Free daily advice for people in small business
from someone who has been there, done that.
Today's world is very different from yesterday's. And tomorrow's will be even more unrecognizable.
A degree of certainty is required for business to survive, much less thrive. Right now, your small business is caught up in a juggernaut of change.
Think of what's happening with energy. We are caught up in a big debate on energy sources, and who knows where it's leading us.
You and your customers depend on electricity. Without electricity, your computer will go dark. Without electricity, banks and supermarkets will close. You won't be able to drive your vehicle (gasoline stations close), you won't be able to cook meals or wash clothes (most appliances stop running), reaching out by telephone will be iffy (then your batteries run out). And your customers will be in the same fix.
Viable alternative sources of energy are still largely out in the future. Hydroelectric and nuclear plants are producing significant streams of electricity right now. So are solar farms and wind turbines--to a more limited extent, considering the need. Coal is being banned.
Where will tomorrow's energy come from? Like it or not, we are still in an age of oil and gas. And we will be for the foreseeable future. As coal is phased out, electricity generating plants are using more and more oil and gas. Luckily, this country has more proven reserves of oil and gas than all of the Middle East combined.
So where does all this leave you and your small business? Well, if I were still in business (I'm retired now), I would be giving a couple of thoughts to the problem. How will I stay in business and serve my customers if the electric grid goes into frequent brownouts, or worse, crashes for a month or two?
Other uncertainties will affect your business in the future. As a nation, we are in a big debate on health care. Is the future in small, privately run health clinics or in big government bureaucracies? Or is another system of health care on the horizon?
Another: Genetically modified foods now pervade the food chain. A reaction to GMOs is afoot--cities and some states are insisting that GMO foods be so labelled. The concern revolves around the effects of these foods on human health--and there are good reasons to be concerned.
Still another: 3-D printing technology is right now producing devices that will forever change manufacturing. Will small machine shops and tool makers go the way of the hot lead typesetters of the past? 3-D printing companies are already making parts for the automotive industry, aerospace, health care, home and personal products--including jewelry, lighting fixtures, shoe wear and more. All these and other items are now being manufactured in plastics and metals.
As owners of small businesses, we tend to think about today's problems. But it's a good thing to consider where we're headed. The future is not knowable, but trends tend to continue. Thinking about these trends will help you structure your business to survive--and prosper. Or, maybe, get into a new line of business altogether.
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.
Friday, April 25, 2014
Thursday, April 24, 2014
Planning box
Free daily advice for people in small business
from someone who has been there, done that.
I firmly believe in business planning. The planning process forces you to think through the ideas you have.
Planning is a straightforward exercise in principle, but it can be extremely difficult to do.
With business plans, the aim is to match your business to the market. This forces you to look at the market, define it as best you can, and see if your business ideas measure up.
Questions: Is there truly a market for my goods/services? How big is this market? What part or parts of the market can I serve? What's the future of the market segment I plan to address? Is there a technological component/impact?
More questions: Is this market mature? Is it moving to the Internet? What's the competition? Shall I establish a bricks-and-mortar operation with an Internet presence? Or is it better to be totally Internet based?
These questions--and more--get at the foundations of a business. The answers must be reduced to numbers. The hard, cold numbers you derive from the marketplace will tell you whether you can succeed or fail. Planning can save you from dead-ends and failure.
Projecting numbers of future sales and costs is an iffy undertaking. The marketplace is dynamic. It can change directions very quickly. Business owners must account for this as best they can, continually adjusting.
I've found it useful to have a planning box. It rests on a shelf among the books. Anytime an idea occurred to me or a scrap of useful information crossed by path, I'd write it down and drop it in my planning box. About every 2 to 3 months, I take my planning box down and sift through the whole mess.
At this point most of the miscellaneous notes got discarded. But there were always gems to be found. These became a part of my road map to the future. I would flesh out ideas with some numbers, I would round out some projections, and then I would decide whether or not it would be worthwhile to change the business direction.
Get yourself a planning box. It can make planning an on-going and almost daily process. Then you'll have a solid basis to write that formal plan the lender requires for a loan. And you can head off into that expansion, confident that you've covered all the bases.
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.
I firmly believe in business planning. The planning process forces you to think through the ideas you have.
Planning is a straightforward exercise in principle, but it can be extremely difficult to do.
With business plans, the aim is to match your business to the market. This forces you to look at the market, define it as best you can, and see if your business ideas measure up.
Questions: Is there truly a market for my goods/services? How big is this market? What part or parts of the market can I serve? What's the future of the market segment I plan to address? Is there a technological component/impact?
More questions: Is this market mature? Is it moving to the Internet? What's the competition? Shall I establish a bricks-and-mortar operation with an Internet presence? Or is it better to be totally Internet based?
These questions--and more--get at the foundations of a business. The answers must be reduced to numbers. The hard, cold numbers you derive from the marketplace will tell you whether you can succeed or fail. Planning can save you from dead-ends and failure.
Projecting numbers of future sales and costs is an iffy undertaking. The marketplace is dynamic. It can change directions very quickly. Business owners must account for this as best they can, continually adjusting.
I've found it useful to have a planning box. It rests on a shelf among the books. Anytime an idea occurred to me or a scrap of useful information crossed by path, I'd write it down and drop it in my planning box. About every 2 to 3 months, I take my planning box down and sift through the whole mess.
At this point most of the miscellaneous notes got discarded. But there were always gems to be found. These became a part of my road map to the future. I would flesh out ideas with some numbers, I would round out some projections, and then I would decide whether or not it would be worthwhile to change the business direction.
Get yourself a planning box. It can make planning an on-going and almost daily process. Then you'll have a solid basis to write that formal plan the lender requires for a loan. And you can head off into that expansion, confident that you've covered all the bases.
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 23, 2014
Business dreamin'
Free daily advice for people in small business
from someone who has been there, done that.
Today's leaders in computing technology and social media started small. So did the fast food chains--one outlet at a time.
To get a business out of the garage and into the big time takes dreamin' and vision. Not all small businesses grow large.
The ultimate size of a business depends on the vision of the owner. But the main constraint is the marketplace. Markets limit business growth.
The same applies to your business. No matter how big your dreams, more important are the buyers of your goods and services.
Example: Small cafes can specialize, attracting tradespeople looking for hearty breakfasts and lunches. Electricians, plumbers, construction crews, landscapers and others start their day very early. They represent a niche market in the restaurant business. Is there a chain of specialty cafes catering to these buyers? I'm not talking Starbucks here, or Burger King.
Example: Gift shops can grow larger by targeting certain types of buyers. This plan serves the niche market that is full of up-scale buyers. A small gift shop can brand itself for this market. Fill the shelves with hand-made pieces from artists and artisans--these creative types are always looking for outlets. Then consider a second store in an appropriate town or neighborhood. You are on your way to possibly franchising your gift shop operation.
Example: People will deprive themselves in favor of spending for their pets. It's a huge and growing market. True, there are national chains (both brick and mortar and on the Internet), but I suspect that the local pet store will always attract a loyal clientele. Owners of pet shops must stay on top of what's new and offered for pets--you can bet your customers will know. Or reach out to this market on the Internet.
No matter your business, you're only as big as your dreams. When you match your dreams to the available markets, you're on your way to solid growth. Just know that markets rule.
Dreams. They are the stuff of small business.
Questions? Email me direct at AlWarr16@gmail.com and put BLOG in the subject line.
I am retired and I am not selling anything. Your privacy is always respected.
from someone who has been there, done that.
Today's leaders in computing technology and social media started small. So did the fast food chains--one outlet at a time.
To get a business out of the garage and into the big time takes dreamin' and vision. Not all small businesses grow large.
The ultimate size of a business depends on the vision of the owner. But the main constraint is the marketplace. Markets limit business growth.
The same applies to your business. No matter how big your dreams, more important are the buyers of your goods and services.
Example: Small cafes can specialize, attracting tradespeople looking for hearty breakfasts and lunches. Electricians, plumbers, construction crews, landscapers and others start their day very early. They represent a niche market in the restaurant business. Is there a chain of specialty cafes catering to these buyers? I'm not talking Starbucks here, or Burger King.
Example: Gift shops can grow larger by targeting certain types of buyers. This plan serves the niche market that is full of up-scale buyers. A small gift shop can brand itself for this market. Fill the shelves with hand-made pieces from artists and artisans--these creative types are always looking for outlets. Then consider a second store in an appropriate town or neighborhood. You are on your way to possibly franchising your gift shop operation.
Example: People will deprive themselves in favor of spending for their pets. It's a huge and growing market. True, there are national chains (both brick and mortar and on the Internet), but I suspect that the local pet store will always attract a loyal clientele. Owners of pet shops must stay on top of what's new and offered for pets--you can bet your customers will know. Or reach out to this market on the Internet.
No matter your business, you're only as big as your dreams. When you match your dreams to the available markets, you're on your way to solid growth. Just know that markets rule.
Dreams. They are the stuff of small business.
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 22, 2014
Business joy rides
Free daily advice for people in small business
from someone who has been there, done that.
You're a business owner. You're running your business.
You make daily decisions. Some are good and some are not-so-good. You discard those that don't work and concentrate on those that do work.
Right?
Then, why do so many business owners take their businesses on joy rides?
You've seen it happen. You stop in at your favorite coffee shop, and the place has been transformed into lattes and biscotti. A regular cup of coffee? Maybe down the street.
Example: A hairdresser begins spending more and more time checking out and stocking products new to the market. This gives the owner a great deal of personal satisfaction, and the new products might attract new clients. But if you spend more and more time in this new area of the business, you're changing the direction of your business. It might be good, or it might be bad.
Example: An Internet marketing expert pushes every newly minted social media possibility to clients. It's because of his interest, not theirs. He's changing his brand and trying to change theirs. It might be good, or it might be bad.
Example: An American foods restaurant begins offering more and more healthy alternative meals, crowding out the popular burgers that diners have come to depend on. The chef is taking the restaurant on a personal joy ride, to the chagrin of regular customers. It might be good, or it might be bad.
These examples show what can happen when businesses go "off target." Once your brand is established, changing course can confuse regular clientele.
All businesses change--they must change to keep abreast of market demands. The key to success lies not with the owner's personal whim, but with the marketplace.
Changing the business is not the same as letting it drift. All businesses must change to keep up with changing markets. The business will tend to pull in one direction or another. You must give customers what they want or they go elsewhere.
Drifting toward a new market demand is one thing. Drifting toward the owner's newly discovered interest is another thing. A personal interest might coincide with a developing market that can be tapped. Or it might not.
Before heading off on your personal joy ride, see how it measures up to your overall business plan. Many business joy rides can grow your business. Others are just joy rides.
Questions? Email me direct at AlWarr16@gmail.com and put BLOG in the subject line.
I am retired and I am not selling anything. Your privacy is always respected.
from someone who has been there, done that.
You're a business owner. You're running your business.
You make daily decisions. Some are good and some are not-so-good. You discard those that don't work and concentrate on those that do work.
Right?
Then, why do so many business owners take their businesses on joy rides?
You've seen it happen. You stop in at your favorite coffee shop, and the place has been transformed into lattes and biscotti. A regular cup of coffee? Maybe down the street.
Example: A hairdresser begins spending more and more time checking out and stocking products new to the market. This gives the owner a great deal of personal satisfaction, and the new products might attract new clients. But if you spend more and more time in this new area of the business, you're changing the direction of your business. It might be good, or it might be bad.
Example: An Internet marketing expert pushes every newly minted social media possibility to clients. It's because of his interest, not theirs. He's changing his brand and trying to change theirs. It might be good, or it might be bad.
Example: An American foods restaurant begins offering more and more healthy alternative meals, crowding out the popular burgers that diners have come to depend on. The chef is taking the restaurant on a personal joy ride, to the chagrin of regular customers. It might be good, or it might be bad.
These examples show what can happen when businesses go "off target." Once your brand is established, changing course can confuse regular clientele.
All businesses change--they must change to keep abreast of market demands. The key to success lies not with the owner's personal whim, but with the marketplace.
Changing the business is not the same as letting it drift. All businesses must change to keep up with changing markets. The business will tend to pull in one direction or another. You must give customers what they want or they go elsewhere.
Drifting toward a new market demand is one thing. Drifting toward the owner's newly discovered interest is another thing. A personal interest might coincide with a developing market that can be tapped. Or it might not.
Before heading off on your personal joy ride, see how it measures up to your overall business plan. Many business joy rides can grow your business. Others are just joy rides.
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.
Monday, April 21, 2014
New customers
Free daily advice for people in small business
from someone who has been there, done that.
Some experts in marketing say that new customers are more valuable than existing customers. They base this on reckoning that new customers represent future value.
That's certainly true. New customers expand your sales--now and in the future.
So where do new customers come from? How do you find them? How do you impress them to deal with you instead of the competition?
Many possibilities are available to you. Only you can decide what will work in your business.
Attend networking meetings. Join local organizations. Ask existing customers for referrals. Send out news releases. Build your email list. Keep your Facebook page active. Form a MeetUp.com group centered around your interests. Get your business on Angie's List. Offer your expertise as a guest speaker. Offer free "how-to" workshops. Hold an open house. Offer freebies.
Examples: I know an exercise and fitness operation that offers a free initial consultation with a personal trainer. A doctor of chiropractic does the same thing. A free initial consultation puts the new person's mind at ease. It attracts new clients and begins the relationship.
Examples: I know a healthy foods store that sets up a daily sample table. It's filled with free goodies for customers. A bakery does the same thing. New people coming in are introduced to new products and they are impressed with the operation. They linger, and they come back.
Examples: I know a lawyer who offers free brochures. One explains what to do when you get a traffic ticket. An accountant offers free tax tips. These are simple, easy to prepare and have on hand. New clients appreciate information and remember you when their need arises.
As you can see, there are all sorts of freebies. And freebies cast your operation in a new light, attracting interest and new customers. With a memorable experience, they are much more likely to tell others about your business. This can get the referral process in high gear.
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.
Some experts in marketing say that new customers are more valuable than existing customers. They base this on reckoning that new customers represent future value.
That's certainly true. New customers expand your sales--now and in the future.
So where do new customers come from? How do you find them? How do you impress them to deal with you instead of the competition?
Many possibilities are available to you. Only you can decide what will work in your business.
Attend networking meetings. Join local organizations. Ask existing customers for referrals. Send out news releases. Build your email list. Keep your Facebook page active. Form a MeetUp.com group centered around your interests. Get your business on Angie's List. Offer your expertise as a guest speaker. Offer free "how-to" workshops. Hold an open house. Offer freebies.
Examples: I know an exercise and fitness operation that offers a free initial consultation with a personal trainer. A doctor of chiropractic does the same thing. A free initial consultation puts the new person's mind at ease. It attracts new clients and begins the relationship.
Examples: I know a healthy foods store that sets up a daily sample table. It's filled with free goodies for customers. A bakery does the same thing. New people coming in are introduced to new products and they are impressed with the operation. They linger, and they come back.
Examples: I know a lawyer who offers free brochures. One explains what to do when you get a traffic ticket. An accountant offers free tax tips. These are simple, easy to prepare and have on hand. New clients appreciate information and remember you when their need arises.
As you can see, there are all sorts of freebies. And freebies cast your operation in a new light, attracting interest and new customers. With a memorable experience, they are much more likely to tell others about your business. This can get the referral process in high gear.
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 18, 2014
Mentoring kids
Free daily advice for people in small business
from someone who has been there, done that.
Owners of small businesses have another job to do. And it has everything to do with running your business.
It's not an extra. And it's not an elective. It's the future--of your business and your community.
It's kids.
Way back in the 1920s, President Calvin Coolidge addressedg a gathering of newspaper editors. He told them that the business of America is business.
His words were ignored then, and they are ignored today. Ignorance of business hurts kids.
People in media, in education, in religion and in government have very little appreciation for business--except when they are looking for advertising dollars or contributions, tithes or taxes. These four groups would have trouble existing were it not for business.
Business is not just big corporations. The business of America is truly small business. In fact, most people with jobs are employed by small businesses.
If IBM closed its doors tomorrow, few Americans would be affected. But if all the country's chiropractors moved to Mexico tomorrow, millions of Americans would be in pain.
If Wells Fargo Bank closed up shop tomorrow, Americans would find other ways to do their banking. But if all the country's plumbers retired tomorrow, every American would be left with leaky faucets--and worse.
Small business makes the country work. And kids deserve to know this. Your small business is vital to the country's future. And kids are the future.
Media, education, religion and government largely ignore small business. It's up to owners of small businesses to fill the gap.
Reach out and mentor kids in your community. Bring them in and show them how a business works. Offer school class trips to local kids. Talk up entrepreneurship with teachers. Hire kids when they are old enough to meet child labor laws.
Show kids that they can make a difference with a business of their own. Inspire them to be all they can be--and the future will take care of itself.
Questions? Email me direct at AlWarr16@gmail.com and put BLOG in the subject line.
I am retired, and I am not selling anything. Your privacy is always respected.
from someone who has been there, done that.
Owners of small businesses have another job to do. And it has everything to do with running your business.
It's not an extra. And it's not an elective. It's the future--of your business and your community.
It's kids.
Way back in the 1920s, President Calvin Coolidge addressedg a gathering of newspaper editors. He told them that the business of America is business.
His words were ignored then, and they are ignored today. Ignorance of business hurts kids.
People in media, in education, in religion and in government have very little appreciation for business--except when they are looking for advertising dollars or contributions, tithes or taxes. These four groups would have trouble existing were it not for business.
Business is not just big corporations. The business of America is truly small business. In fact, most people with jobs are employed by small businesses.
If IBM closed its doors tomorrow, few Americans would be affected. But if all the country's chiropractors moved to Mexico tomorrow, millions of Americans would be in pain.
If Wells Fargo Bank closed up shop tomorrow, Americans would find other ways to do their banking. But if all the country's plumbers retired tomorrow, every American would be left with leaky faucets--and worse.
Small business makes the country work. And kids deserve to know this. Your small business is vital to the country's future. And kids are the future.
Media, education, religion and government largely ignore small business. It's up to owners of small businesses to fill the gap.
Reach out and mentor kids in your community. Bring them in and show them how a business works. Offer school class trips to local kids. Talk up entrepreneurship with teachers. Hire kids when they are old enough to meet child labor laws.
Show kids that they can make a difference with a business of their own. Inspire them to be all they can be--and the future will take care of itself.
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.
Thursday, April 17, 2014
Choosing your business
Free daily advice for people in small business
from someone who has been there, done that.
This is all about how to decide what business to go into. This can be helpful before you start up a business, and it can be helpful if you want to change the direction of your existing business.
Many people consider starting a business. The opportunity to start a business of your own is one of the great things about America.
Look to yourself before starting a business or before changing the direction of your business. Everyone has an intense interest in something. It might be a hobby or it might be sports or it might be creating works of art or it might be inventing a new gizmo.
An honest look in the mirror can provide the answer to making a business, getting it off the ground, and doing what you love to do.
My experience in this is both personal and with others. As head of the Business Owners Institute in New Jersey, I advised many--personally and in group seminars.
A lady came to me once wanting to know how to buy a Dunkin' Donuts. She had a large payout from her corporate position which had ended, and she told me firmly that she was ready to go into business.
Well, not really. I asked her what she knew about donuts. I asked her who would be getting up at 4 a.m. to make the donuts. She gave me a blank look.
At this point I held up a mirror which I kept handy--for just this purpose. As she looked in the mirror, I asked her what she was interested in. During all those years of corporate meetings, what were the activities she had dreamed of? What turned her on? How did she spend her spare time--to relax, to deal with the stress of the corporate world.
After a couple of additional conversations, she decided against the donut career. She turned her hobby of throwing pottery and finishing the items off with special glazes into a business. It took her several years, but the 16-hour days flew by. She studied the market for glazed pottery. She honed her skills. She turned her passion into a business.
Over the years, I have come to the conclusion that any passion can be turned into a business. If you have an interest, there are others out there looking to buy the products and services you produce. That's the market you want to address.
If you are already in business, you can change directions to better serve to your passion. With clear focus, you can morph your present business into a completely different one.
I know a man who started out as a landscaper--cutting lawns, trimming shrubbery, doing yard cleanups and distributing mulch for clients. At his home, he had an intense interest in his small fish ponds. Over several years, he began changing his business. Now he specializes in designing, stocking clients' ponds with fish and plants, as well as designing and planting the surrounding area. It's a niche market, but it's profitable for him and he's doing what he loves.
Starting up a new business or changing the direction of an existing business takes some serious planning. You must think through your interests and match the market. Do the projections and do the numbers. In your business, you deserve to be doing what you love.
Questions? Email me direct at AlWarr16@gmail.com and put BLOG in the subject line.
I'm retired and I'm not selling anything. Your privacy is always respected.
from someone who has been there, done that.
This is all about how to decide what business to go into. This can be helpful before you start up a business, and it can be helpful if you want to change the direction of your existing business.
Many people consider starting a business. The opportunity to start a business of your own is one of the great things about America.
Look to yourself before starting a business or before changing the direction of your business. Everyone has an intense interest in something. It might be a hobby or it might be sports or it might be creating works of art or it might be inventing a new gizmo.
An honest look in the mirror can provide the answer to making a business, getting it off the ground, and doing what you love to do.
My experience in this is both personal and with others. As head of the Business Owners Institute in New Jersey, I advised many--personally and in group seminars.
A lady came to me once wanting to know how to buy a Dunkin' Donuts. She had a large payout from her corporate position which had ended, and she told me firmly that she was ready to go into business.
Well, not really. I asked her what she knew about donuts. I asked her who would be getting up at 4 a.m. to make the donuts. She gave me a blank look.
At this point I held up a mirror which I kept handy--for just this purpose. As she looked in the mirror, I asked her what she was interested in. During all those years of corporate meetings, what were the activities she had dreamed of? What turned her on? How did she spend her spare time--to relax, to deal with the stress of the corporate world.
After a couple of additional conversations, she decided against the donut career. She turned her hobby of throwing pottery and finishing the items off with special glazes into a business. It took her several years, but the 16-hour days flew by. She studied the market for glazed pottery. She honed her skills. She turned her passion into a business.
Over the years, I have come to the conclusion that any passion can be turned into a business. If you have an interest, there are others out there looking to buy the products and services you produce. That's the market you want to address.
If you are already in business, you can change directions to better serve to your passion. With clear focus, you can morph your present business into a completely different one.
I know a man who started out as a landscaper--cutting lawns, trimming shrubbery, doing yard cleanups and distributing mulch for clients. At his home, he had an intense interest in his small fish ponds. Over several years, he began changing his business. Now he specializes in designing, stocking clients' ponds with fish and plants, as well as designing and planting the surrounding area. It's a niche market, but it's profitable for him and he's doing what he loves.
Starting up a new business or changing the direction of an existing business takes some serious planning. You must think through your interests and match the market. Do the projections and do the numbers. In your business, you deserve to be doing what you love.
Questions? Email me direct at AlWarr16@gmail.com and put BLOG in the subject line.
I'm retired and I'm not selling anything. Your privacy is always respected.
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