Sonia E. Thompson's Blog

Closing the Theory and Practice Gap

I find that in both big businesses and small business, there is often quite a large gap between the theory of how to run a business, and the way in which business really gets run.  This often results in varying degrees of success.  In your business, there’s a theory behind what you practice, whether it is formal theory that is taught in schools about the proper way to complete tasks, or whether it is a theory you come up with on your own from your experience.   No matter where you fall on this spectrum, the two most important things to remember in determining how to be successful in your business are as follows:

• Your customer is king (or queen) - once you discover what their need is, your sole purpose is to figure out how to consistently meet that need better than anyone else.

• Surround yourself with good people - and then treat them well by inspiring, training, empowering, and rewarding them.

If you have figured out how to do these two things really well, the only thing that matters is that you continue to practice them.  If you haven’t quite figured out how to accomplish these two things, it might be time to learn about (and embrace) the theories behind how to do it, so you can start practicing it.  

Running the Business of Your Business #3: Getting An Abundance of Insights

Getting insight into your customers is of critical importance to your ability to be able to meet your their needs.  Often, the way many larger companies gain this customer insight is through conducting formal market research.  Whether via surveys, in depth interviews, or conducting focus groups, learning more about your customer by hearing from them firsthand is invaluable.

One of the drawbacks of conducting formal market research is that it can be expensive.  Don’t have the money to embark on a research study for your business?  Don’t fret.  There are many opportunities for you to capture the insights you need from your customers without having to blow your budget.  Here are just a few ways:

• Have a conversation with them (not an interview, a conversation).  Learn about who they are and what makes them tick.
• Listen to what they say, don’t say, complain about and even gush about (what they’re talking about doesn’t have to be related to your business).
• Pay attention to what they buy, when they buy, and how they buy.  There’s is a ton of information in just their actions.

And as you get great info from your customers, don’t just store it all in your head.  Write it down.  The more people you talk to and engage with, the more information you will be able to gather.  As you review what they’ve told you, eventually you will be able to spot trends.  The more trends you spot, the better you understand what’s behind them, and the better position you will be in to turn it into useful ways to delight your customers.

Running the Business of Your Business - #2

Know your business.  The industry you are in.  The way it works.  Your customers.  Your suppliers.  Your competitors.  They way they work.  What makes you different.  Why your business does or does not work.  Know the business you are in.  That’s how you will be able to stay in the business you are in.

 

Stay Close

Stay close to your customers.  Interact with them.  Get to know them.  Find out what they need.  See the impact of what your business provides for them (hopefully its good).  Then when the going gets tough, remember the specific stories of how your business was able to make a difference.  Those memories will drive you to do more and to plow through those tougher times when you feel like giving up.