Foreign Perspectives

Archive for the ‘Business’ Category

Although it might sound obvious, you need to ask people to do what you’d like them to do when you send out a marketing e-mail.

It might be obvious but many marketing e-mails are sent out without a clear “buy this” message and even more go out without giving the reader a clear means of actually buying the product. Many newsletters are sent out without containing links to specific products sold by the company sending it out yet it’s one of the easiest ways to pick up easy sales as you’re sending it out to people who’ve asked to be on your mailing list so they’re already interested in your products.

Don’t forget to vary your message too. For example, if you’re sending out a travel related newsletter, pick out upcoming vacations such as Easter and special interest periods like Valentine’s Day. Hallmark spend a LOT of money to produce cards that address every possible situation that you could imagine and you should approach your newsletter with the same originality (or just copy Hallmark!).

However, the most important thing is to ensure that there’s a very clear “buy this” message and a very easy way of a reader doing exactly that.

If you’re considering investing outside your own country whether it be in shares or in property you need to consider the interest rate in that country relative to your own and the echange rate with your own currency.

The two tend to be linked and can rarely be considered totally in isolation. If you consider relatively stable currencies then a higher interest rate will tend to make a currency more valuable and conversely a lower interest rate will tend to make it less so. I say “tend to” because it’s far from a direct link as exchange rates are notoriously fickle: if markets take a view that a currency is overvalued then it’ll go down regardless of how high the interest rates are raised in that country.

However, unless you’re into short term trading it’s largely trends in exchange and interest rates that are important rather than the value that either may have at a given time. In fact, the neither the interest rate nor the exchange rate at a given point really matters a great deal but what you do need to do is to keep an eye on the exchange rate which is, usually, the most important variable when you’re investing outside your own country.

This also affects how you should keep score. Say you’re in the UK and you’re investing in America. In that case you need to measure the performance of your portfolio in dollars, not pounds. To rate the performance in pounds is just going to create a false performance statistic as it’ll be affected by the ups and downs of sterling vs the dollar and those can be quite substantial: in the last 20 years the pound has ranged from around $1 to the pound to over $2 to the pound. Obviously you’ll still measure your bottom line performance in sterling in this case but the performance of the portfolio itself is best charted in dollars.

When you buy a new business you’re keen to make your mark on your purchase and tell everyone you know about it, aren’t you?

Sure, you’re going to tell everyone that you know, but should you tell everyone else too? Should you really tell the customers who may have been loyally buying from the previous owner for many years?

If they have been buying from him/her for many years then the question you have to ask is: what is it about the business that they’ve been “buying”? Is it the charisma of the previous owner, or something that’s part of them that they’ve been buying? If it is, you’d better find out pretty darn quick because you’re going to lose those customers if you can’t replicate the reason for them to come to your business and you best not hang out that “under new management” sign either.

However, if you’ve bought a business which is in need of turning round then that’s quite a different matter. Did the customer base drop away because of something that the previous owner was doing wrong? Was it that the previous owner just put off the customers? In these cases, then, yes, you would want to advertise that the place is under new management as you will want to disassociate yourself from the previous owners as soon as you can.

Think carefully about it though. Once you’ve hung out that “under new management” sign, then it’s too late to go back and try to regain any previous base of loyal customers that the previous owner may have had.

We get a relatively low rate of turnover of the properties listed on our sites but one thing that always amazes me is that the seller never passes on the information about the advertising they’d done to the new owner.

In pretty much all cases that sale is a straight sale of the business so you’d think that the new owner would want to retain the existing customer base yet never once have we been contacted by a new owner wanting to revive the site through changing the contact details to their own, perhaps a new description, or whatever. In fact, in most cases that we follow up the very first thing that the new owners do is to change the name of the business and change all the contact details so they are pretty much guaranteed to lose all the existing customer base.

For the first time today we by chance caught one of the new owners via a general mailshot. Their first thought was to delete the advert rather than simply change the contact details even though the subscription has already been covered by the previous owner.

So, even if you are planning on changing how the business that you’ve just bought operates, do ask about the advertising and try to get a list of places that it’s advertised in. You may find that ongoing advertising has been paid for in advance so you may as well just change the contact details even if you don’t plan to renew it next time around.

One thing that constantly surprises me with the adverts that we get for the listings sites is how poor some of them are.

Whilst most people will write two or three paragraphs to describe their place and some even run to quite extensive descriptions of both their property and the local attractions, others put as little as one sentence on and don’t bother with a photo either.

Now, it’s possible to get some hits with a one sentence description but realistically the number of hits you’ll get with one sentence is tiny as it just isn’t enough for the search engines to work with. And the search engines do matter because even with listings sites, the majority of hits are generally on the pages generated for individual properties rather than the home page of the listings site. Therefore if your entry is very short then you’re going to get a good deal less business than if your entry is above average in length.

Photos are a different matter. They’re usually not important in bringing people to your place although there’s been a recent trend towards people using image search to find properties so they are more important than they were. However, many people book directly from the advert so it’s a good idea to load as many good photos as you can with any adverts that you place. Make sure that the photo used on your summary page is eye-catching too or your place will get skipped.

In fact, rather than spending time to get the “perfect wording” for your ad, it’s much better to spend the time in making it longer.