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Do nice entrepreneurs finish first?

Values like integrity and honesty could help companies stand out from their competitors.

Jo Duxbury
By Jo Duxbury, founder of strategy agency Peppermint Source.
Johannesburg, 30 Oct 2008

It's extremely rare for a business not to have competitors. Well, in a properly functioning capitalist economy at least. Some businesses might be pioneers at first, but it's usually not long before copycat companies join the fray, in pursuit of market share.

As an entrepreneur, your start-up is most likely competing with some big, established players. How can you convince potential clients and employees to choose you: a small, emerging business with little credibility and track record?

There are some clients who are so risk-averse they're not worth trying to persuade. And there are some employees who value the security of a large corporate employer. For the others, however, there are several things start-ups can do to set themselves apart. Putting operational aspects like pricing and incentives aside for now, it's my opinion that being 'nice' can help entrepreneurs stand out.

Vision, mission, values

Spending time identifying the vision you have for your company, your mission and the values that underpin them is vital. These will probably include 'nice' values like integrity, honesty and fairness. Capture the essence of what you want to achieve and what you stand for. Then make it the star that you navigate by - keep checking back to it to ensure your business is on course. Refer to it when you face difficult decisions.

Share your company's vision, mission and values with your team and get their input on how to implement them consciously in day-to-day interactions, so they permeate everything your company does (Google has done this extremely well). As the founder, CEO or MD, you need to lead this by example. Let your clients know too what your business stands for. Then walk the talk.

I once worked at a communications agency where the company mission was framed in the kitchen. It proudly proclaimed that its staff was the business's most prized asset. Wonderful - but hypocritical considering how appallingly we were treated. Hypocrisy by senior management is expensive - it generally causes high levels of staff turnover and demotivation. And clients are usually pretty wise to it too.

Because they are typically small, it is perhaps easier for start-up businesses to manage the dissemination and practice of their vision and values (although there are many large corporates who do this extremely well too). Some clients prefer to deal with companies and people whose passion for their values is evident - so seeking these clients out can be advantageous.

What makes you special?

The personal touch small companies can offer can be leveraged to give them an edge over larger businesses.

Jo Duxbury is founder of <a href="http://www.freelancentral.co.za/">www.freelancentral.co.za</a>.

Marketers refer to a 'unique selling point' (USP) - the one thing that you do better than anyone else. Identifying your start-up's USP can be tricky (clue: it's not your price or your customer service) but persist until you get it. Consider bringing in a strategy consultant or facilitator to help you clarify what makes your company unique.

Perhaps you do something completely differently from your competitors, or you offer an innovative combination of services. Whatever it is, identify it and then work it! This will shape your elevator pitch and guide you in sales meetings. Being able to explain to clients why you are different (and better) than the competition will make you memorable - and help you succeed.

Be pleasant to deal with

Sounds like a no-brainer, right? OK, can you identify three companies you have dealt with recently where you really remember your interaction with them? Not easy, is it? The personal touch small companies can offer can be leveraged to give them an edge over larger businesses.

There are five simple things I implement in my business to turn all interactions my clients have with my company into pleasant experiences. The best bit is they cost nothing and take just a few seconds:

1 Smile just before you pick up the phone.
The caller will hear it in your voice and it's contagious. How many times have you phoned a company to be greeted by someone who sounds miserable and lacking in energy? It doesn't create a good impression. Smile before you dial too.

2 Be pleased to hear from people.
There's a guy in my network who I love phoning, because when I do, he always sounds so excited to hear from me. It's not just me that generates this effect - he's like that with everyone, because he simply loves working with his clients, collaborators and colleagues. He makes me feel valued and a little of his positive energy rubs off on me each time. It's also very disarming - try sounding super-positive the next time you call Accounts Payable to find out where your late payment is....

3 Be polite.
It's a little sad that in these informal times, being well-mannered, respectful and considerate can really make you stand out. You can still be polite and friendly - it's not about formality. Write your e-mails in full sentences; turn off your cellphone in meetings; and never, ever succumb to distractions (incoming e-mail, SMSes or other calls) when you're on the phone to a client. It's quite shocking that, when confronted with an unhappy client, many companies today become aggressive or defensive. In my business, if a client is unhappy, I will do everything within reason to turn it around. Not that customers are always right, but they always deserve to be listened to - and your showing concern that they are upset goes a long way.

4 Keep your promises.
And don't make ones you can't or have no intention of keeping. If you say you'll call back tomorrow, then call back - even if it's to say you've not yet been able to sort things out. Saying something and then doing something else smacks of unreliability and will do nothing for your credibility or image. Your clients should never have to chase you for answers - you should be pre-empting their needs. Never leave them hanging.

5 Thank and acknowledge.
I have a policy of always acknowledging e-mails from clients, even if it is to let them know that I can't respond now, but will do by [date/time]. It's reassuring to know your message has been received and is being dealt with. I also make sure I thank clients for prompt payment, for sending me something I requested or for signing up on my site. I am grateful they put business my way and I tell them so. Don't we all like to be appreciated?

Do you agree that in business, nice guys can finish first? How have you managed to get your business to stand out from the crowd? I'd love to hear your ideas - please share your comments below.

* Jo Duxbury is founder of www.freelancentral.co.za.

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