Welcome to the first edition of The Current, an e-newsletter from Lakeshore Advantage.  Our goal is to deliver knowledge & resources of value to the business leaders of today and tomorrow.  We are intentionally writing a newsletter that is short on activity updates, but instead, long on business value.  We promise you will learn something in each issue.

We hope you enjoy the first issue of The Current, and we welcome your feedback.

Thank you for your involvement and support of Lakeshore Advantage.  

Not familiar with www.YouTube.com ? Frankly, neither was I, but I was determined to learn more about this phenomenon after reading that a 67-employee company sold for $1.65 Billion. That was enough to capture my attention, and I suspect yours as well.

A quick visit to the site suggests that allowing anyone to place anything on the website leads to 90% useless, though often entertaining, information. However, with 100 million videos watched each day and 20 million unique visitors each month, even if only 10% of the information is useful, that 10% represents 2 million potential customers. Which got me thinking—how can our community and our businesses use YouTube.com to our advantage?

To begin, the basic premise of YouTube.com is to provide a web portal for unique video clips to be shared with the world. Anyone with a video camera and a computer can play. Of course, the usual shock video clips are in full force, including multiple post-tornado destruction, kids skateboarding down flights of stairs, college students burning couches after the big game and 66 different videos of "office chair racing"—everyone is seeking their 15 minutes of fame.

Communities are beginning to take notice and are seeking ways to capitalize on essentially free exposure. The Austin, Texas, community is using it to promote it’s self-proclaimed "Live Music Capital of the World" position. Others feature their downtowns, schools and beaches. Our communities have not yet fully tapped this resource, but we are quickly moving in this direction.

From a business standpoint, the medium is still evolving, I suspect much in the way company websites evolved in the mid-1990’s. YouTube is dominated by young teenagers and college kids; businesses targeting that market are clearly using YouTube as way to connect to their customers. Forward thinking companies are finding ways to introduce their products to that market, understanding that teenage users of YouTube will become 20- and 30-something users of YouTube. Much like the internet as a whole has evolved into a more business-oriented environment, YouTube can be expected to go through the same degree of maturation. As you might expect, Apple is a leading user of the video website. Apple developed a short video to introduce it’s iPhone to the public; the video was placed on YouTube months in advance of its summer launch and already has been viewed by 3 million users.

If a leading company like Apple is deriving value from YouTube.com, all of us need to consider the opportunity. Could your machine shop showcase its expertise to customers around the world? Could Lakeshore Advantage develop marketing clips that highlight our region’s technical expertise, training resources, and overall quality of life? Can our businesses promote office chairs instead of "office chair racing?" Take a look and find an opportunity for your company.

One of my favorite functions at Lakeshore Advantage is having the chance to meet with area business owners. I get a rare opportunity to have discussions about what drives their business forward. Recently during a panel discussion with three local business owners, I was reminded about some of the basics of running a successful company. I find that the best advice often contains the simple things that we somehow tend to forget. Here are a few ideas and advice that I picked up on that I feel is worth passing on.

 

You must please the customer. Listen to what your customer is saying and give the customer what he wants. If the needs change, be ready to change with them. They are in charge and it is your job to accommodate them.

 

Address their needs not yours. If your customer comments on a concern with your product or service, take it seriously. Be willing to react quickly and make adjustments to your process if it means keeping them happy. Better yet, innovate for the customer. Find a way to add value for them. Quality products, on time delivery, a competitive price are value givens, not value adds in today’s world. Be proactively looking for solutions to improve their results. The only way to maintain a long term customer today is to be looking one step ahead. Anticipate your customer’s needs and provide solutions that will increase their process or profitability.

 

Do not become a commodity. If your only value to your customer is being a low cost provider, do not count on that to be long term business. What is going to stop the customer from pulling out and finding the next lowest price? If you add no value beyond a cheap price you are not really building a relationship or gaining loyalty from your customer. Find a way to offer something beyond a price.

 

We are all self employed. There has been a shift in expectation from the employer to the employee to provide the means of success. The days of mindlessly punching the clock, collecting your pay, and counting on a pension to take care of you when you retire are over. For business to survive they need their people to be actively engaged in developing new ideas, finding ways to be more efficient, watching market trends, and continuously improving their skills. It is now the employee’s duty to look after the well being of the business. Otherwise it may not be there tomorrow.

 

Cash flow is to business like breathing is to people. It is a must; an absolute necessity. If cash is not managed properly, even a profitable company can be brought to its knees. Knowing the ebb and flow of inventory, accounts receivable, accounts payable, and necessary expenditures is essential. What does it take to survive in business today? According to the panel of business owners it is perseverance, preparation, networking, and luck. At first glance the first three thoughts are reasonable, but the third seems out of place. It is easy to discount luck because most people view it as something that is out of their control. People think luck randomly descends from the sky. I disagree. I see luck as something that is in our control. We may not be able to direct when it happens, but we do control how it happens. We make ourselves candidates for luck through our actions. An ancient roman philosopher summed it up best: "Luck is what happens when preparation meets opportunity." In this line of thinking luck is actually an element of the first three principles. Luck is created by being prepared; sticking with well drawn plans, networking with others, and keeping your eyes open for new opportunities. None of these ideas are groundbreaking discoveries.

 

These are just basic principles to keep at the top of your mind every day. Pleasing the customer, addressing their needs, innovating for them, adding value beyond price can only increase your chances of success. Of course a little luck does not hurt either; go out and earn some.

Recently, while watching The Wizard of Oz with my son for the "umpteenth" time, I had a revelation. This classic movie is not only about a young girl who finally realizes that "there is no place like home"; it’s about Entrepreneurship!

You are skipping along the" yellow brick road" of life, pondering the many possibilities of your future, when you suddenly think of a fabulous idea! An idea that is sure to take the world by storm and make you tons of money. Quite pleased with yourself, you continue down the path contemplating your next move when you are abruptly stopped in your tracks by the Tin Man.

The Tin Man wants a heart. He wants to feel love, embrace life, and have passion. Having love and passion for what you do will give you the drive and motivation to keep moving forward. The Tin Man knows, without these things, one can never be truly successful. You embrace the Tin Man’s ideals and continue down the path. While daydreaming about your fabulous idea and your future success, you encounter the Scarecrow.

The Scarecrow is a happy go lucky guy, but he knows that he would be so much better off if "he only had a brain". He realizes that you need an education, critical thinking skills and expertise in your field to stay ahead of the competition. The Scarecrow is right and you vow to become the guru of your fabulous idea.

Excited by the possibilities, you begin to pick up your pace. While racing down the path with your adrenaline pumping, your are rudely interrupted by the Cowardly Lion. The Lion tries to put on a ferocious front, but he is truly a wimp. The Lion wants to find courage. You realize that you will also need courage to face the many risks of starting a new business.

As you continue down the path, reflecting on your encounter with the Cowardly Lion, you bump into the villainous Wicked Witch and her pesky flying monkeys. Both are a representation of the many challenges that you will face in your endeavor. With your new found courage, you easily overcome these obstacles.

By now, you are feeling pretty confident. You are passionate about your idea, an expert in your field, and are ready to face the challenges that lie ahead. Even with all of these factors in place, you will still need help. Nobody can conquer the world all alone. Thankfully you run into The Good Witch and the Munchkins. The Good Witch and the Munchkins are your network. Your network consists of the people that you meet along your journey who will share their ideas, information, contacts and resources with you. Every successful entrepreneur needs a strong network.

Everything is falling into place, but you realize that you still have many unanswered questions. The Good Witch recommends that you go and see the Wizard. The Wizard knows all. You take the Good Witch’s advice and you find the Wizard. Shockingly, the Wizard challenges you. He counteracts all of your great ideas with words of despair. You are upset by this and more than slightly insulted. Then you realize that this is a good thing. The Wizard has been in your shoes and knows what can go wrong. It is necessary to look at all possible outcomes. The Wizard is your mentor. He will give you guidance on your entrepreneurial journey.

You have come to the end of the yellow brick road. Embracing all of the characteristics and traits of being a successful entrepreneur, you are ready to start your business. You then ask, "where?" No need to go searching "somewhere over the rainbow". The perfect place to start your new business is right here on the Lakeshore! Where else will you find such a great cost of living and top-notch talent? Beautiful neighborhoods, lakes, beaches, and the finest schools? Family and friends to support your efforts? Dorothy was right, "there is no place like home".