How businesses evolve

It’s useful to understand how over the recent years, big businesses have reinvented themselves. I was reading an article recently on the departing Ericsson CEO Carl-Henric Svanberg, which gave an insightful account of the issues facing Ericsson after the dot-com bubble had burst. His model solely focused around consolidation, whilst others in their market either spread themselves extremely thin in looking for new markets to expand into (see Marconi) or acquired rivals to try and quickly expand (see Alcatel-Lucent). What Carl-Henric Svanberg did with Ericsson was to really consolidate, concentrate on their core business of building networks and inevitably cut costs. This worked, and he now leaves Ericsson today in the healthy position of having 40% of all mobile calls made on their network. I think a lot of companies get excited by the profits and market share available to them when they look outside of their domain. 2 large enterprises who are having mixed results are Google and Cisco. Although Google is still king of search, it’s increasingly more lucrative and more prestigious projects such as Google Books are starting to sap resources from it’s search empire. This has had the effect on competitors like Bing taking more market share.

It was also interesting to see how emerging technologies helped to spur growth in the ailing company. Although a large proportion of their spending is still attributed to legacy networks, opportunities increasingly present themselves to expand into so-called next generation networks. 3G networks are fast becoming their bread and butter, with customers such as Three (3) and T-Mobile in the UK having Ericsson infrastructure to power their data networks. Moving forward, with the advance of M2M, Carl-Henric Svanberg thinks that there is the potential for roughly   sim cards to be embedded into devices as seemingly mundane as fridges, microwaves and washing machines. This is where he envisages Ericsson’s next market shift. There’s no doubting the strength of the mobile data market. Whether it hits a natural saturation period or whether advance such as LTE will help it break through it’s glass ceiling are anyone’s guess. However one thing is certain. Due to the requirement for people to be connected on the move, this is definitely a market that will be key for a long time.

The big Twitter debate

Over the last two years, Twitter has taken the Internet by storm. Early adopters (myself included) saw it as just another method by which to communicate to your network, and dismissed it on this basis. However, as celebrities such as Britney Spears and Ashton Kutcher started to jump on board, Twitter slowly started to become more of a mainstream media tool. This was further enhanced by events such as the River Hudson plane crash and the terrorist events in Mumbai. Now Twitter is seen as a fundamental broadcasting medium by many to obtain relevant news.

However, the problem with Twitter is that there doesn’t seem to be any obvious way to monetise their service. They have a massive subscriber base, all of which obtain a free service. Now they even have a large enterprise and corporate client base who use their service not only to promote their brand and products, but also to connect with their client base. Due to the size of Twitter’s user base, the temptation is always there to sell out to a larger player, and there has been a lot of speculation relating to an acquisition by Google. Real time search is the one area within their portfolio that they’ve had problems coming to terms with. However, with Twitter’s real time feed suddenly Google would have specific relevant information about up to date trending topics, of which to target their adverts too. The immediate benefits of this are there for all to see. Google can instantly monetise a service that currently does not have any obvious income stream. Whilst for Twitter, they have direct access to Google’s massive resource pool to be able to compete against the likes of Facebook, who with the acquisition of FriendFeed are slowly encroaching into the space of real time search. Also, Google’s track record of amalgamating newly acquired assets into it’s estate is strong, as is shown by the success of both YouTube and Blogger being able to keep their brand identity and prove successful in their respective markets.

However, Twitter does have an ace up it’s sleeve. With the use of hashtags, Twitter has a direct way of keeping a handle on the latest trends being discussed. They have large investors behind them providing them with the capital to increase their infrastructure. Also, despite the fact I mentioned earlier that their lack of an obvious business model was a problem, it definitely constitutes a nice problem . Currently their valuation is built solely on their subscriber base and their infrastructure. The minute they disclose their intentions, their value would rocket to potential investors, and may well even see them go down the IPO route. Remember that the guys behind Twitter are also the same guys that started Blogger, and sold it successfully to Google.

For my two pence, I think that Twitter would be silly to ignore the threat of Facebook, and sell in a hurry to the likes of Google and Apple. They have an extremely strong brand and an even stronger user base which they can use to their advantage. And just as Google did with the implementation of Adwords, if they can find a way to monetise the mammoth amount of hashtags flying around, I think they would stand a good chance of seeing off the combined Facebook/FriendFeed threat.

Can we take lessons from the Apprentice?

I’ve missed a lot of this series of the Apprentice, however last night I finally sat down to watch what many deem to be the hardest task of each series – the interview. The militant nature of the interviews reminded me of some of the worse ones I’ve had to endure. Having an interviewer tell me that at the age of 25, I had achieved nothing with my life hurt. However, my dad alwyas used to say to me that a man is not defined by the setbacks he experiences, but how he deals with them.

The one quality that all the candidates seem to share is that they are all extremely self confident about their abilities. And this needs to be the case in any interview. If you are going to sell yourself to a potential employer you need to be completely confident in the skills that you can bring to the table. There is absolutely no point in being modest about yourself. No employer wants an average employee. However, in my experience, you should never gloss over your flaws. If someone is highlighting a mistake, admit it. Don’t try and blag. I remember when I was younger having an interview with an a company who sold double glazing. I was so desperate for the job that I told them I had sold windows previously. I got the job, but was very quickly found out and promptly humiliated. The same happened to Yasmina, who completely fell apart once her business acumen was exposed.  In my experience, a candidate or even just a human being, who is able to admit to their flaws, learn to overcome them and then rise above them, presents themselves as a stronger and more rounded individual than someone who seems to be the perfect candidate. This is because you know what to expect with the ‘warts and all’ character, whilst you are always waiting for the veil to slip with the perfect character.

It was also quite admirable how none of the candidates lost their bottle in any of the interviews. Although this was the final series and you’d expect candidates of this quality to give polished interviews, they were really tested. In that environment, it is hard not to take some of the critiscim personally. For me, that quality, combined with the propensity to learn from an experience can really shape a person.

Lastly, who do I think is going to win? It’s got to be Kate. Who did I hope to win? Debra. I think Sir Alan didn’t pick her purely because he realised he had met his match!

The year of the experts

Image by Getty Images via Daylife

I’m not going to beat around the bush. I may call myself an IT consultant, but really I’m a sales person. ALL consultants are sales people. In whatever guise they wrap up their advice, they are essentially selling their clients their opinion. And the most effective consultants are the ones who are the best sales people. However, this is not a bad thing. Too many times I hear friends, family and colleagues whine about being sold too on the phone, via TV adverts and over the internet. That’s the mark of a bad sales person. If your client knows he’s being sold too, you’re no longer a consultant.

So what’s the difference between a sales person and a consultant? In my humble opinion, the clue is in the title. Consultants consult with their clients. They find out what problems they’re having. They understand how that is effecting their business. Then on the back of this, they recommend a solution, either theirs or someone else’s, that they are confident will resolve the issue at hand.

This is all common knowledge. However, one thing that distinguishes good consultants from great consultants is the fact that some pursue clients, while others attract them. And the reason? Because the latter are perceived to be experts within their field of knowledge. Think about it. When was the last time you received unsolicited communication from a lawyer or solicitor? Usually, lawyers and solicitors position themselves as experts within their field of knowledge to attract the bulk of their clientele. I’m not saying they don’t advertise, but I’m sure in your day to day life you will see more adverts for second hand cars and double glazing than you will see for law firms.

So how do we position ourselves as an expert within our field? First off, here comes the mandatory disclaimer! I’m no expert and am always on the lookout for people who have techniques that I can try. However, I have already learnt a lot about self marketing and positioning to have picked up a few tips that stand me in good stead.

1) You will very rarely find an expert who is anything but wholly confident about the information they are giving. Whether it is derived from their own research, or from learned colleagues/mentors, the majority of experts exude confidence when they communicate with others. So I guess my tip would be BE CONFIDENT when talking to potential clients. Whether this means learning back to front the technical aspects of what you are talking about, or whether through various visualisation techniques and self empowerment methods you become more self confident as a person. The end results will be your clientele will have more respect and assurance  in you and your opinions.

2) Once you are confident in your self and your offering, network. Network like mad! Pick up the phone, go to trade shows, participate in online discussions, go to relevant seminars. The more visibility you give yourselves, the more people will start to recognise you. And if you are constantly doing the rounds  at various shows, the more expertise they assume you have taken in. If you know how to network (and to be honest, I’m still learning…) then this skill is invaluable, as the more influential people you can attract into your mastermind group, the better. This will give you the benefit of having a rich source of knowledge to tap into when you need it most. In some circumstances, this can also act as an accreditation for some clients to validate you by.

3) Never ever stop learning. EVER. It’s all well and good going out to lunch with big executives, but if you do not know what policies have recently been implemented within your industry, or do no know the recent movers and shakers within your vertical, then you will only look out of your depth. This is NOT a good look. Confidence and networking can only take you so far. If you don’t know about the bigger picture, then you need to learn and QUICKLY. And if you’re one of those big executives who think they’ve learned everything there is to learn within their sector, as Jay Abraham so eloquently puts it, “you’re probably losing business and don’t even know it!” In a nutshell, if you think you’ve learnt everything about your product, learn everything about your clients. Or learn everything about your industry. Or learn everything about your competitors. Or learn everything about your governing body. Or learn everything about successful consultants. I cannot stress this point enough.

There are many many more ways in which you can become an expert within your field. I have only highlighted the 3 main ways in that I have used in my industry. Is it working? Only time will tell! However, one thing that I am sure about is that in this downturn, many more consumers will be nervous about parting with their money. If you are able to offer them unbiased, qualified advice, they will be a lot more susceptible to following you and your opinions.

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Why it is important to vet everyone you deal with

If there is one thing that this economic crisis has taught me, it is that it is VITALLY important to conduct a thorough process of due diligence on any company you plan on doing business with. Professionally every client we consult with goes through an extensive credit check before we agree to deal with them. Once this process is conducted, we make sure they agree to our terms of 30 days with NO EXCEPTIONS. This may put some big corporations‘ noses out of joint, but if the likes of Lehman Brothers can disappear, then no one is safe.

However, it is personally where I have been left surprised, and consequently learnt the biggest lessons. There are two companies in paticular that I have been looking at dealing with for two individual reasons.

1) I have always had more than a passing intrigue into the property market, and have been looking at differing ways to make a passive income through land and property. One method of which interested me was making money on the purchase by buying below value, mainly through off-plan purchases, and one comapny who specialised in these purchases was Inside Track. Inside Track claimed to be a multi-national organisation with the financial muscle and expertise to be able to negotiate big discounts from major property groups worldwide. These discounts they then passed on to their clients. All sounded good. The fact that their adverts were literally everywhere made me think that there was no harm in attending a free seminar. I did, and I’m glad I did. They rolled out what I now realise to be the standard slick knowledgeable senior salesman, who answered all questions thrown at him like a politician with a dark secret. But he had people convinced to part with their money there and then. I was not one of them, and decided to look around a bit more, but subscribe to their newsletter to understand more. I also kept in touch with a few people that I met at the seminar, who bought into the promise to become wealthy through property investment. To cut a long story short, as we know, Inside Track are no more, and these people have lost thousands, and are still waiting for their money back from the administrators.

2) The second company that I came across was New Star Asset Management, a newly created ’stellar’ fund management company. Their adverts claimed that they had the best performing retail fund managers within the industry and despite their various disclaimers and risk warnings, their website displayed an air of confidence on their ability to obtain a return on your investment. Now I must stress here that my due diligence witih New Star essentially consisted of talking to a few people I know who invested money with New Star in various retail funds. Just as a status update, New star are currently suspending trading on their much lauded Heart of Africa fund, whilst struggling to keep their vastly under performing ’stars’ from walking out on them.

The main point of this is not to rant against the mis-fortune of two major companies within their respective sectors, but to highlight a common theme between them. The main reason how I came across both companies was through adverts. Both companies posted big billboards on motorways, took out flashy ads in the FT and various money magazines and basically plastered their brand on most surfaces guaranteed to be looked upon by people like me who have little knowledge of their respective industries. I have learnt that the more a company advertises, the less credible it becomes.  If I want to do business with someone, I want to do business with an expert in their field. If someone is advertising everywhere, it screams desperation. With hindsight, both Inside Track and New Star had business models which seemed to consist of building a list to make a decent return. Unfortunately the downturn in the economy found both these companies wanting. In my next blog, I will talk a little about positioning yourself as an expert, as then and only then can you really start to attract clients, as opposed to chasing them and consequently seeming desperate.

I hope you have a great Christmas!

How to survive a recession…

I came across a very useful article by the team at Mashable on how to market yourself during an economic downturn.

It delves into the usefulness of using self development to empower yourself, making you look more attractvie to your client base. This I feel is a key attribute, as many buyers will not only be focused on cost, but also value. Everyone wants more for less, and, as Eben Pagan says, if you can move the ‘free line’ and add exponential value to your offering, you will immediately make yourself seem a more attractive proposition within your industry.

The change in our economy

When I was younger, it was considered the ‘done thing to do’ to go to school and work hard to get a good education to make yourself as attractive as possible for big companies to come and sweep you off your feet. I often remember my teachers preaching to me about how I would need to go to Uni to do a graduate placement with a major organisation so I could guarantee myself financial security for my adulthood. Fast forward 10 years and not even the bigger companies are safe from the turmoil enveloping our economy.

I was fairly lucky in that my dad realised the values of playing the big corporations at their own game, in that he worked for them, worked his way up, learnt as much as he thought necessary and then setup on his own. Now although this was still considered risky back then, there is no doubt that in this day and age, there are numerous benefits to be had, due to the advent of technology available to us. When he setup, he had to leave the security of a well paid job just to gain the knowledge and put together the processes that would last a decade. Now, with the internet, it is possible to passively put the seeds in place to flower into something that can subtly compliment your regular income.

So when did all this change and how? Well there’s no doubt that the advent of the Internet sped up the process. More people were able to find knowledge, funding, clients and expertise within their field to set-up-shop and create a business. Due to the lack of bureaucracy, these companies are more flexible and dynamic, as they are driven by a passionate management group, as opposed to a board sucking out more than they put in. And in this current climate, a company that is driven, dynamic and flexible will stand a lot more chance of weathering the current storm., however long it lasts.

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Coaching and Chris Howard

I’ve just recovered from this weekend to be able to tell you what I was doing…..and surprisingly the hangover was NOT alcohol induced! But first, let me give you a bit of background

Introducing……….me!

First and foremost, a big welcome to my little blog

. My hopes for this space are to chart the rise and fall throughout the business world of a young wanna-be businessman.