AV Matters
The Stimson Group Newsletter
Mar 2008
Vol 2 Issue 3
In This Issue
R&S Roadshow
Trends Survey
Best Practices Installment
Reader Comments
Book Review
About The Stimson Group
Quick Links
Welcome Back,

I hope you have been as busy with new clients and ongoing business I have. In February I had the opportuinity to meet leaders from 35 Systems' Integration companies at PSNI's annual partner summit in Las Vegas, speak with representatives of thirty R&S firms at the Orlando Roadshow, and still had time to manage ongoing projects for four businesses. Thanks for all the emails and support - it makes it all worth the effort!

In This Issue: A short recap of the Orlando Roadshow with a couple of pics, a R&S Best Practices installment that could apply to any AV company, and another brilliant submission from a loyal reader.

Enjoy,
 
Tom (TR) Stimson, CTS
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Roadshow HeaderRoadshow Recap
The weather was great, the facility was fun, and our host and sponsor  Technilux was extremely gracious at the Orlando Rental & Staging Roadshow. I always enjoy going to Central Florida when Stagers get together. Everyone knows everyone else, and the camaraderie and respect are infectious. We held an impromptu roundtable discussion that included: how hotel AV and Stagers can work together, a primer on working with Unions in Chicago and other major cities, and a discussion on rigging safety, liability, and equipment inspections. As a member of the ETCP Certification Council I want to applaud LMG, Inc for outlining their rigorous motor and truss inspection, maintenance, and re-certification system. I think that helped win over some converts to preventative maintenance and ongoing safety.

Roundtable at Orlando RS Immediate Connections was a co-sponsor of my keynote. Owner Patty McGoldrick allowed me to interview her on stage about what she's learned in 23 years of staffing exclusively for AV. Her knowledge of employment laws makes he a great strategic partner for her clients. Patrick Ellis with Barco Events shared some exclusive upcoming product info including a new computer controlled GUI and a slave scaler device for the Encore that will save stagers huge amounts of money. Tipping PointAnd I want to get a plug in for my friends at AVforSale.com who were first-time exhibitors. This is one B2B that the entire AV industry needs. For a complete list of exhibitors, sponsors, and information on the upcoming events, visit the Roadshow website. The next Roadshow will be in Chicago on May 7th in another unique location. Don't delay. Put it on your calendar and register now.
 
R&S Monthly Trends Survey

February '08 Results
Last month's survey asked about sales and marketing tools. Would you like to know what percentage of AV Stagers still think the Yellow Pages are viable advertising? I was surprised. Is word of mouth still your best marketing tool? Then you are not alone. If you want to differentiate, it helps if you do things different!

Download the results and see for yourself.

March Survey Preview
This time around we ask a couple of short questions about computers and PDA's. If you are touching a mouse or keyboard right now then you have relevant answers. Take the survey now.

Best Practices Installment
What Makes A Great AV Company?

I have observed that the small fraction of AV companies that outrun the industry all have several things in common:

·    Strong, engaged leadership that drives sales.
·    A lieutenant that focuses on delivery.
·    Clear, intentional brand identity.
·    At least one technological genius.
·    Great financial advice.
·    An entrepreneur's appetite for risk.

This doesn't mean that other formulas don't work - I am sure there are successful companies that don't look like this. (I just can't think of any). Here's my analysis of why these points are so important:

Leadership
Every company needs a great leader, but if that person is also driving sales the effect is compounded. Leadership is all about removing obstacles to success and showing a great example, but sales is where growth comes from. When the company leader is also the sales leader, the customer is getting a double dose of can-do. They know they are talking to essence of the firm, the place where the buck stops, and everyone's boss. They also know (or at least assume) that the rest of the sales team understands the same things as the big boss. The bigger the firm, the more valuable a call from the leader to the customer becomes.

Lieutenant
The second in command does two important things: They free up the leader to focus on customers and they add the structure necessary to make things happen. This is not an assistant's role - a good lieutenant needs authority and some free reign. Give this person good guidelines, establish high standards, stay in communication, and keep the business rolling in.

Brand Identity
Brand is the sales person that keeps on working while you sleep. The more effort you expend to develop a great brand identity, the better results you will get. Brand is not just about marketing, websites, and logos. It is everything anyone perceives about your firm: company benefits, staff picnics, holiday cards, dress codes, the lobby decor, email signatures - the list goes on and on.

Genius
You can have more than one genius, but you need at least one. AV is about technology, innovation, and solutions. You just can't scrimp on talent when it comes to meeting these needs. Geniuses are a pain in the rear to work with, so don't expect them to fall in line with the other employees. Make exceptions for them and buy them expensive tools and they will stay around for a long time. A word of advice, don't put them in charge of anyone.

Financial Advisor
If the leader needs to be talking to customers, then they don't need to be bogged down in financing and cash flow. The reason I cite a financial advisor instead of an accountant is because the capital intensive and risky business of AV requires creative and practical solutions. Good accountants tend to be conservative advisors. Don't scrimp on accountants, but don't bypass dedicated financial advice either.

Risk
Successful AV companies not only take some risks; they take BIG risks. They will order new products based on spec sheets or prototypes. Embrace technology that they don't have a customer for - yet. And they sell solutions they haven't quite worked out how to deliver. Some call it pushing the envelope or the bleeding edge. Either way, it's not for the faint of heart. No guts, no glory.

That's my take on what makes a great AV company. I hope you will share your observations as well.

Tom Stimson, CTS
Comments or Questions? Send me an email.
Reader Comments

Last month I asked readers what they thought about the impending (or ongoing) economic downturn and how businesses should respond. I got this great response that I agree with completely and could not have said better:

Hello Tom. 

I always enjoy your insightful articles and essays.  Great work! Here are my thoughts on this topic (per your call out in your last newsletter), from the standpoint of a business leader in the corporate event industry:

In a nutshell, this would be a TERRIBLE time to APPEAR to be slowing down, rolling up, or otherwise preparing for the worst. 

Now, internally, we all need to do just that.... Focus on improving your profits rather than just your revenues.  Extend every efficiency to its maximum potential, and invent some new efficiencies while you're at it.  Pay down your debt and avoid major asset acquisitions that are not supported directly by contractually guaranteed revenue.  Train your team for greatness.  Ramp up your prospecting, sales, and marketing efforts to their highest level, especially the "guerilla" techniques that require minimal financial resources.  And for heaven's sake, there's never been a better time to shore up your key client relationships.

And seriously, is the converse of the above paragraph EVER true?

Here's the trick though:  On the exterior, you have to stay bullish.  Hey, our customers are in the same position we are, and they should be doing the same thing!  Great companies expand their market share during difficult economic times. Why do anything but push our clients to create even MORE effective events?  Demonstrate to them that it's their growth and greatness that we are concerned with.  And I can tell you from experience that this methodology is sound:  We began an expansion into a new geographic market (where our competitors were shrinking) THREE WEEKS after 9/11.  We now own at least 50% of that market in most channels, and are logging 70-80% annual revenue growth there. 

The point is that we are all in the business of helping our clients grow and succeed, and ultimately become great (or greater) companies.  The last thing we should do is listen to the media and dump our stocks, running around screaming about the sky falling.  Instead, help our clientele grow their business and in the process help them AND ourselves weather the storm.  Help them invent better, more effective events.  Show them something their audience hasn't seen.  Get them out of the ballroom and get them engaged.  It's our JOB.

Recessions are inevitable.  And when the slowdown happens, anyone who panics and begins cutting their prices and laying off their staff may MAKE IT to the other side, but in what condition?  And where will the market be?  We think there's a better way.

That's my 2¢ (or I guess it's about $1.85 these days).

Dwayne Thomas
President

Hollywood Lighting Services, Inc
www.hollywoodlighting.biz

Have a comment about anything you've read? Email it to me.
Think Differently About Sales and Marketing
I had the pleasure of sitting in a seminar by this book's author, Patrick Renvoise. Not only is he a fun and dynamic presenter, his theories and insights on what makes customers 1. Pay Attention, and 2. Buy, are brilliant. Neuromarketing: Understanding the Buy Buttons in Your Customer's Brain is full of practical steps and useful examples of real world advertising. Plus Patrick practices what he preaches. The six steps to close the deal are presented to the reader exactly as one should apply them - a deal closer. In the end, you will be sold.

Neuromarketing: Understanding the Buy Buttons in Your Customer's Brain
by Patrick Renvoise by Thomas Nelson
Hardcover
List Price: $22.99
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See my other recommendations
Art of SalesAbout Thomas R. Stimson, MBA, CTS

Tom Stimson is celebrating over twenty-five years in the communications technology industry.  As a Consultant, Tom helps companies build smoother operations, focus sales, and increase profit. For more information visit the website.

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