Free daily advice for people in small business
from someone who has been there, done that.
Big box stores can wreak havoc on local small stores. When the big box opens, small stores that have served the community for years can be in trouble.
It doesn't have to be this way.
Big box stores typically do not offer the personalized service that the small store can offer. Just try asking for an item not found on big box shelves. Flustered clerks run to the company's computer--only to report that the item is not available.
Smaller stores can stock items that the big box won't carry. Sometimes these are everyday items. Other times they are higher end and higher priced. And small store customer service is a joy to deal with.
Small hardware stores have been particularly hard-hit by the big boxes. Other types of stores can feel the same pressures.
Example: I know a small hardware store that suffered great losses in business when the big box store opened in town. The owner re-invented the small business. In addition to specialty hardware, he began offering rentals--including trucks and trailers. It took time and careful thinking, but it worked.
Example: Another hardware store owner told me that she did not worry about the big box stores opening all around her. Her secret had always been top-of-the-line service, advice and information as well as extensive lines of stock. Professional plumbers and electricians depend on her and flock to her store, as well as homeowners looking to replace antique hardware. They appreciate the service, and they know that she will get them anything they might need--quickly and at competitive prices. Yes, she is completely computerized, and her store offers an extensive inventory of out-of-date items.
Other examples: Small toy stores can specialize in carrying not only the latest toys but older toys as well, along with an extensive selection of games. Bicycle shops can carry a wider selection of bikes than might be offered at the big box--including high end bikes--and they can offer club discounts, sponsor excursions, do repairs and the like. Specialty growers can display unusual annuals, perennials, shrubs and trees not offered at the big discounters. Bakers compete by offering high-end, custom confections. And so it goes.
Big box stores definitely have a place in our diverse economy. If I need a flat-head screwdriver, I'll be able to find a big selection there. But if I need an unusual size or one that will hold up for years, better to check with my local small store.
Owners of small stores know that they cannot compete with the big boxes on price alone. The big box will always win out on lower prices. But you can compete on the quality of everyday items as well as the higher end products. And your knowledgeable, friendly customer service will beat the big box every time.
If you have questions on this or any other topic covered in my blog,
email me direct at: AlWarr16@gmail.com and put BLOG in the subject line.
Your privacy always respected.
Monday, April 7, 2014
Friday, April 4, 2014
Problem customers
Free daily advice for people in small business
from someone who has been there, done that.
Clients and customers are the life blood of business. Each of them deserves your attention.
But all customers are not good customers. Now and then, you run across one who is a pain.
Some seem to be late in paying their bills--every time. Others haggle with you on every price. Maybe they bad mouth you to your face or behind your back, or maybe they simply criticize everything.
Every business person puts up with a certain amount of this. It's part of meeting the public and serving them with products and services.
But when the situation gets out of hand, it's time for action.
I've found it useful to refer problem customers to my competition. In a nice way, of course.
Example: A customer returns again and again to a florist to complain that the flowers she bought promptly died. Once is understandable, but when an on-going pattern develops, it's time to refer her to another florist.
Example: A veterinarian helps a pet overcome an itching problem, but the owner is a know-it-all who insists after several visits that, although the pet is showing signs of recovering, the treatment should be changed to something learned on the Internet. Time to recommend a specialist down the road.
Example: Painters of interior walls might refer fussy homeowners to others, and then concentrate on corporate and commercial accounts.
Example: A financial adviser recommends several strategies for an argumentative new client. Even when the client makes money, he second guesses the strategy and frequently voices endless criticisms. Time to move on.
I once learned a valuable lesson from a friend on Madison Avenue. He educated me on how advertising agencies deal with some of these problems. They call it "resigning the account" and it is a nice way of sending problems elsewhere.
Get rid of problem clients and customers. They waste your time. Replace them with those who appreciate what you do.
If you have questions on this or any other topic covered in these blogs,
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.
Clients and customers are the life blood of business. Each of them deserves your attention.
But all customers are not good customers. Now and then, you run across one who is a pain.
Some seem to be late in paying their bills--every time. Others haggle with you on every price. Maybe they bad mouth you to your face or behind your back, or maybe they simply criticize everything.
Every business person puts up with a certain amount of this. It's part of meeting the public and serving them with products and services.
But when the situation gets out of hand, it's time for action.
I've found it useful to refer problem customers to my competition. In a nice way, of course.
Example: A customer returns again and again to a florist to complain that the flowers she bought promptly died. Once is understandable, but when an on-going pattern develops, it's time to refer her to another florist.
Example: A veterinarian helps a pet overcome an itching problem, but the owner is a know-it-all who insists after several visits that, although the pet is showing signs of recovering, the treatment should be changed to something learned on the Internet. Time to recommend a specialist down the road.
Example: Painters of interior walls might refer fussy homeowners to others, and then concentrate on corporate and commercial accounts.
Example: A financial adviser recommends several strategies for an argumentative new client. Even when the client makes money, he second guesses the strategy and frequently voices endless criticisms. Time to move on.
I once learned a valuable lesson from a friend on Madison Avenue. He educated me on how advertising agencies deal with some of these problems. They call it "resigning the account" and it is a nice way of sending problems elsewhere.
Get rid of problem clients and customers. They waste your time. Replace them with those who appreciate what you do.
If you have questions on this or any other topic covered in these blogs,
email me direct at: AlWarr16@gmail.com and put BLOG in the subject line.
Your privacy always respected.
Thursday, April 3, 2014
Funding sources
Free daily advice for people in small business
from someone who has been there, done that.
Money is always in short supply in small business. If only you had some extra funds, you could add new product lines, expand services, and grow the business.
Some creative approaches can be put in place to find the funding you need. You don't have to depend on banks, venture capital firms, and government-backed loans to get money.
Everyone in small business has used--or thought of using--loans from friends and family. After all, these people already know you are a trustworthy person. Always write up a contract if you go this route.
In addition, private investors are all around you. Network your way through doctors, accountants, lawyers and other professionals. They might be discouraged with their own private investments. With either a loan or a piece of your business, you can offer them a better return than they otherwise might expect.
Other methods speak to your ingenuity and negotiating skills. Some types of businesses can sell their receivables to factors. This can be expensive, but at least the cash is flowing.
Small businesses can always use small infusions of funds. Credit cards can provide some flexibility, and they are used to good advantage to bridge gaps in cash flow, smoothing the ups and downs in local economies, and providing temporary relief in cash shortfalls. But credit cards are not a long term solution to the problems of small business.
Other ways to get the cash flowing more quickly include: (1) "borrowing" from your wholesale suppliers by negotiating longer payment terms for goods--by the time their invoice arrives, you have sold the goods at retail; (2) "borrowing" from your customers by selling gift certificates--some of these will never be brought in for redemption; (3) "borrowing" from customers who buy your custom manufactured product by having them pre-pay for later delivery, or have them agree to make work-in-progress payments--this method can work well in certain industries (printing, construction, machine shop, landscaping, consulting, etc.); (4) some businesses sell maintenance and repair contracts--payments come into the business upfront.
The foregoing methods are short-term solutions to managing cash flow. To tackle the longer term funding for expansion and growth, you need that business plan. No banker or venture capitalist or private investor will ante up funds until they have studied your business plan and have confidence in your ability to follow through.
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.
Your privacy always respected.
from someone who has been there, done that.
Money is always in short supply in small business. If only you had some extra funds, you could add new product lines, expand services, and grow the business.
Some creative approaches can be put in place to find the funding you need. You don't have to depend on banks, venture capital firms, and government-backed loans to get money.
Everyone in small business has used--or thought of using--loans from friends and family. After all, these people already know you are a trustworthy person. Always write up a contract if you go this route.
In addition, private investors are all around you. Network your way through doctors, accountants, lawyers and other professionals. They might be discouraged with their own private investments. With either a loan or a piece of your business, you can offer them a better return than they otherwise might expect.
Other methods speak to your ingenuity and negotiating skills. Some types of businesses can sell their receivables to factors. This can be expensive, but at least the cash is flowing.
Small businesses can always use small infusions of funds. Credit cards can provide some flexibility, and they are used to good advantage to bridge gaps in cash flow, smoothing the ups and downs in local economies, and providing temporary relief in cash shortfalls. But credit cards are not a long term solution to the problems of small business.
Other ways to get the cash flowing more quickly include: (1) "borrowing" from your wholesale suppliers by negotiating longer payment terms for goods--by the time their invoice arrives, you have sold the goods at retail; (2) "borrowing" from your customers by selling gift certificates--some of these will never be brought in for redemption; (3) "borrowing" from customers who buy your custom manufactured product by having them pre-pay for later delivery, or have them agree to make work-in-progress payments--this method can work well in certain industries (printing, construction, machine shop, landscaping, consulting, etc.); (4) some businesses sell maintenance and repair contracts--payments come into the business upfront.
The foregoing methods are short-term solutions to managing cash flow. To tackle the longer term funding for expansion and growth, you need that business plan. No banker or venture capitalist or private investor will ante up funds until they have studied your business plan and have confidence in your ability to follow through.
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.
Your privacy always respected.
Wednesday, April 2, 2014
Hobby businesses
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.
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.
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
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