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Small and Home Business
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Welcome to Econosystems'
Small and Home Business Market Monthly eNewsletter

Published by Anne Ramstetter Wenzel
http://www.econosystems.com

To subscribe, visit:
http://www.econosystems.com/newsletter.htm

July 31, 2003

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HELLO AND MARKET TIDBITS FROM ANNE
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Welcome to all our new and continuing subscribers:

I hope you are all enjoying a little bit of business, a little
bit of relaxation this summer. The weather has been
exceptionally nice here in the San Francisco Bay Area. After
a very busy spring, contract work has slowed a bit, so we've
settled into quite an enjoyable summer rhythm.

For the most part, the U.S. business to business market has
been stagnant over the past two years. According to the SBA's
"Small Business Economic Indicators 2002"
(http://www.sba.gov/advo/stats/), the number of 2002 new
employer firms (those that have employees on payroll)
launched in the United States was more than half million,
but the net new creation of businesses was negative.
There were 550,000 employer firms launched, but firm closures
increased to 584,500. Bankruptcies totaled 38,000, resulting
in negative net creation of approximately -72,500 employer
firms in 2002.

Negative net creation of employer firms has has occurred
in the U.S. every year since 1999: The net number of new
employer firms fell from -2,500 in 1999 to -62,600 in 2001.
Net creation of employer firms was last negative a decade ago,
due to the 1991 recession.

The number of self-employed persons (unincorporated, primary
occupation) in the U.S. has also fallen, from 10.5 million
in 1995 to 9.6 million in 2002 (Data exclude self-employed
persons who have incorporated. Self-employed owners of
incorporated businesses typically pay themselves wages or
salary, so that the business is counted as an employer).
During the same period (1995 through 2002), the number of
nonfarm sole proprietors increased from 16.4 million to 18.4
million, an average rate of growth of 1.6% per year.

The negative net creation of employer businesses, the decline
in the number of self employed and slow growth of the number
of sole proprietors all make for a sluggish business-to-
business marketplace. Despite the claim by the National
Bureau of Economic Research that the recession ended in
November 2001, stagnant growth in the number of U.S.
businesses has been a major contributor to what Martyn Lewis,
President and CEO of Market Partners in San Jose, Calif.,
calls a "selling crisis."

According to Lewis (www.market-partners.com), "Sales cycles
are often significantly longer than imagined, and still
getting longer." The number of leads needed for each new
order or sale is also much higher than businesses plan for.
To combat the growing length of time it takes to close a sale,
and the growing number of fruitless leads, Lewis outlines
"New Keys to Success" in his web seminar, "The Quest for
Customers:"

1. Develop a "Most Likely" profile to determine the kinds of
leads you need to generate to make real sales. Who is most
likely to buy from you, and where can you find them? What
are their needs, and can you fulfill them? Drop leads that
don't fit the "most likely" profile to minimize wasting your
time.

2. Understand your potential customers' situations. As
Peter Drucker says, "Seek to understand before being
understood." Listen, ask questions and show a sincere
interest in your customers' businesses and unique problems
they face before offering a solution to their problems.

3. Qualify your potential customers: Is this person or
company likely to buy, and can they even afford to buy? Is
there a compelling event or situation that will lead them to
buy your product or service at this time? If not, move on.
Spend your marketing time wisely rather than chasing down
every lead.

4. Develop a "Must Have Now" proposition: A positive
return on investment (ROI) is not enough! What is the most
important activity going on at your potential customers'
company? How do you propose to help them do what they're
already doing better, faster, cheaper?

5. Deliver credible value: Your offer must be packed with
value, quantifiable and believable. Your potential customer
must become excited about about doing business with you before
you can actually close the sale.

Really understanding the customer needs that your product
fulfills is critical for sales and marketing effectiveness.
In July's Market Brief "What are You Really Selling?", I
illustrate the importance of really understanding what it is
that you truly sell to your customers and potential customers.
You've got to be able to put into words what the benefits of
your products and services are before you can effectively
sell to potential clients.

In our Marketing from the Trenches column this month, Caren
Weinsten of Cmail, a Business Relationship Marketing Services
company, shares how she uses networking to generate almost
all her new sales. I have done business with Caren, not
only because her service is so unique, but because she is
so good about following up. Despite the fact that I was very
impressed with Caren's relationship marketing campaign idea,
I probably wouldn't have followed through on my interest if
Caren had left me to my own initiative. She followed up on
our conversation at a Chamber of Commerce meeting with a
phone call and a meeting in my office. After I saw her card
collection I was sold! Most important, Caren genuinely cares
about supporting businesses in the community, not only with
her services but also by generating appropriate sales leads
for other business owners.

I hope you enjoy this issue of Small and Home Business Market
Monthly. If you know other business owners or colleagues who
would enjoy reading this eNewsletter, please forward it to
them!

Wishing you business success,

Anne Ramstetter Wenzel
Econosystems
awenzel@Econosystems.com

---------------------------- Announcement ---------------------------

Small Business Forum: August 5 Workshop in Mountain View, CA

"Understanding Your Customer: The Key to Growing Your Business"

When you truly understand your customers, planning for business
success is easier. Using interactive exercises and a workbook,
we will cover:

* Understanding what you are really selling: What customer needs
or desires does your business fulfill?

* Discovering exactly who your choice customers are: What are
your market demographics, and where do your potential customers
"hang out?"

* Using your market information to create a powerful marketing
plan and effective advertising copy.

The workshop is presented by Anne Ramstetter Wenzel, market
research consultant and owner of Econosystems. Ms. Wenzel
specializes in helping business owners identify who is most
likely to buy their products or services and how to reach them.

Workshop Date: Tuesday, August 5, 9:00 to 10:30 AM

Location: Guild Hall Meeting Room, St. Timothy's Church
2094 Grant Road (at Cuesta), Mountain View, CA

Fee: $15.00; Breakfast refreshments will be served.

To Register: Call (408) 799-5027 or e-mail
Nancy@FieldsofEndeavor.com

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MARKET BRIEF
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What Are You Really Selling? Attract Customers by
Understanding Their True Needs & Desires

By Anne Ramstetter Wenzel

The key to attracting customers and increasing sales is to
understand exactly what you are selling. Knowing who your
choice customers are and where they hang out is not enough to
grow your business sales. When you provide a good or service
that solves your customers’ problems at a price they can
afford, sales will come more easily. Your potential
customers will buy from you based on their needs and the value
they place on having those needs fulfilled. You must truly
understand what exactly you provide, so that you can better
explain to potential customers how you can solve their most
pressing problems or make their lives healthier, happier or
more fulfilling. When customers truly understand what you can
do for them, they believe that their needs will be met by you
and make you the vendor of their choice.

As part of her “Think Benefits, Not Features” teleclass, Be
Yourself Marketing ™ coach Kendall SummerHawk provides a
list of “benefit words” (the teleclass is free and I highly
recommend it: see
http://www.kendallsummerhawk.com/teleclasses.html).
Examples of benefits words from Kendall’s list include:
improve, increase, reduce, eliminate, and create… Think
about it: What do you improve or increase for your customers?
Do you help them eliminate something undesirable or create
something pleasant? What is it that you really provide for
your customers?

When you provide a good or service that solves your customers’
problems, or makes their lives better, sales will come more
easily. If your product or service:

· saves time
· reduces stress
· increases safety or security
· increases business sales
· increases staff productivity
· cuts costs
· improves communications
· enhances feelings of luxury
· or increases health and vitality…

…you will more easily make steady sales.

It's crucial to develop a profile of the characteristics
of people or businesses most likely to buy from you, but you
can't truly reach your potential customers with that
information alone. You must also understand the problems
they have – problems that you can solve. For example,
suppose I were to launch a direct mail campaign that reached
affluent, educated, business consultants between the ages of
40 and 60 years of age who work solo (one of my customer
profiles). My brochure could let them know that Econosystems
offers information brokerage, economics research and market
research services at reasonable rates, and that I have 19 years
experience in the industry. I could put my full name, contact
information and an invitation to “Call for a free initial
consultation” on my direct mail literature – and it would most
likely end up in the circular file! Very few people wake up
in the morning and think “I’ve just got to hire an information
broker today!” or say, “Gosh, I haven’t been to an economist
in a while – I’d better give Ms. Wenzel a call!”

Sending potential clients a list of my services and
qualifications isn’t likely to inspire them to do business
with me. A better direct marketing idea: let them know that
as owner of Econosystems “I help busy professionals who work
solo meet multiple deadlines with less stress and more time
for themselves or their family. With 19 years research
experience, I deliver critical project information quickly,
and can provide additional research support, allowing
independent consultants to consistently generate higher
revenue without having to hire additional staff.” Not all
independent consultants would be intrigued by my message:
only busy consultants who would appreciate relief from the
stress of working alone will call (and pay my invoice with
a smile :-).

People part with their money to buy from you because of what
they expect your products or services to do for them, not
because of your products’ features, your professional
qualifications, or because you’re the low cost provider.

Take the time to list three or four ways you make your
customers’ lives better. Once you truly understand what you
are selling (most likely a more fulfilling, healthier or more
profitable life!), you can develop a more effective elevator
speech, brochure or web site copy. Communicate to potential
customers that your company can help solve their pressing
problems or fulfill their strong desires and your sales will
grow more easily.

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MARKETING FROM THE TRENCHES
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How I Use Networking to Increase My Business Sales

by Caren Weinstein

Cmail is a Business Relationship Marketing company,
specializing in helping businesses keep in touch with their
clients, prospects, patients, employees and other important
business partners through a program of customized greeting
cards and postcards. Because this business is not easily
identifiable through typical marketing channels (such as
advertising and other direct mail), I rely almost exclusively
on networking to grow my business.

Networking for me often provides the face-to-face opportunity
to describe Cmail's service offerings and present samples of
my work. Sample cards and postcards almost always results in
that "aha" response. The actual visualization of what Cmail
does makes a huge impact and generally leads to a conversation
about how the person with whom I am speaking would apply the
concept of sending greeting cards for their own particular
business. Around holiday times, I will carry unique holiday
cards to show off and generate interest.

I find that people are delighted to pass along names of their
friends and colleagues once they understand Cmail's business.
This networking opportunity is usually followed up initially
with a card referencing the person who introduced me. Once
again, the network works - simply by being introduced by
someone I met at a networking event a follow-up phone call
generally leads to a meeting.

Another important aspect of networking which helps everyone
is the concept of getting to know more about other people's
businesses. I have always been a good resource person, and
put this to work by sufficient understanding of other
businesses and gladly referring them as I circulate among
different groups.

And I always, always send a "thank you for the referral card"
to the person in my network, regardless of whether immediate
business comes from that referral! People appreciate the
"thank you's" - they are far too infrequent.

Caren Weinstein
Cmail
Business Relationship Marketing Services
650-323-3320

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FUN SPOTS
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INTERNET DEMOGRAPHICS AND TRENDS: Nua.com is the
authoritative online source. Nua is particularly well known
for its unique “How Many Online?” feature, which offers an
estimate of the global Internet user population, based on
extensive examination of surveys and reports from around the
world. See http://www.nua.com/surveys/

WEB SEMINAR ARCHIVE 2003: Placeware, the provider of web
conferencing solutions, has an archives page where you can
click and then view past web conferences. “Just because you
missed the live seminar, doesn't mean you've missed your
chance.” Recommended: “The Quest for Customers,” presented
by Martin Lewis, 2/28/2003:
http://main.placeware.com/demos/web_seminar_archive.cfm

----------------- Econosystems.com Web Site Update ------------------

"How to Avoid the 'Oops' of Giving Your Price Too Soon!"
Marketing Consultant Kendall SummerHawk shares her wisdom on
Econosystems Article page for the month of August: "I'm
willing to wager real money that you are asked 'How much do
you charge?' early in a selling conversation. The problem is,
if you answer it you are sunk and if you avoid it then any
trust you've established flies out the window." Kendall
suggest ways you can gently tell your "almost customer" that in
order to give an honest answer you first need more information.
Learn more at http://www.econosystems.com/article.htm

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Copyright 2003, Econosystems. All rights reserved.

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please forward this eNewsletter to your friends!

To subscribe or see more samples, please visit
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