Feature Article: Communicating as a Small
Business - by Sheryl Steyn, Director, Inspiration, the co.
Communicating
your brand in the marketplace can be a daunting task for the small business
owner. One just needs to look at the budgets that are bandied about by other
organisations. But it doesn't have to be that way. You need to find an agency
that you can build a relationship with. The key is to create trust between
the client and the agency. One immediately establishes a bond at the first
meeting and the relationship happens after continuous contact.
Communication
is a science. It has logical basic principles and in order to do it right,
make it work for you without wastage, you have to follow these principles.
The most common and expensive errors are made because there is no planning
or preparation. Without a plan you can run into problems - the messages become
mixed and the customer confused. Once-off projects cannot make a large enough
impact. Keep reminding your customers that you are out there.
After
the planning you need a good basic design. A well-designed strong corporate
ID is a must. You also need to use the right elements from the communication
mix; advertising, PR, one-on-one contact or electronic, etc. The mix comes
out of the plan. Quality communications must have impact, be effective and
relevant - not only from a design point of view, but also right down to the
medium.
The
response from many first time communicators is: "They are too expensive
for me. Look at what they've produced in the past - I can't afford that."
Let the agency work with you. You'll be surprised at what you can afford.
Be honest about what you want to achieve and the budget you're prepared to
invest. I've heard said that "It doesn't matter what the budget, the
agency will always use it all. If I don't give them a budget, I can always
negotiate costs". So, out of fear of the unknown, many small business
owners keep the budget to themselves and don't trust the agency. When this
happens both the relationship and the brand suffer. Allocate a realistic budget
and let the agency use it optimally.
The
reason why the entire budget is used is, not because you can't trust the agency,
but because communication is expensive and you need every cent allocated to
do it properly. What I would suggest is that you find an agency that you feel
comfortable with, one that has the right mix in terms of services, and/or
has access to the best of out-sourced services, and make sure that the person
with whom you interact makes you feel comfortable. Don't let them baffle you
with technical terms! Make them explain what they're saying!
Everyone
has to start somewhere and some start with a very small budget. Once the business
sees a return on your advertising budget, you will be able to, and will indeed
want to, allocate more to spend. Remember why you are communicating - to create
revenue for the business!
Hints
for an approach:
Look at a communication plan in the same way as you would view an architect's
plan for your new home. For example, you say to him that you'd like 7 bedrooms
and 3 bathrooms. But because you don't have the funds yet and you only have
one child so far, you would like the plan to have 7 bedrooms and 3 bathrooms,
but you will only build 2 bedrooms and one bathroom now. Once you have more
funds, you can look at building the rest. Planning up front can save a lot
of money in the long run.
The
same goes for communications. Be honest with the agency. Tell them you don't
have the money and are looking to plan a strategy that grows with time. Tell
them what you can afford now and what you plan for the future. Look at a phased
budget approach over a period of time that's comfortable for you. Based on
your needs the agency should be able to put together a plan that'll work both
in the long and short term. They will advise you as to what the minimum amount
of work it is that you need to do in order to make a difference. I've worked
on some plans where it is left up to the client to do a portion of the work
(under the agency's guidance) to save some money.
Talk
to the agency first. Get a feel for the kind of guidance they are likely to
give. Let them guide you as to the right mix, be it PR, media planning, etc.
If you're honest about what you want to do and you're honest about how much
money you have, you will be surprised at how much you can do on a small budget.
A
plan is the most important part of the communication. It is so easy to do
an ad hoc now and another 3 months later, but all this usually does is dilute
the impact and spend the budget. If planned with enough of a controlled communication
to the right audience, there will be an impact.
Picking
the right mix is as important as choosing the right message. This is where
you need the experience of the agency. So many people go for the bargain,
or the quick-fix and all that it does is use up the money without any sort
of communication to the right audience.
A
plan gives guidelines, it sets parameters and forces everyone to go back and
keep asking the question - are we on track in terms of the positioning, audience,
etc.? The plan doesn't have to be complicated, the simpler the better. What
it does do is allow everyone to work towards a common goal.
Talk
to the agency. You know your product better than anyone else. They know communication.
Together you can do great things!
Sheryl
can be contacted at sheryl@inspiration1.co.za
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Bizland News
 |
Online
Tax Filing available on Bizland! |
Our
online Tax Filing facility is now live! This facility is brought to you by Bizland
and Dimension Data's iTax - the fast, convenient way to file your tax return.
Email me for more information!
Next meetings:
Southern Suburbs: 11 June, Träumerei Coffee Shop, The Place in
Cavendish Square (email
me for directions)
Speaker: Michael Stavridis, Partner, Forensic Services, Ernst & Young
Topic: Preventing Fraud in your Business
Time: 7pm
Ucoming:
Allan Ambor of Spur Corporation, 9th July at 6pm
Northern Suburbs: 27 June, Träumerei Coffee Shop, Upper Level,
Tygervalley Centre
Speaker: Lisa Hudson Peacock
Topic: Demystifying the Stock Market and Other Financial Information
Time: 7pm
Up-to-date information about the club and speakers' notes can be found on
our website here.
What's
new on the website?
We
have updated the top ten business books, which can be purchased via Kalahari.net.
To see the current list of books, click
here.
George
Hadjidakis of 7 Eleven recently spoke at the Tygerberg business club. Read
his notes on Attitude here!
We
will be adding new features on a regular basis, so keep visiting http://www.bizland.co.za to
keep up!
*Want to share a problem or experience with a fellow
small business owner, or simply comment on an issue of relevance? Leave your
message on our Discussion
Forum!
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Book of the Month
Managing
Transitions: Making the Most of Change
 |
Business consultant
William Bridges attacks an area of managing change that many not only
avoid, but also do not even recognize--the human side of change. Directed
at managers and employees in today's corporations, where change is necessary
to revitalise and improve corporate performance, this book addresses
the fact that it is people who have to carry out the change.
|
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Success Story
This is YOUR space. We want to know who you are, what annoys, inspires
or impresses you in small business, funny stories, advice, or how you got
on the road to success. Please share with us and we might publish your stories
or comments in the next issue. Send your contributions to success@bizland.co.za - we look forward
to hearing from you.
This week's Success Story: Pete Whitehouse of Contract Accountants
"Create
your own luck - you will never know for sure unless you try, but make it a
qualified guess." - Pete Whitehouse, Contract Accountants
|
The
story began in 1985, when Johannesburg-born Pete Whitehouse, having
completed his senior schooling in Natal, moved to Cape Town to complete
his compulsory military training. This achieved, he registered to
do a Bachelor of Commerce at the University of Cape Town, with the
intention of becoming a Chartered Accountant. It was half way through
his postgraduate year that he realised that auditing and accounting
was not his passion, and he instead took up a position at Gilbeys,
and consequently completed a qualification in Chartered Management
|
 |
Accounting. He remained at Gilbeys for five years, after which he moved on
to gain experience as a Financial Manager in both the retail and IT sector.
Never
having quelled his entrepreneurial spirit, Pete soon realised that there
was a gap in the Cape Town market for a niche recruitment and labour broking
concept - an industry that was well established in London. He resigned from
his job, sold his BMW to raise finance, and in March 1997 he opened Contract
Accountants in Cape Town. Using a borrowed desk and chair and a shared half-day
secretary, he set out to use his experience in the finance industry to grow
his business. 18 months later, having opened a second office in Johannesburg,
Pete was made an offer by JSE-listed The Laser Group, who bought Contract
Accountants in as part of their Human Resources division, with Pete still
at the helm of Contract Accountants.
Pete
attributes his success to a number of factors: "Coming from a finance
background I had specialist knowledge in this field, which gave me credibility,
and of course I stove at all times for excellent service. I threw out traditional
HR norms to try something new, using fresh ideas and following the overseas
concept of labour broking. Cashflow management is also crucial, particularly
in such a cash-intensive business." Pete kept a tight control on his
finances, hand-delivering or couriering invoices to clients to avoid delayed
payment to himself and his contractors. He also stresses using technology
to make things simpler: "I have great faith in today's electronic capabilities,
believing that technology can only enhance my company, and in fact I currently
uses Bizland's eBilling and BizPay systems to efficiently manage my invoicing
and payroll systems."
One
of the pitfalls that Pete mentioned was that he tried to expand too quickly:
"I had a very successful first year, but made the mistake of getting
caught up in the hype and too quickly opened a second branch in the Northern
Suburbs, which was unsuccessful. I had to go back to basics and not be too
proud to admit that I had made a mistake."
Pete
offers the following advice to aspiring entrepreneurs: know and understand
your business and focus on what is important. He believes that while it
is important to have dreams, there is a fine line between not having enough
and having too many. "To be an entrepreneur, you need to be able to
do things one hundred percent - sometimes taking risks in order to "create
your own luck". Stick to your passion, manage your cashflow, and most
importantly, do your research - you will never know for sure unless you
try, but make it a qualified guess! And finally: cash is king!"
When
not spending time with his wife and children, Pete divides his time between
all things outdoors, including golf, league hockey, cycling, and running
(he has completed the Argus and Two Oceans a number of times, and even has
a Comrades marathon under his belt!). As if this wasn't enough, he also
enjoys scuba diving, bridge jumping and parachuting - clearly the quiet,
unassuming exterior is a cover for the adrenalin junky inside!
Pete
sees The Laser Group as a dynamic organisation with a huge future, and is
confident of the way forward.
Click
here to visit Contract Accountants' website.
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Next month…
Next month we will be talking about various tax issues for small businesses,
so send us your comments or questions about this topic to comments@bizland.co.za or post them on
our Discussion
Board.
Until
next time...
Sally & Piers
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