Question

Topic: Strategy

How To Present A Marketing Proposal To A Friend, Neighbor, Or Family Member

Posted by Blaine Wilkerson on 3/22/2004 at 4:17 PM ET 500 Points
I'm sure many of us know a brother-in-law, close friend, or next-door neighbor who are either struggling with their own business or getting ready to dump a lot of money into one. It is very tempting to offer your marketing advice, but due to the close relationship, and often times-the plain stubborness of the person(s) makes them difficult to approach.

This is a two-fold question:

My next door neighbor is a custum cabinet and trim carpenter for some of the most exclusive homes in our city. He recently came across a chunk of change and has decided to partner up with some of his construction buddies to start their own company.

These guys are in their mid-late 30's and are of the "Harley Rider"/ WestCoast Chopper kind of guys. Despite their gruff appearance, they are very well mannered, crafted, skilled and produce beautiful woodwork from scratch.

Their plan is to get out of the sub-contracting arena and move straight into Contractor status. They already have all the tools, trailers, logos, helpers, and SOME builder contacts and quite frankly, can start on any project immediately.

The problem is they understand all about the customer needs "thing" (I asked them what they sell, and instead of "custom cabnets" they said "quality of life and comfortable homes-not houses"), but they are ready to skip all the business and marketing planning "mumbo-jumbo" and have some brochures made with some pictures of their previous work and get a saleman out beating the pavement. This makes me cringe! Mainly because they are about to dump several grand into "ads" without any solid marketing research.

They know the business, the ins and outs, the who's who and what not, but they don't have a clue what marketing is. I tried to explain and offered them a free plan (of which they were somewhat receptive), but quickly lost them. They were more excited that they got email addresses at yahoo, SBC and Cox in their company name...looking at me with big smiles and shaking their heads "yes" as if they had just struck gold.

They make an average of $35,000- $90,000 per 2 week project and offered me 20% for anything I "land" for them, but their cavalier approach to business is tell-tale of the 5 year failure statistic.

I know I can get through to these guys after time, but what is the best way to describe and offer marketing to a bunch of "good ole boys" ?

Do I mind my own business and watch my friends flush their money down the toilet with half-cocked pipedreams of brochures and billboards?

If not, how can I approach them without sounding like a know-it-all or offending them? I need some third party perspectives since these guys are not only my friends, but live right next door!

BTW- They already have, licenses, insurance, bonds, a website, etc. They know the business, but do not "know business"...If you catch my drift.

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RESPONSES

  • Posted by Blaine Wilkerson on 3/22/2004 at 8:29 PM Author
    I too, am obviously weary about getting into business with friends. Had a baaaaad experience that did not end well.

    I'm pretty much convinced to stand on the sidelines and just shoot out pointers here and there or just wait for them to ask me instead of offering.

    The community here in Oklahoma is outstanding. Especially in the city. The Murrah bombing and the May 3rd tornado disaster really brought out the best in everyone here. Sure, people are people and it's still a big city full of crime, death, etc, but overall, people are real supportive of local business.

    Especially if that busines has "Oklahoma" in the name (which they do) and has OU colors in the logo (they have that too) and gives a prtion of their profit to local charities (they don't have that). This is where I believe I can put them in the limelight.

    If I can convince them to give a % of earning to a few local charites, the local media will eat it up! A good press release or two could put these guys on top.

    I just found out they landed a 35 house gig today, so they will be quite busy, but have already stated they are not above hiring a 100 man crew to handle the work if necessary.

    What do you guys think.....should I step off the sidelines for that one little jab to get them media exposure, or casually mention it and let them come to me? Of course, if I play a more active role, I can potentially earn quite a chunck. So is keeping my mouth shut worth losing a potential $7000-$18000 commission per job?

    Yes, they actually make what I stated. These are large, exclusive homes owned by local surgeons, attorneys, business execs, etc who don't think twice about dumping $60,000 into nice kitchens, bathrooms, bars, bookshelfs, mouldings, mantles etc. The last surgeon I worked for dumped over $1.2 million in his 8000 sqft home. 80% of that was custom stone and wood work.

    This is a true test. The money seems too good to pass up for easy work on my end. The trick is balancing it so I just contribute here and there...jumping off the bench every once in awhile to help or to land a sale etc.

    Having a conscience sucks!
  • Posted by Blaine Wilkerson on 3/22/2004 at 10:16 PM Author
    diana-

    Excellent suggestions! I was thinking of something very similar...making any contribution formalised to not only validify my role in any lead generation, but to maintain professionalism.

    However, this can be sowewhat a challenge with friends, employees, family etc.

    For Example, my wife still works for a large physician/surgeon conglomerate with their own pediatrician, who just so happens to see our child for "free". Well, in short, we had to change to a non-company doctor due to what I call "The Employee Exam". It's so tempting to let your hair down and be short and sweet to employees, friends etc. because you feel that "they understand" or "this is for free". Basically, it has been a real informal barrage of "exams", squeezing us in here and there, then hardly getting 2 minutes with the doctor (one of your employers!).

    Another pediatrician found a whole slew of potential problems and advised us on testing, treatment, diet, etc. MUCH different than what we were used to.

    Having that been said, in marketing land, it's difficult to suddenly put on a game face and be "Mr. Marketer" to the guys you've chummed around with every Saturday while working in the yard. When I was first talking to them, I found myself holding back a lot of what I would say and/or act in front of a client...acting the "friend with know-how". Like I said, they were receptive and intrigued at first, but when they started with the yahoo email thing as if it were the Holy Grail...I stopped and changed the subject. LOL...


    Oh woe is me!
  • Posted by Pepper Blue on 3/23/2004 at 12:09 AM Accepted
    Jett,

    Have you thought about getting a third-party involved?

    This could be somebody you know and trust that thinks like you and can lead them down the right marketing path.

    You can keep close to the developments this way, but not too close.

    You can still make some money by catching the fish and letting them clean 'em, just stay clear of the marketing end of it right now because it is too close to home.

    But you gotta do something to help them out, you just can't watch F, F & F's (friends, family and fools) start spewing red.

    Getting directly involved like you have described just sets my "bad feeling" alarm off, you don't want to have to start mowing your lawn at night or when they aren't home.

    Hope that helps.

    Tim

  • Posted by Blaine Wilkerson on 3/23/2004 at 10:22 AM Author
    Tim-

    I never ceases to amaze me how similar we all think. Literally seconds before I went to my computer this morning, I was thinking of how I could out-source the project to a trusted associate, acting as the "middle-man", splitting the profits with whoever does the bulk of the work, and still maintaining a comfortable distance.

    You and Simon are right with regards to not sitting there with a fresh bandage in my pocket when there is an obvious wound. How would I feel if a year from now, I see them selling off the equipment becuase of a poor marketing plan (or lack there of), knowing I MAY have been able to help?

    Kinda reminds me of my medical days. Even Doctors, Nurses, Parmedics, EMTs, etc. have to ask permission to help someone...even if they are bleeding to death (provided they are conscious)!! Not to mention the DNR (Do Not Resuscitate) clause many terminal patients sign at the hospitals...it drives doctors mad knowing they have the knowledge and capabilities to MAYBE bring this person back, but they can't..they have to just watch and deal with it.

    Cal-

    Thanks for the perspective! Although I have riden dirt bikes most of my life, I was reaching for a good analogy. I'm quite the laid back "good ole boy" myself, but as I stated above, drawing the line on how to even bring up the subject gets very difficult....do I talk in "Harley" jargon, or do I act the professional? These are the things that go through my mind. I'm leaning toward a mixture of both, with careful, strategic delivery times. I can't help but feel a bit "snakey" by even having to say that! I would be lying if I said money was not a motivator, but I truly want to help them as well!

    Simon-

    You hit home on several issues. Especially how to formalize something at the same time you are casually setting an example. It's kinda like, "Here's an idea I put together for you that may be helpful....now can I have you signature please!??!"!

    I share your belief we are here to help, and like you said, it is certainly high risk, with high reward. But like Tim mentioned, I don't want to have to avoid my nextdoor neighbor if something goes awry! Thanks for you input! Yes, It is very helpful!

    OK, Ironically, I have a psuedo-meeting with these guys this morning. I am seriously considering the out-source approach combined with some biker talk. Keep the suggestions rolling in.....you all have been VERY helpful!
  • Posted by Blaine Wilkerson on 3/23/2004 at 12:34 PM Author
    Vevolution-

    Actually, they are sick of working! They are jumping on this as a chance to "get out of the mud".

    Their exact words: "Our goal is to eventually train a crew to do the work, hire an accountant to handle the bills, and all we do is sign checks, meet with builders, do on-site quality checks, then go home to our families".

    You are right, they have the reputation, now they have the money and the equipment to take a leap towards financial security. However, they have candidly stated they don't know squat about running a business, but they know enough about "their" industry to set up meetings with the right people and say the things they want to hear in order to get a gig. Basically, that's what they are doing right now...getting contracts, going to work, setting up meetings, getting contracts, going to work...it just repeats itself. There is a feeling of "success" there but they admittedly do not know what to do with it!
  • Posted on 3/25/2004 at 4:14 AM Accepted
    Hi

    long thread - tough question.

    Here's a thought.

    Early on, they were talking about hiring a salesman, & sending him out there. JBtron pointed out the value of case histories.

    Any good salesman is going to want a story to sell - and something to leave with prospects. They're at the coalface - and any marketing material has to work there. Could you help him/her get the sales literature that they need - and work through basic positioning/benefits/value propositions while you're at it?

    Why not help get that material right - and encourage the guys not to spend any other money on marketing until they know what works for their salesman. Hitching marketing to supporting the guy that sells might help stop marketing being seen as an esoteric coffee bar kinda-thing.

    As a friend, they probably already want to trut you. If you can show the value of marketing in bringing in more sales, then they'll not look elsewhere for advice.

    hth

    Will Rowan
  • Posted by Blaine Wilkerson on 3/25/2004 at 9:36 AM Author
    Thank you all for your advice and sharing some of your experiences!

    I'm gonna stay on the sidelines and be the "helpful neighbor" for now. Once they see how hard it is and I am here for them, it will all work out.

    Good answers!
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