~ THE AUTHOR ~
    Michael McCann.
Syndicated columnist and public speaker, editor of BUILDING YOUR BUSINESS.
Presently lives in Austin, Texas.


THE READING ROOM  How to be a success in Your Own Business!


GIVE IT ALL AWAY


Synopsis: It used to be that keeping 'trade secrets' was a wise strategy, even a business necessity. In today's fast-pace, electronic world, this is no longer true!


    One of the most fascinating things about business is the belief that keeping everything a secrets will keep the competition at bay while, at the same time, provide some strategic advantage.

    Here are two examples of this thinking. While developing an internet strategy with a manufacturer of resin tabletops, I discovered that for every design the company brought to market, it developed 10 along the way: the reason being the $55,000 cost associated with manufacturing samples for representatives and designers.

    I pointed out that it costs relatively nothing to put all the designs on the company's Web site, which would give designers more options.

    The answer to my suggestion was a categorical "no." Because of this company's market leadership, many competitors copy the company's designs to save design costs. If all the designs are put online, even using a password-protected Extranet, the competition will eventually steal the designs and go into production. Secret designs don't do the company any good. The competition doesn't know about them, but neither do the designers who specify the designs.

    The second example is Service related. I recently worked with a consulting firm. Aside from a yearbook (pictures and biographies of the consultants) and customer list, the consultants were stalled as to what to put on their Web site.

    I suggested they put as much information as is necessary to accomplish the initial interview with a prospective customer. The interview includes learning about the customer and then presenting the consulting firm's credentials and methods.

    No way! If the firm's methods were published on the Internet, everyone would steal the methods and become competitors. Worse yet, clients would use the methods and become their own consultants.

    Here's the fascination. If senior management from these companies, or any company, sees the value of setting the pace, being the leader and providing the solutions, their business will flourish. Competition will die. The market will be attracted to them. Why?

    All competitors have costs associated with bringing new products to market, even when there are no design costs. Competitors will consume a great deal of time, energy and cash to stay in the game. Their lines will proliferate and aid to their own demise. The company who offers designs online can build to order since the designs they carry are electronic and the process moves from the PC to the production equipment. The competitors are not electronic in the design area, so each design they copy must move to a production mode for samples to be produced for salespeople. This increases their overhead through increased costs of samples and production.

    In the meanwhile, the leading company trains designers to use their online design support system and reduces or eliminates their own design to market cost.

    The consulting firm that puts its methodology online reduces the time necessary to qualify an inquiry. For consultants, increasing the quality of fewer inquiries is a gift. As a rule, if it is felt that an inquirer's company can afford the consulting fees, the consultant gets on an airplane to establish contact, build a relationship and secure the customer. Only after an initial meeting does the prospect understand if the consulting methods are in line with the company's needs. Let the Internet do the qualification -- not only of the inquiring prospect, but, more importantly, let the prospect qualify working with the consultants.

    This keeps the consultant off the airplane if a prospect doesn't accept the firm's methodology. No time is wasted on a first meeting.

    Fear of intellectual property theft is silly. For anyone to steal another firm's methods and approaches is like wearing someone else's shoes. A business that tries to use another's methods and approaches won't prosper. Customers know when consultants are performing to someone else's tune. As a writer, I learned through time that other people's approaches are not mine. Besides, in the rapidly changing times of today, consultants are constantly rewriting their methods and approaches.

    I also was subject to jumping on an airplane to capture a big opportunity. No more. I give it all away, online, www.comperfect.com. Anyone can find complete customer service and sales articles for their company. The only online inquiries I get are from people who have qualified me.

    Why does giving away everything you do qualify online inquiries? Acknowledgment of capabilities, manufactured goods or consulting services, help you communicate with only the best prospects. In your business dealings, you want to work with people and companies that can fulfill your needs today and again tomorrow.

    Anyone can make resin tabletops if they really want to or apply a consultant's methods to solve their own problems given enough time. Using a capable, competent provider fulfills the needs for tables and organizational change much faster.

    Everyone can do everything, but we don't. We look to those who can get us where we need to go at a price less than it would cost us to get there.

    Giving it all away today creates customers for tomorrow.

Copyright 1998, Michael McCann. Com*Perfect Systems, Inc.



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