Archive for February 10th, 2010

What Business Are You Really In?

Often when I am speaking at events such as our recent ‘Attraction Marketing Seminars’ I will ask the audience what business do they think I am in. Few people are able to clearly identify the business that I am really in.

Many think that I am in the coaching business. While I do coach some clients that is not really the business I am in.

Others think I am in the speaking business. Sure I do seminars and other speaking engagements but I am definitely not in the speaking business.

A number of people have commented that they think I am in the promotion business having held a number of multi-speaker events last year. Nope … thats not the business I am in either.

I’ve been asked if I am in the education or training business. Well sure I provide educational material designed to help you market your business more effectively but again … thats not really the business I am in.

So what business am I really in?

McDonalds is a great example of the business behind the business principle.

So a question for you … what business do you think McDonalds is in?

The average punter might assume they are in the hamburger and fries business … obvious right?

Yes McDoanlds certainly do sell a lot of hamburgers and fries and its easy to assume that this is their end game.

A more intelligent and observant entrepreneur might argue that McDonalds are in the Franchising business. That their real business is to sell Franchises. Lets face it … they have certainly done well at selling franchises but I think there is more to their business than this. After all … there are only so many franchises they can sell right?

A closer look at their business model would reveal that they are in the supply chain business. Their focus is on owning the entire supply chain for all of the goods and services that go into making the burgers and fries. So they own the sugar mills, the cattle ranches for the beef, the flour production … basically they own the entire end to end supply chain for the products being sold by their franchises.

This is a smart business model when you think about it. They have funded their expansion into the supply chain business through the capital injection of each new franchise that opens.

But is this really the business they are in?

I think the real business that McDonalds is in is the REAL ESTATE BUSINESS. Think about it … they own most of the real estate locations where you will find a McDonalds store and they lease it back to the franchisee. They have funded their real estate investment business through the burgers and fries and built a substantial global real estate portfolio.

So what does this have to do with you and your business?

Well I guess the point is this … what business are you really in? The answer to this question, ie the way you define your business, will determine your view of how to run your business and therefore impact on your results.

Most small business owners think they are in the business of doing the thing that they do. So the bookkeeper thinks they are in the bookkeeping business and as a result they spend all of their time doing bookkeeping. The web designer thinks they are in the web design business and as a result they spend all day designing great looking websites.

Now if that is where your thinking is about your business right now thats okay … but know this … if you think you are in the business of doing the thing you do then you don’t really have a business you have a job. This limited view of your business will keep you stuck at a certain income level in your business for one reason … you eventually run out of time.

This type of thinking is often reflected in your marketing approach.

If your entire approach to marketing relies on your manual labour then I have news for you … you will never grow your business beyond your own time constraints.

To move your business to a higher level of success you are going to need to shift your thinking about what business you are really in.

Here is a good starting point from Dan Kennedy … ‘Move your thinking from being in the business of doing the thing you do to being in the business of marketing the thing you do’.

This one shift in how you view the business you are in will free your mind up so that you can start to focus on building a MARKETING SYSTEM that can be automated and leveraged and will continue to work attracting clients to you even when you are not working.

The problem with most small business owners approach to marketing is that the minute you stop with the manual labour of marketing (ie making calls and chasing prospects) your marketing comes to a roaring stop as well.

You can break through the normal growth constraints of business by shifting your thinking about what business you are in. The starting point is the development of your MARKETING SYSTEM. After all … if you had more bookkeeping clients than you can handle right now you could find another bookkeeper to employee to do the work right?

So what business am I really in?

More importantly … what business are you really in?

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