Free daily advice for people in small business
from someone who has been there, done that.
Emails are changing--drastically.
Emails are not what they used to be. It's because technology is fast moving. Like every month, something new hits the marketplace.
The first computer I worked with was bigger than my house. It was the 1960s and the machine required an army of key punch operators.
Soon Bill Gates appeared on the scene. Desktop computers invaded offices everywhere. It was an exciting time.
Then emails started to become the dominant form of communicating with friends, employees, and customers. More excitement.
Meantime, cell phones began exploding. It took a few years for technology to place cell phones in everyone's hands.
Yesterday, companies began emailing customers. Emails were used to keep in touch and explore new opportunities. Products, services, customer services messages were delivered via the email mechanism.
The word went around--for best results, send emails on Tuesdays. Mondays and Fridays were seen as dead days to get attention.
Today's smart phones have changed all this--again. Nowadays, people read incoming emails according to their own daily schedules.
To get the best results, forget the Tuesday email blast. That former dictum no longer applies. Businesses are finding that the best time to send emails might be in the evening.
Pay attention to your customers. Tailor your emails to their convenience. You gotta keep up!
Questions? Email me direct at AlWarr16@gmail.com and put BLOG in the subject line.
I am retired and I'm not selling anything. Your privacy is always respected.
Friday, April 11, 2014
Thursday, April 10, 2014
Finding new customers
Free daily advice for people in small business
from someone who has been there, done that.
Introducing new customers to your products and services is arguably the most important part of your business. Big or small, you need a continuing parade of new customers.
Why? It's because you will lose your present customers. Sooner or later, all of them will disappear. They move away, they find other sources, they begin buying from a brother-in-law, whatever. Or you lose them to the Internet--and this will only get worse.
So how do you find new clients and customers, bind them to you, and keep them coming back again and again to your operation?
1. Make their experience with you an enjoyable activity, maybe even fun. A dentist's office does not have to be all about dentistry. Same applies to a law office. An ice cream store I know hangs pictures drawn by school kids, turning the place into an art gallery for the young set and their parents.
2. Constantly keep on top of the market. It changes. Food products that are hot today, languish on the shelves tomorrow. Health food stores see this in the fads that come and go rather quickly in the supplements market. The same is true in alternative medicine practices.
3. Ask your customers to "friend" you on Facebook. Use social media to reach out to new people. Network your way through several groups--on the Internet as well as in your community. Ask your customers to bring pictures drawn by their kids and you'll post them on your site.
4. To attract new people to your bricks and mortar operation, offer free workshops and other informational meetings open to the general public. People react positively to learning new things. And after all, you're the expert in what you do.
5. Engage in friendly conversations. Show an interest in what other people do. Get them talking about their work. It's not personal, like politics can be. People open up and they remember you and your operation--and they refer others.
6. After you get to know your clients and customers, find the opportunity to ask them for referrals. Once you're in a relaxed conversation, people willingly open up. Not all, but many of them will be happy to pass on names of friends who might be use your services. It's how I found my accountant--who stayed with me for more than 20 years.
Some of last year's selling techniques have gone by the board. They're yesterday's news. Who does cold calling any more?
But other things don't change. They might put on a new face in this computer age, but basically, people are people.
Find the methods that work for you and keep at it. Adding new clients and customers is a never-ending process in business. If you're adding more than you're losing, you're growing.
Questions? Email me direct at AlWarr16@gmail.com and put BLOG in the subject line.
I am retired, and I'm not selling anything. Your privacy is always respected.
from someone who has been there, done that.
Introducing new customers to your products and services is arguably the most important part of your business. Big or small, you need a continuing parade of new customers.
Why? It's because you will lose your present customers. Sooner or later, all of them will disappear. They move away, they find other sources, they begin buying from a brother-in-law, whatever. Or you lose them to the Internet--and this will only get worse.
So how do you find new clients and customers, bind them to you, and keep them coming back again and again to your operation?
1. Make their experience with you an enjoyable activity, maybe even fun. A dentist's office does not have to be all about dentistry. Same applies to a law office. An ice cream store I know hangs pictures drawn by school kids, turning the place into an art gallery for the young set and their parents.
2. Constantly keep on top of the market. It changes. Food products that are hot today, languish on the shelves tomorrow. Health food stores see this in the fads that come and go rather quickly in the supplements market. The same is true in alternative medicine practices.
3. Ask your customers to "friend" you on Facebook. Use social media to reach out to new people. Network your way through several groups--on the Internet as well as in your community. Ask your customers to bring pictures drawn by their kids and you'll post them on your site.
4. To attract new people to your bricks and mortar operation, offer free workshops and other informational meetings open to the general public. People react positively to learning new things. And after all, you're the expert in what you do.
5. Engage in friendly conversations. Show an interest in what other people do. Get them talking about their work. It's not personal, like politics can be. People open up and they remember you and your operation--and they refer others.
6. After you get to know your clients and customers, find the opportunity to ask them for referrals. Once you're in a relaxed conversation, people willingly open up. Not all, but many of them will be happy to pass on names of friends who might be use your services. It's how I found my accountant--who stayed with me for more than 20 years.
Some of last year's selling techniques have gone by the board. They're yesterday's news. Who does cold calling any more?
But other things don't change. They might put on a new face in this computer age, but basically, people are people.
Find the methods that work for you and keep at it. Adding new clients and customers is a never-ending process in business. If you're adding more than you're losing, you're growing.
Questions? Email me direct at AlWarr16@gmail.com and put BLOG in the subject line.
I am retired, and I'm not selling anything. Your privacy is always respected.
Wednesday, April 9, 2014
Two-party promotions
Free daily advice for people in small business
from someone who has been there, done that.
Promotions are important for small businesses. Different businesses use different types of promotions. What works in a restaurant will not necessarily work in a car wash. And vice-versa.
Some promotions--open houses, free information sessions--work well in many businesses. These activities are easy to set up and cost little, or nothing in some cases.
Example: A cafe brings in a group of musicians who perform Irish music on authentic instruments. The word goes out and crowds show up waiting to get inside.
Example: A garden center hosts free sessions by experienced gardeners attracting a public hungry for information on working their yards. Experienced gardeners are happy to share their knowledge and answer questions posed by attendees.
Example: A winery hosts art shows. Artists get sales opportunities not otherwise available to them, and the winery attracts more upscale visitors to sample their wines--and buy a case to take home.
Example: Spas and salons brings in holistic practitioners to offer introductory sessions explaining their services. This can lead to more substantive sessions for both the spa and the holistic experts in nutrition, hypnosis, Reiki, massage, and others.
All these examples are drawn from actual experiences in businesses I know.
To set up your own promotions, think outside the box. What can get attention? How can I contain costs? What can I set up to bring in the types of new customers I want to reach?
When you've homed in on the promotions you want to offer, get the word out. Post to your Facebook page and your MeetUp group. Don't have these? Get them and never look back.
Questions? Email me direct at AlWarr16@gmail.com and put BLOG in the subject line. I am retired and I am NOT selling anything. Your privacy is always respected.
Tuesday, April 8, 2014
Pricing to market
Free daily advice for people in small business
from someone who has been there, done that.
Pricing the goods and services you sell is very important. Setting prices tells the market who you are, what to expect.
Price higher than your competition, and you're likely to miss sales opportunities. Price lower than your competition, and you run the risk of going out of business.
When you are setting your prices, think market. Think what segment of the market you want to address, appeal to, pull into your operation.
Your clients and customers get to know you in various ways. Your prices tell people just where you fit among the brands out there.
This is true in every small business--florists and attorneys, hair salons and home improvement specialists, social media consultants and plumbers.
No matter what business you are in, your prices contribute mightily to the brand you are building. Your prices are like a neon sign flashing to the world and attracting the market segment you target.
Example: You run a florist. Your competitor sets prices for flower arrangements trying to compete with national florist services. You decide to raise your prices--significantly. You emphasize your uniqueness, superior design, quality, free delivery, customer service. You post pictures of new designs daily on Facebook. You happily furnish references and close sales with new customers, customers who happily pay your premium prices. Meanwhile, your competitors languish, struggling with customers who shop everywhere for the best price.
This same example can apply to bakers (offer custom high-end cakes), landscapers (we use only organic mulches and sprays), appliance stores (free deliveries and 24/7 repairs), hair salons (we are color specialists), and so it goes. You separate your business from the competition by offering more, by higher quality, by caring for customer concerns--and by the prices you charge.
Example: Attorneys, accountants and tax specialists, consultants--these businesses tend to price as high as the market will bear. Prices communicate your value. Reputations are at play here, and clients expect top talent to charge top prices.
Example: Gift shops define the types of customers they attract by the prices they charge. Of course, the quality and uniqueness must be there. Hand-made works by artisans naturally command higher prices than mass-produced items. And they attract higher end customers--think jewelry, clothing and accessories, and even furniture.
Your pricing can telegraph your brand, your name, your reputation. Pricing can go a long way in building a loyal following, repeat clients and customers who swear by you and tell their friends. In pricing your goods and services, small businesses can take a valuable page from successful big operations--just consider what Steve Jobs did with Apple.
Questions? Email me direct at: AlWarr16@gmail.com and put BLOG in the subject line.
I am retired, and I'm not selling anything. Your privacy is always respected.
from someone who has been there, done that.
Pricing the goods and services you sell is very important. Setting prices tells the market who you are, what to expect.
Price higher than your competition, and you're likely to miss sales opportunities. Price lower than your competition, and you run the risk of going out of business.
When you are setting your prices, think market. Think what segment of the market you want to address, appeal to, pull into your operation.
Your clients and customers get to know you in various ways. Your prices tell people just where you fit among the brands out there.
This is true in every small business--florists and attorneys, hair salons and home improvement specialists, social media consultants and plumbers.
No matter what business you are in, your prices contribute mightily to the brand you are building. Your prices are like a neon sign flashing to the world and attracting the market segment you target.
Example: You run a florist. Your competitor sets prices for flower arrangements trying to compete with national florist services. You decide to raise your prices--significantly. You emphasize your uniqueness, superior design, quality, free delivery, customer service. You post pictures of new designs daily on Facebook. You happily furnish references and close sales with new customers, customers who happily pay your premium prices. Meanwhile, your competitors languish, struggling with customers who shop everywhere for the best price.
This same example can apply to bakers (offer custom high-end cakes), landscapers (we use only organic mulches and sprays), appliance stores (free deliveries and 24/7 repairs), hair salons (we are color specialists), and so it goes. You separate your business from the competition by offering more, by higher quality, by caring for customer concerns--and by the prices you charge.
Example: Attorneys, accountants and tax specialists, consultants--these businesses tend to price as high as the market will bear. Prices communicate your value. Reputations are at play here, and clients expect top talent to charge top prices.
Example: Gift shops define the types of customers they attract by the prices they charge. Of course, the quality and uniqueness must be there. Hand-made works by artisans naturally command higher prices than mass-produced items. And they attract higher end customers--think jewelry, clothing and accessories, and even furniture.
Your pricing can telegraph your brand, your name, your reputation. Pricing can go a long way in building a loyal following, repeat clients and customers who swear by you and tell their friends. In pricing your goods and services, small businesses can take a valuable page from successful big operations--just consider what Steve Jobs did with Apple.
Questions? Email me direct at: AlWarr16@gmail.com and put BLOG in the subject line.
I am retired, and I'm not selling anything. Your privacy is always respected.
Monday, April 7, 2014
Small store survival
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.
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.
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.
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