Sound bites for small business success

Published in Business on 21 September 2011 by Karen Leland

If you think sound bites are just for movie stars, politicians and the pundits you see on TV, think again. In today’s get-to-the-point-centric world, your small business spin has power.

I was reminded of the importance of this during a coaching session I had last week with a group of women entrepreneurs.

As each business owner was going around the table telling us what their companies did, I noticed that some of the stories just went “clunk” — in a good way. I got an instant idea of the business these people were in and how it might help me or someone else. Others, however, were more vague and rambling in their descriptions — or just plain boring and run of the mill.

Being able to distill who you are and what your business offers down to a single scintillating sentence (or two) — in other words, a sound bite — has practical applications, not just at a cocktail party but in the online universe.

For more enlightenment on this topic, I interviewed sound bite expert and media coach Susan Harrow.
“The problem that most small businesses have isn’t that they don’t have enough to say about what they do,” says Harrow. “It’s that they have too much to say.”

Harrow says that well-crafted small business sound bites are nothing like normal conversation and are in fact a whole different kind of speaking process. She likens them to the way language is used in novels and film.

“What makes great dialogue in movies and books is that it’s a highly condensed version of conversation that resonates. In just a few words, the language has more meaning than simply what is being said. There are layers beneath that show a bigger story,” says Harrow.

Harrow suggests creating small business sound bites that connect with your ideal audience by crafting a variety that cover the following areas:

Story: Kristen Scheurlein left a multi-million-dollar business as a graphic designer to become what she calls The Blanket Lady.

“I didn’t want to become an entrepreneur, but it’s in my blood. My grandfather was a shoemaker. In the Depression, he saw that many people couldn’t afford shoes. He traded chickens for shoes to make sure that none of the children in the village went shoeless. I didn’t realize that I was following in his footsteps when I began my business, which will become a complete non-profit in five years, but I am. We give away blankets to churches, charities, homeless. In essence, I’m trading chickens for shoes.”

Statistic: In 1999, the Institute of Medicine estimated that between 44,000 and 98,000 Americans die each year as a result of medical errors.

Fact: “I did not have three thousand pairs of shoes; I had one thousand and sixty.” Imelda Marcos

Vignette: Laura Bell Bundy, who is starring in the musical “Legally Blonde,” said in an interview, “There’s some really hilarious things that happen on stage with the cast. I lost my shoe once in the middle of a number. It flew out into the audience, and I kicked the other one off and ended the show in bare feet. I love when things like that happen. I love when things go wrong.”

Anecdote: “When a man says ‘no,’ it is the end of a conversation. When a woman says ‘no,’ it is the beginning of a negotiation.” Gavin De Becker

Analogy: Speaking in sound bite is like taking the novel “War and Peace” and turning it into haiku poetry.

Aphorism: “In the business world, the rearview mirror is always clearer than the windshield.” Warren Buffett

Acronym: F.A.S.T. equals Fix American Schools Today

The trick is to pepper these into the conversations you have with potential clients, media or anyone else you want to have a powerful experience of your business. This can happen at meetings, conferences, interviews, lunches, online and just about anywhere you talk about what you do.

“I have one client who was standing in line waiting to buy an iPad 2 when she spoke about her small business in sound bites to the person in front of her in line,” says Harrow. “As a result, she sold over 200 books and closed a speaking engagement.”

What is your small business sound bite? We would love to hear your comments.

Karen Leland is a freelance journalist, best-selling author and president of Sterling Marketing Group, where she helps businesses negotiate the wired world of today’s media landscape — social and otherwise.

Eeeeks, what's going on?

John Carran, Senior Economist at Gareth Morgan Investments

August was the worst month in markets since the credit crisis... we’re now mid way through September. We ask John Carran, Senior Economist at GMI, if things are looking any better—or worse—for global markets.

What has happened in Europe in the last month to stir the debt crisis back up again?

In the past month three key developments have heightened the focus of markets on the Eurozone¹ debt crisis.

First, attention has shifted to the high levels of debt in Italy and Spain and the inadequate efforts authorities in those countries are making to close large fiscal deficit. If these countries get into serious trouble they will be too big for the Eurozone to save.

Second, it is apparent that Greece is not doing enough cost cutting to meet the tough targets set by the Eurozone and the International Monetary Fund (IMF) to continue qualifying for financial aid. There is increasing doubt that Greece will get more help, which raises the chances that it will plunge into a messy default.

Third, concerns are increasing that the European banks, which are large holders of troubled sovereign debt, are running into serious liquidity and capital problems.

Alongside these developments Eurozone politicians have been making conflicting statements about the crisis and appear to have no clear plans for resolving it, exacerbating uncertainty in markets.

Is anything happening that might prevent further problems?

Recently the leaders of Germany and France expressed their commitment to keeping Greece in the Eurozone. This slightly eased the rampant speculation about whether this would be the case.

The most significant action recently was an announcement from the European Central Bank (ECB) that it would coordinate with other large central banks, including the US Federal Reserve, to provide substantial liquidity to the global banking system. This eased bank funding pressure and led to a rally in stock markets.

The extra liquidity provided to the financial system is a stop-gap measure. Markets are nervously awaiting two key pieces of information over coming weeks that could set their direction. First, in early October the ECB and IMF will decide whether to disburse another instalment of bailout funding to Greece. If this does not go ahead there will likely be panic in markets. Second, Eurozone countries will make decisions on whether to expand a central fund and give it additional powers to recapitalise banks and buy Eurozone members’ bonds. Markets are hoping for better clarity in this area so they can see a path toward stabilisation of the crisis.

What do you think is the most likely outcome?

It is very difficult to predict what European politicians will do. The consequences of not doing something to deal effectively with the sovereign debt crisis are so disastrous that I tend to think they will have to announce a major plan sometime soon. I suspect that behind the scenes authorities are preparing a plan for massive recapitalisation of the Eurozone banking system, together with a programme of buying the bonds of troubled Eurozone countries like Portugal, Italy and Spain. Announcement of this plan will probably precede an attempt to engineer an orderly default on Greek debt. This may be announced early next year. However, the politics of the situation are at the moment so acrimonious and fragmented that risks of an disorderly and ineffectual response are high.

What do you think the impact will be on investors?

Markets will react positively if Eurozone politicians get their act together and put together a credible plan for dealing with the debt crisis. However, I wouldn’t expect markets to take off on a searing recovery, because the growth outlooks in Europe and the US will continue to be weak, perhaps for two to three years.

The European banking system could be in dire difficulty if the Eurozone crisis continues to muddle along and no credible plan emerges to deal with it. Under this scenario bank credit would be constricted globally and demand for goods and services in Europe would be severely constrained. This would flow on to many other countries around the world, and market sentiment would undoubtedly turn extremely gloomy.It would not be a good time for investors, and solace will no doubt be sought in safe investments such as cash and gold.

With the debt ceiling being raised in the US will growth return in the foreseeable future?

Resolution of the debt ceiling debacle in the US lifted one needless source of uncertainty from markets. Nevertheless, uncertainty remains about US economic prospects. Recent indications are that the US economy is experiencing very slow recovery. With households and government hunkering down to reduce excessive levels of debt, there is little chance of a quick turnaround in economic prospects.

Hovering over US prospects is the Eurozone crisis, which, if it turns out badly, will dampen activity from the already low levels expected. Our expectation is that growth will return to the US over the next year, but at a very modest pace.

So are things getting better or worse?

There’s no definitive answer to that. The risk of a significant deterioration in the US economy has eased slightly – we do not expect a double-dip recession there. But a fair degree of uncertainty remains and is likely to persist as long as the Euro situation remains unclear.

September 21st 2011

How fun was this weekends rugby???

Pretty fun by the look on Cory Jane and Israel Daggs face! The All Blacks certainly looked like they enjoyed their 37-17 victory against France at Eden Park on Saturday.

In the end France had no answer to the black wave that engulfed them.

The All Blacks 37-17 win was as impressive as it was complete as they unleashed four years of pent up frustration to put their World Cup rivals on notice.

"This is our house," might have been the sentiment of the hosts after turning their Auckland's fortress into a playground for backs like Israel Dagg, Cory Jane and Sonny Bill Williams.

They ran in five tries to two to end any debate about which side of the draw they will now follow and fittingly honour captain Richie McCaw's 100th match.

This was not so much revenge for what happened in Cardiff as confirmation that All Blacks are on the right track and that France will likely meet England in their quarterfinal.

It seemed symbolic that Dagg confirmed his pedigree at the highest level, stepping snuggly into Mils Muliaina's shoes.

It was not so much the two tries Dagg scored, as the assured way in which he defused bombs and saved the day when Dimitri Yachvili's early drop goal hit the post.

In between times he ran with youthful intent, part of a back three that repaid the selector's faith.

There was a brutal intent in the way the All Blacks soaked up early French pressure, then calmly turned the screws in the other direction. The way they rode out lulls during both halves to reassert field position and take points.

Dan Carter's late drop goal springs to mind, coming moments after he had punted the All Blacks 65 metres to the opposition goal line despite a healthy 29-10 lead.

Helter-skelter played second-fiddle to structure and coach Graham Henry will have smiled at the fact all three first half tries, were constructed from Sam Whitelock lineout wins.

It was a finals footy template marred only by a loose Carter pass that gifted Maxime Mermoz a second half intercept and a leg injury that saw No 8 Adam Thomson limp off with nine minutes to play.

Those who thought France would not be interested were wrong and they threw plenty into the first 10 minutes and were still pushing when replacmenet Francois Trinh-Duc scored with a few minutes to play.

But they simply couldn't match the All Blacks' physicality, particularly at the breakdown, where Thomson picked his moments well in the first half.

One tackle the All Blacks would commit nobody, then the next there would be two and three men piling in to win turnovers or penalties from referee Alain Rolland.

McCaw and Jerome Kaino ran hard, Brad Thorn and Keven Mealamu put their shoulders into their work and Piri Weepu sniped away behind the scrum.

The result was effectively decided after 21 minutes with tries to Thomson, Jane and Dagg clocking up a 19-0 lead.

All three came from Whitelock lineout wins, and the ability of the backs to manipulate their opposites.

Toby Robson Stuff.co.nz

HOME SWEET HOME? The attraction of rental investments is building.

Today the Sunday Star-Times launches a new tool to help residential property investors. The Sunday Star-Times Residential Yield Monitor will provide investors with a yield benchmark for 38 locations throughout the country, from Whangarei to Invercargill.

Yield is the amount a year's rent would provide to an investor expressed as a percentage of the property's purchase price or valuation.

The Monitor will be published monthly to help investors understand how movements in rents and property prices in particular areas are affecting the attractiveness of residential property as an investment.

Using a yield figure also allows investors to compare the returns they could get from a property against those provided by other types of investments, such as shares or bank deposits.

The Sunday Star-Times will also publish an accompanying commentary each month (see below) which explains the reasons for any significant movements.

Several factors can influence a movement in yields, for example, a rise could be caused by rents rising faster than property values, suggesting it may be a good time to buy an investment property.

The yield figure is based on the REINZ's median selling price for each area and the median rents for one, two, three and four-bedroom properties which are let in the corresponding area. The median rents are calculated according to the number of each type of property rented that month, to produce a weighted average.

Because the sales price figures are collected at the time a sale and purchase agreement becomes unconditional, and the rental figures are collated when bonds are forwarded to the Department of Building and Housing, the yield figures in the Monitor should respond quickly to changes in property prices or rents in each area, making it a leading edge indicator of movements in the market.

The Monitor records gross yields, which make no allowance for the effect of tax and vacancy levels on investment returns, or expenses such as rates, insurance, maintenance and finance costs, which investors must factor in to their calculations.

RENTALS REGAIN ROSY GLOW

Residential property is once again starting to look attractive to investors, as yields rise and interest rates remain low.

The Sunday Star-Times Residential Yield Monitor, published for the first time today, compares indicative yields (the gross investment return provided by a property's annual rental income) in 38 areas of the country where there is significant rental activity.

The monitor compares the yields achieved last month with those at the height of the last property boom, in August 2006.

It shows that yields have improved in 31 of those areas, declined in six and stayed the same in one.

Some of the strongest yield growth was in provincial cities such as Rotorua, where the yield increased from 4.7% to 6.1%, although good gains were also posted in many parts of Auckland and Wellington.

In Christchurch, the picture was a mixed bag due to the effect the earthquakes have had on the city's property market. Yields were down in some areas, such as the central city suburbs referred to as "inside the four avenues", but up in quake-ravaged Sydenham.

The main driver of improving yields over the past five years has been that rents have risen faster than property prices.

According to the Real Estate Institute, median dwelling prices increased by 14.5% between August 2006 and August 2011 while median rents increased by between 15% and 22.2% over the same period (see chart).

As well as the rise in yields, investors will have benefitted hugely from the dramatic fall in mortgage interest rates over the past five years.

In August 2006, floating mortgage rates were about 9.55% and two-year fixed rates were around 8.2%.

Last week floating rates were about 5.7% and two-year fixed rates about 6.3%.

For an investor with a $200,000 interest-only mortgage, a reduction in the interest rate from 8.2% to 5.7% would reduce their repayments by $411 a month.

Against that, investors have been facing higher rates and insurance costs and many are also likely to take a hit from new tax rules around depreciation.

Lower interest rates and higher yields also made property look relatively more attractive as an investment option when compared with term deposits.

Auckland Property Investors' Association president David Whitburn said many investors who had sat on the sidelines of the residential property market during the recession were now showing renewed interest in the market, attracted by the rising yields.

Many had been holding off in anticipation of the Reserve Bank raising interest rates but that had not eventuated, he said.

- Sunday Star Times

We don't know how lucky we are!

John Curran, Senior Economist for Infometrics

I was speaking to a mate of mine
just the other day
A guy called Bruce Bayliss actually
who lives up our way
He's been living in Europe
for the year, more or less
I said "How was Europe, Bruce?"
He says "Fred, it's a mess"

We don't know how lucky we are, mate.
We don't know how lucky we are! – Fred Dagg

John Clarke, aka Fred Dagg, sang this in 1975 just after New Zealand lost its preferential access to the UK market and the OPEC oil crisis had just ended. The circumstances we find ourselves in today are different – earthquakes and a global economic and financial maelstrom – but the sentiments have renewed resonance. We have weathered the storms better than most countries and our prospects are brighter than most. Here are four reasons why.

Reason 1: Our banks are strong

We have a more robust banking system than many developed countries. Our banks mostly stayed clear of the exotic and risky investments of other rich countries, sticking instead to more plain vanilla services. They were certainly not induced by government policies to lend to borrowers with highly dubious repayment prospects, as banks in the US were for example. The ownership of our big banks by large well-capitalised Australian banks was also to our advantage, providing credibility and support at a time that such attributes were gold in the financial industry. Kudos must also go to New Zealand’s banking supervision arrangements, which have encouraged banks to be transparent and prudent.

Reason 2: We have low government debt

Government debt is currently around 30% of GDP compared to 70% of GDP in the US and an average of over 85% of GDP among European countries that have the Euro as their currency. Since the early 1990s New Zealand governments of both main political persuasions have sensibly reduced public indebtedness to provide a buffer against adverse circumstances. As a consequence the government has been able to respond to the Canterbury earthquake and invest substantially in road infrastructure at the same time as the economy weakened. Hard choices still need to be made to ensure debt does not spiral upward in the future, especially as our population ages. But the public spending and tax choices are not quite as urgent or stark as they are in, say, Europe.

Reason 3: We have a flexible economy

Our relatively flexible economy and, in particular, flexible labour market have helped us cope with the economic downturn without the large rises in unemployment experienced in many other western economies. New Zealand’s unemployment rate rose from a low of around 3.5% in December 2007 to reach 7% in December 2009. It has now fallen back to 6.5%. Compare this rate to the 9.1% unemployment rate still persisting in the US and 9.4% average in the European Union. In the darkest hours of the recession many New Zealand employers chose to moderate the wages and working hours of their employees rather than lay them off. Labour regulations make it much more difficult for French or German or Greek or Spanish employers to follow the same approach, their primary option generally being to fire staff.

Reason 4: Australia and China are our mates

We are well and truly hitched to the Chinese and Australian economies. China is the global economy’s salvation. China purchases around 13% of New Zealand’s exports by value, which makes it our second largest export market after Australia. This share has remarkably risen from only 3% in 2000. The fact is people in China are developing quite a liking for our dairy, meat and horticultural products.

Australia is more connected to China than New Zealand and is a star amongst developed economies. It is by far our largest trading partner, and we are highly integrated with its market through CER and increasingly harmonised trans-Tasman regulations. Much is made by some of the threat Australia poses to New Zealand’s economy as firms and workers dive across the Tasman to be where the money and action is. But the opportunities presented to us by Australia’s good performance outweigh the threats.

It is not all sweetness and light. Our export markets in the US and Europe will be tortured for years by the need to reduce public debt and sort out crippled banks. There are challenges to face in our own economy such as how to deal with our aging population and improve our productivity. Some reckon that private debt is too high and we don’t save enough. We hear plenty from various commentators and analysts about our problems. But our circumstances are not too bad, all things considered. So let’s take a cue from Fred:

So if things are looking really bad
you're thinking of givin' it away
Remember New Zealand's a cracker…

We don't know how lucky we are, mate.
We don't know how lucky we are!

Published in the Dominion Post 2 September 2011

River Run Series

The Riverrun Trail Series will allow competitors to explore four of the region’s recently developed tracks – the Hawea River Track, the Clutha River Track, the Damper Bay/Waterfall Creek Track and the Outlet Track. The tracks are all lakeside or riverside and all are challenging in their own respects and will provide a memorable experience for athletes, from first timers to experienced runners.

The Riverrun Trail Series begins October 2011 and concludes in May 2012 with four races making up the series. There are prizes for place getters and plenty of spot prizes to ensure everyone’s in with a chance of winning.

Fun for summer and an even slightly cruisier than the Challenge!

A cool Bank in Paris....

Created by Paris-based architects, Zoevox, for BNP Paribas, this space has been designed in ten zones that dispel the traditional banking set-up where the client and teller are separated by deep counters and screens.

With a honeycomb ceiling, 25 square-metre living wall, coffee bar and exhibition area dedicated to kids, you'd happily cop a long queue from a bank like this!

February 18, 2011 - New & Cool Architecture by Clare Hillier

Wanakafest

Wanakafest 2011 is a spring festival that celebrates life in Wanaka! Wanakafest 2011 is on Labour Weekend and will be bigger than ever! During the 4 days of Wanakafest, Lake Wanaka comes alive with a fashion show, food and wine fest, music, entertainment, moviefest, downhill mt. bike race, parade, and so much more. Last year the wine and food fest was a huge success and this year’s event will be bigger and have the same festive atmosphere. All events will be detailed on the www.wanakafest.co.nz website and it will be updated as we get closer to Wanakafest!

Investit

It's like an online auction for your money. Our unique Investment Auction lets New Zealand investment providers bid competitively for your investment - so you know you’ve got the best deal.

After comparing rates and finding your ideal investment you can apply, online, 24/7. If you need a little more time, you can lock in a rate until 10am the next bank working day and complete the application when it's more convenient.

At Investit there are no more long phone calls, confusing forms or hopping from one Investment Provider to another to find the best rate.

We bring you transparent, honest competition - just the way it should be.

www.investit.co.nz

Interest Rate Hike

There will be an interest – and mortgage – rate hike in the near future, say economists. They just cannot agree when.

The central bank has warned they will start increasing the OCR sooner than expected. It is currently 2.5% and the next review takes place on Thursday.

The predictions of 13 economists in the latest mortgagerates.co.nz survey varied widely.

• increase in December 2011....8 of 13
• increase in October 2011........2 of 13
• increase in Quarter 1, 2012....3 of 13

The eight predicting a December OCR increase differed on the amount. Three forecasted it would rise to 2.75%, five to 3%.

Mortgagerates.co.nz publisher Philip Macalister says the wide variation in predictions, including the size and timing of the next OCR increase, shows that there is still a lot of uncertainly in the market.

"One thing that is certain is that as soon as the OCR increases floating rates will rise."

Rate comparison
Public Trust – 5.6% (floating)

SBS – 5.65% (floating)

HBS Bank – 5.65% (floating)

BNZ – 5.50% (offset mortgage)

Kiwibank – 5.59% (offset mortgage)

Westpac – 5.6% (revolving credit) or 6.24% (floating)

Charlotte Woodfield National Business Review

Bye Bye Bronnie!

We are super sad to say good bye to our friend and colleague Bronnie. Bron has been with us for many years of fun, work and play. She has been a huge asset to our team and clients and we will miss her. Wishing you lots of luck and fun Bron!!