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Book Review: The More 3 Formulae By Michael DaleWilliams

24 Jun

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Chapter 1

Traces the reason behind the author writing the book, The More Formulae. He recounted his days at F,W&C in London where he and his fellow colleagues there consulted for multinationals and small businesses and was exposed to the fact that some small firms are not achieving the desired results. From his perspective, the larger multinational firms enjoy economies of scale. He believed that the smaller firms can enjoy same if they take certain steps. He mentioned that more clients will guarantee that you will be busier but does not guarantee more profits. He however recommends the raising of prices  and focus on clients who can afford your services and recommends that you refer those who cannot afford your services to other competitors. The aim is to retain those clients who access your wide range of services frequently or regularly than periodically will guarantee orders hence the more 3 formulae. The greatest mistakes of small businesses is focus on clients acquisition without focusing on the transaction value services accessed by the client. This has led to the loss of old clients> the author recommends that business should build models around clients preferences and tastes as this will increase the frequency of transactions and value added to the organizations. This approach will enable the clients keep the old and the new customers.

Chapter 2

This chapter explains in great details the difference between good customer service and superior customer services, the difference between a customer and a client giving examples of his Gold Card loyalty program with Virgin Atlantic airline which guarantees him special privileges. It emphasizes on services that will keep your clients coming back and that which will stand you out from your competition. It also describes how positive innovation helps to improve your sales and keep you ahead of your competition.

Chapter 3

This chapter studies the determinants of income to any organization distinguished from the traditional accounting approach. It is determined by the number of customers multiplied by the amount they spend on each transaction and how often they purchase from your organization. The author argues that this approach enables you focus on the peculiarities of each client giving you an idea how to satisfy his special need.Therefore, businesses should build their models around their customer preferences for better performance.

Chapter 4

This chapter reveals how to increase your customer database through traditional and non traditional techniques in order to effectively reach out and regularly communicate with clients to give superior customer service.

Chapter 5

This chapter talks extensively of Value proposition and proffer strategies to attract more clients  through up selling packaging and traditional marketing methods and re-positioning.

Chapter 6

The author recommends increasing transaction frequency through sales propositions, suggestions , incentives and rewards schemes and customer education.

Chapter 7

Discusses the implementation of the previously elaborated in conjunction with a marketing plan to ensure superior customer service.

Chapter 8

Discusses the essential elements of superior customer service, the difference between a customer and client, emphasis on lean organization and management structure, improved products and services and ways to exceeding clients expectations.

Chapter 9

Explores the reason why people go into business, reveals why the book was written and encourages new entrepreneurs and offer ideas for business improvement.Overall, you will find this book a good read and a business companion or handbook or a book or reference in business.

Nuggets

  • Change your approach to business and life whether you own it or work in it

  • Your primary aim in business is to solve a problem. If not it will escalate the problem

  • The only way to guarantee more profits is if more customers are satisfied  with your products or services.

  • A client is a customer who pays for a professional service.

  • Success grows your business.

  • Delegate your responsibilities  and move on.

  • Train your people from the gate.

  • Build your reputation and be known for something.

  • You need to have a satisfied customer for each transaction.

  • Change your customer into clients.

  • Good customer service meets your expectation while superior customer service exceeds your expectation.

  • Innovation and continuous improvements is key to success in business.

  • design your business around your clients performance.

  • Enter into strategic partnerships

  • Character describes everything.

  • Your front desk represents everything about your business.

  • Don”t wait for feedback. Sit with your team and analyze your business.

  • Personalize your services.

  • There is reason to have a perception about your business brand and processes.

  • A slim organization structure is desirable for efficiency in every business.

You can meet the author here www.fromkingstontocalabar.com

 

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2016:A New Year Begins

3 Feb

Happy new year to all my friends here and beyond. Wishing you the best in the new year. Its another time in a lifetime to reflect on the past and forge ahead to the future. Another time to take a look at life and how the events will shape one or vice versa. a period to revisit, remake and re-energise plans and actualise exceptions to them. A time to reflect on the positives and negative sides of the outgoing year and improve on successes and correct the failures. Above all, just another year to  keep moving on.

2015 was a long tough and challenging year for me and my family,psychologically, physically and economically. It was a year i lost my business and almost everything i have worked for throughout my life. I believe it is gong to be a building block for future.

What Went Wrong

  • My company sold only two units of equipments and the rest were auctioned off to recover bad debts , loans, taxes and salaries of my employees, whom I laid off before the liabilities increased further.
  • 2015, was a long tough year for me and my family. It was a year of challenges in business and personal, psychological and economic. It was generally bleak due to changes in the political scenario.Probably a year i cant forget in a hurry, which i believe has become a building block for the future. What mattered most was survival of me and m family.
  • What Went Wrong in 2015.

 

 

  • All these coupled with other wrong business decisions did affect my intention to study for an MBA.
  • My family bore the brunt of the fallout of these decisions and was almost lving on sympathy of my extended family and a few friends.
  • I could not even afford to buy a few books to read amidst all these responsibilties.
  • lost a close friend in the onslaught against terrorists in December.Also lost a mentor too.
  • had enough for litigation to stop a financial institution from taking over my property.

What Went Right

It was not all a bad year as it was also one that had it upsides .

The most outstanding positive in 2015 was the unprecedented attention I paid to my family. Watching my kids grow and giving them awful attention and affection and also the fact that my youngest one year old gal could speak and say words like “come” “go” “leave me alone”, “plantain” “wait” and “ins(h)ide” . Helping them pay attention to their studies and th older ones able to express their minds was one indescribable feeling. My pretty loving wife was my pillar of support through those hellish months. Thanks baby, you are the best.

I appreciate God in the best way possible for giving me the gift of life and the strength to bear the stress. My Lord you are appreciated.

I also appreciate the efforts of friends and well wishers to see me back on track. Thanks all.

Plans for 2016

Not much but my primary goals are four. I am going to:

  • Get out of debts
  • avoid the mistakes that put my business in receivership
  • I am going to spend less
  • read as many books as I can
  • and try overcome the challenges i faced in 2015.
  • going to update this blog with at least thre articles a month starting with this one.
  • No more grand master plans at this point but long term plans.

Looking forward to another positive and eventful year for all my readers.

Happy birthday wishes to all the February guys and gals reading  this blog and dont forget to blog my gift thru this medium.

Have a wonderful February ahead.

Starting A Succesful Business: What It Takes

9 Nov

It takes a lot of courage, passion, focus and determination to get any business off the ground to success. People tend to mistake starting a business with going to school to get grades or being sent on an errand. Its far more than that. Every successful business owner has a very long tale to tell about how they started their successful businesses. Not all businesses are going to be successful. Some are just special purpose vehicles to achieve a particular aim while a large majority is to leave a legacy for family,someone or in the words of Ralph Waldo Emerson ” to leave the world a bit better”. In any case, starting a business is a different ball game entirely.

Any one starting a business should consider a lot of things. I started a bakery/confectionery and restaurant business seven years ago and I tell you, its not a bed of roses at all. Many businesses have failed because they ignored the little things that count much than the big ones. If you ask me from my experience what are those things an aspiring entrepreneur should care about, i would be glad to offer the following tips.

EXPERIENCE

In order to start a business, a new entrepreneur should endeavor to gain some experience from an organization. When you work in an organization, it exposes you to how it is managed and as part of the team you gain an insight into an organizations’ heart, its written and unwritten rules, business model, short, medium and long term plans. This exposure is sacrosanct. Two things come up after the exposure. You are educated in the art of managing  a business and gain experience in doing so. Business is practical and not taught in any MBA university class. Its also a reason why Mark H. McCormack wrote the book What They Don’t Teach You At Harvard Business School.

EDUCATION

Formal education is still going to play a very strategic role in today’s international business environment. Whatever it is, formal education is still needed in organizations functions namely: finance,personnel(HR), production and marketing. Education makes it easier to hire to hire the right staff for the right position and get the best of performance from them. Education is so dynamic these days that a lot of people find themselves in a very different field or profession apart from what they studied in school.

RESEARCH

Research is the key to understanding any business or industry. It helps you to understand the pros and cons of establishing and managing a business for the long term.Research work exposes you to the impact a business environment has on a business, challenges, risk factors in the industry and long term impact. Research on any business can come in many forms. It can come as a result of your work experience or from someone else experience, a business case study or a  business plan. I cannot over emphasize the importance of research to a new business. Every aspiring entrepreneur needs to do that before embarking on a journey into the business world.

BUSINESS MODEL

There are so many business models out there and you have to choose which one would serve your purpose. All business models are grouped into the following. Organic Growth Model signifies the model that makes use of the internal resources of an organization to expand its business. Acquisition model makes use of buying up other similar organizations to carry out business expansion. As a new entrepreneur, you have to employ a business model that suits your personality. Whether you have enough money or not to start a business, your business model is important.

STAY FOCUSSED

So many new entrepreneurs are carried away by just little success, a reason why so many fail after five years. A new entrepreneur is the focus of the organization and he is the chief architect of the direction of the organization. As a new entrepreneur you have to be vigilant in managing all aspects of the organization and its staff. You are the CEO, CFO, COO and General Manager, reporting only to yourself. You take responsibility for every action of the organization and monitor the activities of staff. This helps you implement every letter of the original business plan.

STAFFING

Every organization is measured by the quality of staff it employs. Its not just a perception but a fact of business life. From the cleaner to the Head Honcho, its very important one employs qualitative staff. Organizations are running away from the cost of training new recruits. Instead , they employ experienced staff to do their job with less supervision. However, the new entrepreneurs business is the best starting point for these recruits who are mainly fresh college and high school graduates who are looking for an opportunity to jump start their career. A new entrepreneur can develop his staff from scratch and his organization can be a reference point in many resumes.

SUPERVISION

Be prepared to lose a lot of sleep. Supervision of experienced and inexperienced staff in a start up is no cup of tea but something else. Supervising your employees helps you know their abilities and weaknesses in order to help get them better.

START UP CAPITAL

A question on every entrepreneurs mind is how much really do I need to get this business started? As a new entrepreneur, your start up capital should be adequate enough to start any business of your choice. Start up capitals also depend on the business model to be employed or according to your business strategy.

PASSION

Passion has no financial value but it is the intrinsic value of any business. As a new entrepreneur, you must be able to put your hearts out to the success of the business. The success of your start-up is your success and you are representative of that success at every given time. You are a reference point anytime the business or start-up is mentioned.

SOCIALIZE

When you socialize, you open dozens of opportunities for yourself and your start-up. You create awareness about your business and get to know a lot of people in and outside your sphere of influence. You are informed of the latest gossip or news about the industry and polity as you meet people from all walks of life.

STORMS

Every start-up will always hit a brick wall no matter how well it is managed. But how you manage to get out of that brick wall defines your future in business.

JOIN A PROFESSIONAL OR TRADE ASSOCIATION

When you start a business, you must make it a point of duty to join a trade association or a professional organization regulating your business. It is important as your organization will be part of any changes made by that trade association which will equally impact on society.

Starting a business is not bread and butter but a refining and defining experience. It’s not for the feeble but bold and courageous and focused.

Thanks for stopping by.