Free daily tips, information and advice for people in small business
from personal experience starting up and running small businesses--been there, done that.
Every business, large and small, needs to optimize the performance of employees. No whips and chains. Just positive stuff.
People appreciate being appreciated. Deep down, all of us crave acceptance. And we want recognition. That's why a simple "Thank you" goes a long way toward enhancing performance.
Many other ways are effective as well. Here's a laundry list--food for thought.
1. In very small businesses, handing out a $20 bill now and then for extraordinary effort can spur even greater effort and creativity in an employee.
2. Call everyone together and recognize superior performance in front of the group. If you have weekly or monthly gatherings of employees, do it then.
3. Set up a bonus system to reward superior performance with bonuses. See one of my previous blogs on variations you might consider--it's titled "Bonuses".
4. Set up an employee of the month program. Don't let it become routine--make it part of the monthly meeting. Use a plaque on which names can be added--inscribed on metal plates.
5. Make up company T-shirts and hand them out at company picnics or other get-togethers. These can be for a good reason--or no reason at all.
6. Go the extra mile: If your business is incorporated, consider giving stock certificates out to your best employees. If parking is a problem at your place, consider putting employee names on parking places--yours should be at the end of the line, not closest to the door. If you don't already offer a retirement plan, consider setting up one--you'll need professional help with this.
Other options can be effective. Put on your thinking cap and get creative. Little things that show your thoughtfulness and appreciation for the person are often more effective than big splashes.
Whatever you do, do it by saying "Thank you" to the employee. Even by itself, a simple "Thank you" goes far in enhancing performance. Make it part of your routine management style.
Running your own business is stressful and frustrating. You need input that is useful and spot on. And that's why I write this blog every day. I know the acid burn when cash flow is not flowing. Been there, done that in several small businesses myself.
Thursday, July 31, 2014
Wednesday, July 30, 2014
Property business
Free daily tips, information and advice for people in small business
from personal experience founding, growing small businesses--been there, done that.
Real estate can be a business. I'm not talking about selling houses as an agent. And I'm not talking fixer-uppers or flipping--these are different types of property businesses.
Personal example: As a sideline to my main business, I set up a property business with a partner. First we set some criteria--it was a business plan of sorts. We concentrated on existing rentals--two and three family apartments. We looked for properties with cash flows that could carry the mortgage and a maintenance fund, and we were counting on appreciation long term. We looked for buildings (1) in a self-contained neighborhood that (2) had good access to city jobs with (3) well-constructed apartments that (4) were fully rented. When our criteria were met, we bought the place. No bungling together--each building was managed as a unit unto itself. In other words, we did not pyramid the whole--that's asking for trouble.
Managing apartment rentals is easy if you go about it in a no-nonsense way. All tenants had my personal phone number and they were told not to hesitate calling me day or night, seven days a week with any problem. I maintained a stable of tradespeople--electricians, plumbers, carpenters--who would come any time I called them, including Sundays and holidays. This rarely happened, but they knew they would be paid immediately and could expect a cash bonus for Sunday, holiday or overnight work.
You can consider real estate as a sideline, or you can make it your primary business.
Example: I worked with a man who concentrated on commercial real estate. He limited his targets to small, older stores and buildings in suburban towns. The storefronts needed attention, but the town showed unmistakable signs of growth. He checked carefully before buying a property--town councils, business organizations, regulatory people--to understand impacts going forward. When he bought a property, he renovated it and upgraded it. This had the effect of working with towns to help them improve the shopping district. He attributed his success to working closely with local authorities.
A property business offers a good business opportunity. These two examples show what can be done with residential rentals and commercial rentals.
People in small business get the benefit of my personal experience covering a lifetime in small business. These tips and advice are free, short, hard-hitting, and they come to you daily. I'm not selling anything.
from personal experience founding, growing small businesses--been there, done that.
Real estate can be a business. I'm not talking about selling houses as an agent. And I'm not talking fixer-uppers or flipping--these are different types of property businesses.
Personal example: As a sideline to my main business, I set up a property business with a partner. First we set some criteria--it was a business plan of sorts. We concentrated on existing rentals--two and three family apartments. We looked for properties with cash flows that could carry the mortgage and a maintenance fund, and we were counting on appreciation long term. We looked for buildings (1) in a self-contained neighborhood that (2) had good access to city jobs with (3) well-constructed apartments that (4) were fully rented. When our criteria were met, we bought the place. No bungling together--each building was managed as a unit unto itself. In other words, we did not pyramid the whole--that's asking for trouble.
Managing apartment rentals is easy if you go about it in a no-nonsense way. All tenants had my personal phone number and they were told not to hesitate calling me day or night, seven days a week with any problem. I maintained a stable of tradespeople--electricians, plumbers, carpenters--who would come any time I called them, including Sundays and holidays. This rarely happened, but they knew they would be paid immediately and could expect a cash bonus for Sunday, holiday or overnight work.
You can consider real estate as a sideline, or you can make it your primary business.
Example: I worked with a man who concentrated on commercial real estate. He limited his targets to small, older stores and buildings in suburban towns. The storefronts needed attention, but the town showed unmistakable signs of growth. He checked carefully before buying a property--town councils, business organizations, regulatory people--to understand impacts going forward. When he bought a property, he renovated it and upgraded it. This had the effect of working with towns to help them improve the shopping district. He attributed his success to working closely with local authorities.
A property business offers a good business opportunity. These two examples show what can be done with residential rentals and commercial rentals.
People in small business get the benefit of my personal experience covering a lifetime in small business. These tips and advice are free, short, hard-hitting, and they come to you daily. I'm not selling anything.
Tuesday, July 29, 2014
Bonuses
Free daily tips, information and advice for people in small business
from personal experience starting up and running small businesses--been there, done that.
Giving out bonuses is a way to reward superior performance. There are ways to jiggle the process to better advantage both employee and employer.
Example: A company with about 30 employees regularly handed out end-of-the-year bonuses. A pot of money was set aside, then divided among employees whose performance had been exemplary for the year. The owner decided to try another method--shortening the period. Using the same amount of money, he divided it into four pots. At the end of each quarter, he handed out bonuses to employees showing the performance most valuable to the company. By giving out bonuses four times each year instead on only once, the effects were better. It put the reward closer to the performance deserving the bonus. Employees got a little extra motivation four times a year instead of once.
Example: Still looking at the situation, the same owner decided to try another variation. Using the same pot of bonus money, he divided it up into $100 bonuses. Whenever an employee showed exemplary performance or made a significant suggestion to improve the company, the owner called everyone together and presented the $100 bonus. This variation caused considerable increase in enthusiasm among employees. It kept the bonus very close to the performance that earned it. At the end of the year, the owner still gave out small bonuses--gift cards in small amounts. Although this experimenting took several years, the owner arrived at a bonus system that worked well.
If you give bonuses to employees in your company, you might want to get creative in structuring the way you do it. What works in one place might--or might not--work in the next. But it's food for thought.
My experience covers a lifetime of founding, growing and worrying with my own businesses, as well as helping other business owners with the problems we all face. I spend my retirement days writing about what I've learned--and learning new things every day. Remember: If you are not learning something, you're wasting your time.
from personal experience starting up and running small businesses--been there, done that.
Giving out bonuses is a way to reward superior performance. There are ways to jiggle the process to better advantage both employee and employer.
Example: A company with about 30 employees regularly handed out end-of-the-year bonuses. A pot of money was set aside, then divided among employees whose performance had been exemplary for the year. The owner decided to try another method--shortening the period. Using the same amount of money, he divided it into four pots. At the end of each quarter, he handed out bonuses to employees showing the performance most valuable to the company. By giving out bonuses four times each year instead on only once, the effects were better. It put the reward closer to the performance deserving the bonus. Employees got a little extra motivation four times a year instead of once.
Example: Still looking at the situation, the same owner decided to try another variation. Using the same pot of bonus money, he divided it up into $100 bonuses. Whenever an employee showed exemplary performance or made a significant suggestion to improve the company, the owner called everyone together and presented the $100 bonus. This variation caused considerable increase in enthusiasm among employees. It kept the bonus very close to the performance that earned it. At the end of the year, the owner still gave out small bonuses--gift cards in small amounts. Although this experimenting took several years, the owner arrived at a bonus system that worked well.
If you give bonuses to employees in your company, you might want to get creative in structuring the way you do it. What works in one place might--or might not--work in the next. But it's food for thought.
My experience covers a lifetime of founding, growing and worrying with my own businesses, as well as helping other business owners with the problems we all face. I spend my retirement days writing about what I've learned--and learning new things every day. Remember: If you are not learning something, you're wasting your time.
Monday, July 28, 2014
Time off
Free daily tips, information and advice for small business
from personal experience--been there, done that in small business.
Taking a vacation was always difficult for me. All my businesses were set up so that they could run without me. But something else was afoot.
I grew up on a dairy farm. It was 24/7/365. I developed a formidable work ethic. Today, if I'm not doing something, I feel like I'm wasting time. It's the same with most people who run a business.
In running my businesses, I never hesitated taking an afternoon off or disappearing for a long weekend. I didn't call in, but I worried. My employees could always reach me by phone if they ran into a problem they could not solve. That rarely happened.
Example: Mike started a small business running a computer repair shop. Gradually he expanded and provided additional services. He would go to their offices, install new computers and software, network them and train their employees. Soon, Mike had three employees and a service van on the road. Then he broke his leg. He was laid up for a month, and he was faced with running his business from bed. He was constantly on the phone, directing his employees at every turn. Tired and exasperated, he shouted at an employee one day to handle the problem himself. It was an eye-opener for Mike. Not only did the employee handle the problem, he did not call Mike again until the next day. Mike learned a valuable lesson--depend on your employees, and they'll handle most problems themselves.
Many of you already have employees, or you will have them as you grow. Train them how to handle problems and how to handle customers. Then let them make their own decisions. To get the best out of an employee, you must put them on their own.
Don't wait until you break your leg to take some time off. You need time away from your daily business grind to clear your head, let your thoughts roam, and think through some fresh ideas.
Go ahead. Take that time off--even if it's only for a long weekend. See how your business operates without you.
My lifetime of business experience comes to you daily in these write-ups. Over the years, I have founded and grown small businesses of my own, and I have counseled and worked with and written up thousands of different small businesses.
from personal experience--been there, done that in small business.
Taking a vacation was always difficult for me. All my businesses were set up so that they could run without me. But something else was afoot.
I grew up on a dairy farm. It was 24/7/365. I developed a formidable work ethic. Today, if I'm not doing something, I feel like I'm wasting time. It's the same with most people who run a business.
In running my businesses, I never hesitated taking an afternoon off or disappearing for a long weekend. I didn't call in, but I worried. My employees could always reach me by phone if they ran into a problem they could not solve. That rarely happened.
Example: Mike started a small business running a computer repair shop. Gradually he expanded and provided additional services. He would go to their offices, install new computers and software, network them and train their employees. Soon, Mike had three employees and a service van on the road. Then he broke his leg. He was laid up for a month, and he was faced with running his business from bed. He was constantly on the phone, directing his employees at every turn. Tired and exasperated, he shouted at an employee one day to handle the problem himself. It was an eye-opener for Mike. Not only did the employee handle the problem, he did not call Mike again until the next day. Mike learned a valuable lesson--depend on your employees, and they'll handle most problems themselves.
Many of you already have employees, or you will have them as you grow. Train them how to handle problems and how to handle customers. Then let them make their own decisions. To get the best out of an employee, you must put them on their own.
Don't wait until you break your leg to take some time off. You need time away from your daily business grind to clear your head, let your thoughts roam, and think through some fresh ideas.
Go ahead. Take that time off--even if it's only for a long weekend. See how your business operates without you.
My lifetime of business experience comes to you daily in these write-ups. Over the years, I have founded and grown small businesses of my own, and I have counseled and worked with and written up thousands of different small businesses.
Friday, July 25, 2014
Burning bright
Free daily tips, information and advice for people in small business
from personal experience founding and operating small businesses--been there, done that.
You've watched a candle burn, top down.
Like candles, small businesses have a lifespan. Your business can burn brightly for years--or not.
With business, it's the marketplace, not the candle. The market changes. If you insist on burning a single candle, you are most likely racing toward a business burnout.
Example: A farm in my area has been operating as a family business since the 1740s. Same family, same piece of land. It's gone through many changes over the centuries. The original farm changed with the times, becoming a large producer of apples and peaches as the 1800s turned into the 1900s. Since then, it has changed again. Today the farm is a large producer of boxwoods and other ornamental shrubs. Sales are to several well-known arboretums, garden centers, landscapers and homeowners. It's still the same piece of land and it's still in the same family, but it changed with the changing marketplace.
To keep your business burning bright takes a sharp eye on the marketplace. You might be building for your own lifetime, or you might want the business to continue through successive generations. Either way, every now and then you might light a new candle.
Example: A consignment shop in my area was established over 75 years ago. It's big and it's almost an institution in itself. The specialty here is vintage and antique clothing. Customers are party goers, actors and production companies, teenagers, and others. There are also racks of more recent clothing. In recent years the owner noticed a developing market for currently fashionable women's clothing. Customers were business women looking to extend their wardrobes. They could get name brands, gently used and at steep discounts off the original prices. They could wear the outfits a couple of times, return the items and select others. The owner decided to open a sister shop in an upscale suburban town. She now reaches out on Facebook to her growing list of regulars with pictures of items new to the shop. The sister shop is very successful, filling a niche market. The original store still enjoys its target market.
Keep your business burning bright. Stay on top of that ever-changing marketplace.
A lifetime of personal experience in small business is in this daily blog. I have started businesses, grown them, sold them and started more. In addition, I have counseled and coached thousands of small businesses at three New Jersey Small Business Development Centers and as head of the Business Owners Institute. Always writing, several books and collections of interviews are on Amazon.
from personal experience founding and operating small businesses--been there, done that.
You've watched a candle burn, top down.
Like candles, small businesses have a lifespan. Your business can burn brightly for years--or not.
With business, it's the marketplace, not the candle. The market changes. If you insist on burning a single candle, you are most likely racing toward a business burnout.
Example: A farm in my area has been operating as a family business since the 1740s. Same family, same piece of land. It's gone through many changes over the centuries. The original farm changed with the times, becoming a large producer of apples and peaches as the 1800s turned into the 1900s. Since then, it has changed again. Today the farm is a large producer of boxwoods and other ornamental shrubs. Sales are to several well-known arboretums, garden centers, landscapers and homeowners. It's still the same piece of land and it's still in the same family, but it changed with the changing marketplace.
To keep your business burning bright takes a sharp eye on the marketplace. You might be building for your own lifetime, or you might want the business to continue through successive generations. Either way, every now and then you might light a new candle.
Example: A consignment shop in my area was established over 75 years ago. It's big and it's almost an institution in itself. The specialty here is vintage and antique clothing. Customers are party goers, actors and production companies, teenagers, and others. There are also racks of more recent clothing. In recent years the owner noticed a developing market for currently fashionable women's clothing. Customers were business women looking to extend their wardrobes. They could get name brands, gently used and at steep discounts off the original prices. They could wear the outfits a couple of times, return the items and select others. The owner decided to open a sister shop in an upscale suburban town. She now reaches out on Facebook to her growing list of regulars with pictures of items new to the shop. The sister shop is very successful, filling a niche market. The original store still enjoys its target market.
Keep your business burning bright. Stay on top of that ever-changing marketplace.
A lifetime of personal experience in small business is in this daily blog. I have started businesses, grown them, sold them and started more. In addition, I have counseled and coached thousands of small businesses at three New Jersey Small Business Development Centers and as head of the Business Owners Institute. Always writing, several books and collections of interviews are on Amazon.
Thursday, July 24, 2014
Planning ahead
Free daily tips, information and advice for people in small business
from personal experience founding and growing several--been there, done that.
Planning ahead--the two terms seem to be contradictory. Planning by definition concerns the future.
You don't plan "behind" and planning for "now" has already been done--consciously or not.
Planning ahead sorts through the possibilities of "if/then" and brings up some possible courses of action for you and your business.
If the economy goes south, then I'll concentrate on certain products/services and de-emphasize the rest. If this type of advertising does not work, then I'll shift to alternatives. If a big box store opens in my town, then in my store I'll offer the things they don't carry.
Example: Joel had time to plan ahead. Walmart announced some 18 months ahead that the company would be opening one of their big stores nearby. Joel feared for the future of his small town hardware store, and he soon arrived at a "planning ahead" decision. He decided to move from the cramped, in-town location to a suburban location on a main road. Simultaneously, he would change the direction of his business. Contractors and homeowners already came to Joel's place to rent the power tools and equipment they needed for a day or two. In the sprawling new location, Joel would have more room and could add more rentals. Today, Joel is in his new location, offering more and more rentals--including trucks and trailers. He has been able to add a part time repairman to keep the equipment shipshape. He still offers high quality hardware items and power tools for sale--concentrating on items not carried by Walmart.
Sometimes, owners of small businesses get comfortable with the business running itself. But the marketplace is continually changing. You already know how to plan ahead, but It can take an outside force to kickstart the big decisions.
Example: Artists who paint pictures have a difficult time connecting with the buying public. Juan loved to draw. Growing up, he honed his skills producing endless pen and ink works. Gradually, he became fascinated with painting in oils. He showed some of his paintings at art shows and festivals. There was a great deal of interest, but sales were slow--not enough to support him. He noticed that his pen and ink drawings of homes, buildings, bridges and other structures sold well at shows. He did some planning ahead--he would concentrate on building a following for the pen and ink drawings, supporting him while he traveled the long road to transition to oil paintings. It's working. Doing pen and ink drawings is quick and easy for him. They bring in continuing income and give him the time to produce a backlog of oil paintings. Meantime, his reputation is spreading in the art world as an artist to watch.
Sometimes, an interim plan can be the path to the goal you want to reach. Baby steps can be the way to get you where you want to go.
Eventual success in a small business might lead through a detour or two. But planning ahead and keeping the goal firmly in mind will guide you through.
A lifetime of experience is distilled in these daily tips, information and advice for people starting up and running small businesses. Small business is the backbone of America--think hairdressers and pet groomers, chiropractors and accountants, cafes and neighborhood stores, auto repair shops and bakers. What would you do if all the landscapers and computer experts suddenly moved to Canada? You'd plan ahead, hunker down and figure out a new business to get into. This is what makes America great, not Washington with all its bloated bureaucracies feverishly writing more rules and regulations.
Wednesday, July 23, 2014
Partial payments
Free daily tips, information and advice for people in small business
from personal experience founding and growing businesses--been there, done that.
Some small businesses can increase sales by offering partial payments. It can be for products or services. Partial payments can be attractive to individual buyers as well as big companies.
Example: If your small business sells to big corporations, it is important to know the approvals structure in your customer's company. Frank runs a printing business and he uses the partial payments concept. His customers include banks, insurance companies, and large manufacturers. On different jobs, he might be dealing with with managers, vice presidents or senior officials. All of them have different levels of approval authority. In the case of lower level managers, they might be able to approve up to $500. As you move up the ladder, senior officials might be able to commit the company to a $50,000 order on their own signature. Frank works with his clients so that they can fit his invoices into their budget and approval authority. Sometimes this means splitting jobs into several pieces and billing them separately. Don't misunderstand--nobody's hiding anything here. It's simply working with existing responsibilities and authorities of clients. It's a way to put the partial payments concept to good use--to the benefit of buyer and seller.
A variation on the partial payments concept can be used by others--consultants for example. Here, the consultant and the client agree on a relationship, placing milestones on the work to be done. At the end of each milestone, work accomplished to that point is billed. Partial payments again work to the advantage of both parties.
More examples: Layaway plans were once used extensively by retail stores--large and small. The layaway concept declined in use over the years, but recently it has enjoyed a resurgence in popularity. (1) A small furniture store offers customers layaway plans. Some customers like the discipline of breaking up the price of an $800 chair into four monthly payments--taking delivery when the total is paid. (2) Small jewelry stores can miss sales when they do not offer layaway, common at large jewelry stores and department stores these days. (3) Electricians, plumbers and other tradespeople can realize a better bottom line by quoting the overall job in pieces--breaking up a big job into components, each billed as it is completed.
(4) Frank used progress payments in his printing operation (see main example above). Many large jobs were quoted in thirds--1/3 upfront when the job was defined and placed, 1/3 when a certain milestone was met, and 1/3 on delivery of the finished product.
Look for ways to put the partial payments concept--and its variations--to work in your business. Start by looking at your customers/clients and their problems.
Frequently, partial payments can help them. Pleasing them by helping them solve their own problems brings them back to you--and it can generate referrals.
All this helps you with your cash flow. And we know the importance of cash flow.
My lifetime of experience includes starting up and operating small businesses as well as counseling thousands of small business owners with their problems. This includes hands-on coaching at several Small Business Development Centers and running the Business Owners Institute in New Jersey. Free answers to your questions--email me at AlWarr16@gmail.com. Put BLOG as the first word in the subject line so I don't delete along with all those trying to sell me something. I never give out your email address, and your privacy is always respected.
from personal experience founding and growing businesses--been there, done that.
Some small businesses can increase sales by offering partial payments. It can be for products or services. Partial payments can be attractive to individual buyers as well as big companies.
Example: If your small business sells to big corporations, it is important to know the approvals structure in your customer's company. Frank runs a printing business and he uses the partial payments concept. His customers include banks, insurance companies, and large manufacturers. On different jobs, he might be dealing with with managers, vice presidents or senior officials. All of them have different levels of approval authority. In the case of lower level managers, they might be able to approve up to $500. As you move up the ladder, senior officials might be able to commit the company to a $50,000 order on their own signature. Frank works with his clients so that they can fit his invoices into their budget and approval authority. Sometimes this means splitting jobs into several pieces and billing them separately. Don't misunderstand--nobody's hiding anything here. It's simply working with existing responsibilities and authorities of clients. It's a way to put the partial payments concept to good use--to the benefit of buyer and seller.
A variation on the partial payments concept can be used by others--consultants for example. Here, the consultant and the client agree on a relationship, placing milestones on the work to be done. At the end of each milestone, work accomplished to that point is billed. Partial payments again work to the advantage of both parties.
More examples: Layaway plans were once used extensively by retail stores--large and small. The layaway concept declined in use over the years, but recently it has enjoyed a resurgence in popularity. (1) A small furniture store offers customers layaway plans. Some customers like the discipline of breaking up the price of an $800 chair into four monthly payments--taking delivery when the total is paid. (2) Small jewelry stores can miss sales when they do not offer layaway, common at large jewelry stores and department stores these days. (3) Electricians, plumbers and other tradespeople can realize a better bottom line by quoting the overall job in pieces--breaking up a big job into components, each billed as it is completed.
(4) Frank used progress payments in his printing operation (see main example above). Many large jobs were quoted in thirds--1/3 upfront when the job was defined and placed, 1/3 when a certain milestone was met, and 1/3 on delivery of the finished product.
Look for ways to put the partial payments concept--and its variations--to work in your business. Start by looking at your customers/clients and their problems.
Frequently, partial payments can help them. Pleasing them by helping them solve their own problems brings them back to you--and it can generate referrals.
All this helps you with your cash flow. And we know the importance of cash flow.
My lifetime of experience includes starting up and operating small businesses as well as counseling thousands of small business owners with their problems. This includes hands-on coaching at several Small Business Development Centers and running the Business Owners Institute in New Jersey. Free answers to your questions--email me at AlWarr16@gmail.com. Put BLOG as the first word in the subject line so I don't delete along with all those trying to sell me something. I never give out your email address, and your privacy is always respected.
Tuesday, July 22, 2014
Changing direction
Free daily tips, information and advice for small business
from personal experience founding and growing small businesses--been there, done that.
Yesterday's blog was about "business drift" that occurs when your business tries to go off in another direction.
Businesses are living entities. Like a child beginning to grow up, businesses always start showing a life pattern peculiar to themselves. As the parent, you must be ever watchful and guide them in the direction you think best.
You can follow where the business is leading you, or you can decide on a better path. It's up to you.
Changing the direction of your business is a big decision. I'm not talking about simply adding another service or product line. I'm talking a drastic change in direction.
Example: A machine shop has spent many years supplying the needs of commercial clients--parts and components meeting specifications. Clients are in various industries, including medical devices, automotive, nuclear, aerospace and others. Suddenly, 3-D printing burst on the scene, a quantum leap in technology. The expensive computer-driven machining of parts was suddenly under challenge by the new kid on the block. The owner of the machine shop knew that his business might well be replaced in the future by 3-D printing. But it would take time for the new technology to achieve the fine tolerances and finished products now demanded by his customer base. Meantime, he could not ignore what was happening. He decided to expand into 3-D printing in a small way and ride the wave as the technology developed.
Advances in technology can present opportunities for changing the direction of your business. So can market forces.
Examples: (1) Cars once had hubcaps. They were supplied to vehicle manufacturers by small companies. When automobiles rolled off the production line, hubcaps were in place. Then, suddenly, various market forces dictated the end of the hubcap. (2) Not so many years ago, it was impossible to find gluten-free foods. Today they are everywhere--in response to market forces. (3) Clothing cleaning operations today must be prepared to deal with clothing impregnated at the manufacturer with micro-deodorants, as well as wicking weaves in garments. (4) Landscapers are faced with changing market forces when residential clients opt for the wildflower look instead of high-maintenance lawns. (5) Big companies today can call a small firm specializing in temporary personnel placement to get an accountant or engineer for a specific project, thereby avoiding the costs of adding a permanent employee.
Market forces are everywhere. They continually change and they affect your small business. Be alert to market force changes, not only in your particular market, but to other industry segments as well. Otherwise, you can be blindsided.
Changes in technology and changes in the marketplace roll in almost daily. Frequently they are combined, and the resulting tsunami can wipe out that small business that's caught unaware. Keep up.
Questions? Free answers to your small business problems. Email me at AlWarr16@gmail.com but you MUST start the subject line with BLOG. Otherwise, you'll be deleted along with all the others trying to sell me something. I never share your email with anyone else. Your privacy is always respected.
from personal experience founding and growing small businesses--been there, done that.
Yesterday's blog was about "business drift" that occurs when your business tries to go off in another direction.
Businesses are living entities. Like a child beginning to grow up, businesses always start showing a life pattern peculiar to themselves. As the parent, you must be ever watchful and guide them in the direction you think best.
You can follow where the business is leading you, or you can decide on a better path. It's up to you.
Changing the direction of your business is a big decision. I'm not talking about simply adding another service or product line. I'm talking a drastic change in direction.
Example: A machine shop has spent many years supplying the needs of commercial clients--parts and components meeting specifications. Clients are in various industries, including medical devices, automotive, nuclear, aerospace and others. Suddenly, 3-D printing burst on the scene, a quantum leap in technology. The expensive computer-driven machining of parts was suddenly under challenge by the new kid on the block. The owner of the machine shop knew that his business might well be replaced in the future by 3-D printing. But it would take time for the new technology to achieve the fine tolerances and finished products now demanded by his customer base. Meantime, he could not ignore what was happening. He decided to expand into 3-D printing in a small way and ride the wave as the technology developed.
Advances in technology can present opportunities for changing the direction of your business. So can market forces.
Examples: (1) Cars once had hubcaps. They were supplied to vehicle manufacturers by small companies. When automobiles rolled off the production line, hubcaps were in place. Then, suddenly, various market forces dictated the end of the hubcap. (2) Not so many years ago, it was impossible to find gluten-free foods. Today they are everywhere--in response to market forces. (3) Clothing cleaning operations today must be prepared to deal with clothing impregnated at the manufacturer with micro-deodorants, as well as wicking weaves in garments. (4) Landscapers are faced with changing market forces when residential clients opt for the wildflower look instead of high-maintenance lawns. (5) Big companies today can call a small firm specializing in temporary personnel placement to get an accountant or engineer for a specific project, thereby avoiding the costs of adding a permanent employee.
Market forces are everywhere. They continually change and they affect your small business. Be alert to market force changes, not only in your particular market, but to other industry segments as well. Otherwise, you can be blindsided.
Changes in technology and changes in the marketplace roll in almost daily. Frequently they are combined, and the resulting tsunami can wipe out that small business that's caught unaware. Keep up.
Questions? Free answers to your small business problems. Email me at AlWarr16@gmail.com but you MUST start the subject line with BLOG. Otherwise, you'll be deleted along with all the others trying to sell me something. I never share your email with anyone else. Your privacy is always respected.
Monday, July 21, 2014
Business drift
Free daily tips, information and advice for people in small business
from personal experience founding and operating businesses--been there, done that.
Starting your business was hard. No doubt about it. Getting a business off the ground takes all your time and attention and strength and ingenuity, along with money and a dash of luck.
Well, it was good to get all that behind me!
News flash. It ain't ever behind you.
Businesses drift. Your business drifts with the changing market. It drifts with the economy. It drifts with all this new social media. You're pulled this way and that.
Example: Mary loved making women's hats. She loved designing them. She loved selecting different materials and using them in her hat making shop. She also loved to decorate the hats with all sorts of other things she made--pins, feathers, artificial flowers, beads and seasonal seeds. These additional items made the hats "pop" and led to sales, she believed. As time passed, Mary noticed that customers asked to buy the pin or other decoration, and they left the hat behind. She was happy to be selling things she had made. Soon, however, she got a wholesale order for 500 of her pins. She was suddenly in the pin business, and the hats languished on the displays. What had been the accessory now became the main product. Her business had drifted.
Drifting into new markets can be exciting--and profitable. It's always a good feeling to get a whole bunch of new orders.
Example: John had worked on computers since his teenage years. While he was still in college, he opened a small repair shop. People would lug their desktops to his place and he would get them back in operation. After college, John decided to concentrate on his repair shop, building his business. Then a strange thing happened. Customers asked if he would come to their place and set up networked computers. As he spent more and more time doing this, the word spread. Referrals brought in more business--away from his shop. Finally, he decided to go with the drift. He closed the shop, moved everything to a home office, and today spends all his time at other businesses--setting up, networking, training, troubleshooting.
Sometimes, you decide to go in the direction of the drift. Or maybe you pull back, refuse orders that take you out of your main business, and look for other ways to expand. It can be a time to re-think your original plan.
Whatever you decide to do, do it with your eyes open. Don't drift without watching.
I'm topping off a lifetime of personal experience in small business with this blog. Your questions are answered at no charge. Email me at AlWarr16@gmail.com and put BLOG in the subject line. Otherwise I'm likely to delete along with those trying to sell me something. Your privacy is protected--I don't give your email address to anyone, ever.
from personal experience founding and operating businesses--been there, done that.
Starting your business was hard. No doubt about it. Getting a business off the ground takes all your time and attention and strength and ingenuity, along with money and a dash of luck.
Well, it was good to get all that behind me!
News flash. It ain't ever behind you.
Businesses drift. Your business drifts with the changing market. It drifts with the economy. It drifts with all this new social media. You're pulled this way and that.
Example: Mary loved making women's hats. She loved designing them. She loved selecting different materials and using them in her hat making shop. She also loved to decorate the hats with all sorts of other things she made--pins, feathers, artificial flowers, beads and seasonal seeds. These additional items made the hats "pop" and led to sales, she believed. As time passed, Mary noticed that customers asked to buy the pin or other decoration, and they left the hat behind. She was happy to be selling things she had made. Soon, however, she got a wholesale order for 500 of her pins. She was suddenly in the pin business, and the hats languished on the displays. What had been the accessory now became the main product. Her business had drifted.
Drifting into new markets can be exciting--and profitable. It's always a good feeling to get a whole bunch of new orders.
Example: John had worked on computers since his teenage years. While he was still in college, he opened a small repair shop. People would lug their desktops to his place and he would get them back in operation. After college, John decided to concentrate on his repair shop, building his business. Then a strange thing happened. Customers asked if he would come to their place and set up networked computers. As he spent more and more time doing this, the word spread. Referrals brought in more business--away from his shop. Finally, he decided to go with the drift. He closed the shop, moved everything to a home office, and today spends all his time at other businesses--setting up, networking, training, troubleshooting.
Sometimes, you decide to go in the direction of the drift. Or maybe you pull back, refuse orders that take you out of your main business, and look for other ways to expand. It can be a time to re-think your original plan.
Whatever you decide to do, do it with your eyes open. Don't drift without watching.
I'm topping off a lifetime of personal experience in small business with this blog. Your questions are answered at no charge. Email me at AlWarr16@gmail.com and put BLOG in the subject line. Otherwise I'm likely to delete along with those trying to sell me something. Your privacy is protected--I don't give your email address to anyone, ever.
Friday, July 18, 2014
Small bookshops
Free daily tips, information and advice for people in small business
from my experience founding and operating small businesses--been there, done that.
I have fond memories of visiting a small bookshop in San Francisco when I lived there. No best sellers here, no how-to books, no popular novels.
Instead, the shelves were lined with hard cover books published mainly by university presses--philosophy, Greek plays, history, political commentaries, Oriental and European classics. The owner was targeting a specific, though narrow, market.
When I moved to New York, I was confronted with stores that carried everything. You could find just about anything you might want in one of these big box bookstores.
It was also a lesson in how markets can be tackled. Big box bookstores have sections that appeal to almost every interest, while small bookshops can take one particular interest and run with it.
Examples: Several small independent bookshops are in my area, and they are showing how survival is possible in spite of the big box stores and e-books.
One store is active with local schools, holding book fairs twice each year, and bringing authors into classrooms to talk about their work and writing in general.
Another store concentrates entirely on mysteries--thousands of mysteries, new and used, line the shelves and are promoted with email lists and social media.
Four of the bookshops in the area hold regular book signings, bringing authors from far and near to meet the public and talk about books in general and their book in particular.
Another local bookshop offers thousands of out-of-print books, an extensive selection in all categories, but sold mainly over the Internet to people looking for a particular book.
Two stores concentrate on books for children--from the very young to teens. Book clubs for young people are promoted in both these stores. Regular weekly or monthly sessions keep youngsters coming back for more.
Small independent bookshops are using all sorts of tools and techniques to meet the competition of the big box bookstores and the e-book revolution. It's a changing world. That means you have to run twice as fast just to stay in the same place. There is still a market for that small San Francisco specialty bookshop.
My lifetime of experience founding and operating small businesses is at your disposal. Free answers to your questions--send to AlWarr16@gmail.com and put BLOG in the subject line so I don't delete. I'm not selling anything, and your privacy is always respected.
from my experience founding and operating small businesses--been there, done that.
I have fond memories of visiting a small bookshop in San Francisco when I lived there. No best sellers here, no how-to books, no popular novels.
Instead, the shelves were lined with hard cover books published mainly by university presses--philosophy, Greek plays, history, political commentaries, Oriental and European classics. The owner was targeting a specific, though narrow, market.
When I moved to New York, I was confronted with stores that carried everything. You could find just about anything you might want in one of these big box bookstores.
It was also a lesson in how markets can be tackled. Big box bookstores have sections that appeal to almost every interest, while small bookshops can take one particular interest and run with it.
Examples: Several small independent bookshops are in my area, and they are showing how survival is possible in spite of the big box stores and e-books.
One store is active with local schools, holding book fairs twice each year, and bringing authors into classrooms to talk about their work and writing in general.
Another store concentrates entirely on mysteries--thousands of mysteries, new and used, line the shelves and are promoted with email lists and social media.
Four of the bookshops in the area hold regular book signings, bringing authors from far and near to meet the public and talk about books in general and their book in particular.
Another local bookshop offers thousands of out-of-print books, an extensive selection in all categories, but sold mainly over the Internet to people looking for a particular book.
Two stores concentrate on books for children--from the very young to teens. Book clubs for young people are promoted in both these stores. Regular weekly or monthly sessions keep youngsters coming back for more.
Small independent bookshops are using all sorts of tools and techniques to meet the competition of the big box bookstores and the e-book revolution. It's a changing world. That means you have to run twice as fast just to stay in the same place. There is still a market for that small San Francisco specialty bookshop.
My lifetime of experience founding and operating small businesses is at your disposal. Free answers to your questions--send to AlWarr16@gmail.com and put BLOG in the subject line so I don't delete. I'm not selling anything, and your privacy is always respected.
Thursday, July 17, 2014
Corporate vs. small
Free daily tips, information and advice for people in small business
from personal experience in founding and operating small businesses of my own.
Leaving corporate America and starting your own business is difficult. I know. I did it myself.
If you do this, be careful. Corporate America and small business are totally different. In fact, they occupy different planets, speak different languages, define different futures.
Example: For 10 years I headed the Business Owners Institute in New Jersey. We helped many people establish their first business, and we helped many more dealing with the everyday problems of growing, finding financing, getting referrals, and any other operating problem they brought to the table.
A lady once walked in the door looking for advice on buying a franchise. She had taken a buyout from a major corporation, so money was not the problem. She ran a single idea past me--she wanted advice on buying a donuts franchise. I posed two groups of questions:
1. Who will make the donuts at 4 a.m. when your employees call in sick--or simply don't show up that morning? Do you know how to run the coffee machines?
2. What are your personal interests and passions? What have you spent your time doing when you were away from your corporate position in the past?
When she thought through the implications of those two questions, she decided against buying the donuts franchise. She went on to establish her own marketing consulting firm, helping other small businesses do what they were ill-equipped to do for themselves. We had a good laugh much later talking about how donuts are made.
Corporate America does not prepare you for establishing and operating a small business. In corporate America you have company resources to call on--in small business, it's you. In corporate America you can call on the company's information technology people--in small business, it's you. You depend on the company sales force, production people, human resources, and all the rest. In small business, it's you.
You might enjoy what you do in corporate America, but you have all the company's capabilities at your disposal. In small business, you can only look in the mirror.
My lifetime of business experience is at your disposal. My personal experience in founding and building small businesses of my own, along with years of advising others, is contained in this free blog. I will answer your questions at no charge. Email me at AlWarr16@gmail.com and put BLOG in the subject line so I don't delete. I never share your email, and your privacy is always respected.
from personal experience in founding and operating small businesses of my own.
Leaving corporate America and starting your own business is difficult. I know. I did it myself.
If you do this, be careful. Corporate America and small business are totally different. In fact, they occupy different planets, speak different languages, define different futures.
Example: For 10 years I headed the Business Owners Institute in New Jersey. We helped many people establish their first business, and we helped many more dealing with the everyday problems of growing, finding financing, getting referrals, and any other operating problem they brought to the table.
A lady once walked in the door looking for advice on buying a franchise. She had taken a buyout from a major corporation, so money was not the problem. She ran a single idea past me--she wanted advice on buying a donuts franchise. I posed two groups of questions:
1. Who will make the donuts at 4 a.m. when your employees call in sick--or simply don't show up that morning? Do you know how to run the coffee machines?
2. What are your personal interests and passions? What have you spent your time doing when you were away from your corporate position in the past?
When she thought through the implications of those two questions, she decided against buying the donuts franchise. She went on to establish her own marketing consulting firm, helping other small businesses do what they were ill-equipped to do for themselves. We had a good laugh much later talking about how donuts are made.
Corporate America does not prepare you for establishing and operating a small business. In corporate America you have company resources to call on--in small business, it's you. In corporate America you can call on the company's information technology people--in small business, it's you. You depend on the company sales force, production people, human resources, and all the rest. In small business, it's you.
You might enjoy what you do in corporate America, but you have all the company's capabilities at your disposal. In small business, you can only look in the mirror.
My lifetime of business experience is at your disposal. My personal experience in founding and building small businesses of my own, along with years of advising others, is contained in this free blog. I will answer your questions at no charge. Email me at AlWarr16@gmail.com and put BLOG in the subject line so I don't delete. I never share your email, and your privacy is always respected.
Wednesday, July 16, 2014
Getting referrals
Free daily tips, information and advice for people in small business
from my personal experience founding and growing small businesses.
Referrals bring you the best new business. Jon refers Marie who walks in your door pre-sold.
Well, not really sold. But ready to hear your proposal or give your products a favorable browse.
So, how do you promote more referrals?
Example: Getting my first business off the ground, I used a tip I learned from the insurance industry. Get in touch with current clients/customers and ask them for referrals. Do it about every three months. It worked. It kept me in touch with people who had bought services from me, and it reminded them to call again. I prompted them to mention me to others, and I asked for three referrals--people they knew who might use my services. Over the years, and in other businesses, I have refined this process, tailoring it to the changing times. These days, cell phones, networking and social media afford more options to keep in touch--and bring in referrals. When someone is nice enough to give you referrals, make certain that you follow through by calling or otherwise contacting the referrals. You already have your opening line--"Mary mentioned that you might be interested in what I do."
Example: The owner of a retail store I know makes extensive use of Facebook. The store's specialty is women's clothing, along with accessories. Every day she snaps pictures of items in the store using her cell phone. She selects one or two and posts them on her Facebook page. The pictures grab the attention of her existing customers, and they in turn pass the pictures on to their friends. It results in referrals that extend the reach and it builds the business.
Example: An ice cream store uses an older--but no less effective--method. Here picture postcards are used. One side of the postcard is covered with a colorful picture of a scrumptious ice cream concoction. On the other side is the name and address of the recipient, a stamp, and a simple message--"Bring this card in and get a dollar off anything you want. Or pass it to a friend." The store sends out a new card every month or so to the store's list. Many cards are returned to the store--by both existing customers and by new ones. The advantage of a postcard over Facebook is clear. Facebook gets a two-second viewing and perhaps passed on. The postcard gets kept, taped to the refrigerator or bulletin board, or passed on. That one dollar off ($1 off in big type) feels like money.
To build your business, you want to get as many referrals as you can. Think through ways that can work for you. And get busy.
I've spent a lifetime founding and growing small businesses. With this blog, I'm helping others with the problems of operating. You get advice from all sides, but always value the advice that comes from someone who has been there, done that. Only they have felt the acid burn of cash flow. If you have questions, email me at AlWarr16@gmail.com and put BLOG in the subject line so I don't delete. Your privacy is always respected and I do NOT give your email address to anyone.
from my personal experience founding and growing small businesses.
Referrals bring you the best new business. Jon refers Marie who walks in your door pre-sold.
Well, not really sold. But ready to hear your proposal or give your products a favorable browse.
So, how do you promote more referrals?
Example: Getting my first business off the ground, I used a tip I learned from the insurance industry. Get in touch with current clients/customers and ask them for referrals. Do it about every three months. It worked. It kept me in touch with people who had bought services from me, and it reminded them to call again. I prompted them to mention me to others, and I asked for three referrals--people they knew who might use my services. Over the years, and in other businesses, I have refined this process, tailoring it to the changing times. These days, cell phones, networking and social media afford more options to keep in touch--and bring in referrals. When someone is nice enough to give you referrals, make certain that you follow through by calling or otherwise contacting the referrals. You already have your opening line--"Mary mentioned that you might be interested in what I do."
Example: The owner of a retail store I know makes extensive use of Facebook. The store's specialty is women's clothing, along with accessories. Every day she snaps pictures of items in the store using her cell phone. She selects one or two and posts them on her Facebook page. The pictures grab the attention of her existing customers, and they in turn pass the pictures on to their friends. It results in referrals that extend the reach and it builds the business.
Example: An ice cream store uses an older--but no less effective--method. Here picture postcards are used. One side of the postcard is covered with a colorful picture of a scrumptious ice cream concoction. On the other side is the name and address of the recipient, a stamp, and a simple message--"Bring this card in and get a dollar off anything you want. Or pass it to a friend." The store sends out a new card every month or so to the store's list. Many cards are returned to the store--by both existing customers and by new ones. The advantage of a postcard over Facebook is clear. Facebook gets a two-second viewing and perhaps passed on. The postcard gets kept, taped to the refrigerator or bulletin board, or passed on. That one dollar off ($1 off in big type) feels like money.
To build your business, you want to get as many referrals as you can. Think through ways that can work for you. And get busy.
I've spent a lifetime founding and growing small businesses. With this blog, I'm helping others with the problems of operating. You get advice from all sides, but always value the advice that comes from someone who has been there, done that. Only they have felt the acid burn of cash flow. If you have questions, email me at AlWarr16@gmail.com and put BLOG in the subject line so I don't delete. Your privacy is always respected and I do NOT give your email address to anyone.
Tuesday, July 15, 2014
Quality
Free daily tips, information and advice for people in small business,
from my lifetime of personal experience--been there, done that.
You are known by the quality of your work. And the word gets passed around.
Take a look at Angie's List. The reason it works has a lot to do with the quality of the work that's described.
If you do quality work, or if you sell quality goods, your clients and customers will do the advertising for you. They tell others about the good experience they had dealing with you.
Example: Gwen runs a pizza shop. She imports ingredients from Italy--tomatoes, cheeses, garlic and flour. She makes her pizza dough herself in small batches every day. Her pizzas cost more, but they are prized by a loyal customer base. These customers return regularly--and they bring others with them. Gwen draws customers from a 20-mile radius, many of them passing several pizza shops on their way to her place.
Example: Jeannine makes pottery and she signs every piece produced. She operates a small pottery business specializing in limited production. She and her two employees inspect every piece produced. No flaw escapes their attention, and these pieces are destroyed. Jeannine sets a high bar for quality, and her reputation is spreading. She is not looking for awards, although she has received some. Instead, she sells and consigns to high end gift shops and on the Internet.
Example: I know a carpenter who does each job as if he is working on his own home. He is a stickler for quality. Whether he's framing out a door or constructing a wall of shelving, his attention to detail is readily apparent. He never advertises, but his customers praise him on Angie's List, Facebook and elsewhere.
See to the quality of your work, and your business can take care of itself. It can take longer for the good word to spread, but it's a sure thing. Top quality promotes word of mouth.
My lifetime of founding and growing businesses of my own is at your disposal. For decades I have also counseled and coached thousands of small businesses through problems. Got a problem? Email me at AlWarr16@gmail.com and put BLOG in the subject line so I don't delete. No charge for quick answers, and I'm not selling anything. Your privacy is always respected, and I never give out your email address.
from my lifetime of personal experience--been there, done that.
You are known by the quality of your work. And the word gets passed around.
Take a look at Angie's List. The reason it works has a lot to do with the quality of the work that's described.
If you do quality work, or if you sell quality goods, your clients and customers will do the advertising for you. They tell others about the good experience they had dealing with you.
Example: Gwen runs a pizza shop. She imports ingredients from Italy--tomatoes, cheeses, garlic and flour. She makes her pizza dough herself in small batches every day. Her pizzas cost more, but they are prized by a loyal customer base. These customers return regularly--and they bring others with them. Gwen draws customers from a 20-mile radius, many of them passing several pizza shops on their way to her place.
Example: Jeannine makes pottery and she signs every piece produced. She operates a small pottery business specializing in limited production. She and her two employees inspect every piece produced. No flaw escapes their attention, and these pieces are destroyed. Jeannine sets a high bar for quality, and her reputation is spreading. She is not looking for awards, although she has received some. Instead, she sells and consigns to high end gift shops and on the Internet.
Example: I know a carpenter who does each job as if he is working on his own home. He is a stickler for quality. Whether he's framing out a door or constructing a wall of shelving, his attention to detail is readily apparent. He never advertises, but his customers praise him on Angie's List, Facebook and elsewhere.
See to the quality of your work, and your business can take care of itself. It can take longer for the good word to spread, but it's a sure thing. Top quality promotes word of mouth.
My lifetime of founding and growing businesses of my own is at your disposal. For decades I have also counseled and coached thousands of small businesses through problems. Got a problem? Email me at AlWarr16@gmail.com and put BLOG in the subject line so I don't delete. No charge for quick answers, and I'm not selling anything. Your privacy is always respected, and I never give out your email address.
Monday, July 14, 2014
Just-in-time
Free daily tips, information and advice for people in small business
from personal experience over a lifetime of founding and growing small businesses
Small businesses can use just-in-time just like the big boys.
Big companies pride themselves on buying input materials just-in-time. Money and time savings are considerable when Ford receives parts from suppliers just in time for those parts to be incorporated into the new cars rolling down the assembly line.
Likewise, small businesses can use just-in-time to keep costs down. For example, electrical and plumbing contractors pick up specialty materials needed for a job--on the way to the job. Landscapers can stop by a rental center to pick up the tools needed for that day's work.
Example: Gustav runs a restaurant that is known for menu items based on fresh, locally-grown produce. He has made arrangements with local farmers to supply his needs. Every evening, Gustav calls or emails his suppliers, ordering a variety of lettuces, leafy greens, fruits and berries in season. He has standing orders for eggs, cheeses and other milk products. His restaurant has built its reputation on just-in-time freshness.
Example: A local hardware store successfully competes with the big box stores by supplying needs quickly and on-time. Contractors (electricians, plumbers, carpenters, etc.) love this place. They know that the store will have the tools and materials they need on 2 or 3 days notice. They call the store and rest assured that the store will supply just-in-time. Likewise, the store depends on its just-in-time suppliers to meet these tight deadlines. And the suppliers depend on just-in-time deliveries to the hardware store by UPS, Fedex and the Postal Service. Just-in-time here is a chain reaction involving several operations--all meeting just-in-time deadlines. Hey! It works!
Other small businesses regularly use just-in-time deliveries from suppliers. Vehicle repair shops cannot keep on hand all the parts needed to complete work for their customers. They use parts supply houses that are set up to supply vehicle repair shops in the area. Sometimes deliveries can be made within the hour.
The just-in-time concept can be used in other small businesses. Put on your thinking cap.
Lots of experience available to you from a lifetime spent building and growing small businesses. Also, I've counseled and coached thousands of small businesses with every conceivable problem. Free, quick answers to your specific questions--email me at AlWarr16@gmail.com and put BLOG in the subject line so I don't delete. Maintain your privacy--email me anonymously.
from personal experience over a lifetime of founding and growing small businesses
Small businesses can use just-in-time just like the big boys.
Big companies pride themselves on buying input materials just-in-time. Money and time savings are considerable when Ford receives parts from suppliers just in time for those parts to be incorporated into the new cars rolling down the assembly line.
Likewise, small businesses can use just-in-time to keep costs down. For example, electrical and plumbing contractors pick up specialty materials needed for a job--on the way to the job. Landscapers can stop by a rental center to pick up the tools needed for that day's work.
Example: Gustav runs a restaurant that is known for menu items based on fresh, locally-grown produce. He has made arrangements with local farmers to supply his needs. Every evening, Gustav calls or emails his suppliers, ordering a variety of lettuces, leafy greens, fruits and berries in season. He has standing orders for eggs, cheeses and other milk products. His restaurant has built its reputation on just-in-time freshness.
Example: A local hardware store successfully competes with the big box stores by supplying needs quickly and on-time. Contractors (electricians, plumbers, carpenters, etc.) love this place. They know that the store will have the tools and materials they need on 2 or 3 days notice. They call the store and rest assured that the store will supply just-in-time. Likewise, the store depends on its just-in-time suppliers to meet these tight deadlines. And the suppliers depend on just-in-time deliveries to the hardware store by UPS, Fedex and the Postal Service. Just-in-time here is a chain reaction involving several operations--all meeting just-in-time deadlines. Hey! It works!
Other small businesses regularly use just-in-time deliveries from suppliers. Vehicle repair shops cannot keep on hand all the parts needed to complete work for their customers. They use parts supply houses that are set up to supply vehicle repair shops in the area. Sometimes deliveries can be made within the hour.
The just-in-time concept can be used in other small businesses. Put on your thinking cap.
Lots of experience available to you from a lifetime spent building and growing small businesses. Also, I've counseled and coached thousands of small businesses with every conceivable problem. Free, quick answers to your specific questions--email me at AlWarr16@gmail.com and put BLOG in the subject line so I don't delete. Maintain your privacy--email me anonymously.
Friday, July 11, 2014
Expand by teaching
Free daily tips, information and advice for people in small business
from my personal experience founding and running businesses of my own
and helping thousands of other business people with their problems.
People in small business are experts. Yes, they run a business, but they are experts in the products and services they sell.
Expansion opportunities in small business are often overlooked. Consider teaching others what you know.
Example: Jenna is a professionally-trained chef who opened a small upscale cafe. While she did everything in the kitchen, her first love was designing and making spectacular cakes. These were colorful and edible sculptures. Her cakes attracted much attention, and they were soon to be found in other restaurants, at wedding receptions, and local gala events. People wanted to know how she made the New York skyline out of cake, and other chefs wanted training in her techniques. This caused her to face alternatives--should she continue as is, or should she close the cafe and just make cakes, or should she keep the cafe and add teaching sessions? She set up teaching sessions, from simple to complex, and is headed down the road to transitioning entirely to teaching cake sculpture.
Example: Jon owns and operates a garden center. He has expanded his business considerably by offering "learning sessions" to customers. Some are free, others bring in revenue--but all these sessions bring in referrals. Some classes teach homeowners how to take care of houseplants, or how to select and grow plants outside, or how to control pests in the garden. Other sessions show how to select and lay pavers, or how to build and take care of small fish ponds, or how to build fences, trellises and gates. These sessions bring new customers to the garden center and encourage existing customers to return. And the teaching sessions continually help spread the word about Jon's garden center.
Example: Bill has many years experience running his stained glass studio. He creates spectacular windows for churches, corporations, offices and homes. He also repairs and restores antique stained glass using traditional techniques. He began offering instruction sessions for beginners and advanced students in group and one-on-one sessions. These bring in a continuing stream of revenue, and the students spread the word far and near.
Offering to teach others what you know can be a good way to add to your bottom line. And there are other rewards--like the personal satisfaction that comes from passing on what you know to others. It's the reason I write this blog for you.
All my life I've been fascinated with the business model, the mechanisms that make business work, founding and growing small businesses. Over the years, I have helped thousands of small businesses with the problems of operating and expanding small businesses. Send me your questions for quick, free answers--email AlWarr16@gmail.com and put BLOG in subject line so I don't delete. Your privacy is always respected--don't give me your name or location, just an email address so I can respond.
from my personal experience founding and running businesses of my own
and helping thousands of other business people with their problems.
People in small business are experts. Yes, they run a business, but they are experts in the products and services they sell.
Expansion opportunities in small business are often overlooked. Consider teaching others what you know.
Example: Jenna is a professionally-trained chef who opened a small upscale cafe. While she did everything in the kitchen, her first love was designing and making spectacular cakes. These were colorful and edible sculptures. Her cakes attracted much attention, and they were soon to be found in other restaurants, at wedding receptions, and local gala events. People wanted to know how she made the New York skyline out of cake, and other chefs wanted training in her techniques. This caused her to face alternatives--should she continue as is, or should she close the cafe and just make cakes, or should she keep the cafe and add teaching sessions? She set up teaching sessions, from simple to complex, and is headed down the road to transitioning entirely to teaching cake sculpture.
Example: Jon owns and operates a garden center. He has expanded his business considerably by offering "learning sessions" to customers. Some are free, others bring in revenue--but all these sessions bring in referrals. Some classes teach homeowners how to take care of houseplants, or how to select and grow plants outside, or how to control pests in the garden. Other sessions show how to select and lay pavers, or how to build and take care of small fish ponds, or how to build fences, trellises and gates. These sessions bring new customers to the garden center and encourage existing customers to return. And the teaching sessions continually help spread the word about Jon's garden center.
Example: Bill has many years experience running his stained glass studio. He creates spectacular windows for churches, corporations, offices and homes. He also repairs and restores antique stained glass using traditional techniques. He began offering instruction sessions for beginners and advanced students in group and one-on-one sessions. These bring in a continuing stream of revenue, and the students spread the word far and near.
Offering to teach others what you know can be a good way to add to your bottom line. And there are other rewards--like the personal satisfaction that comes from passing on what you know to others. It's the reason I write this blog for you.
All my life I've been fascinated with the business model, the mechanisms that make business work, founding and growing small businesses. Over the years, I have helped thousands of small businesses with the problems of operating and expanding small businesses. Send me your questions for quick, free answers--email AlWarr16@gmail.com and put BLOG in subject line so I don't delete. Your privacy is always respected--don't give me your name or location, just an email address so I can respond.
Thursday, July 10, 2014
Your own past
Free daily tips, information and advice for people in small business
from personal experience founding and growing small businesses--been there, done that.
Discarding yesterday's ways of doing business can work against you. Better to take a second look. If something worked in the past, it might offer new business opportunities today.
Small antiques and collectibles stores are good examples. Many of them have closed. They gave up for lack of business.
The market for antiques and collectibles changes with every generation, of course. But the market is still there. It's the browsing that has changed. People used to spend an afternoon looking through antiques and collectibles at brick-and-mortar stores.
Today, the customers browse Ebay and other sites in the convenience of their homes. All those stores closed because the market found a better way to browse.
Small businesses are fleet of foot. In your own business, looking to the past can reveal new marketing strategies.
Example: Doctors wear white coats in their offices and clinics. I know one doctor who has hung up his white coat for the last time. He decided to re-introduce the house call. Today, he's seeing elderly and indigent patients in their own homes. His office is in the trunk of his car. He is busier than ever, and patients avoid emergency room visits and hospital stays. And they love the personal attention.
Sometimes, discarded methods can make sense again in today's brave new world.
Example: I know a computer expert who discontinued the training sessions he once provided. Although the sessions were popular, he thought he was moving ahead with the times. Wrong. The furious pace of today's technology has left most of his clients more confused than ever. He decided to re-introduce his training sessions for clients. Now his reputation and referrals are stronger than ever. And the training sessions--re-structured and re-formatted--now provide a significant additional source of income for the business. And they attract the attention of people who become new clients.
The times, they are a'changin' and business people must keep up. If you don't, you run the risk of not being here tomorrow.
Sometimes, a good idea is lurking in your own past. Taking a look over your shoulder can be productive. You just might find an idea to increase sales and expand.
I've worked with thousands of people in small business. And I've founded and operated small businesses of my own. Still active in retirement (I'm 78), I offer free tips and information based on experience. Email me at AlWarr16@gmail.com and put BLOG in the subject line. You'll get quick, free answers--I'm not selling anything. And your privacy is always respected.
Wednesday, July 9, 2014
Hiring youngsters
Free daily tips, information and advice for people in small business
from personal experience founding and growing small businesses--been there, done that.
Apprenticeships were once a path to a career. Young people in their early teens signed up with experienced tradespeople and learned a craft--from the bottom up.
Today, we take a much more enlightened view. We've largely outlawed youngsters going to work. We might feel good about this, but it's the youngster who suffers the consequences. Our child labor laws have put years of leisure time in the hands of immature kids.
Some teenagers are lucky enough to be guided through their difficult years by an adult. Teens can seek out internships or part time work where they learn the interactive skills that will serve them well throughout their lives. Interns and part timers learn how the world really works.
Example: As he was growing up, Billy worked part time helping a neighbor who ran a landscaping business. Billy learned a lot about maintaining lawns, pruning shrubbery, mulching flower beds, keeping equipment in good repair--and handling customers. His young mind was particularly impressed with the interactions his neighbor had with homeowners. When he graduated high school, Billy went on to college. Today, he runs a marketing consulting firm, and talks about the valuable experiences of his early years handling all kinds of customers.
Small businesses can benefit from hiring young people. It's part of passing the culture on to the next generation. A youngster has energy, enthusiasm, and wants to learn. Hiring a part timer helps the youngster and helps the small business.
Example: When she turned 16, Susan went to work part time at a local hair salon. She handled the receptionist desk, scheduled appointments, sold products over the counter, and assisted the stylists. She went on to attend a professional school, and today she owns a salon of her own. Without that early start, she might have spent years "finding herself" and putting in place a rewarding career.
Starting early in life to learn how life works is valuable. Part time work by teenagers introduces young people to possibilities they will not learn elsewhere. Not in school. Not in university. Not in playing around and not in hanging out.
My lifetime in founding and running businesses is at your disposal. These days I'm retired. I spend my time writing about small business and helping others with their problems. Email me your questions for quick--and free--answers. Send to AlWarr16@gmail.com and put BLOG in the subject line so I don't delete. Your privacy is always respected, and I'm not selling anything.
from personal experience founding and growing small businesses--been there, done that.
Apprenticeships were once a path to a career. Young people in their early teens signed up with experienced tradespeople and learned a craft--from the bottom up.
Today, we take a much more enlightened view. We've largely outlawed youngsters going to work. We might feel good about this, but it's the youngster who suffers the consequences. Our child labor laws have put years of leisure time in the hands of immature kids.
Some teenagers are lucky enough to be guided through their difficult years by an adult. Teens can seek out internships or part time work where they learn the interactive skills that will serve them well throughout their lives. Interns and part timers learn how the world really works.
Example: As he was growing up, Billy worked part time helping a neighbor who ran a landscaping business. Billy learned a lot about maintaining lawns, pruning shrubbery, mulching flower beds, keeping equipment in good repair--and handling customers. His young mind was particularly impressed with the interactions his neighbor had with homeowners. When he graduated high school, Billy went on to college. Today, he runs a marketing consulting firm, and talks about the valuable experiences of his early years handling all kinds of customers.
Small businesses can benefit from hiring young people. It's part of passing the culture on to the next generation. A youngster has energy, enthusiasm, and wants to learn. Hiring a part timer helps the youngster and helps the small business.
Example: When she turned 16, Susan went to work part time at a local hair salon. She handled the receptionist desk, scheduled appointments, sold products over the counter, and assisted the stylists. She went on to attend a professional school, and today she owns a salon of her own. Without that early start, she might have spent years "finding herself" and putting in place a rewarding career.
Starting early in life to learn how life works is valuable. Part time work by teenagers introduces young people to possibilities they will not learn elsewhere. Not in school. Not in university. Not in playing around and not in hanging out.
My lifetime in founding and running businesses is at your disposal. These days I'm retired. I spend my time writing about small business and helping others with their problems. Email me your questions for quick--and free--answers. Send to AlWarr16@gmail.com and put BLOG in the subject line so I don't delete. Your privacy is always respected, and I'm not selling anything.
Tuesday, July 8, 2014
Rentals
Free daily tips, information and advice for people in small business
from a lifetime of personal experience founding and operating small businesses.
You might be missing opportunities to grow and expand. Rentals can be a path to increase your income.
Look around your business for rental possibilities.
Examples: A restaurant that's closed on Mondays can rent out the kitchen on that day to a beginning bakery that needs an inspected and licensed kitchen. A cafe that serves only breakfast and lunch can likewise rent out the kitchen in the evenings when it is idle.
These days you can rent almost anything from a rental center business. These operations rent everything from furniture to televisions, chainsaws to lawnmowers, vehicles to boats, tents to portable toilets. Renting is the main thrust of the rental businesses. But you can do some rentals of your own.
Examples: Florists and garden centers can rent out baskets of flowers and artificial arrangements to corporations, banks, medical centers, offices and others on a revolving basis. Painters and photographers can "rent" their framed works to these same places on a monthly basis--with a written agreement and insurance.
Caterers in my area regularly rent the tables, chairs, even the silver and glassware to clients for events. One caterer I know also offers tents and dance floors. In other words, whatever the client needs.
Example: A lady farmer in my area raises goats--and she rents them out. Goats will eat just about anything. Her rented goats clean out pastures and hedgerows. The goats eat poison ivy and those multiflora roses that are highly invasive. Goat rentals are not the lady's main business, but it provides an extra measure of income.
All sorts of possibilities are available to you if you have a large space. Got an empty garage or barn? Rent it to local bands needing space where they can make some noise. Got a back room that's hardly used? Turn it into a meeting space for local clubs, organizations, and others.
Example: A local winery rents out its facilities for private parties, corporate meetings, organizational gatherings, and other events. The winery setting is unusual and can add that extra edge to any event. And the wine maker is available for talks and tastings.
Put on your thinking cap. Find ways to add rentals to your offerings.
Small-business people need someone to talk with. Someone who understands the problems of small business. Someone who's been there, done that. I can put my lifetime of experience to work for you. Send me your questions for quick answers--no charge. Put BLOG in the subject line and email to AlWarr16@gmail.com.
from a lifetime of personal experience founding and operating small businesses.
You might be missing opportunities to grow and expand. Rentals can be a path to increase your income.
Look around your business for rental possibilities.
Examples: A restaurant that's closed on Mondays can rent out the kitchen on that day to a beginning bakery that needs an inspected and licensed kitchen. A cafe that serves only breakfast and lunch can likewise rent out the kitchen in the evenings when it is idle.
These days you can rent almost anything from a rental center business. These operations rent everything from furniture to televisions, chainsaws to lawnmowers, vehicles to boats, tents to portable toilets. Renting is the main thrust of the rental businesses. But you can do some rentals of your own.
Examples: Florists and garden centers can rent out baskets of flowers and artificial arrangements to corporations, banks, medical centers, offices and others on a revolving basis. Painters and photographers can "rent" their framed works to these same places on a monthly basis--with a written agreement and insurance.
Caterers in my area regularly rent the tables, chairs, even the silver and glassware to clients for events. One caterer I know also offers tents and dance floors. In other words, whatever the client needs.
Example: A lady farmer in my area raises goats--and she rents them out. Goats will eat just about anything. Her rented goats clean out pastures and hedgerows. The goats eat poison ivy and those multiflora roses that are highly invasive. Goat rentals are not the lady's main business, but it provides an extra measure of income.
All sorts of possibilities are available to you if you have a large space. Got an empty garage or barn? Rent it to local bands needing space where they can make some noise. Got a back room that's hardly used? Turn it into a meeting space for local clubs, organizations, and others.
Example: A local winery rents out its facilities for private parties, corporate meetings, organizational gatherings, and other events. The winery setting is unusual and can add that extra edge to any event. And the wine maker is available for talks and tastings.
Put on your thinking cap. Find ways to add rentals to your offerings.
Small-business people need someone to talk with. Someone who understands the problems of small business. Someone who's been there, done that. I can put my lifetime of experience to work for you. Send me your questions for quick answers--no charge. Put BLOG in the subject line and email to AlWarr16@gmail.com.
Monday, July 7, 2014
Events
Free daily tips, information and advice for people in small business
from a lifetime of personal experience in business--been there, done that.
Events are a good way for a small business to get the word out, create some excitement, reach out to new customers, move some merchandise, get better known in the community, and more.
Events come in different sizes and shapes. Holding a sale is an event. Holding a grand opening (or an anniversary) is an event. Holding a special reception to honor someone in the community is an event. Partnering with an organization to hold a fundraiser is an event. Throwing open your place to a networking group is an event. Show a movie, bring in a band, partner with the local baker for cookies and cake. You get the idea.
Events attract attention. Do a write up ahead of time and send it to your local newspaper. Post it on your Facebook page and other social media. Send out announcements to your email list. Announce it with a poster in the window, with a banner across your street, with a magnetic sign on your delivery van--use your imagination.
Example: Frank runs a specialty shop. Here, it's all about fun on the water--sailing and boating, swimming and snorkeling. One summer he decided to host a party at the local lake--he set up a big tent, displayed sailboats, offered quickie sailing lessons and rides on the lake, partnered with a caterer, brought in a few vendors and musicians, and spread the word everywhere he could think of. This event cost Frank some bucks, but he saw sales at his shop double in the following months. His event had the effect of educating people in the joys of sailing, and they are buying sail boats and taking sailing lessons.
Events can be elaborate and costly, or they can be simple and cost little.
Example: Marie also runs a specialty shop. She offers one-of-a-kind, handmade items consigned by artists and artisans from far and near. It's a fairly large store--jewelry and blown glass, leather bags and paintings, turned wood bowls and silk scarves, women's clothing and children's games, and much more. The store attracts customers looking for unusual gifts, keepsakes and wearables. Marie wanted to attract attention at the Christmas season. She cleared everything out of the shop's big window, lined it with reflective foil, and installed a Christmas tree--upside down. The tree was fully decorated and hanging from above. On the floor, she scattered gift-wrapped boxes with fancy ribbons. People passing on the sidewalk stopped in their tracks--and came inside. The local paper sent a photographer, and a color picture of her shop's window appeared on the front page. This was an event that resulted in lots of free advertising, people talking, tweeting and emailing pics to their friends.
Events don't have to cost a lot to be effective. Put on your creative hat and come up with events to promote your business. You must be creative, or you wouldn't be in business.
I've spent a lifetime in business. These days, I've sold my last business and spend my time writing about business, plus a weekly business column, plus this free daily blog, and coaching an occasional business through rough times. I'll answer your questions at no charge--simply email me at AlWarr16@gmail.com and put BLOG in the subject line so I don't delete. Your privacy is always respected.
from a lifetime of personal experience in business--been there, done that.
Events are a good way for a small business to get the word out, create some excitement, reach out to new customers, move some merchandise, get better known in the community, and more.
Events come in different sizes and shapes. Holding a sale is an event. Holding a grand opening (or an anniversary) is an event. Holding a special reception to honor someone in the community is an event. Partnering with an organization to hold a fundraiser is an event. Throwing open your place to a networking group is an event. Show a movie, bring in a band, partner with the local baker for cookies and cake. You get the idea.
Events attract attention. Do a write up ahead of time and send it to your local newspaper. Post it on your Facebook page and other social media. Send out announcements to your email list. Announce it with a poster in the window, with a banner across your street, with a magnetic sign on your delivery van--use your imagination.
Example: Frank runs a specialty shop. Here, it's all about fun on the water--sailing and boating, swimming and snorkeling. One summer he decided to host a party at the local lake--he set up a big tent, displayed sailboats, offered quickie sailing lessons and rides on the lake, partnered with a caterer, brought in a few vendors and musicians, and spread the word everywhere he could think of. This event cost Frank some bucks, but he saw sales at his shop double in the following months. His event had the effect of educating people in the joys of sailing, and they are buying sail boats and taking sailing lessons.
Events can be elaborate and costly, or they can be simple and cost little.
Example: Marie also runs a specialty shop. She offers one-of-a-kind, handmade items consigned by artists and artisans from far and near. It's a fairly large store--jewelry and blown glass, leather bags and paintings, turned wood bowls and silk scarves, women's clothing and children's games, and much more. The store attracts customers looking for unusual gifts, keepsakes and wearables. Marie wanted to attract attention at the Christmas season. She cleared everything out of the shop's big window, lined it with reflective foil, and installed a Christmas tree--upside down. The tree was fully decorated and hanging from above. On the floor, she scattered gift-wrapped boxes with fancy ribbons. People passing on the sidewalk stopped in their tracks--and came inside. The local paper sent a photographer, and a color picture of her shop's window appeared on the front page. This was an event that resulted in lots of free advertising, people talking, tweeting and emailing pics to their friends.
Events don't have to cost a lot to be effective. Put on your creative hat and come up with events to promote your business. You must be creative, or you wouldn't be in business.
I've spent a lifetime in business. These days, I've sold my last business and spend my time writing about business, plus a weekly business column, plus this free daily blog, and coaching an occasional business through rough times. I'll answer your questions at no charge--simply email me at AlWarr16@gmail.com and put BLOG in the subject line so I don't delete. Your privacy is always respected.
Friday, July 4, 2014
Deja vu
Free daily tips, information and advice for people in small business
from my lifetime of personal experience founding and operating small businesses.
What's old can be new again. It happens with every new generation when it discovers what went before.
Small business can take advantage of this phenomenon. A deja vu business can have the feel of an antique shop. But there is an important difference.
The market for deja vu clothing items is limited--but it is real. And buyers have the money to feed their interests.
Example: A local store is similar to a thrift shop, but It specializes in vintage clothing only. The place is packed with women's clothing and accessories from bygone eras. Dresses, hats, purses and jewelry from the decades of the 1920s onward fill the racks and display cases. Some men's clothing is offered--remember the leisure suit or the Nehru jacket? Customers come here on word of mouth--teens looking for a new look, high schoolers needing a certain look for plays and musicals, local theatrical companies, party goers planning unusual events. The owner of the place adds new stock from mom's closet or grandma's attic.
Example: Another local shop specializes in repairing and selling older appliances. Popular items are older American-made vacuum machines--these used strong metal components, not the flimsy plastic of today. Briskly selling items include reconditioned manual typewriters--youngsters buy these as gifts for grandma or as one-ups with their friends. And an antique mimeograph machine brought top dollar. The owner of this shop has turned his long experience in repairing appliances for owners into something quite different--he now buys the broken appliance, puts it back in tiptop condition, and offers it for sale at prices that will support the business. How about an antique waffle iron? Toaster? Maybe your interests run to pinball machines and juke boxes?
The deja vu market is alive and well. All sorts of possibilities exist. How about board games and jigsaw puzzles? Extinct electronics like tape recorders and 8-track players. I know a man who collects the tubes from old radios and televisions--and he sells them for handsome prices in the Japanese market. It's a small business, but it supports a family.
I've spent a lifetime in small businesses of my own and I've worked with thousands of people in small business--advising, coaching, helping them get to the next level. Free answers to your questions--email me at AlWarr16@gmail.com and put BLOG in the subject line so I don't delete. Your privacy is always respected.
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