Free daily advice for people in small business
from someone who has been there, done that.
No, this is not about businesses built around hobbies. It's about businesses that are started and operated as if they are hobbies.
We've seen them. They pop up like mushrooms after a summer rain. And they disappear just as quickly.
Everyone has seen hobby businesses. They are frequently found in towns that cater to the cognoscenti. Hobby businesses are at the leading edge of current cultural pursuits and interests. They frequently take a politically correct agenda and try to turn it into a business.
Hobby businesses are not established by people who are serious about business. The owners are serious about something in their own lives and assume that many others are likewise interested. They jump into the stream of commerce and open a little shop.
Example: A quilter decides to offer in a storefront the quilts she loves to make. She hangs one in the window and settles behind her sewing machine making more. A year later, she decides not to renew her lease, takes everything back to her home, and continues making quilts. During the year, she sold exactly ten quilts. She will spend the next few years recovering from the expense of that year's lease, fixtures, and other outlays.
Example: A bad economy causes one to wonder if a consignment shop is a viable business. After all, stuff laying around people's houses could be sold to others. The storefront is leased and filled with discarded treasures brought by people anxious to sell their stuff. People wander into the shop, look around, and leave. The owner closes the place and sets up a big yard sale at home to deal with all those consignments.
Other examples can be found in frame shops, furniture designers, gift shops, decorators, tee shirt makers, muffin makers, chocolate purveyors, lawn cutting operations, and more. People take their interest to another level.
Don't misunderstand. A viable business can be created with any of these examples. Any hobby can be turned into a successful operation. But a hobby is one thing and a business is quite another.
I know a business that is built entirely on puzzles and games. Another successful store offers only baseball cards and the like. These owners have taken their interest to the business level.
The difference is the business plan. Business plans can exist in the head of the owner or they can be elaborate written documents. But they must be solidly based on market considerations--where is the market, market size, and how to address it.
A website extends the reach of that quilter far beyond the people who walk past the shop's door. And Facebook can turn a consignment shop into a thriving operation.
Turning a hobby or special interest into a business requires more than the hobby or special interest. You will be successful only to the extent that you address the marketplace. That means doing your business plan and reaching out with every marketing tool that works for you.
If you have questions on this or any other topic covered here,
email me direct at: AlWarr16@gmail.com and put BLOG in the subject line.
Your privacy respected.
Wednesday, April 2, 2014
Tuesday, April 1, 2014
Finding good employees
Free daily advice for people in small business
from someone who has been there, done that.
Adding a new employee is an important step in any small business. You need someone who can handle specific tasks you have in mind. Just as important, you are looking for someone who will contribute to the future growth of the business.
This means that you must look beyond the person's experience. These days, it can be hard to find people who can read and write, much less get to work on time every day and do the job at hand.
Beyond these minimums, you want to look for a particular type of person. You want one who is inquisitive and learns easily, one who is comfortable in his/her own skin, one who knows how to think through things, one who tackles new projects with enthusiasm, one who accepts your direction and runs with it, and one who respects others and gets along well with them.
These attributes don't appear on resumes--unless you read between the lines. But these are the qualities that will help you grow your business.
In my experience, prospective employees can best be found by talking with your present employees. Good employees tend to know other like-minded people. Encourage them to put the word out among their friends and acquaintances.
This can work much better than the advertisement you might use. Ads tend to bring many prospects to your door, leaving you to quick step through the parade.
Put your present employees to work on finding that new employee. Talk to them in a private, one-on-one conversation. Describe the experience and qualities of the person you're looking to hire.
Make it clear that you need to increase the size of the business family. Reassure them that you are not looking to replace them. Ask if they know someone who can fit the bill.
You can inspire them by offering a bonus if they bring in the right person who is hired. After all, you were going to spend real dollars on that advertisement, right?
I've used this method to good advantage in the past. It doesn't always work. But it's worth a try. And it always worked to build employee morale--by asking them, you convey the fact that you value their input, and they feel more a part of the on-going business.
If you have questions on this or any other topic in this blog,
email me direct at: AlWarr16@gmail.com and put BLOG in the subject line.
Your privacy always respected.
from someone who has been there, done that.
Adding a new employee is an important step in any small business. You need someone who can handle specific tasks you have in mind. Just as important, you are looking for someone who will contribute to the future growth of the business.
This means that you must look beyond the person's experience. These days, it can be hard to find people who can read and write, much less get to work on time every day and do the job at hand.
Beyond these minimums, you want to look for a particular type of person. You want one who is inquisitive and learns easily, one who is comfortable in his/her own skin, one who knows how to think through things, one who tackles new projects with enthusiasm, one who accepts your direction and runs with it, and one who respects others and gets along well with them.
These attributes don't appear on resumes--unless you read between the lines. But these are the qualities that will help you grow your business.
In my experience, prospective employees can best be found by talking with your present employees. Good employees tend to know other like-minded people. Encourage them to put the word out among their friends and acquaintances.
This can work much better than the advertisement you might use. Ads tend to bring many prospects to your door, leaving you to quick step through the parade.
Put your present employees to work on finding that new employee. Talk to them in a private, one-on-one conversation. Describe the experience and qualities of the person you're looking to hire.
Make it clear that you need to increase the size of the business family. Reassure them that you are not looking to replace them. Ask if they know someone who can fit the bill.
You can inspire them by offering a bonus if they bring in the right person who is hired. After all, you were going to spend real dollars on that advertisement, right?
I've used this method to good advantage in the past. It doesn't always work. But it's worth a try. And it always worked to build employee morale--by asking them, you convey the fact that you value their input, and they feel more a part of the on-going business.
If you have questions on this or any other topic in this blog,
email me direct at: AlWarr16@gmail.com and put BLOG in the subject line.
Your privacy always respected.
Monday, March 31, 2014
Customer repeats
Free daily advice for people in small business
from someone who has been there, done that.
Customers can be a gold mine. Mining your customers can bring them back again and again. And they will refer others to you.
When you are totally focused on making the sale in front of you, you run the risk of losing future sales. Ignoring a longer term relationship with your customer works against you.
Every customer represents more than is first apparent. Your job is to dig deeper. Expanding the conversation beyond the subject at hand will pay off in the future.
Example: Customers who come to the garden center to buy patio pavers or bricks will appreciate conversations, tips and techniques of construction. If you suggest incorporating a fire pit or a small fish pond, it can lead to expanded or future sales.
Example: A customer likes a recliner at a furniture store. It's common to engage the customer in a conversation about a matching sofa. But set up future sales by talking up room layouts and design. This elevates the conversation into a track that will be appreciated and remembered.
Example: You're an accountant and you have customers you only see once each year--at tax time. Offer to show them how to upgrade and simplify their bookkeeping chores--in a private, one-on-one session. This can result in expanding your involvement with customers, and they will talk about you with their friends.
Setting up customer repeats vary in different businesses. With women's clothing, emphasize the fact that you are the go-to source for the latest fashions and styles. With home improvements, emphasize all the things you can do for the customer who only calls you to clean the gutters. With a caterer, make sure your backyard birthday party client knows that you can do black tie affairs or set up a big tent for spectacular gatherings.
The idea here is to develop relationships with your customers. Show them how you can do more for them. Educate them. Make sure they understand the complete range of your services.
Free information is a good selling tool. If not now, at least the seed is planted for the future. It costs you only your time. But it can turn a single sale customer into one who returns again and again, refers others to you, and recommends you on Facebook and Angie's List.
If you have questions on this or another other topic in this blog,
email me direct at: AlWarr16@gmail.com and put BLOG in the subject line.
Your privacy is protected here.
from someone who has been there, done that.
Customers can be a gold mine. Mining your customers can bring them back again and again. And they will refer others to you.
When you are totally focused on making the sale in front of you, you run the risk of losing future sales. Ignoring a longer term relationship with your customer works against you.
Every customer represents more than is first apparent. Your job is to dig deeper. Expanding the conversation beyond the subject at hand will pay off in the future.
Example: Customers who come to the garden center to buy patio pavers or bricks will appreciate conversations, tips and techniques of construction. If you suggest incorporating a fire pit or a small fish pond, it can lead to expanded or future sales.
Example: A customer likes a recliner at a furniture store. It's common to engage the customer in a conversation about a matching sofa. But set up future sales by talking up room layouts and design. This elevates the conversation into a track that will be appreciated and remembered.
Example: You're an accountant and you have customers you only see once each year--at tax time. Offer to show them how to upgrade and simplify their bookkeeping chores--in a private, one-on-one session. This can result in expanding your involvement with customers, and they will talk about you with their friends.
Setting up customer repeats vary in different businesses. With women's clothing, emphasize the fact that you are the go-to source for the latest fashions and styles. With home improvements, emphasize all the things you can do for the customer who only calls you to clean the gutters. With a caterer, make sure your backyard birthday party client knows that you can do black tie affairs or set up a big tent for spectacular gatherings.
The idea here is to develop relationships with your customers. Show them how you can do more for them. Educate them. Make sure they understand the complete range of your services.
Free information is a good selling tool. If not now, at least the seed is planted for the future. It costs you only your time. But it can turn a single sale customer into one who returns again and again, refers others to you, and recommends you on Facebook and Angie's List.
If you have questions on this or another other topic in this blog,
email me direct at: AlWarr16@gmail.com and put BLOG in the subject line.
Your privacy is protected here.
Friday, March 28, 2014
Community involvement
Free daily advice for people in small business
from someone who has been there, done that.
It's Friday, and that means it's business externals day.
Community involvement is important to the health of your business. Whether you are a single proprietor working in a home office or yours is a machine shop with 8 employees, putting time in your community will pay off in your business.
There are many ways to get involved. Only you can decide what's best for you.
Join your neighborhood association. Or throw your hat in the ring for the next town council election. Or for a seat on the local school board.
A popular alternative is involvement with local sports teams--softball, bowling, golf and others. You can ante up cash to help buy uniforms and equipment, or you can offer your time as a coach or helping out.
Depending on your business, you might be able to barter services. Say you have an embroidery business with downtime on one of your machines. Offer to put team names on uniforms in exchange for placement of your sign at team events or an ad in their flyers.
If you are a print shop, offer to do the flyers. If you're in promotions, offer to do press releases and write-ups. If you engrave trophies....well, you get the idea.
Community activities enhance your reputation. Involvement pushes referrals and extends your reach in the community. You want that word going around.
Partnerships with local schools--whether formal or informal--are possible. Pet shops and farmers can introduce kids to real animals and how they are cared for. Short, after-school apprenticeships can be offered by vehicle repair shops, machine shops, florists, plumbers and electricians. For an hour of two every day, expose kids to real, adult life situations. Don't run afoul of child labor laws, but at least show kids there's more to life than a computer game.
Put on your thinking cap. Come up with a project that involves your community. One that uniquely extends the reputation of your business.
Big companies call this branding. They can afford to build a stadium and put their name on it. You have to do more with less. But you deserve the same benefits.
If you have questions on this or any other topic covered,
email me direct at: AlWarr16@gmail.com and put BLOG in the subject line.
(c) 2014, Al Warr
from someone who has been there, done that.
It's Friday, and that means it's business externals day.
Community involvement is important to the health of your business. Whether you are a single proprietor working in a home office or yours is a machine shop with 8 employees, putting time in your community will pay off in your business.
There are many ways to get involved. Only you can decide what's best for you.
Join your neighborhood association. Or throw your hat in the ring for the next town council election. Or for a seat on the local school board.
A popular alternative is involvement with local sports teams--softball, bowling, golf and others. You can ante up cash to help buy uniforms and equipment, or you can offer your time as a coach or helping out.
Depending on your business, you might be able to barter services. Say you have an embroidery business with downtime on one of your machines. Offer to put team names on uniforms in exchange for placement of your sign at team events or an ad in their flyers.
If you are a print shop, offer to do the flyers. If you're in promotions, offer to do press releases and write-ups. If you engrave trophies....well, you get the idea.
Community activities enhance your reputation. Involvement pushes referrals and extends your reach in the community. You want that word going around.
Partnerships with local schools--whether formal or informal--are possible. Pet shops and farmers can introduce kids to real animals and how they are cared for. Short, after-school apprenticeships can be offered by vehicle repair shops, machine shops, florists, plumbers and electricians. For an hour of two every day, expose kids to real, adult life situations. Don't run afoul of child labor laws, but at least show kids there's more to life than a computer game.
Put on your thinking cap. Come up with a project that involves your community. One that uniquely extends the reputation of your business.
Big companies call this branding. They can afford to build a stadium and put their name on it. You have to do more with less. But you deserve the same benefits.
If you have questions on this or any other topic covered,
email me direct at: AlWarr16@gmail.com and put BLOG in the subject line.
(c) 2014, Al Warr
Thursday, March 27, 2014
Changing directions
Free daily advice for people in small business
from someone who has been there, done that.
Starting up a business is one thing. Changing the direction of your existing business is another thing.
The decision to change direction comes up more often than you might think. Opportunities to change the focus of your business grab at you often.
Example: Say you run a small law practice. You do wills, real estate, collections, business set-ups (partnership, incorporation, etc.) and more. A client asks about elder law. You investigate and find a thriving market in elder law and related activities. You might decide to specialize in this area, foregoing the rest.
Example: Say you run a restaurant that seems to be lagging. Is it just a poor economy? Or should you start a catering operation, reaching out to corporations, event organizers, weddings and the like? Or you hold a cooking class and find that people pay well to attend. Should you turn your restaurant into a how-to operation--baking, butchering, food nutrition?
Example: Say you are a chiropractor. You notice the surge of interest in holistic practices--nutrition, massage, Chinese medicine, and other alternatives. You test out the possibilities by bringing in holistic practitioners to offer informational sessions for the general public. After a few of these, you might develop relationships with these practitioners and offer on-going sessions. At the very least it will expand the public's awareness of your chiropractic practice.
No matter the business you are in, opportunities to change are always present. These deserve your close attention.
Markets drive all businesses. Check out those market opportunities carefully before heading off in another direction. Do a new business plan.
Also, be alert to business drift. That law practice can drift into avenues inconsistent with goals. The restaurant can settle into menus convenient in the kitchen but less appealing to the diners. And the chiropractor can drift toward alternative medicine whereas the goal is to develop more relationships with traditional medical doctors.
Never let your business drift without taking note. Better to take a critical look from time to time. Based on the market, decide if the drift is right for you and consistent with your long-term goals. And always--always--do a business plan.
(c) 2014, Al Warr
If you have questions on this or any other topic covered,
email me direct at: AlWarr16@gmail.com and put BLOG in the subject line.
from someone who has been there, done that.
Starting up a business is one thing. Changing the direction of your existing business is another thing.
The decision to change direction comes up more often than you might think. Opportunities to change the focus of your business grab at you often.
Example: Say you run a small law practice. You do wills, real estate, collections, business set-ups (partnership, incorporation, etc.) and more. A client asks about elder law. You investigate and find a thriving market in elder law and related activities. You might decide to specialize in this area, foregoing the rest.
Example: Say you run a restaurant that seems to be lagging. Is it just a poor economy? Or should you start a catering operation, reaching out to corporations, event organizers, weddings and the like? Or you hold a cooking class and find that people pay well to attend. Should you turn your restaurant into a how-to operation--baking, butchering, food nutrition?
Example: Say you are a chiropractor. You notice the surge of interest in holistic practices--nutrition, massage, Chinese medicine, and other alternatives. You test out the possibilities by bringing in holistic practitioners to offer informational sessions for the general public. After a few of these, you might develop relationships with these practitioners and offer on-going sessions. At the very least it will expand the public's awareness of your chiropractic practice.
No matter the business you are in, opportunities to change are always present. These deserve your close attention.
Markets drive all businesses. Check out those market opportunities carefully before heading off in another direction. Do a new business plan.
Also, be alert to business drift. That law practice can drift into avenues inconsistent with goals. The restaurant can settle into menus convenient in the kitchen but less appealing to the diners. And the chiropractor can drift toward alternative medicine whereas the goal is to develop more relationships with traditional medical doctors.
Never let your business drift without taking note. Better to take a critical look from time to time. Based on the market, decide if the drift is right for you and consistent with your long-term goals. And always--always--do a business plan.
(c) 2014, Al Warr
If you have questions on this or any other topic covered,
email me direct at: AlWarr16@gmail.com and put BLOG in the subject line.
Wednesday, March 26, 2014
Postcards redux
Free daily advice for people in small business
from someone who has been there, done that
Okay. You use your smart phone, your laptop, whatever.
You have your business on Facebook, and you joined a MeetUp group.
Now let's talk postcards. If you've left postcards behind, consider bringing them back. If you've never used postcards in your business, give them a try. Snail mail still works.
Picture postcards attract attention. They should show an engaging picture on one side. You know, the kind of picture that people keep or pass on.
The color picture you want is an unusual scene, a photo of a pet, a pot of flowers, a snappy outdoor scene. Take a picture of the inside of your shop, your restaurant, a garden you've designed, your street, your sign. You get the idea.
Whatever you do, don't put a picture of yourself on a postcard. The idea is to come in under the wire. Postcards work best when you avoid the frontal attack.
On the reverse/address side, put your contact information--address, phone, website, Facebook, etc. You can announce a sale or an event. Keep it simple. Print everything on this side in blue. Use colorful stamps--not printed bulk mailers. Keep it personal.
Recipients are current and potential clients and customers. Your postcard reminds or introduces who you are and what you do.
Postcards are easy--and inexpensive--to produce and mail. Many sources can be found on the Internet. Google Postcards and take it from there. Some are offered at very reasonable rates. Some even supply stock pictures (not as effective as your own). And some will mail to your mailing list.
Postcards get attention. And they are frequently kept. People tape them to their refrigerator door or post them on a bulletin board. Or they pass them on to friends. They have trouble throwing away an attractive picture.
Direct mailers get tossed. Unopened direct mail envelopes are discarded.
An attractive postcard tugs at the heart. It's a soft sell that works.
If you have questions on this or any other topic covered in this blog,
email me direct at: AlWarr16@gmail.com and put BLOG in the subject line.
from someone who has been there, done that
Okay. You use your smart phone, your laptop, whatever.
You have your business on Facebook, and you joined a MeetUp group.
Now let's talk postcards. If you've left postcards behind, consider bringing them back. If you've never used postcards in your business, give them a try. Snail mail still works.
Picture postcards attract attention. They should show an engaging picture on one side. You know, the kind of picture that people keep or pass on.
The color picture you want is an unusual scene, a photo of a pet, a pot of flowers, a snappy outdoor scene. Take a picture of the inside of your shop, your restaurant, a garden you've designed, your street, your sign. You get the idea.
Whatever you do, don't put a picture of yourself on a postcard. The idea is to come in under the wire. Postcards work best when you avoid the frontal attack.
On the reverse/address side, put your contact information--address, phone, website, Facebook, etc. You can announce a sale or an event. Keep it simple. Print everything on this side in blue. Use colorful stamps--not printed bulk mailers. Keep it personal.
Recipients are current and potential clients and customers. Your postcard reminds or introduces who you are and what you do.
Postcards are easy--and inexpensive--to produce and mail. Many sources can be found on the Internet. Google Postcards and take it from there. Some are offered at very reasonable rates. Some even supply stock pictures (not as effective as your own). And some will mail to your mailing list.
Postcards get attention. And they are frequently kept. People tape them to their refrigerator door or post them on a bulletin board. Or they pass them on to friends. They have trouble throwing away an attractive picture.
Direct mailers get tossed. Unopened direct mail envelopes are discarded.
An attractive postcard tugs at the heart. It's a soft sell that works.
If you have questions on this or any other topic covered in this blog,
email me direct at: AlWarr16@gmail.com and put BLOG in the subject line.
Tuesday, March 25, 2014
Credit card use
Free daily advice for people in small business
from someone who has been there, done that
Credit cards rank right up there among the great inventions of all time. Credit cards are just as important as the telephone and automobile.
The telephone allowed us to transfer information across great distances. The automobile then conquered the distance itself. Both brought us increases in personal freedom.
The credit card is a horse of a different color. It solves a business transaction problem.
Yes, the convenience angle is part of it. You reach for your Visa, Mastercard, Discover, American Express or other card just as your grandfather reached for his money clip.
Most small businesses accept credit cards in payment for goods and services. Big companies take it to another level--try renting an automobile without a credit card.
Many owners of small businesses exploit the credit card mechanism in other ways. They use their personal credit cards to solve cash flow problems in their small business.
Example: A gift shop owner buys items wholesale using a credit card. Depending on the timing, the bill is not due for 10 or 20 or even 30 days. The items can be sold, and the retail price collected, before the statement arrives from the credit card company. The owner pays the bill, pockets the difference, and everybody's happy.
Or are they? What pocket received the difference? If everything is kept clean, the difference goes back into the business pot. If not, the difference goes into the owner's personal pocket.
This same example can apply to a restaurant, a small market or clothing store, or any number of other types of operations.
A business has great elasticity. But if a rubber band is stretched too far, it will break. The same is true of your business.
If you are running your operation using credit cards to fill some occasional gaps, that is manageable. But if the gaps turn into long stretches, then you are headed for trouble.
Don't misunderstand. Sometimes you need to take a gamble. Taking risks is what starting and operating a small business is all about.
Work it out on paper. Running up credit card debt is expensive--check out the interest you can expect to be charged. Those are real dollars that will not be working for you--they'll be working for the credit card company.
Business loans come at much cheaper rates. If you can qualify for a business loan at a bank, it is a much better alternative.
If you can't, then the credit card route might be your only option. Just do it with your eyes open. You're flying alone here, but you're not flying blind.
If you have questions on this or any other topic covered,
email me direct at: AlWarr16@gmail.com and put BLOG in the subject line.
from someone who has been there, done that
Credit cards rank right up there among the great inventions of all time. Credit cards are just as important as the telephone and automobile.
The telephone allowed us to transfer information across great distances. The automobile then conquered the distance itself. Both brought us increases in personal freedom.
The credit card is a horse of a different color. It solves a business transaction problem.
Yes, the convenience angle is part of it. You reach for your Visa, Mastercard, Discover, American Express or other card just as your grandfather reached for his money clip.
Most small businesses accept credit cards in payment for goods and services. Big companies take it to another level--try renting an automobile without a credit card.
Many owners of small businesses exploit the credit card mechanism in other ways. They use their personal credit cards to solve cash flow problems in their small business.
Example: A gift shop owner buys items wholesale using a credit card. Depending on the timing, the bill is not due for 10 or 20 or even 30 days. The items can be sold, and the retail price collected, before the statement arrives from the credit card company. The owner pays the bill, pockets the difference, and everybody's happy.
Or are they? What pocket received the difference? If everything is kept clean, the difference goes back into the business pot. If not, the difference goes into the owner's personal pocket.
This same example can apply to a restaurant, a small market or clothing store, or any number of other types of operations.
A business has great elasticity. But if a rubber band is stretched too far, it will break. The same is true of your business.
If you are running your operation using credit cards to fill some occasional gaps, that is manageable. But if the gaps turn into long stretches, then you are headed for trouble.
Don't misunderstand. Sometimes you need to take a gamble. Taking risks is what starting and operating a small business is all about.
Work it out on paper. Running up credit card debt is expensive--check out the interest you can expect to be charged. Those are real dollars that will not be working for you--they'll be working for the credit card company.
Business loans come at much cheaper rates. If you can qualify for a business loan at a bank, it is a much better alternative.
If you can't, then the credit card route might be your only option. Just do it with your eyes open. You're flying alone here, but you're not flying blind.
If you have questions on this or any other topic covered,
email me direct at: AlWarr16@gmail.com and put BLOG in the subject line.
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