Situation: A company has an opportunity to use equipment supplied by a partner to create a demonstration project that will highlight their capabilities. They want to create the best buzz possible through this effort. One idea is to work with local service agencies to create a demonstration that will be highly appealing to news outlets. How do you create the best buzz?
Advice from the CEOs:
In addition to working with local agencies in your target localities to create publicity and awareness, work with the local newspaper reporters who write about the areas served by these agencies. City reporters are always looking for fresh stories, and will help you to generate instant news that may be picked up by other local and possibly national media. This form of building awareness virally is much more effective than traditional advertising campaigns.
Use industry trade shows of potential partners as demo venues by collaborating with the trade show organizers for a live demonstration that benefits the organizers. Let technical trade publications know about your demos. Stories that catch the attention of technical publications can also get the attention of national media and give you visibility far beyond the trade shows.
Use YouTube to highlight use and the impact of your service. Assure that your YouTube videos are interesting and attention gathering. This will help generate viral awareness.
Look at how Google helped to make Mountain View, CA a wireless city. They worked with the city and created great excitement both locally and nationally.
Consider using actors to stage demonstrations, followed by actual demonstrations.
Situation: A company performs service that is primarily locally-based. A competitor is establishing a new site less than two miles from the company’s location, offers a broader array of services and is larger than the company. How can the company protect its business by responding to this new competition?
Advice from the CEOs:
Your most important asset is understanding what you are doing right, and what is most important to your customers. Remember that business is more than just a product or service. It’s a relationship. Your customers depend upon your for more than just what you offer for sale. Reach out to your customers for these answers. Make sure that you respond to their needs. As a benefit you may also find new growth opportunities.
Ask current customers whether you need to expand your service offering, or whether your current offering and lead time is acceptable to them. Ask how their needs are changing and how you can better serve them.
Reestablish the connection to your customer and listen. Preempt new competition by contacting your customer base before the competitor gains a stronghold.
Study your options and avoid knee-jerk reactions. You may be in better shape that you think.
Major retailers and service companies have moved into many locations. Local businesses who survive their presence do so because they are focused on their customers’ needs and are better at serving the customers that the big companies are.
Invest in key components of your business relationships: services, payment terms, responsiveness, your facilities, and so forth.
Situation: A company’s major competitor is closing shop. When this happens the company will be the sole large local service provider. Municipal and many large projects require multiple bids. The CEO is concerned that out-of-area companies will underbid the company’s union scale operation. How do you maintain your position in a changing local market?
Advice from the CEOs:
If your municipality has union scale wage rules, find a way to monitor wage compliance of out-of-area operations. These companies may say that they pay union scale, but the municipalities and others won’t have the staff to monitor them. This will be up to you.
Talk to local elected authorities and impress upon them the importance of supporting local businesses. Remind them of wage compliance problems that localities have seen in the past. Suggest that they look at local content requirements to help keep business and business revenue funding in the local economy.
Emphasize the maintenance aspect of your jobs. If a local company both builds and later maintains the project, they will know the subtleties of the design and will be able to provide better and more cost-effecting ongoing maintenance.
Educate clients with monitoring, measurement and compliance checklists that highlight the benefits of using local contractors and maintenance service.
If the other company approaches you about buying his business focus on the ROI produced by the other company’s costs and profits, but under your pay-scale. If this looks promising, have a conversation with the owner and see what he wants. Prompt the owner to talk and listen carefully to what he has to say. If you don’t want to buy the full business, there are other options:
Hire his key employees on a $/hour plus commission basis on retained sales.
Purchase his customer list, or giving him something for any maintenance contracts that come over to you within a set time period.