Business Lyceum
e-Letter
Practical
Instruction in the Arts and Sciences of Making Money
Editor/Publisher: J.F. (Jim) Straw
APRIL 2002
Greetings & Salutations:
Have you ever just sat and tried to remember what it was like,
when you were a kid, believing in Santa Claus?
A silly question, I admit - but - think about it a minute.
What if you were to meet a man over 30 years of age who still,
honestly and truly, believes in Santa Claus. Each Christmas
Eve he stays awake trying to catch the jolly old elf. His
greatest ambition is to mount an expedition to the North Pole
to locate Santa's workshop. -- No matter how hard you try to
convince him that Santa Claus is not a real person but, rather,
a character representing the giving spirit of Christmas, he still
believes.
Using the illustration of Santa Claus is a little bit farfetched,
but it serves, by exaggeration, to give you a point of reference
for my ramblings this month.
Although I'm not so sure there aren't a lot of 30-year-olds
out there who still believe in Santa Claus (and the Tooth Fairy,
too), I am pretty sure that most us DID, at one time or another
in our childhoods, believe in such fairy tale characters.
But ...
We Grew Up!
In the process of growing-up, we went through a number of
maturing stages.
Let's take "reading" as an easy example.
At first, we had books (with lots of pictures and very few
words) read to us. We even got to the point where we could
recite the words that went with the pictures in our favorite
books. We, also, learned to recite short rhymes, sing the
alphabet, and even say our numbers up to ten.
With time, we learned to recognize the individual letters
of the alphabet, give each of them their name, and make the sound
of each letter. Then, we learned to combine those letters
and sounds into short words; those short words into short sentences;
and, finally, we were reading.
But ... reading words and sentences without understanding
the meaning of what is being said is as bad as not being able
to read at all. So, we progressed to the study of our language
and the use of words and sentences to express complete ideas,
both impart and obtain information, and give directions. -- In
so doing, we grew-up.
As all children must grow-up, so ...
Businesses Must Grow-Up, Too!
It doesn't matter whether a business starts with $42 (as mine
did) or $42 Million -- each business must, and does, start as
an infant, learn to crawl, then walk; learn to read, then understand;
believe in business fairy tales (Santa Claus), then dismiss those
beliefs and accept reality.
Just as it is with children, some businesses are slow learners.
They take years to learn the rudiments. And, like show
learning children, they either plod along until their persistence
and patience is rewarded, or they throw up their hands and drop
out (usually blaming the "system" rather than their
own lack of persistence and patience for their failure).
Other businesses, of course, are like gifted children.
They learn rapidly and easily surpass the endeavors of others
in their industry. But, like some gifted children, they
may diversify too rapidly and lose their competitive edge
... or create new and unique methods that may threaten or frighten
some government or other bureaucratic establishment, causing
the business to be labeled as a rebel or an outlaw ... or become
bored with a game they find too easy and drop out; opting for
a more simple existence, which doesn't last very long because
they soon find some other endeavor which captures their interest.
(Hey ... I'm speaking from experience here - and - I have the
scars to prove it!)
Most businesses, however, are just like average children.
They grow from their infancy to full maturity by learning, understanding,
and accepting reality. Like average children, they learn
and progress at their own speed. (Not all average children
of the same age read with the same understanding - but - they
are neither slow enough to be labeled slow learners, nor fast
enough to be labeled as gifted; just average.) And, as
each reaches a level of competency in their chosen field of endeavor,
they continue the learning and understanding process ... growing
and expanding as they become more proficient. -- That sentence
gives you another insight into the learning (maturing) curve
of businesses.
Every Business Has Two Areas of Required Education
The best way I can think of to explain what I mean is to relate
a comment made by a friend of mine who owns a major catalog-printing
company.
In his words, "Almost every pressman wants to own and
operate his own print shop - but - they don't know the difference
between a pressman and a printer."
After making that comment, he explained that any good "pressman"
can make a printing plate, put that plate on a printing press,
and run the number of copies the customer wants. But, it
takes a "printer" to bid the job, buy the paper, schedule
the job, deliver the printed materials to the customer, collect
the money, pay the bills, and keep a margin of profit.
Therefore, each business must learn and understand the methods
and operations which are necessary to satisfy the needs of the
business' customers. -- Like a pressman must know how to produce
the very best quality printed materials; which relates to his
specific ability to run the printing press.
Beyond that, each business must learn and understand the methods
and operations necessary to run the business itself. -- Like
a printer must know how to price the printing jobs at a price
the customer will accept, with a profit margin when the job is
done.
These two learning curves in a business are taking place at
the same time but may be at different levels between infancy
and maturity. -- It is not uncommon to find a business that is
near full maturity on the "production" side, yet still
just out of its infancy on the "management" side; or
vice versa.
And ... believe it or don't ... there are a lot of otherwise
mature businesses who still believe in "Santa Claus."
Well, not really Santa Clause, but what I refer to as ...
Business Fairy Tales!
Owing to the fact that anybody (and I do mean ANYBODY) can
write about business and doing business, there are literally
thousands of "business fairy tales" which are accepted
and believed by even the most educated, sophisticated and professional
business people.
These "business fairy tales" are usually initiated
by otherwise well-meaning writers who have only read about a
method of doing business and try to relate that information to
their readers.
Not being "in" business, these research writers,
of course, base what they write upon their own "consumer
assumptions" of how the method, or technique, of business
is applied in the business community. Thus, through their
lack of pragmatic understanding of business applications,
another "business fairy tale" is created ... a "business
fairy tale" that far outlives its original author to become
the foundation upon which a host of additional "business
fairy tales" are initiated by future generations of research
writers.
Unfortunately, it makes little difference whether you are
the owner/operator of a "Ma & Pa Retail Shop,"
the manager of a company-owned store, the Chief Executive Officer
of a "Fortune 500" company, or somewhere between or
betwixt, all business people hold dear some of the "business
fairy tales" they have often heard repeated, or ... worse
yet ... learned in some 'theoretical' business class they attended
(all too often part of the required curriculum for a college
degree in business).
Without an experienced, pragmatic point of reference, even
the most highly educated, sophisticated and professional business
people accept those "business fairy tales" as fact
and, until someone tells them different (and shows them a picture
of daddy putting on a white beard), they believe it.
The great "Santa Claus of business fairy tales"
(the most pernicious by far) is ...
"People Have Changed"
In my opinion, there should be a law (providing for the death
penalty) against any writer who writes, or speaker who says ...
"Today, your customers are different, they are __________."
Fill in that blank with ... more discerning/less discerning
... more/less educated ... more/less affluent ... more/less sophisticated
... or some other such nonsense.
Societal mores may change ... laws may change ... technology
may change - but - People Never Change! The very same stimuli
that motivated people in the book of Genesis are still motivating
people today. (There's still a whole lot of begetting going
on.)
If you hold this most vicious of "business fairy tales"
dear, try (as I have) reading books about advertising and marketing
published in the 19th century and comparing them with similar
books that are published today.
Whether the book was written in the 19th century, or last
month, it almost invariably starts with (or, at least encompasses)
the comment that, "Today, your customers are different _______"
- but - after that statement is made, the content is much the
same, generation after generation.
The destructive power in this "Santa Claus of business
fairy tales" is that, once accepted and believe, it leads
otherwise stable businesses into changing their products, services,
methods of operation, advertising and marketing in order to meet
the assumed changes in people. Rather than selling to the
individual needs of individual people, they try to sell to the
collective needs of 'the' people. As an example, just remember,
even now the humble checkerboard and checkers still outsells
(by volume) the most up-to-date, state-of-the-art games each
year.
When a business attempts to cater to society as a whole, instead
of 'people' as individuals, or forgets 'people' in favor of technology,
it is doomed to failure or ... worse yet ... sustained
mediocrity.
Now that I have pulled the beard from the "Santa Claus
of business fairy tales," the better prepared you will be
to grow your business into the new millennium. -- Just remember
...
Societal mores may change ... laws may change ... technology
may change - but - People Never Change!
Companies that suffer from the "Santa Claus of business
fairy tales" are forever increasing, expanding and enhancing
their product line but their revenue and market-share never seem
to show any improvement. -- In an effort to respond to the ways
'people have changed,' they have forgotten that, "If it
works, it don't need fixing."
Think about it!
Now, let's do some ...
Questions & Answers, Comments
& Other Good Stuff!
Kirt Christensen wrote:
"I'm a big fan of your Business Lyceum site and your
e-Letter. -- Of course, the real reason that your stuff
is so good is that you've actually done it... Doesn't
that just piss you off when people spout off and they've never
done a dang thing? -- Can you tell your e-Letter gang about my
brand new membership site? -- It's brand-new, and NOTHING like
it exists on the web, or in bookstores for that matter.
(There are a ton of books on "How to Buy a Business",
but nothing at all that covers the in's and out's of buying websites.)
-- I've had some phenomenal personal success using these methods
in the last couple of years, (you can read about in the sales
copy on the site) and I've decided it's time to let more people
in on these strategies."
Thank You, Kirt ...
Always happy to tell my gang about good stuff written by people
who have actually done it ... instead of just reading about it.
-- So ...
Okay, gang, this guy is for real ... I've met him. -- If you
wanna really learn how to make a bundle of long-green buying
& selling websites, Kirt says ...
"My 'Paint-By-Numbers' System For Taking Over Lousy Websites,
Fixing Them Up And Pocketing Up To An Easy 10,000% Net Profit
(Or More) In Less Than A Few Weeks, Even Days... GUARANTEED!
-- I'll show you the same technique I used to make $110,000 in
only a few months working less than 2 hours a day fixing up one
lousy website! It's the EASIEST money I've ever made!"
Check it out at:
http://www.buyingwebbusinesses.com/cgi-bin/ccShare.pl?cmnd=home&id=unocalle
Here recently, a number of people have asked me about ...
How to Make e-Books!
Well ... in 1984, we changed from Merganthaler-Linotype typesetting
to the Aldus PageMaker to typeset our paper & ink publications.
-- Over the years, we went from PageMaker 2 to PageMaker 6 (in
1997) which was the latest version after Aldus was acquired by
Adobe.
All of our publications were typeset in PageMaker, printed,
bound, and delivered in hard-copy by mail.
When my customers began asking for electronic-editions of
our publications, I contacted Adobe to find out how I could go
about making my publications into Adobe PDF files. -- I was amazed
to learn that PageMaker 6 had a built-in plug-in to create PDF
files. -- All I had to do was open my original PageMaker 6 document
and click on "Create PDF." Each publication was
converted to an Adobe PDF file in less than 5 minutes, ready
for transmission by email ... or uploading.
Using the PageMaker 6 application, you can create the covers
... with full color graphics ... add pictures ... whatever, then
just click "Create PDF" to have a complete e-Book -
AND - your eBooks will be compatible with any computer that has
the FREE Adobe Acrobat Reader installed.
And ... believe it or don't ... you can buy the Adobe PageMaker
(version 7, now) for a lot less than it would cost you for those
other eBook makers that aren't compatible with every computer.
Check it out at:
http://www.adobe.com/products/pagemaker/main.html
Special Pre-Launch Offer!
"The Profits of The Invisible Web Revealed"
Discover the secret information hidden on the information
superhighway that can grow your business, attract more customers,
sell more products and maximize your profits
Warning!
Reading This Site Will Set Your Marketing Imagination Racing!
Usually, when I get an announcement like this, I cringe ...
figuring it's just another hype piece for the same ol'-same 'ol
I've come to expect - BUT - this one is different.
I read "The Profits of The Invisible Web Revealed"
this weekend ... couldn't put it down ... fan-dam-tastic. --
I have often wondered how people could find all the things they
find on the Internet. I've even tried a few times to find
the kind of connections I could use to promote my stuff.
After reading ... no, absorbing ... "The Profits of The
Invisible Web Revealed" I now know exactly how to do
it.
So ... if'n you're into Internet marketing (in any way, shape
or form), do yourself a favor a get your own, personal copy of
"The Profits of The Invisible Web Revealed."
Check it out at:
http://www.own-business.com
Gerry Geda wanted to know:
"My question is this: Is there a way that you can
help locate independent distributors across the U.S.A. as well
as distributors for exporting our product line of hand made and
hand poured gel candles? -- We currently have distributors that
cover PA., NJ, MD. and VA. I would like to expand the distribution
network in the most efficient manner possible. The company
I represent is in its fourth year of business and had sales last
year of a little more than $325,000. The previous year
sales was a little more than $20,000. -- We have enjoyed substantial
growth. The candles come in a variety of sizes and fragrances
and look like canned jelly preserves, such as fruit cocktail,
apple-cinnamon, mango, melon and strawberry along with many others.
I am looking to find independent distributors who may add our
line of candles to their existing product line or an entrepreneur
looking to start his or her own business. Anyone my contact
me by e-mail and I will respond promptly."
Okay, Gerry ...
When attempting to establish a distribution program for your
products, you should approach it the same way you would approach
the "sale" of the product itself. -- In other words,
you "advertise" for dealers, distributors, representatives,
sales organizations; whatever, just as you would for buyers for
your product.
Start by going to your local Public Library and looking through
a "Directory of Periodical Publications." -- Select
those publications that go to the kinds of "stores"
you want to sell your products to for resale. There are
magazines dedicated to almost every kind of "store"
you can imagine (like supermarkets, dollar stores, etc.). --
Contact each of those publications and ask for the "Advertising
Department" and request their "Advertising Rates."
-- When they send you the ad rates, they will usually include
from 1 to 3 current issues of their magazine.
Go through the publications going to the kind of stores you
are interested in selling to and look for ads to those stores
from sales organizations offering to "sell" stuff to
them. -- Contact those sales organizations (companies) and make
a pitch for them to take on your line of products for distribution.
By the way, there are also a variety of publications that
go to those "sales" organizations (companies) and manufacturers'
representatives. -- Get their ad rates, too. -- Then, advertise
for distributors in those publications.
Finding distributors, dealers, reps, sales organizations,
etc., is just "selling" your distribution set up to
those who might be interested in "selling" your products
to their established customer base.
Of course, I just told the e-Letter gang about your deal,
too - so ... any of them who might be looking for a new product
to sell to their existing customer base will probably contact
you.
How's Your CGI? -- Do You Know PERL?
"Learn to Use CGI in 2 Hours" will have you
using CGI and enjoying the benefits of an automated website,
in as little as two hours.
In as little as two hours you can be installing, writing and
editing your own cgi scripts to handle mailing lists, order processing,
feedback forms, discussion forums, links pages, password protected
pages, membership databases and other web marketing 'must-have'
facilities.
Check it out at:
http://www.roibot.com/cgi2h.cgi?R57607_campaign
Kenneth Black" wanted me
to spread the word:
"I'm a subscriber to your newsletter and a purchaser
of your Mail order course. I thank you for producing such
excellent publications. They are very informative, professionally
written and a pleasure to read. -- I just came across a superb
program that I wanted to tell you about. There is a new
software available that produces mini-sites specifically for
ebooks you sell. -- It has many features and is something that
I think will sell very well on the internet. -- If you would
like to mention it in your newsletter, I would appreciate it.
-- I know you'll be very pleased and so will your subscribers."
Okay, gang ... if'n you're into mini-websites, check it out
at:
http://wetrack.it/instantebook/af.cgi?33
Joseph Gardner needed some help
for his wife:
"Could you recommend the most effective way to sell home
loans? -- My wife has just been recruited by a big mortgage company
and she will be responsible for generating her own leads/prospects."
Joseph:
When most beginning brokers start in the mortgage game, the
first thing they do is place ads in the classifieds in their
local newspapers. -- Others, seeing a more defined market, try
to get the Real Estate Agents to refer clients to them.
Both methods word - but - ever'body does it, so ...
Here's a trick a friend of mine used many years ago. -- I
haven't seen it done since.
If you have noticed, on many homes for sale, there is a plastic
tube with details about the home attached to the "For Sale"
sign ... with "Take One" displayed on the plastic
tube. -- Well ... my friend got a batch of those plastic tubes
and filled them with a 1-page flyer about his mortgage business.
Then, he went around the neighborhoods placing his plastic tubes
on a little pole of its own next to the "For Sale"
sign (NOT on the "For Sale" sign).
When "home buyers" drove by the house and saw the
"For Sale" sign, they also saw his "Take One"
plastic tube and stopped to get information about his mortgage
business.
Hey ... it worked for him ... maybe it will work for your
wife.
It was great ... now it's even better!
Over a year ago, I told you about "StartBlaze" ...
it happened when one of my affiliates had a number of good hits
on my website; then, a couple of those hits turned into paying
customers - so, I signed up. -- Well ... today, I am still getting
hits from StartBlaze - but - now, the whole program has been
improved.
At least take a look at the new StartBlaze Pro, at:
http://www.startblaze.com/cgi-bin/intro.cgi?27736
Laura Quintile was faced
with a marketing problem:
"I was thrilled to find the Businesslyceum.com and to
subscribe to your monthly newsletter. -- I am an Avon Representative,
love the products and am a loyal user of the products I sell.
-- Recently, I went from working my business occasionally to
working it more full time. I recently viewed a training video
on fundraising and held my first fundraiser. -- My sales were
higher than normal and I did pick up quite a few new customers
during the fundraiser, but my commission was shared with the
organization having the fundraiser, so ... my question to you
is this; since doing the fundraiser has proved to increase my
sales, and my client base, how can I promote Avon fundraisers
so that I can do them in a way to make money with the commissions
being split. -- Usually with sales of over 1,500 the commission
of 50%would be split 30 for the organization and 20 for me. --
My first fundraiser was only a little over $800 so the commission
was only 40% and I had to split it 30 to 10 for me. -- I would
have to do more than one fundraiser a campaign (every two weeks)
or be sure that there were enough active participants (100 or
more) getting higher sales (1,500 or more) per fundraiser. --
Although the higher sales is great, it only has meaning to me
if my income increases as well. The increased clients is great
too, but only if they continue to buy from me on a consistent
basis, after the fundraiser is over. -- I try to give excellent
customer service and make use of Avon's training tips, do you
have any advice for me?"
Laura:
You are sitting on a gold mine - but - you have to mine it.
The customer names, addresses & telephone numbers you
get when you sell an Avon product at a fundraiser are far more
valuable than any amount of money you might earn directly from
the fundraiser.
By the way, I was a ding-dong Avon "lady" over 40
years ago in Kansas ... sold cosmetics to all the ladies in our
farm community.
If memory serves, even back then, Avon had a number of catalogs/brochures
we could give to our customers - so ...
Make a mailing list of all the customers who bought at the
fundraiser ... also, make another list of any names & addresses
you may have obtained at the fundraiser of people who didn't
buy. -- About 5 days after the fundraiser, mail each of them
some kind of "personal note" thanking them for their
order ... or thanking them for attending the fundraiser. -- Along
with your personal note, include an Avon flyer, brochure, whatever.
Also, figure out about how long it takes to use up an Avon
product bought at the fundraiser. -- Say it takes 2 weeks to
use up a bar of soap ... at the end of 2 weeks, telephone the
person who bought the bar of soap and ask them if they need to
reorder. Remember: They bought the product and have
received a personal thank you note from you ... now they should
be ready to buy again.
If I were doing it, I wouldn't be afraid to give 100% of the
profit to the fundraising organization ... just to get the names,
addresses & telephone numbers of the "real" buyers.
The fundraising organization is opening the door for you and
introducing you to "real" customers - but - it is up
to you to work the list & keep those customers coming back
for more.
Well ... that's it for this month. -- In order to make every
issue responsive to YOUR needs, please send me your questions;
or tell me what sources or resources you need to build your business;
or give me any thoughts you want to share with your fellow members.
Believe it or don't ... I ain't a mind-reader. -- If'n you
doesn't tell me what you need, I may never touch upon the information,
sources or resources you need.
This is your publication for you to use to your benefit ...
I am just your moderator.
Until next month, keep well ...
J.F. (Jim) STRAW
e-Letter Gang Leader
Thought For The Month!
"The work will teach you how to do it."
-- Estonian Proverb
Can you stump the old master? --
Betcha can't!
Over the past 40 years (man and boy), I have made bundles
of money in direct selling, service contracting, wholesale merchandising,
entertainment (I was a professional Trumpet player, vocalist
& Radio Announcer), freight forwarding, import/export, retail
merchandising, warehousing, real estate, electronics manufacturing,
finder's fees, closeout merchandising, financial brokerage, business
consulting, steel fabrication, gold and coal mining, offshore
banking, mailorder, writing, and publishing. -- That being the
case ...
No matter what business you're in ... whether you're just
starting, well on your way, or at the top of the heap ... I've
probably been where you are, done what you are doing. -- So ...
Anytime you have a question about 'how' to do something in
your business - or - if you have any comments about anything
I've said in issues of this e-Letter; or if you want to add your
2 cents worth ... just "ask" me or "tell"
me.
Send your Questions, Comments or 2 Cents Worth
to ...
with "Question" - "Comment"
- or, "2 Cents Worth" in the SUBJECT.
If I, personally, don't have an answer to any question you
may ask, I will contact some of the professionals in your field
of endeavor (I will probably know one or more personally) to
get the real 'skinny' for you.
Note: If you want to ask a question anonymously
just tell me so when you send in the question. -- Nobody but
you and I will know who asked the question.
Return to the Archives
Copyright - 2002, J.F. (Jim) Straw. All rights reserved.