Free daily tips, information and advice for people in small business
from someone who has been there, done that in several small operations.
Small restaurants and cafes can go through difficult times. They are among the first businesses to feel the pinch of bad economic times.
They can become neighborhood gathering places and this can be the bedrock on which these operations grow and expand. People return again and again because they know what to expect. Customers usually settle on a few items from the menu and they re-order frequently these favorites.
Kick-starting small restaurants and cafes to the next level takes some careful planning. You don't want to mess with what success there you have, but you need more business.
Example: Bob decided to add music. He made contact with a local Irish group and found that several members played traditional Irish musical instruments--they even got together occasionally to practice. A place to practice was a problem for the group. Bob offered them exposure at his modest restaurant on Sunday afternoons--no payment was involved. Soon, the word spread and a full house of customers arrived--not only on Sunday afternoons, but on other days as well.
To expand your customer base, think outside the box. Sometimes, by solving someone else's problem, you solve your own.
Example: Jackie took an approach that involved her love of different cuisines. Her cafe sat less than 50 people. She was busy at breakfast and lunch, but there was little dinner traffic. She decided to add an International Night on Thursdays, thinking that it would attract more attention. The first week she offered a Jamaican Holiday meal, followed the second week with Casablanca Night. By the third week, every seat in the house was filled with diners clamoring for more of the Tex-Mex Specials.
Every idea you try might not work. And what works for one business might not work in another. But you never give up.
Example: Frank wanted to expand his restaurant business to become the "go-to" place for parties and gatherings. He began putting out the word--to organizations, companies, and groups. Everyone, it seemed, needed a space for small gatherings. And Frank could serve up food and drink from the restaurant side. He redid the decor, and his restaurant business became the caterer for the events that took place. As word spread, people wanted to hold other events at Frank's--private parties, birthdays, retirements, reunions and the like. He's thinking of franchising the concept, and he has already expanded with a second location.
You never know where an idea for change will lead you. But you stay on top of your game by testing every idea that holds promise.
Questions? I retired when I turned 75 and keep active with writing and coaching. You can email me at AlWarr16@gmail.com with your questions--put BLOG in the subject line so I don't delete. Quick answers from my 40+ years experience founding and growing small businesses. Your privacy is always respected.
Friday, May 30, 2014
Thursday, May 29, 2014
Expanding hairdressers
Free daily tips, information and advice for people in small businesses
from someone who has been there, done that in several small operations.
In yesterday's world, many hairdressers started their business working at a single station. The small operation served the neighborhood, and the owner of the shop did all the work.
Such places still exist, but they are relatively rare. More commonly, today's hairdressers are salons. And the services offered cover much more than hair.
Example: Mary began "doing hair" more than 30 years ago. Today, she has a six-station salon. The specialty is color and cut. Over the years she expanded with the times, carefully adding employees--no freelancers here. She sends her people to training sessions to keep up with the latest fashions and trends in styling and color. Not only do women drive considerable distances to her shop, but she is seeing an increasing number of men.
This example is fairly typical of expansions in the hairdressing business. A business must keep up with the changing times, or it will be left with a smaller and smaller customer base.
Example: Janet also began as a single-operator hairdresser. Over several years, she successfully transformed her operation into a full-fledged spa. Both women and men come to her spa today. Customers can select from a menu, from an hour long refresher to a full day of total transformation. Hair is cut, skin is cleaned, nails are trimmed, bodies are massaged and waxed, and a nutritionist is on hand to counsel clients. Beginning as a single-station operation, Janet today employs more than two dozen specialists--and the referrals keep the appointment desk buzzing.
The decision to expand a hairdressing operation into a full-fledged spa takes lots of determination, space, funding, and a careful business plan. Clearly, spa services can include many different possibilities, and the appeal is to an up-scale clientele.
Example: John went through professional training and spent several years in a New York salon. His ambition was to become the hairdresser to male and female movie stars, politicians, CEOs and business magnates. During all those years of training and experience, John was building up his list of contacts and networking his way to many more. When he decided the time was right, he quit his position at the New York salon. His cell phone became his business office as he made calls to prospective clients. With a pocketful of appointments, he regularly boards a flight to meet the client--whenever and wherever. He does not have a bricks-and-mortar location, nor does he need one.
Many avenues can open up for expanding a hairdressing business. These three examples are from people I have worked with--names changed, of course.
All sorts of possibilities and opportunities are out there. It's a matter of deciding where you want to take your talents. And doing your business plan.
Questions? I retired when I turned 75--these days, I write and coach. You can email me at AlWarr16@gmail.com with specific questions--put BLOG in the subject line so I don't delete. Quick answers from my 40+ years experience founding and operating small businesses. Your privacy is always respected.
from someone who has been there, done that in several small operations.
In yesterday's world, many hairdressers started their business working at a single station. The small operation served the neighborhood, and the owner of the shop did all the work.
Such places still exist, but they are relatively rare. More commonly, today's hairdressers are salons. And the services offered cover much more than hair.
Example: Mary began "doing hair" more than 30 years ago. Today, she has a six-station salon. The specialty is color and cut. Over the years she expanded with the times, carefully adding employees--no freelancers here. She sends her people to training sessions to keep up with the latest fashions and trends in styling and color. Not only do women drive considerable distances to her shop, but she is seeing an increasing number of men.
This example is fairly typical of expansions in the hairdressing business. A business must keep up with the changing times, or it will be left with a smaller and smaller customer base.
Example: Janet also began as a single-operator hairdresser. Over several years, she successfully transformed her operation into a full-fledged spa. Both women and men come to her spa today. Customers can select from a menu, from an hour long refresher to a full day of total transformation. Hair is cut, skin is cleaned, nails are trimmed, bodies are massaged and waxed, and a nutritionist is on hand to counsel clients. Beginning as a single-station operation, Janet today employs more than two dozen specialists--and the referrals keep the appointment desk buzzing.
The decision to expand a hairdressing operation into a full-fledged spa takes lots of determination, space, funding, and a careful business plan. Clearly, spa services can include many different possibilities, and the appeal is to an up-scale clientele.
Example: John went through professional training and spent several years in a New York salon. His ambition was to become the hairdresser to male and female movie stars, politicians, CEOs and business magnates. During all those years of training and experience, John was building up his list of contacts and networking his way to many more. When he decided the time was right, he quit his position at the New York salon. His cell phone became his business office as he made calls to prospective clients. With a pocketful of appointments, he regularly boards a flight to meet the client--whenever and wherever. He does not have a bricks-and-mortar location, nor does he need one.
Many avenues can open up for expanding a hairdressing business. These three examples are from people I have worked with--names changed, of course.
All sorts of possibilities and opportunities are out there. It's a matter of deciding where you want to take your talents. And doing your business plan.
Questions? I retired when I turned 75--these days, I write and coach. You can email me at AlWarr16@gmail.com with specific questions--put BLOG in the subject line so I don't delete. Quick answers from my 40+ years experience founding and operating small businesses. Your privacy is always respected.
Wednesday, May 28, 2014
Farm businesses
Free daily tips, information and advice for people in small business
from someone who has been there, done that in several small operations.
People are very concerned about the foods they eat. We are encouraged to "eat healthy" and "eat fresh" every day.
Roadside farm stands are common. Farm markets are popular. Organic farming and all natural production methods enjoy rising acceptance.
Some of this is a reaction to big agriculture. Large corporations long ago discovered they could make a buck raising grains, veggies, fruits, and meat animals. The problem is, they have taken big production a step too far--frequently ignoring taste, nutrition and the utter joy found in a vine-ripened tomato.
Increasingly, people are moving away from big agriculture. It has its place, but "not on my table" seems to be the siren song attracting people back to small farms.
Supermarkets advertise freshness and establish an organic veggie section. Chefs attract people with fresh inputs, grown locally. And farms are eagerly supplying the herbs, veggies, fruits, berries and meats.
Example: Working full time, a lady had little time to tend the garden behind her house. She had a few roses, some bulbs, peonies, and a patch of lawn. She cut the grass herself with a manual mower, and everything else took care of itself. One day she had an idea. First she got rid of the grass. Then she had two raised beds built, each 4 feet wide and 20 feet long. Today, she plants more than a dozen types of lettuce in the beds. With successive plantings throughout the season, she harvests and sells to restaurants. She emails availability to chefs, and they email orders. She left her corporate position and is now a full time farmer.
Example: A small farmer grew tired of the government price support program for the corn he grew. He had four small fields, and he rented additional land--just to make ends meet. He figured he could do better. The following spring, he planted corn in all his fields except one--this began his transition. In the smallest field, he planted about 3 acres of strawberries. The following year, in another field, he planted raspberries. Today, he no longer plants any corn--except the sweet corn which he sells in his farm stand. All the berries are offered to the public in a pick-your-own operation, and he sells at farm markets as well as at his own farm stand. Chefs love the fresh berries. Any left overs from these marketing endeavors are made into sugarless preserves. He's making more money and enjoying it more.
Example: A teenager converted his grandmother's greenhouse into a farming operation. Here the teen grows a wide variety of herbs for the local markets. He is experimenting with different types of eggplant. He tends the operation before and after school, and he is putting away savings to expand or go to college.
Example: A few chickens in the backyard led Jennifer to establish her current small business. She raises free range, all natural chickens for the eggs and the meat. She sells at local markets and direct to the general public.
Farming is a business. All these examples show what can be done on a small scale. You must adjust your operation to the local needs or reach out beyond your area. Small operations grow bigger all the time--it's all a matter or your ingenuity and sweat.
Questions? I retired when I turned 75. You can email me your questions at AlWarr16@gmail.com and put BLOG in the subject line (so I don't delete). Quick answers from my 40+ years experience founding and growing small businesses. Your privacy is always respected.
from someone who has been there, done that in several small operations.
People are very concerned about the foods they eat. We are encouraged to "eat healthy" and "eat fresh" every day.
Roadside farm stands are common. Farm markets are popular. Organic farming and all natural production methods enjoy rising acceptance.
Some of this is a reaction to big agriculture. Large corporations long ago discovered they could make a buck raising grains, veggies, fruits, and meat animals. The problem is, they have taken big production a step too far--frequently ignoring taste, nutrition and the utter joy found in a vine-ripened tomato.
Increasingly, people are moving away from big agriculture. It has its place, but "not on my table" seems to be the siren song attracting people back to small farms.
Supermarkets advertise freshness and establish an organic veggie section. Chefs attract people with fresh inputs, grown locally. And farms are eagerly supplying the herbs, veggies, fruits, berries and meats.
Example: Working full time, a lady had little time to tend the garden behind her house. She had a few roses, some bulbs, peonies, and a patch of lawn. She cut the grass herself with a manual mower, and everything else took care of itself. One day she had an idea. First she got rid of the grass. Then she had two raised beds built, each 4 feet wide and 20 feet long. Today, she plants more than a dozen types of lettuce in the beds. With successive plantings throughout the season, she harvests and sells to restaurants. She emails availability to chefs, and they email orders. She left her corporate position and is now a full time farmer.
Example: A small farmer grew tired of the government price support program for the corn he grew. He had four small fields, and he rented additional land--just to make ends meet. He figured he could do better. The following spring, he planted corn in all his fields except one--this began his transition. In the smallest field, he planted about 3 acres of strawberries. The following year, in another field, he planted raspberries. Today, he no longer plants any corn--except the sweet corn which he sells in his farm stand. All the berries are offered to the public in a pick-your-own operation, and he sells at farm markets as well as at his own farm stand. Chefs love the fresh berries. Any left overs from these marketing endeavors are made into sugarless preserves. He's making more money and enjoying it more.
Example: A teenager converted his grandmother's greenhouse into a farming operation. Here the teen grows a wide variety of herbs for the local markets. He is experimenting with different types of eggplant. He tends the operation before and after school, and he is putting away savings to expand or go to college.
Example: A few chickens in the backyard led Jennifer to establish her current small business. She raises free range, all natural chickens for the eggs and the meat. She sells at local markets and direct to the general public.
Farming is a business. All these examples show what can be done on a small scale. You must adjust your operation to the local needs or reach out beyond your area. Small operations grow bigger all the time--it's all a matter or your ingenuity and sweat.
Questions? I retired when I turned 75. You can email me your questions at AlWarr16@gmail.com and put BLOG in the subject line (so I don't delete). Quick answers from my 40+ years experience founding and growing small businesses. Your privacy is always respected.
Tuesday, May 27, 2014
Expanding your business
Free daily tips, information and advice for people in small business
from someone who has been there, done that in several small operations.
If sales are down in your business, you look for answers. It might be the economy in general. It might be the weather or the seasonal changes. It might be you need a new sales person.
Or it might be that you are in the wrong business. Not wrong, but maybe in the wrong segment of the business.
It might be time to expand into another area of the on-going business. Begin to offer additional services or product lines.
Example: A small independent web designer expands his business considerably by offering on-site services to customers. Services at their site, not his. Previously, he did web design for other small businesses. His new customers are larger--15 to 50 employees. Now he helps them set up networks, troubleshoots systems, offers maintenance contracts, and holds training sessions. He just bought a new car.
This shows how you might be missing opportunities to do more for more people. Your customers now have needs that are related to what you do. Right now they are calling other businesses to satisfy those needs. Think through your own talents and experience, looking for ways to expand your operation.
Service businesses are almost always easy to expand. You might have already tried several approaches. Keep trying. Keep looking. And remember--what you tried and discarded in the past might just fill the bill tomorrow (it can take the world a while to catch up with you).
Example: A struggling frame shop expands by offering local artists a place to show their works--paintings, photographs, sculptures. It's the backdoor approach to establishing a gallery or high end gift shop. But the change does not stop there. The frame shop owner now reaches out to banks and large companies in the area, offering to rent artworks for display in their offices, hallways, lobbies, etc. This is not easy to set up (think insurance, security, deliveries), but it can all work together. And it expands considerably the reputation of the frame shop.
Build on what you have when thinking of expanding. Keep the core, and look for ways to enlarge it. A way is always there to nudge your operation in one direction or another, expanding your business in the process.
Questions? I retired when I turned 75. You can email me at AlWarr16@gmail.com with your questions. Put BLOG in the subject line so I don't delete. Quick answers from my 40+ years experience founding and growing small businesses. Your privacy is always respected.
from someone who has been there, done that in several small operations.
If sales are down in your business, you look for answers. It might be the economy in general. It might be the weather or the seasonal changes. It might be you need a new sales person.
Or it might be that you are in the wrong business. Not wrong, but maybe in the wrong segment of the business.
It might be time to expand into another area of the on-going business. Begin to offer additional services or product lines.
Example: A small independent web designer expands his business considerably by offering on-site services to customers. Services at their site, not his. Previously, he did web design for other small businesses. His new customers are larger--15 to 50 employees. Now he helps them set up networks, troubleshoots systems, offers maintenance contracts, and holds training sessions. He just bought a new car.
This shows how you might be missing opportunities to do more for more people. Your customers now have needs that are related to what you do. Right now they are calling other businesses to satisfy those needs. Think through your own talents and experience, looking for ways to expand your operation.
Service businesses are almost always easy to expand. You might have already tried several approaches. Keep trying. Keep looking. And remember--what you tried and discarded in the past might just fill the bill tomorrow (it can take the world a while to catch up with you).
Example: A struggling frame shop expands by offering local artists a place to show their works--paintings, photographs, sculptures. It's the backdoor approach to establishing a gallery or high end gift shop. But the change does not stop there. The frame shop owner now reaches out to banks and large companies in the area, offering to rent artworks for display in their offices, hallways, lobbies, etc. This is not easy to set up (think insurance, security, deliveries), but it can all work together. And it expands considerably the reputation of the frame shop.
Build on what you have when thinking of expanding. Keep the core, and look for ways to enlarge it. A way is always there to nudge your operation in one direction or another, expanding your business in the process.
Questions? I retired when I turned 75. You can email me at AlWarr16@gmail.com with your questions. Put BLOG in the subject line so I don't delete. Quick answers from my 40+ years experience founding and growing small businesses. Your privacy is always respected.
Monday, May 26, 2014
Planning basics
Free daily tips, information and advice for people in small business
from someone who has been there, done that in several small operations.
Talking about planning comes naturally to me. I tend to concentrate on where am I headed and what things do I need to do today to clear the pathway there.
I was lucky in that regard. Since I was very young, it has never bothered me to put the past in its place and move on. As long as I kept my eye on the future, the present fell into place--and the past really didn't matter that much.
Don't misunderstand. The past is important. It teaches us valuable lessons. Good and bad avenues have been traveled by all of us--and we owe it to ourselves to learn from both.
But business planning is all about the future. And nothing in the future of your business is more important than the marketing aspects.
Marketing: Your customers determine your future. That outrageously complex computer game you devised will not turn into a business if no one buys it. That new beer you brewed and lovingly bottled will stay stacked away in the back room if no one buys it.
You can find outlines of business plans on the Internet, along with lots of information on the process of business planning. Most of it is written by good writers with good intentions. But, reading between the lines, you can tell they haven't been there, done that.
I recommend starting the planning process with the most important aspect--and that is marketing. Like the good witch says in the Wizard of Oz, the place to start is at the beginning. And the beginning of your business planning is with marketing.
Who are your customers? How to you find them? Is their need a continuing one that you can supply? How will you expand the customer base in the future? Have you accounted for the changes that future technology will impose on your business? Is marketing (and selling) one of your strengths? If not, how do you plan to compensate?
The answers to these questions will help you through the daily grind. The answers also provide the basis for the most important part of your business plan. You can carry it around in your head, or you can write it down--preparing it as a formal document accompanying a request for a loan.
Other aspects: The heart of business planning is marketing. But a formal business plan must cover other aspects of you and your business.
These include long term goals (think at least 5 years into the future), purpose of the plan (for your own eyes? for an investor? for a bank?), background (what's the business history to date?), management background (what are your own strengths and weaknesses?), your products/services and production (what, actually, are you selling?), and finally, the numbers.
Reducing everything to numbers is like wringing the water out of a wet towel. Doing the numbers gets the crap out of your verbiage. Your history to date and your projections into the future--this is where the rubber meets the road.
The numbers give validity to all that you say in a written plan. This is where you convince someone else that they can believe in your marketing projections.
For more about planning, see past blogs--Planning Box, Funding Sources, Business Check-Up, and Daily Planning.
Questions? I retired when I turned 75. You can email me at AlWarr16@gmail.com with your questions. Put BLOG in the subject line so I don't delete. Quick answers from my 40+ years of experience founding and running small businesses. Your privacy is always respected.
from someone who has been there, done that in several small operations.
Talking about planning comes naturally to me. I tend to concentrate on where am I headed and what things do I need to do today to clear the pathway there.
I was lucky in that regard. Since I was very young, it has never bothered me to put the past in its place and move on. As long as I kept my eye on the future, the present fell into place--and the past really didn't matter that much.
Don't misunderstand. The past is important. It teaches us valuable lessons. Good and bad avenues have been traveled by all of us--and we owe it to ourselves to learn from both.
But business planning is all about the future. And nothing in the future of your business is more important than the marketing aspects.
Marketing: Your customers determine your future. That outrageously complex computer game you devised will not turn into a business if no one buys it. That new beer you brewed and lovingly bottled will stay stacked away in the back room if no one buys it.
You can find outlines of business plans on the Internet, along with lots of information on the process of business planning. Most of it is written by good writers with good intentions. But, reading between the lines, you can tell they haven't been there, done that.
I recommend starting the planning process with the most important aspect--and that is marketing. Like the good witch says in the Wizard of Oz, the place to start is at the beginning. And the beginning of your business planning is with marketing.
Who are your customers? How to you find them? Is their need a continuing one that you can supply? How will you expand the customer base in the future? Have you accounted for the changes that future technology will impose on your business? Is marketing (and selling) one of your strengths? If not, how do you plan to compensate?
The answers to these questions will help you through the daily grind. The answers also provide the basis for the most important part of your business plan. You can carry it around in your head, or you can write it down--preparing it as a formal document accompanying a request for a loan.
Other aspects: The heart of business planning is marketing. But a formal business plan must cover other aspects of you and your business.
These include long term goals (think at least 5 years into the future), purpose of the plan (for your own eyes? for an investor? for a bank?), background (what's the business history to date?), management background (what are your own strengths and weaknesses?), your products/services and production (what, actually, are you selling?), and finally, the numbers.
Reducing everything to numbers is like wringing the water out of a wet towel. Doing the numbers gets the crap out of your verbiage. Your history to date and your projections into the future--this is where the rubber meets the road.
The numbers give validity to all that you say in a written plan. This is where you convince someone else that they can believe in your marketing projections.
For more about planning, see past blogs--Planning Box, Funding Sources, Business Check-Up, and Daily Planning.
Questions? I retired when I turned 75. You can email me at AlWarr16@gmail.com with your questions. Put BLOG in the subject line so I don't delete. Quick answers from my 40+ years of experience founding and running small businesses. Your privacy is always respected.
Friday, May 23, 2014
Space cost, landlord
Free daily tips, information and advice for people in small business
from someone who has been there, done that in several small businesses.
The first time you lease space for your business, you can negotiate from strength. Toward the end of that first lease, you will be negotiating from weakness.
We are talking leasing space for small businesses here--not bigger companies. Big operations are slow to move, small operations are fleet of foot. What this means is critical to the process of renting space. Landlords know that small businesses can leave at the end of a lease with relative ease, whereas a bigger company finds it harder.
The aim of the small business in the first lease is to get the longest term at the lowest cost. Landlords typically throw in sweeteners upfront to entice you--they offer to fix the door, upgrade the restroom, maybe move an internal wall you don't want.
But keep your eye on low cost and long term. You can assume that the landlord will up the cost when you go to extend or renew the lease. You'll get your best deal upfront. When you go to extend your lease, the base line has already been set.
Before signing anything, now or later, you deserve to check out rents being charged elsewhere for comparable space. This can be difficult because other business owners are reluctant to divulge such information. Real estate agents have this information.
A chamber of commerce or other business organization in your area can be helpful in gathering this information. Also, check out other locations in other areas. You might run up on a better location at the same or lower cost than where you are.
Some landlords oversell themselves on the value of the space they have for rent. They begin to think that the town or neighborhood is on the rise economically, and they begin to lead the way by offering space at higher and higher rents. This thinking on their part can lead to their asking unreasonably high rents, losing tenants, and contributing to economic downturns locally.
Landlords might think that once you move your business into their space, you won't leave. Sometimes, it's true. Think about the costs of moving a spa with all that special plumbing. Think about a machine shop or a printing operation with all it's heavy equipment. On the other hand, law offices and accounting operations can pack up in a briefcase and move to another location.
Always try to make your lease coincide with your plans. Your business plan is very important here. A florist might be planning to expand into greenhouse operations in five years. Negotiating a five year lease on town space now can coincide with expansion into the greenhouse--at another location--in the same five years.
Also, if the space you're considering is larger than you need, try to negotiate for a smaller space with an "expansion" clause downstream in say, a year or two. Many landlords will not consider such a proposition, but in tight economies, they might. You can save a substantial amount of rental cost this way, and the landlord has a "sure thing" in the lease for renting you more space in the future. It can be a "win-win" situation.
See yesterday's blog, where size and location were covered.
Questions? I retired when I turned 75. Today I write and garden. You can email me your questions at AlWarr16@gmail.com. Put BLOG in the subject line so I don't delete. Quick answers from my 40+ years of personal experience in founding and running small operations. Your privacy is always respected.
from someone who has been there, done that in several small businesses.
The first time you lease space for your business, you can negotiate from strength. Toward the end of that first lease, you will be negotiating from weakness.
We are talking leasing space for small businesses here--not bigger companies. Big operations are slow to move, small operations are fleet of foot. What this means is critical to the process of renting space. Landlords know that small businesses can leave at the end of a lease with relative ease, whereas a bigger company finds it harder.
The aim of the small business in the first lease is to get the longest term at the lowest cost. Landlords typically throw in sweeteners upfront to entice you--they offer to fix the door, upgrade the restroom, maybe move an internal wall you don't want.
But keep your eye on low cost and long term. You can assume that the landlord will up the cost when you go to extend or renew the lease. You'll get your best deal upfront. When you go to extend your lease, the base line has already been set.
Before signing anything, now or later, you deserve to check out rents being charged elsewhere for comparable space. This can be difficult because other business owners are reluctant to divulge such information. Real estate agents have this information.
A chamber of commerce or other business organization in your area can be helpful in gathering this information. Also, check out other locations in other areas. You might run up on a better location at the same or lower cost than where you are.
Some landlords oversell themselves on the value of the space they have for rent. They begin to think that the town or neighborhood is on the rise economically, and they begin to lead the way by offering space at higher and higher rents. This thinking on their part can lead to their asking unreasonably high rents, losing tenants, and contributing to economic downturns locally.
Landlords might think that once you move your business into their space, you won't leave. Sometimes, it's true. Think about the costs of moving a spa with all that special plumbing. Think about a machine shop or a printing operation with all it's heavy equipment. On the other hand, law offices and accounting operations can pack up in a briefcase and move to another location.
Always try to make your lease coincide with your plans. Your business plan is very important here. A florist might be planning to expand into greenhouse operations in five years. Negotiating a five year lease on town space now can coincide with expansion into the greenhouse--at another location--in the same five years.
Also, if the space you're considering is larger than you need, try to negotiate for a smaller space with an "expansion" clause downstream in say, a year or two. Many landlords will not consider such a proposition, but in tight economies, they might. You can save a substantial amount of rental cost this way, and the landlord has a "sure thing" in the lease for renting you more space in the future. It can be a "win-win" situation.
See yesterday's blog, where size and location were covered.
Questions? I retired when I turned 75. Today I write and garden. You can email me your questions at AlWarr16@gmail.com. Put BLOG in the subject line so I don't delete. Quick answers from my 40+ years of personal experience in founding and running small operations. Your privacy is always respected.
Thursday, May 22, 2014
Space size, location
Free daily tips, information and advice for people in small business
from someone who has been there, done that in several small operations.
Renting the space you need for your small business can be nerve-wracking. Size, location, image, landlord, cost, length of lease are some of the worries.
Location: Some businesses can be run out of your garage. Others require a high-traffic location. Be honest with yourself when considering leasing space.
Consider locating your new or expanding sporting goods store in a country barn--once you get the word out, your customers will find you, and enjoy the ride in the country. A used car lot might benefit being located on a busy thoroughfare, but a travel agency can attract clients to a website operated out of your home office--most travel clients don't come to an office. A frozen yogurt stand can do well in a mall, but a shop that machines widgets can be just about anywhere.
Two things are of major importance when considering location--your business plan for the future, and pertinent zoning regulations. Is there a location impact in your plans? Is the location in a neighborhood in transition? Are there plans afoot to raze the building in 3 years? Talking with a local real estate professional might provide some answers.
Size: Some business owners walk into a prospective space, make an intuitive guesstimate about the size, and sign on the dotted line. A much more prudent approach is--again--look to your business plan.
If you are opening a restaurant, what's the number of tables you need to generate the income you've projected in your business plan? If you are performing accounting services for clients, how much space do you need working alone--and for those future employees you plan to hire?
The size of the space must be consistent with plans for the future. Can you grow your business here? Is the size big enough for growth but not so big that the growth will take 10 years? What are the "carrying costs" of leasing more space than you need now and "carrying" those costs as you expand to fill it?
Every business requires space--even a virtual business operated entirely on the Internet requires a place somewhere to operate. Translate your current/future business plans into a floor plan that will accommodate today and tomorrow.
In tomorrow's blog, I'll take up landlord, cost, and length of lease for space.
Questions? I retired when I turned 75. You can email me at AlWarr16@gmail.com with your questions. Put BLOG in the subject line so I don't delete. Quick answers from my 40+ years of experience founding and running small businesses. Your privacy is always respected.
from someone who has been there, done that in several small operations.
Renting the space you need for your small business can be nerve-wracking. Size, location, image, landlord, cost, length of lease are some of the worries.
Location: Some businesses can be run out of your garage. Others require a high-traffic location. Be honest with yourself when considering leasing space.
Consider locating your new or expanding sporting goods store in a country barn--once you get the word out, your customers will find you, and enjoy the ride in the country. A used car lot might benefit being located on a busy thoroughfare, but a travel agency can attract clients to a website operated out of your home office--most travel clients don't come to an office. A frozen yogurt stand can do well in a mall, but a shop that machines widgets can be just about anywhere.
Two things are of major importance when considering location--your business plan for the future, and pertinent zoning regulations. Is there a location impact in your plans? Is the location in a neighborhood in transition? Are there plans afoot to raze the building in 3 years? Talking with a local real estate professional might provide some answers.
Size: Some business owners walk into a prospective space, make an intuitive guesstimate about the size, and sign on the dotted line. A much more prudent approach is--again--look to your business plan.
If you are opening a restaurant, what's the number of tables you need to generate the income you've projected in your business plan? If you are performing accounting services for clients, how much space do you need working alone--and for those future employees you plan to hire?
The size of the space must be consistent with plans for the future. Can you grow your business here? Is the size big enough for growth but not so big that the growth will take 10 years? What are the "carrying costs" of leasing more space than you need now and "carrying" those costs as you expand to fill it?
Every business requires space--even a virtual business operated entirely on the Internet requires a place somewhere to operate. Translate your current/future business plans into a floor plan that will accommodate today and tomorrow.
In tomorrow's blog, I'll take up landlord, cost, and length of lease for space.
Questions? I retired when I turned 75. You can email me at AlWarr16@gmail.com with your questions. Put BLOG in the subject line so I don't delete. Quick answers from my 40+ years of experience founding and running small businesses. Your privacy is always respected.
Wednesday, May 21, 2014
Bad debts
Free daily tips, information and advice for people in small business
from someone who has been there, done that in several small operations.
You accept a customer's check, and it bounces. You accept a credit card, and later, the bank backs funds out of your account. You send your invoice to your customer, and it is returned.
If you accept anything but cash, you are extending credit. Every business that extends credit has some of it go bad. Extending credit means taking a risk.
__________
Benefit from these ideas if you are in: *Retailing *Computer Services *Graphic Arts *Florist
*Construction *Manufacturing *Landscaping *Dentistry *Consulting *Crafts
Checks: You need as much information as the law allows on the person writing the check. At the very least this includes name, address, telephone, and other identification (driver's license, etc.). If the check is returned, you'll have some information to help you locate the person.
Company checks are another matter. Check out new companies and call the bank listed on the check. In some cases, you might want the bank to freeze funds in the account to cover the amount of the check--call the bank and take it from there. Be alert to changes in signatures.
Credit cards: I always asked for another form of identification before accepting a credit card. Typically, it's a driver's license or other form of identification that has a photo of the person offering the credit card.
With today's automated systems, you know almost immediately if the card is good. But does it belong to the person presenting it? You don't need the problems associated with stolen credit cards.
Invoices: If your practice is to submit invoices for goods/services sold, work out policy details ahead of time. Your policies should be firm and clear. And don't make exceptions.
Decide your terms. If you expect to be paid in 30 days, state "net 30" on your invoice. If you give a discount for quick payment, state it.
I've used "2 % net 10" to good advantage when dealing with larger companies--they put your invoice on top of the stack in their accounts payable department. The practice of adding penalties for late payment is not as strong an incentive.
If bills are not paid on time, call the customer/client immediately. And continue to call. After all, it's your money they are now using. You never want collections to drift to 90 or 120 or more days delinquent. You must manage payments to avoid bad debts.
Questions? I retired with I turned 75. You can email me at AlWarr16@gmail.com with your questions. Pu BLOG in the subject line. Quick answers from my 40+ years of experience founding and running small businesses. Your privacy is always respected.
from someone who has been there, done that in several small operations.
You accept a customer's check, and it bounces. You accept a credit card, and later, the bank backs funds out of your account. You send your invoice to your customer, and it is returned.
If you accept anything but cash, you are extending credit. Every business that extends credit has some of it go bad. Extending credit means taking a risk.
__________
Benefit from these ideas if you are in: *Retailing *Computer Services *Graphic Arts *Florist
*Construction *Manufacturing *Landscaping *Dentistry *Consulting *Crafts
Checks: You need as much information as the law allows on the person writing the check. At the very least this includes name, address, telephone, and other identification (driver's license, etc.). If the check is returned, you'll have some information to help you locate the person.
Company checks are another matter. Check out new companies and call the bank listed on the check. In some cases, you might want the bank to freeze funds in the account to cover the amount of the check--call the bank and take it from there. Be alert to changes in signatures.
Credit cards: I always asked for another form of identification before accepting a credit card. Typically, it's a driver's license or other form of identification that has a photo of the person offering the credit card.
With today's automated systems, you know almost immediately if the card is good. But does it belong to the person presenting it? You don't need the problems associated with stolen credit cards.
Invoices: If your practice is to submit invoices for goods/services sold, work out policy details ahead of time. Your policies should be firm and clear. And don't make exceptions.
Decide your terms. If you expect to be paid in 30 days, state "net 30" on your invoice. If you give a discount for quick payment, state it.
I've used "2 % net 10" to good advantage when dealing with larger companies--they put your invoice on top of the stack in their accounts payable department. The practice of adding penalties for late payment is not as strong an incentive.
If bills are not paid on time, call the customer/client immediately. And continue to call. After all, it's your money they are now using. You never want collections to drift to 90 or 120 or more days delinquent. You must manage payments to avoid bad debts.
Questions? I retired with I turned 75. You can email me at AlWarr16@gmail.com with your questions. Pu BLOG in the subject line. Quick answers from my 40+ years of experience founding and running small businesses. Your privacy is always respected.
Tuesday, May 20, 2014
Extending yourself
Free daily tips, information and advice for people in small business
from someone who has been there, done that in several small businesses.
In small business, you are always short-handed. Never do you have all the help you need. So you tend to do everything yourself--including taking out the trash and turning off the lights.
You started your small business because you had a passion. Maybe it was baking or yoga. Maybe it was engineering or repairing automobiles.
But the time it takes for you to do everything has become too much. It's cutting into sleep time, and you dare not take a vacation.
You need more help to relieve the pressures. And help is available.
If you cannot afford to add another full time employee, consider a part timer. High school and college students always need a little more money, and you can hire one for 3 or 4 hours a day. Retirees also need more money and want to stay busy--a valuable asset to them and to you.
Alternatively, consider bringing in an intern. Not every business is an appropriate venue for an intern. But a law office, a chef, an insurance agency, a small advertising firm, even a specialty grower of plants, and others can--and do--bring an intern into the operation. Interns work for the experience, and sometimes no pay--or little pay--is involved.
When you do decide to add a full time employee, consider the position carefully. This is another opportunity to extend yourself. It's a time to carve out those activities (that take lots of your time) and turn them over to a trustworthy individual. Or it's a time to bring in new talent--someone who can do things you don't know how to do.
Whatever the case--part timers, interns, or full time employees--you are extending yourself. Now you can concentrate on the parts of the business that you enjoy and the things that are critical to the future of the business. Extending yourself allows you--and the business--to grow.
Questions? I retired when I turned 75. You can email me at AlWarr16@gmail.com with your questions. Put BLOG in the subject line so I don't delete. Quick answers from my 40+ years experience founding and growing several small businesses. Your privacy is always respected.
from someone who has been there, done that in several small businesses.
In small business, you are always short-handed. Never do you have all the help you need. So you tend to do everything yourself--including taking out the trash and turning off the lights.
You started your small business because you had a passion. Maybe it was baking or yoga. Maybe it was engineering or repairing automobiles.
But the time it takes for you to do everything has become too much. It's cutting into sleep time, and you dare not take a vacation.
You need more help to relieve the pressures. And help is available.
If you cannot afford to add another full time employee, consider a part timer. High school and college students always need a little more money, and you can hire one for 3 or 4 hours a day. Retirees also need more money and want to stay busy--a valuable asset to them and to you.
Alternatively, consider bringing in an intern. Not every business is an appropriate venue for an intern. But a law office, a chef, an insurance agency, a small advertising firm, even a specialty grower of plants, and others can--and do--bring an intern into the operation. Interns work for the experience, and sometimes no pay--or little pay--is involved.
When you do decide to add a full time employee, consider the position carefully. This is another opportunity to extend yourself. It's a time to carve out those activities (that take lots of your time) and turn them over to a trustworthy individual. Or it's a time to bring in new talent--someone who can do things you don't know how to do.
Whatever the case--part timers, interns, or full time employees--you are extending yourself. Now you can concentrate on the parts of the business that you enjoy and the things that are critical to the future of the business. Extending yourself allows you--and the business--to grow.
Questions? I retired when I turned 75. You can email me at AlWarr16@gmail.com with your questions. Put BLOG in the subject line so I don't delete. Quick answers from my 40+ years experience founding and growing several small businesses. Your privacy is always respected.
Monday, May 19, 2014
Daily planning
Free daily tips, information and advice for people in small business
from someone who has been there, done that in several small operations.
When your banker asks to see your business plan, there is no need to panic. Business planning is not difficult. You do it all the time.
It's all about customers--present and future. Customers are the foundation of your business. Today's customers and tomorrow's customers tell you where you are headed. The business plan puts this into narrative and numbers.
Pay close attention to your customers. Get to know them. Get to know how, what and when they buy products and services. Find out what else they want--how you might better serve them.
This takes careful attention.
Example: A printing operation can lose additional sales--unless customers are continually reminded of all the other services the company can provide. Customers tend to settle into thinking that the printer is only a printer--other services, like design, mailings and special bindings--might be ignored unless the capabilities are often mentioned.
Keep on top of who your customers are, what their needs are, and where they are headed. A customer who is planning to buy a new home will have lots of needs. If the kids are headed off to college, or getting married, mom and dad will surely be involved and have needs.
Engage your customers in conversations to learn more about them. You can uncover opportunities that won't otherwise come to light.
Then, when your banker asks for your business plan, you will have done some of the legwork necessary to put together the marketing section. All those conversations you've had with customers can be woven into the fabric of future market expectations.
Make this a part of your daily planning. If you haven't talked with one of your customers every day, count that day lost.
Questions? I retired when I turned 75. You can email me at AlWarr16@gmail.com with your questions. Put BLOG in the subject line so I won't delete. Answers from my 40+ years founding and running small businesses. Your privacy is always respected.
from someone who has been there, done that in several small operations.
When your banker asks to see your business plan, there is no need to panic. Business planning is not difficult. You do it all the time.
It's all about customers--present and future. Customers are the foundation of your business. Today's customers and tomorrow's customers tell you where you are headed. The business plan puts this into narrative and numbers.
Pay close attention to your customers. Get to know them. Get to know how, what and when they buy products and services. Find out what else they want--how you might better serve them.
This takes careful attention.
Example: A printing operation can lose additional sales--unless customers are continually reminded of all the other services the company can provide. Customers tend to settle into thinking that the printer is only a printer--other services, like design, mailings and special bindings--might be ignored unless the capabilities are often mentioned.
Keep on top of who your customers are, what their needs are, and where they are headed. A customer who is planning to buy a new home will have lots of needs. If the kids are headed off to college, or getting married, mom and dad will surely be involved and have needs.
Engage your customers in conversations to learn more about them. You can uncover opportunities that won't otherwise come to light.
Then, when your banker asks for your business plan, you will have done some of the legwork necessary to put together the marketing section. All those conversations you've had with customers can be woven into the fabric of future market expectations.
Make this a part of your daily planning. If you haven't talked with one of your customers every day, count that day lost.
Questions? I retired when I turned 75. You can email me at AlWarr16@gmail.com with your questions. Put BLOG in the subject line so I won't delete. Answers from my 40+ years founding and running small businesses. Your privacy is always respected.
Friday, May 16, 2014
Changing direction
Free daily tips, information and advice for people in small business
from someone who has been there, done that in several operations.
Back at the beginning of the 1900s, automobiles were arriving on the scene. Vehicles were replacing wagons and buggies--and the horses that provided the power.
The venerable Studebaker company had been making wagons for decades. Management decided to begin manufacturing automobiles. The company changed direction.
Meanwhile, the marketplace adjusted to the lessened demand for horses. As time passed, there were fewer and fewer wagons and buggies--and fewer horses needed to pull them.
Farmers who produced the grains eaten by the horses suddenly found themselves with a surplus of grain. What to do with the glut?
The response of the marketplace was to change direction. Those grains that the horses once ate became the breakfast cereals that humans still eat today.
There are valuable lessons to be learned from all this. When the marketplace changes, your business must change with it. You can change what you produce, like the Studebaker company. Or you can change how a product or service is perceived and purchased.
Example: Food is on everyone's mind. Not only must we eat, but today the concern has moved to what we eat. A farmer can make a living growing and selling fresh produce in the local market--I know several who do. One of them is bringing to market a product new to his offerings. It's the flower buds produced in spring from last year's kale. It's fresh, it's kale, it's new--all the elements to excite the marketplace. Use them by throwing into an omelet--the same can be done with milkweed buds or day lily buds.
Local farms are typically small businesses. They are in the ideal position to be on the leading edge of marketplace demands. You might not change horse feed into breakfast cereal, but lots of room exists for innovation in fresh foods.
Questions? I retired when I turned 75. You can email me at AlWarr16@gmail.com with your questions. Put BLOG in the subject line so I don't delete. Quick answers from my 40+ years experience founding and growing small businesses. Your privacy is always respected.
from someone who has been there, done that in several operations.
Back at the beginning of the 1900s, automobiles were arriving on the scene. Vehicles were replacing wagons and buggies--and the horses that provided the power.
The venerable Studebaker company had been making wagons for decades. Management decided to begin manufacturing automobiles. The company changed direction.
Meanwhile, the marketplace adjusted to the lessened demand for horses. As time passed, there were fewer and fewer wagons and buggies--and fewer horses needed to pull them.
Farmers who produced the grains eaten by the horses suddenly found themselves with a surplus of grain. What to do with the glut?
The response of the marketplace was to change direction. Those grains that the horses once ate became the breakfast cereals that humans still eat today.
There are valuable lessons to be learned from all this. When the marketplace changes, your business must change with it. You can change what you produce, like the Studebaker company. Or you can change how a product or service is perceived and purchased.
Example: Food is on everyone's mind. Not only must we eat, but today the concern has moved to what we eat. A farmer can make a living growing and selling fresh produce in the local market--I know several who do. One of them is bringing to market a product new to his offerings. It's the flower buds produced in spring from last year's kale. It's fresh, it's kale, it's new--all the elements to excite the marketplace. Use them by throwing into an omelet--the same can be done with milkweed buds or day lily buds.
Local farms are typically small businesses. They are in the ideal position to be on the leading edge of marketplace demands. You might not change horse feed into breakfast cereal, but lots of room exists for innovation in fresh foods.
Questions? I retired when I turned 75. You can email me at AlWarr16@gmail.com with your questions. Put BLOG in the subject line so I don't delete. Quick answers from my 40+ years experience founding and growing small businesses. Your privacy is always respected.
Thursday, May 15, 2014
Face the music
Free daily tips, information and advice for people in small business
from someone who has been there, done that in founding and growing small operations.
When you're growing a business, you need to face the music from time to time. Old songs lose their edge. Singing styles can change.
The music that moved you in the past can start to show its age. When this happens to you, get yourself into a quiet place. Leave behind the phone, the television, and all the other technological distractions.
Ask yourself some honest questions. And start the process to get some honest answers.
1. Where am I headed? Do I need to rethink this thing? Do I spring out of bed every morning? Despite the daily grind, am I as enthusiastic as when I began?
2. Am I in the right business? Has the world passed me by? Should I consider changing my direction? Should I close the door and begin again?
3. Can I grow internally? Or do I need funds to help me take the next step? Is my business plan sufficient to support the road I'm taking? Do I need a new business plan?
4. Am I comfortable using the new social media? Do I need to educate myself in the value of Facebook? Is this a directional change that I want to take?
This is not a weekly exercise. But it will prove useful to do at least a couple of times a year.
Asking these questions in that quiet session will result in an amazing thing. It will focus you on the future. It will help clarify goals. It will bring the long term aspects of your business to bear on the daily grind.
With answers comes a fresh look. Not necessarily at the time you put yourself through this, but later. At odd times, all sorts of ideas will begin to pop into your mind. It's a way to force some organization on the mental processes. It helps you get beyond the daily stresses.
It's good to face the music now and then.
Questions? I retired when I turned 75. You can email me at AlWarr16.gmail.com with your questions. Put BLOG in the subject line so I don't delete it. Quick answers from my 40+ years experience founding and growing small business. Your privacy always respected.
from someone who has been there, done that in founding and growing small operations.
When you're growing a business, you need to face the music from time to time. Old songs lose their edge. Singing styles can change.
The music that moved you in the past can start to show its age. When this happens to you, get yourself into a quiet place. Leave behind the phone, the television, and all the other technological distractions.
Ask yourself some honest questions. And start the process to get some honest answers.
1. Where am I headed? Do I need to rethink this thing? Do I spring out of bed every morning? Despite the daily grind, am I as enthusiastic as when I began?
2. Am I in the right business? Has the world passed me by? Should I consider changing my direction? Should I close the door and begin again?
3. Can I grow internally? Or do I need funds to help me take the next step? Is my business plan sufficient to support the road I'm taking? Do I need a new business plan?
4. Am I comfortable using the new social media? Do I need to educate myself in the value of Facebook? Is this a directional change that I want to take?
This is not a weekly exercise. But it will prove useful to do at least a couple of times a year.
Asking these questions in that quiet session will result in an amazing thing. It will focus you on the future. It will help clarify goals. It will bring the long term aspects of your business to bear on the daily grind.
With answers comes a fresh look. Not necessarily at the time you put yourself through this, but later. At odd times, all sorts of ideas will begin to pop into your mind. It's a way to force some organization on the mental processes. It helps you get beyond the daily stresses.
It's good to face the music now and then.
Questions? I retired when I turned 75. You can email me at AlWarr16.gmail.com with your questions. Put BLOG in the subject line so I don't delete it. Quick answers from my 40+ years experience founding and growing small business. Your privacy always respected.
Wednesday, May 14, 2014
Negotiating
Free daily tips, information and advice for people in small business
from someone who has been there, done that in several small operations.
Everyone negotiates. Children learn early in life that they sometimes must negotiate with their parents to get what they want.
As we grow up, we learn to negotiate at every turn. In your vehicle, you negotiate your way through an intersection. In a store, you negotiate your way through the aisles to find what you want.
Before you sign that lease for space, you negotiate terms. At your bank, you negotiate the best deal for growing your business.
Example: To negotiate, you need leverage. One way to negotiate better terms on space you want to lease is to show the landlord that you know something about the future economy. Landlords want certainty. In an economy that is iffy, you might get better terms on the "little" stuff by offering to sign for 5 years instead of 3. Sometimes, this can bring the monthly rate down. Plus, the "little" stuff can mean more to you than to the landlord. These might include lower electricity rates, heating costs or some construction changes. Landlords might be willing to exchange these for the longer term lease--and the certainty it brings.
If you have never been involved in negotiating, then you need some experience. A simple way to begin is to stop by a flea market. You spy a coffee mug that's priced at $10. You look over the other items on the table. You pick up the coffee mug, and you offer the seller $5. The seller counters with $8. You say you might go $6. You home in on the difference and pay the seller $7. Back at your place, you set the mug on the shelf--it will never hold coffee. It is a trophy and a constant reminder of your negotiating skill.
While this little activity is a simplistic learning experience, it can serve you well. The target of negotiating is to reduce costs. It works with landlords, bankers, labor unions, suppliers, and other business needs.
Basically, you put yourself in the other person's shoes. What is important to the other side? What are the weaknesses of the other side? How can you structure the deal to give the other side what they really want, and at the same time save you some money.
Questions? I retired when I turned 75. You can email me at AlWarr16@gmail.com with your questions. Put BLOG in the subject line so I don't delete your email. Expect quick answers from my 40+ years experience founding and running small businesses. Your privacy is always respected.
from someone who has been there, done that in several small operations.
Everyone negotiates. Children learn early in life that they sometimes must negotiate with their parents to get what they want.
As we grow up, we learn to negotiate at every turn. In your vehicle, you negotiate your way through an intersection. In a store, you negotiate your way through the aisles to find what you want.
Before you sign that lease for space, you negotiate terms. At your bank, you negotiate the best deal for growing your business.
Example: To negotiate, you need leverage. One way to negotiate better terms on space you want to lease is to show the landlord that you know something about the future economy. Landlords want certainty. In an economy that is iffy, you might get better terms on the "little" stuff by offering to sign for 5 years instead of 3. Sometimes, this can bring the monthly rate down. Plus, the "little" stuff can mean more to you than to the landlord. These might include lower electricity rates, heating costs or some construction changes. Landlords might be willing to exchange these for the longer term lease--and the certainty it brings.
If you have never been involved in negotiating, then you need some experience. A simple way to begin is to stop by a flea market. You spy a coffee mug that's priced at $10. You look over the other items on the table. You pick up the coffee mug, and you offer the seller $5. The seller counters with $8. You say you might go $6. You home in on the difference and pay the seller $7. Back at your place, you set the mug on the shelf--it will never hold coffee. It is a trophy and a constant reminder of your negotiating skill.
While this little activity is a simplistic learning experience, it can serve you well. The target of negotiating is to reduce costs. It works with landlords, bankers, labor unions, suppliers, and other business needs.
Basically, you put yourself in the other person's shoes. What is important to the other side? What are the weaknesses of the other side? How can you structure the deal to give the other side what they really want, and at the same time save you some money.
Questions? I retired when I turned 75. You can email me at AlWarr16@gmail.com with your questions. Put BLOG in the subject line so I don't delete your email. Expect quick answers from my 40+ years experience founding and running small businesses. Your privacy is always respected.
Tuesday, May 13, 2014
Daily list
Free daily tips, information and advice for people in small business
from someone who has been there, done that in several small operations.
It began many years ago when I was in college. To pay my way, I always had two or three part time jobs. Meetings and writing deadlines kept be on my toes (I was editor of my college newspaper.) And then there was the class schedule--if it's Tuesday, it must be organic chemistry and economics.
At some point during those four years, I began keeping a daily list of things to be done. During the day, I would jot down the things that were waiting to be done and other items that could be put off to tomorrow. I kept the list handy--in my pocket with me at all times.
My daily list was very helpful. I came to depend on it. I didn't have to clutter up my day thinking (worrying) about the things I had not yet accomplished. I simply consulted my list.
Keeping a daily list organizes you. It frees up your thinking so you can concentrate on other things--like being creative, dreaming, planning, thinking through the ideas that arise. The daily grind of meeting schedules becomes the responsibility of the list.
Joining corporate America after college, my daily list grew. It then included items with a star beside the entry. Stars meant importance. Notations with stars had priority--they must be done that day. Items with stars were prioritized--1, 2, 3, etc.
Leaving corporate America to set up my first business, my list expanded considerably. And it took on a new tone. Meet with the banker. Follow up with my best customer. Update my insurance coverage. Order supplies. Interview a prospective employee. Clean up the storage room and take out the trash.
My daily lists have always included little items alongside the big items. Items go on the list as they occur to me. I have found it amazing what can be accomplished by using the list. It's a way of forward thinking, and, at the same time, it grounds me solidly in today's activities.
My list relieves me of constantly worrying about things to be done. It's a way of walking myself into the future in an organized way. Several times each day, I take out my list, check off those things that have been done, and add more as I think of them.
Over the years, my daily list has become a game, a source of satisfaction, and a record of things accomplished. This in itself speaks to the value of the daily list--the date I bought the car, the date I signed the lease, the date I wrote up a plan for a new business venture.
Get the crap out of your head and onto a daily list. You'll find you have more free time to think about the important stuff.
Questions? I retired when I was 75. You can email me at AlWarr16@gmail.com with your questions. Put BLOG in the subject line. You get quick answers from my 40+ years experience founding and growing small businesses. Your privacy is always respected.
from someone who has been there, done that in several small operations.
It began many years ago when I was in college. To pay my way, I always had two or three part time jobs. Meetings and writing deadlines kept be on my toes (I was editor of my college newspaper.) And then there was the class schedule--if it's Tuesday, it must be organic chemistry and economics.
At some point during those four years, I began keeping a daily list of things to be done. During the day, I would jot down the things that were waiting to be done and other items that could be put off to tomorrow. I kept the list handy--in my pocket with me at all times.
My daily list was very helpful. I came to depend on it. I didn't have to clutter up my day thinking (worrying) about the things I had not yet accomplished. I simply consulted my list.
Keeping a daily list organizes you. It frees up your thinking so you can concentrate on other things--like being creative, dreaming, planning, thinking through the ideas that arise. The daily grind of meeting schedules becomes the responsibility of the list.
Joining corporate America after college, my daily list grew. It then included items with a star beside the entry. Stars meant importance. Notations with stars had priority--they must be done that day. Items with stars were prioritized--1, 2, 3, etc.
Leaving corporate America to set up my first business, my list expanded considerably. And it took on a new tone. Meet with the banker. Follow up with my best customer. Update my insurance coverage. Order supplies. Interview a prospective employee. Clean up the storage room and take out the trash.
My daily lists have always included little items alongside the big items. Items go on the list as they occur to me. I have found it amazing what can be accomplished by using the list. It's a way of forward thinking, and, at the same time, it grounds me solidly in today's activities.
My list relieves me of constantly worrying about things to be done. It's a way of walking myself into the future in an organized way. Several times each day, I take out my list, check off those things that have been done, and add more as I think of them.
Over the years, my daily list has become a game, a source of satisfaction, and a record of things accomplished. This in itself speaks to the value of the daily list--the date I bought the car, the date I signed the lease, the date I wrote up a plan for a new business venture.
Get the crap out of your head and onto a daily list. You'll find you have more free time to think about the important stuff.
Questions? I retired when I was 75. You can email me at AlWarr16@gmail.com with your questions. Put BLOG in the subject line. You get quick answers from my 40+ years experience founding and growing small businesses. Your privacy is always respected.
Monday, May 12, 2014
Bird watching
Free daily tips, information and advice for people in small business
from someone who has been there, done that in several small operations.
So what does bird watching have to do with your business?
High atop a column, part of which provides the support of my front porch roof, a couple of robins set up housekeeping. They built a nest there, and they come back every year to raise a family. Then they move on.
What the robins do is basic to nature. They live and reproduce according to basic instincts.
Too often humans drift far afield from their core. It happens in our personal lives and it happens in our business lives.
We live in a world of distractions. It's largely a world we've created--in commerce, in technology, in politics, in many daily concerns that--frequently--have little to do with our core.
Example: An environmental engineer gets caught up in the lengthy permitting process for a project. Getting the permits in place saps his attention and distracts him so much so that he ignores new developments in environmental science. In the interest of satisfying the tedious process of permit approvals, the project is saddled with outdated solutions. Looking back, the engineer comes to regret some of his recommendations--though valid at the time, he knows he could have done better.
What originally moved us to create our business is too often lost in the daily operations. Day by day, we are pulled away from the core. The core passion that caused us to start up the business gets left behind.
Example: A lady was inspired to open a bakery by the looks on children's faces when they sampled her brownies. Her passion caused her to expand into cookies and cakes. She began to concentrate on high-end, and high-priced, cakes. The business is very successful, and these days, she concentrates almost entirely on specialty cakes. But she misses the kids' faces when they used to bite into her brownies.
Businesses have a way of pulling you in various directions. Be careful not to abandon your core passion.
I have found it useful from time to time to watch the robins. They never drift far from their core nature.
Questions? I retired when I turned 75. You can email me at AlWarr16@gmail.com with your business questions. Put BLOG in the subject line.
Quick answers on handling customers, getting referrals, finding funding, expanding the business, managing employees, organizing and more from my extensive experience in founding and running small businesses.
from someone who has been there, done that in several small operations.
So what does bird watching have to do with your business?
High atop a column, part of which provides the support of my front porch roof, a couple of robins set up housekeeping. They built a nest there, and they come back every year to raise a family. Then they move on.
What the robins do is basic to nature. They live and reproduce according to basic instincts.
Too often humans drift far afield from their core. It happens in our personal lives and it happens in our business lives.
We live in a world of distractions. It's largely a world we've created--in commerce, in technology, in politics, in many daily concerns that--frequently--have little to do with our core.
Example: An environmental engineer gets caught up in the lengthy permitting process for a project. Getting the permits in place saps his attention and distracts him so much so that he ignores new developments in environmental science. In the interest of satisfying the tedious process of permit approvals, the project is saddled with outdated solutions. Looking back, the engineer comes to regret some of his recommendations--though valid at the time, he knows he could have done better.
What originally moved us to create our business is too often lost in the daily operations. Day by day, we are pulled away from the core. The core passion that caused us to start up the business gets left behind.
Example: A lady was inspired to open a bakery by the looks on children's faces when they sampled her brownies. Her passion caused her to expand into cookies and cakes. She began to concentrate on high-end, and high-priced, cakes. The business is very successful, and these days, she concentrates almost entirely on specialty cakes. But she misses the kids' faces when they used to bite into her brownies.
Businesses have a way of pulling you in various directions. Be careful not to abandon your core passion.
I have found it useful from time to time to watch the robins. They never drift far from their core nature.
Questions? I retired when I turned 75. You can email me at AlWarr16@gmail.com with your business questions. Put BLOG in the subject line.
Quick answers on handling customers, getting referrals, finding funding, expanding the business, managing employees, organizing and more from my extensive experience in founding and running small businesses.
Friday, May 9, 2014
Getting sued
Free daily tips, information and advice for people in small business
from someone who has been there, done that in several small operations.
Everyone, it seems, is lawsuit happy in today's world. And it's only getting worse.
Examples: The homeowner is sued by the burglar who slipped on the hallway rug and broke his leg. The store owner is sued by a customer who claimed that a can of beans fell off a high shelf and hit her head, resulting in continuing headaches. The computer expert is sued because the website he designed does not work as promised.
If you are in business today, plan on getting sued. Some lawsuits are frivolous and never amount to anything other than wasting your valuable time. Others are more serious, and the likelihood of getting sued increases daily.
What to do? How do you protect yourself, your personal assets, and your business?
1. Separate your personal life from your business life. Make your business into a legal entity in its own right--incorporation, limited liability, partnership, etc. See a lawyer, or Google the word "incorporation" and go through the results to find something that works for you. Personally, I no longer recommend a "doing business as" or DBA type of business--it can expose you personally to anything that happens in your business.
2. Make sure you have a good insurance agent. The law insists that businesses carry workers comp insurance. Business-owned vehicles must carry insurance, and some businesses must post bonds for work to be done. But what about other types of coverage?
Liability insurance is written to cover broken legs, cracked skulls and other mishaps. Make sure the amount of liability insurance you carry is consistent with a reasonable reading of today's jury awards. What is your exposure? If you are an artisan whose only exposure to the public is at art shows, this is one thing. On the other hand, if you are a shop owner where people are constantly browsing, the exposure is greater--slipping on wet floors or icy sidewalks is not uncommon.
Another type of liability insurance is the excess liability type. Think of it as an umbrella that protects over and above existing policies. This has become more popular as higher jury awards have occurred.
Flood insurance covers businesses located in flood plains. It used to be cheap, but the federal regulations have recently changed, resulting in much higher premiums. If you haven't checked it recently, it's time to call your insurance agent and get updated.
Key person or partner insurance is a type of life insurance. Each partner is insured so that, if one partner is deceased or becomes incapacitated, the amount of insurance is sufficient to buy out the remaining partner or partners. The business can continue without being cluttered with heirs who might have other ideas about business.
Insurance can help you better sleep at night. A serious conversation with your insurance agent can help you decide what's appropriate in your situation.
Questions? I retired when I turned 75. You can email me at AlWarr16@gmail.com with your questions.
Put BLOG in the subject line. Quick answers from my 40+ years of experience founding and running small businesses. Your privacy is always respected.
from someone who has been there, done that in several small operations.
Everyone, it seems, is lawsuit happy in today's world. And it's only getting worse.
Examples: The homeowner is sued by the burglar who slipped on the hallway rug and broke his leg. The store owner is sued by a customer who claimed that a can of beans fell off a high shelf and hit her head, resulting in continuing headaches. The computer expert is sued because the website he designed does not work as promised.
If you are in business today, plan on getting sued. Some lawsuits are frivolous and never amount to anything other than wasting your valuable time. Others are more serious, and the likelihood of getting sued increases daily.
What to do? How do you protect yourself, your personal assets, and your business?
1. Separate your personal life from your business life. Make your business into a legal entity in its own right--incorporation, limited liability, partnership, etc. See a lawyer, or Google the word "incorporation" and go through the results to find something that works for you. Personally, I no longer recommend a "doing business as" or DBA type of business--it can expose you personally to anything that happens in your business.
2. Make sure you have a good insurance agent. The law insists that businesses carry workers comp insurance. Business-owned vehicles must carry insurance, and some businesses must post bonds for work to be done. But what about other types of coverage?
Liability insurance is written to cover broken legs, cracked skulls and other mishaps. Make sure the amount of liability insurance you carry is consistent with a reasonable reading of today's jury awards. What is your exposure? If you are an artisan whose only exposure to the public is at art shows, this is one thing. On the other hand, if you are a shop owner where people are constantly browsing, the exposure is greater--slipping on wet floors or icy sidewalks is not uncommon.
Another type of liability insurance is the excess liability type. Think of it as an umbrella that protects over and above existing policies. This has become more popular as higher jury awards have occurred.
Flood insurance covers businesses located in flood plains. It used to be cheap, but the federal regulations have recently changed, resulting in much higher premiums. If you haven't checked it recently, it's time to call your insurance agent and get updated.
Key person or partner insurance is a type of life insurance. Each partner is insured so that, if one partner is deceased or becomes incapacitated, the amount of insurance is sufficient to buy out the remaining partner or partners. The business can continue without being cluttered with heirs who might have other ideas about business.
Insurance can help you better sleep at night. A serious conversation with your insurance agent can help you decide what's appropriate in your situation.
Questions? I retired when I turned 75. You can email me at AlWarr16@gmail.com with your questions.
Put BLOG in the subject line. Quick answers from my 40+ years of experience founding and running small businesses. Your privacy is always respected.
Thursday, May 8, 2014
And another thing
Free daily advice for people in small business
from someone who has been there, done that.
It happens all the time. You've done it. I've done it.
We tend to pigeon hole our business friends. We remember them for one thing, while they engage in additional activities that might interest us.
When you are running a business, you must guard against this. It's a constant problem--to tell, remind, inform, and otherwise educate your clients and customers in all the things you can do for them.
Example: You hired a web designer and the result was spectacular. Then you needed someone to set you up in social media. So you called your web designer and asked for a recommendation. That's when he told you, "I do that. I can help you with that." You had only thought of your web designer in one way. And he had not informed you of the other things he could do for you.
Example: Clients depend on your accounting firm to handle their taxes. But they are not aware that your firm also helps business owners prepare for the eventual sale of the business. You must remind them of your additional expertise so that when the time comes that they need those services, you are the first one they think to call.
Example: Regular diners are very happy with the healthy meals they enjoy at your small restaurant. But they forget that you also run a catering operation. When they are preparing for that family get-together or the corporate meeting, they call another caterer. You've missed an opportunity because you have not reminded them that you can do more.
"And another thing..." becomes a regular part of your conversation and interaction with clients and customers. The other things you do can grow your operation--if only everyone knew about them. It's up to you to keep the world informed.
Questions? Email me direct at AlWarr16@gmail.com and put BLOG in the subject line.
I am retired and I am not selling anything. Your privacy is always respected.
from someone who has been there, done that.
It happens all the time. You've done it. I've done it.
We tend to pigeon hole our business friends. We remember them for one thing, while they engage in additional activities that might interest us.
When you are running a business, you must guard against this. It's a constant problem--to tell, remind, inform, and otherwise educate your clients and customers in all the things you can do for them.
Example: You hired a web designer and the result was spectacular. Then you needed someone to set you up in social media. So you called your web designer and asked for a recommendation. That's when he told you, "I do that. I can help you with that." You had only thought of your web designer in one way. And he had not informed you of the other things he could do for you.
Example: Clients depend on your accounting firm to handle their taxes. But they are not aware that your firm also helps business owners prepare for the eventual sale of the business. You must remind them of your additional expertise so that when the time comes that they need those services, you are the first one they think to call.
Example: Regular diners are very happy with the healthy meals they enjoy at your small restaurant. But they forget that you also run a catering operation. When they are preparing for that family get-together or the corporate meeting, they call another caterer. You've missed an opportunity because you have not reminded them that you can do more.
"And another thing..." becomes a regular part of your conversation and interaction with clients and customers. The other things you do can grow your operation--if only everyone knew about them. It's up to you to keep the world informed.
Questions? Email me direct at AlWarr16@gmail.com and put BLOG in the subject line.
I am retired and I am not selling anything. Your privacy is always respected.
Wednesday, May 7, 2014
Referrals increase
Free daily advice for people in small business
from someone who has been there, done that.
Referrals bring in the best new clients and customers. No matter your business, you love it when a referral shows up.
The reason has to do with your reputation. Some existing client or customer has talked about you and your business to another person. And the talk must have been in glowing terms.
It's the whole reason that Angie's List works. There, people write up their experiences with dentists, landscapers, plumbers, and other community businesses. These recommendations by others set your mind at ease, and you make the call.
Referrals are a natural extension of human interaction. When you've had a good experience with a local cabinet maker, you want to share that with friends and neighbors. You discuss it in a conversation, and that person is now more likely to call the cabinet maker you reported on.
So, referrals naturally take place. The problem for the small business becomes How do you promote the referral process?
I have personally used a method to great success in promoting the referral process. It is not original with me, but I explored and refined the process over dozens of years.
Basically, you keep a running list of contact information for your present clients and customers. This can be phone numbers and/or email addresses.
Once every three months or so, make it a point to contact each individually. If you can meet personally, it's even better. Current clients and customers represent a gold mine of new business.
When you make these contacts, ask for three referrals--other people's names and contact information. Ask if you can use your client's or customer's name when you contact these referrals. I have found that people gladly give their permission.
Then you call or email or personally see each of the referrals. Tell them who referred them. Ask if you can send them more information.
This is not the time for a hard sell. It's soft and fuzzy. It's based on that third party who got you two together, and you are going in on that third party's reputation.
You're expanding your circle of business friends. It might result in future business for you, or it might not. Sometimes, I've found that the referral did not become a customer, but that they in turn referred someone else who did.
In any case, you will be increasing (and enhancing) your reputation in the community you serve. I used this method for many years before Angie's List arrived on the scene. When you put this method to work in your business, you will be developing your very own Angie's List.
Questions? Email me direct at AlWarr16@gmail.com and put BLOG in the subject line.
I am retired now, and I am not selling anything. Your privacy is always respected.
from someone who has been there, done that.
Referrals bring in the best new clients and customers. No matter your business, you love it when a referral shows up.
The reason has to do with your reputation. Some existing client or customer has talked about you and your business to another person. And the talk must have been in glowing terms.
It's the whole reason that Angie's List works. There, people write up their experiences with dentists, landscapers, plumbers, and other community businesses. These recommendations by others set your mind at ease, and you make the call.
Referrals are a natural extension of human interaction. When you've had a good experience with a local cabinet maker, you want to share that with friends and neighbors. You discuss it in a conversation, and that person is now more likely to call the cabinet maker you reported on.
So, referrals naturally take place. The problem for the small business becomes How do you promote the referral process?
I have personally used a method to great success in promoting the referral process. It is not original with me, but I explored and refined the process over dozens of years.
Basically, you keep a running list of contact information for your present clients and customers. This can be phone numbers and/or email addresses.
Once every three months or so, make it a point to contact each individually. If you can meet personally, it's even better. Current clients and customers represent a gold mine of new business.
When you make these contacts, ask for three referrals--other people's names and contact information. Ask if you can use your client's or customer's name when you contact these referrals. I have found that people gladly give their permission.
Then you call or email or personally see each of the referrals. Tell them who referred them. Ask if you can send them more information.
This is not the time for a hard sell. It's soft and fuzzy. It's based on that third party who got you two together, and you are going in on that third party's reputation.
You're expanding your circle of business friends. It might result in future business for you, or it might not. Sometimes, I've found that the referral did not become a customer, but that they in turn referred someone else who did.
In any case, you will be increasing (and enhancing) your reputation in the community you serve. I used this method for many years before Angie's List arrived on the scene. When you put this method to work in your business, you will be developing your very own Angie's List.
Questions? Email me direct at AlWarr16@gmail.com and put BLOG in the subject line.
I am retired now, and I am not selling anything. Your privacy is always respected.
Tuesday, May 6, 2014
It's free!
Free daily advice for people in small business
from someone who has been there, done that.
You've heard it. It's everywhere.
The picture of a product bursts across your screen. You've never seen it or heard of it. But the voice is telling you that you cannot live without it.
"But wait! We'll double the offer. You get two for the price of one."
It's a variation on the "free" theme. And it works--much of the time.
No matter how many times we hear the word "free" it move us. It's a magic word.
People running small businesses should be using the "free" word. You don't have to sell on television or mobile devices to take advantage of this.
Example: A fitness operation can set up a free introductory session. People can come to the gym, meet a trainer, discuss a particular interest or problem, and maybe sign up. The same holds for yoga and other holistic practitioners. It is an hour well spent by the business. Even if the potential client doesn't sign up, a good impression results. And the word spreads in the community.
Example: I've run into construction outfits and home improvement businesses that charge a fee for an estimate. The company's reasoning is that it costs them to send out an estimator. In today's world, this leaves a bad impression. Estimates for work to be done should be free. People expect it. Put the word out that your estimates are free, and you separate your business from those that charge for estimates.
Example: Offer free workshops, seminars, information sessions, open houses, and the like. People are hungry for information and will attend free sessions. Chiropractors can explain just what chiropractic is--and offer free demonstrations. Music and dance studios can show just what classical, modern, hip hop and jazz is all about and how they differ. Restaurants can hold cooking classes. Accountants can talk about taxes--always a concern for small business owners. Any place offering food can set up a free sample table.
I've discussed in previous blogs additional ways small businesses can use "free" to attract attention. Put on your thinking cap and figure out how you can use "free" to broaden your client or customer base. Your operation is a very unique expression of yourself. And "free" helps get the word out.
Questions? Email me direct at AlWarr16@gmail.com and put BLOG in the subject line.
I am retired and I am not selling anything. Your privacy is always respected.
from someone who has been there, done that.
You've heard it. It's everywhere.
The picture of a product bursts across your screen. You've never seen it or heard of it. But the voice is telling you that you cannot live without it.
"But wait! We'll double the offer. You get two for the price of one."
It's a variation on the "free" theme. And it works--much of the time.
No matter how many times we hear the word "free" it move us. It's a magic word.
People running small businesses should be using the "free" word. You don't have to sell on television or mobile devices to take advantage of this.
Example: A fitness operation can set up a free introductory session. People can come to the gym, meet a trainer, discuss a particular interest or problem, and maybe sign up. The same holds for yoga and other holistic practitioners. It is an hour well spent by the business. Even if the potential client doesn't sign up, a good impression results. And the word spreads in the community.
Example: I've run into construction outfits and home improvement businesses that charge a fee for an estimate. The company's reasoning is that it costs them to send out an estimator. In today's world, this leaves a bad impression. Estimates for work to be done should be free. People expect it. Put the word out that your estimates are free, and you separate your business from those that charge for estimates.
Example: Offer free workshops, seminars, information sessions, open houses, and the like. People are hungry for information and will attend free sessions. Chiropractors can explain just what chiropractic is--and offer free demonstrations. Music and dance studios can show just what classical, modern, hip hop and jazz is all about and how they differ. Restaurants can hold cooking classes. Accountants can talk about taxes--always a concern for small business owners. Any place offering food can set up a free sample table.
I've discussed in previous blogs additional ways small businesses can use "free" to attract attention. Put on your thinking cap and figure out how you can use "free" to broaden your client or customer base. Your operation is a very unique expression of yourself. And "free" helps get the word out.
Questions? Email me direct at AlWarr16@gmail.com and put BLOG in the subject line.
I am retired and I am not selling anything. Your privacy is always respected.
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