
SBA Network does over $1 million in sales with only ONE employee, NO office space and 6 virtual members.

Special Guest on Small Business Radio this Friday

2007-09-13T13:49:00.000-07:00

We will be interviewing baseball legend Tony Gwynn on Small Business Radio this Friday, at 4 PM Pacific Time. We will be discussing his career, adversity, and ways to overcome obstacles. We will also be discussing creative ways to use life insurance to protect your company from losses that could occur if key employees were to have a tragic accident. To tune in, simply go to our website at www.markdeo.com at 4 PM Pacific Time this Friday. We will also be taking calls from our listeners to help with any problems you may be experiencing in your business. Perhaps we can help be the objective outside view that will help uncover the solution to your challenges. Tune in and give us a call to find out!

Capacity For Change

2007-09-05T11:59:00.000-07:00

My hand firmly grasping the remote, I was "couch surfing" the other day. You know how it is - over 2000 channels and still... there's nothing worth watching.

Suddenly I came across the Crocodile Hunter battling some prehistoric-like creature in the Aussie brush. I thought, here's my old friend Steve Irwin, animal enthusiast, environmentalist and master marketer, dead and gone, yet his show is still in reruns.

But wait... this wasn't a re-run! This was new. It was being narrated by Bindi, Steve and Terri's little daughter. She was articulate, interesting, and REAL. This was just another extension of the fabulous enterprise that Steve had built.

When I was last in Australia, I was told by many that they believed that Steve had done more for the country economically than the last two Prime Ministers had. Now his daughter is carrying on this enthusiasm. Not only does Bindi, all of nine years old this year, host the Crocodile Hunter but she has her own TV series on Discovery for Kids dubbed "Jungle Girl," she has released her first CD of her music and she even has a line of clothes for kids called "Bindi Wear!"

Crikey! What a capacity for change Steve has. Even in death, his brand is unstoppable.

We're undergoing some changes here at the SBA Network as well. As many know I have had a radio show on the CBS Radio Network for over 10 years that I have recently abandoned in favor of a brash new change. Many have told me that I'm nuts! Perhaps they are correct. Nevertheless, our NEW show, Small Business Radio, debuts this Friday on one of the largest Internet radio networks in the world. The show airs LIVE every Friday at 4pm Pacific time. We will take your calls and every week we will feature a business expert. Click on the player above to access the show LIVE or hear archives of past shows.

-Mark Deo

No Soup For You

2007-08-10T14:40:00.000-07:00

Remember the classic Seinfeld episode with the "Soup Nazi"? He ran a soup shop that sold amazing soups, and if you didn't order exactly the way he wanted, he would simply say, "No soup for you," and you were banned from his shop. That's not exactly the type of personalized service we usually recommend.

We write often about personalizing your business. It's right in the Rules of Attraction, "Who you are is more important than what you do." With today's fast-paced business landscape, a personal connection is critical in appealing to potential customers. You can often dramatically increase your profitability by adding a personal touch. Customers and clients gladly pay more for personalized service, even if you're in a commodity business...most of the time.

Want to find out about the exception to the rule? Click here to read an article all about when de-personalizing your business the the best option.

Listen Louder

2007-06-09T15:48:00.000-07:00

Listening is one of the most deceiving skills in business, or in life for that matter. Ask anyone how effective they are at “listening” and most will say they are pretty good. Yet in reality many “miscommunications” and unneeded conflict occurs just because we fail to practice good listening skills. This is rather evident in sales and marketing interactions. Salespeople are taught that the client should do most of the talking and they should “listen.” Yet if we were to observe salespeople in action with their clients, as I have, we would see that the very opposite is true. They carry-on about the benefits of their product, service or company and often burn themselves out on their own “pitch.”

I am not without guilt. I have stopped myself too many times in the middle of a great rant. Being a radio show host for over a decade as well as an instructor and public speaker it’s no wonder that I could ever shut-up! Nevertheless I have found that the “info-download” method of selling and marketing is less effective than ever before.

This is also true in marketing. Often times web sites, brochures, and even mailers and promotional material is focused on “selling.” Think of ways that you can “engage” the user. Make your marketing material interactive. While we can’t practice the same types of listening techniques in second party marketing material, we can “listen” by making our material highly interactive. Ask for their response, advice, suggestions.

Listening is a skill that impacts every area of our life. I urge you to think of ways that you can “listen louder” to your clients, prospects and those within your sphere of influence. There is no better way to practice attraction than to master the art of listening.

C-Suite Online

2007-05-14T20:05:00.000-07:00

We've had requests to view the entire C-Suite briefing online, so here it is. You can watch video of Morrie Shechtman discussing accountability in the workplace and the 5 essential shifts taking place today. Mark Deo discusses viral marketing and how it can revolutionize your business. Just click on the videos below to watch.

Morrie Shechtman

Mark Deo

Rally Toward the Future

2007-05-14T07:46:00.000-07:00

Prior September 11 Rudy Giuliani had the lowest approval rate of any mayor ever to take residence at Gracie Mansion. His eye was off the New York ball since he was immersed in his run for the Senate, he was in the midst of an acrimonious divorce and his relationship with city officials was strained. Yet on 911 he managed to win back the support of the city with just 8 words. What did he say? How could just one sentence transform the attitudes of twelve million people? Not long after the second tower fell, Giuliani was asked what the final body count was. His response was astounding. Any politician might have said, "We do not have that information at this time," or "Our sources are still tabulating the results," or any number of other dispassionate replies. But what Giuliani said aligned him to the people, won back their trust and demonstrated his understanding and commitment. This is what he said: "I do not know what the final number will be, but I know it will be more than we can bear."

By uttering those words Giuliani demonstrated that he understood what every New Yorker was going through. At that moment the sentiment toward the mayor turned. At some level, maybe instinctual or visceral, Giuliani knew that his job was to connect with the emotions of the people and rally them toward a better future.

As Marcus Buckingham, author of Break All the Rules says, "Great managers discover what is unique about individuals and capitalize on it, great leaders discover what is universal and capitalize on that." No matter how impressive a leader’s experience and accomplishments if they lack empathy they will be unable to instigate change. A great leader must speak constantly of the future in a sincere and passionate way. They must paint vivid pictures of the future coming to pass. This is what will motivate the workforce. This is what will transform the drudgery of their workday into an extraordinary journey toward the achievement of worthwhile goals.

Viral Marketing

2007-04-22T18:00:00.000-07:00

Click on the image to view the video

What influences customers and prospects? Is it what a company says about their product or service through advertising, marketing and direct sales?

Or, is it what other people are saying about the company's product or service?

Surely the later. Then why do we spend so much time and money on traditional marketing, advertising and selling, and so very little on word of mouth marketing?

Marketing experts believe that the new customer, Generation Y - those born between 1979 and 1994 - shop by word of mouth. In the coming years, buzz marketing may that much more important.

Buzz works so well because talking is in o ur genes. As human beings, we need to talk. We talk to connect with people. Sharing information is essential to our make-up. We talk about the latest movie we saw, the car we test drove, the book we read and so on.

I did a presentation on this very topic at the C-Suite briefing we held a few weeks ago at the Queen Mary. To see a quick overview of the event, click on the image below. We will soon have this entire event available to view for FREE online, and will have DVDs available for purchase. Send me an e-mail at: mark@markdeo.com to let me know if you want to be informed when this is ready.

Changing Corporate Culture

2007-03-25T19:04:00.000-07:00

Here are a few questions that were posted to the Blog that have to do with corporate culture. I think they are timely enough to feature on this home page. The questions posed were:

1. Why is the corporate culture so important?

2. Can the culture be changed or does it simply evolve of its own volition?

While there are some slight differences in definitions of corporate culture, most experts agree that it is the shared “taken-for-granted” assumptions, beliefs, values, expectations and rules that members of a work team or organization hold. This is essentially the guiding light for team interaction, expectations and decision making. The culture is revealed by studying the relationships of the members.

Changing the corporate culture must emanate from the top. The leadership of an organization such as the CEO and the senior management team is the single most critical success factor in a culture change effort. Today corporate leaders have to invest significant amounts of time and energy into a culture change effort and they must personally live, and model the new cultural ethos. Members of the team CAN NOT change without the leadership first changing. Let me say that again… members of the team CAN NOT change without the leadership first changing. This is absolutely essential. In fact when leaders DO choose to “trade-up” their values and belief systems, change often magically occurs.

But in order for the cultural change to “take hold” within the organization, the members must be re-educated on what is import ant to the future of the company and how to make decisions that are consistent with that purpose. Therefore the change effort must be accompanied by clear vision, mission and value statements in providing direction and behavioral guidelines for the new culture. Again these must go beyond words cast into a plaque that is hung on a wall. It must be evidenced by daily actions which fall in line with the values espoused.

How NOT To Commit Marketing Suicide

2007-02-12T08:51:00.000-08:00

There are thousands of organizations on the verge of committing marketing suicide today. How? By continuing to pour dollars into traditional marketing campaigns like, direct mail, broadcast, print and Internet advertising. Ironically enough with all of the technologies and sophistication which are available to us, these strategies are less effective than ever before. In general they require ever more investment yet yeild less response as time goes on. So how can we attract customers in a more cost effective way? By using the oldest and most powerful form of promotion... viral attraction. By selecting a tightly-defined specialized audience we can create "sneezers" to spread the message in an honest and credible way.

What makes viral attraction so effective? Providing powerful tools for the sneezers to use in spreading the word. If this interests you, I would like to invite you to download my “FREE SNEAK PEEK.” This 7 minute video will give you a good idea of how other companies have assembled a contingent of "sneezers," created viral tools, implemented a viral attraction program in their industry.

In fact this is one of the topics I will be discussing at our March 15, C-Suite Briefing at the Queen Mary in Long Beach. While the cost of the seminar is $149, if you register now it is absolutely FREE! This includes lunch and a surprise gift for all attendees.

More Info on the March 15 Luncheon

Short Attention Span

2007-02-01T14:55:00.000-08:00

In the past magazines contained a number of articles, most of which would consume 3, 4 or more pages of text and images. But today magazines are featuring more and more of their content in ONE page or even a HALF page format. These mini-articles typically communicate a significant amount of information centered around a common theme. See the article which was taken from the recent edition of National Geographic Magazine. It focuses on how the world has changed over the last one hundred years. By taking just five minutes to scan this one page article the reader can have a clear understanding of how the world has changed. This is in stark contrast to the former method of communicating the very same facts in several pages of text which would require the reader to invest 20 or 30 minutes of their time. Imagine if we could do the same thing in our marketing, ads, collateral, web sites and so on. Do you think more people would read what we have to say? Do you think they may be more interested in what we have to offer? Of course they would. Let's face it your customers have the same short attention span that we all have.