Free daily tips, information, advice and ideas
to help you better operate your small business
People in business are experts. And out in the marketplace, people are hungry for your expertise. This provides you with opportunities to teach others what you know.
Expansion opportunities can be overlooked in your small business. By teaching others, you are extending the reach of your business. Or you can make a business out of teaching.
Example: Jenna is a professionally-trained chef who runs a small upscale cafe. While she did everything in the kitchen, her first love was designing and making spectacular cakes. These were colorful and edible sculptures. Her artistic cakes attracted much attention, and they were soon to be found in other restaurants, at wedding receptions, and local gala events. People wanted to know how she made the New York skyline out of cake, and other chefs wanted training in her techniques. This caused her to face alternatives--should she continue as is, or should she close the cafe and just make cakes, or should she keep the cafe and add teaching sessions? She set up teaching sessions, from simple to complex, and she is headed down the road to transitioning entirely to teaching cake sculpture.
Example: Jon owns and operates a garden center. He has expanded his business considerably by offering "learning sessions" to customers. Some are free, others bring in revenue--but all of these sessions bring in referrals. Some classes teach homeowners how to take care of houseplants, or how to select and grow plants in the yard, or how to control pests in the garden. Other sessions show how to select and lay pavers, or how to build and take care of small fish ponds, or how to build fences, trellises and gates. These sessions bring new customers and encourage existing customers to return. The teaching sessions help spread the word in the community.
Example: Bill has many years experience running his stained glass studio. He creates spectacular windows for churches, corporations, offices and homes. He also repairs and restores antique stained glass using traditional techniques. He began offering instruction sessions for beginners and advanced students in group and individual sessions. These bring in a continuing stream of revenue, and the students spread the word about Bill.
Offering to teach others what you know can be a good way to add to your bottom line. And there are other reasons as well--like the personal satisfaction you get from passing on what you know to others. It's why I write this blog.
People are naturally curious. They want to know how you do what you do. Teaching them how to make a cake sculpture is one thing, but just holding an informal open house at your place is another. Both spread the word about you and your business.
Monday, February 9, 2015
Friday, February 6, 2015
Quality = Referrals
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to help you better manage your small business.
Whether you offer products or services, you are known by the quality of your work. And the word gets passed around--resulting in referrals.
Take a look at the comments posted on social media. A glowing review of your business spreads the good word about you. The reason that Angie's List works has a lot to do with the quality of the work described there.
If you do quality work, or if you sell quality goods, your clients and customers will do your advertising for you. They tell others--both online and off.
Example: Gwen runs a pizza shop. She is a stickler for quality. She imports ingredients from Italy--tomatoes, cheeses, garlic and flours. She makes her pizza dough herself in small batches every day. Her pizzas cost more, but they are prized by a loyal customer base. These customers return frequently, and they bring others with them. Gwen draws customers from a 20-mile radius, many of them passing several pizza shops on their way to her place.
Example: Jeannine makes pottery and she signs every piece produced. Her pottery business specializes in limited productions. She and her two employees inspect every piece. No flaw escapes their attention, and these pieces are destroyed. Jeannine sets a high bar for quality, and her reputation is spreading. She is not looking for awards, although she has received some. Instead, she sells and consigns to high end gift shops and through her website.
Example: Joseph is a carpenter who does each job as if he is working on his own home. He is also a stickler for quality. Whether he's framing out a door or constructing a wall of shelving, his attention to detail is readily apparent. He never advertises, but his customers praise him and pass the word among their friends. The only thing he does is he passes out multiple business cards to customers, asking them to pass them on.
See to the quality of your work, and your business can take care of itself. If your clients and customers are happy, they'll spread the word around your community and beyond.
The referral process is a natural undertaking--people talking with others. You can do some things to speed up the referrals. See other blogs in this series with "Referrals" in the title.
to help you better manage your small business.
Whether you offer products or services, you are known by the quality of your work. And the word gets passed around--resulting in referrals.
Take a look at the comments posted on social media. A glowing review of your business spreads the good word about you. The reason that Angie's List works has a lot to do with the quality of the work described there.
If you do quality work, or if you sell quality goods, your clients and customers will do your advertising for you. They tell others--both online and off.
Example: Gwen runs a pizza shop. She is a stickler for quality. She imports ingredients from Italy--tomatoes, cheeses, garlic and flours. She makes her pizza dough herself in small batches every day. Her pizzas cost more, but they are prized by a loyal customer base. These customers return frequently, and they bring others with them. Gwen draws customers from a 20-mile radius, many of them passing several pizza shops on their way to her place.
Example: Jeannine makes pottery and she signs every piece produced. Her pottery business specializes in limited productions. She and her two employees inspect every piece. No flaw escapes their attention, and these pieces are destroyed. Jeannine sets a high bar for quality, and her reputation is spreading. She is not looking for awards, although she has received some. Instead, she sells and consigns to high end gift shops and through her website.
Example: Joseph is a carpenter who does each job as if he is working on his own home. He is also a stickler for quality. Whether he's framing out a door or constructing a wall of shelving, his attention to detail is readily apparent. He never advertises, but his customers praise him and pass the word among their friends. The only thing he does is he passes out multiple business cards to customers, asking them to pass them on.
See to the quality of your work, and your business can take care of itself. If your clients and customers are happy, they'll spread the word around your community and beyond.
The referral process is a natural undertaking--people talking with others. You can do some things to speed up the referrals. See other blogs in this series with "Referrals" in the title.
Thursday, February 5, 2015
Referrals methods
Free daily tips, information, advice and ideas
to help you better manage your small business.
Referrals bring you the best new clients and customers. John refers Marie and she walks in your door or she calls for more information. Marie is ready to hear your proposal or give your products a favorable browse.
So, how do you keep the word going around the community you are targeting? Referring other people to a business you've dealt with is a natural thing.
You want to tell others where you bought those new shoes. When your neighbor compliments you on your well-kept yard, you launch into a conversation that refers your landscaper. And when your friend hurts her back, you know the chiropractor who can help.
There are many ways to enhance this natural referral process. Here are three possibilities for you and your business.
Example: Sue runs a women's clothing and accessories shop. Every day Sue snaps pictures of items in her place. She selects one and posts it on her Facebook page and other social media. This continuing stream of pictures captures the attention of Sue's regular customers, and they frequently pass the pictures on to their friends and acquaintances. This process has greatly expanded the reach of Sue's shop. She now regularly attracts new customers from an area much larger than before. Her referral network is growing--and it costs her little in terms of money and time.
Example: An ice cream store uses an older, but no less effective, method of extending its referral network. Here, picture post cards are used. One side of the card shows a colorful picture of a scrumptious ice cream concoction. On the other side is the name and address of the recipient, a stamp, and a simple message: "Bring this card in and get a dollar off anything you want. Or pass it along to a friend." The owner mails these cards to a customer list. Many cards are returned to the store, by both existing customers and new ones. The advantage of a post card over Facebook is clear. Facebook gets a two-second viewing and might be passed on to a friend. The post card is kept--taped to the refrigerator or tacked to the bulletin board or passed on. That one dollar off makes the card feel like money. Type the "$1.00 off" in big, bold type.
Example: A method I have used is more direct. Get in touch with your existing clients/customers and ask them for referrals. This can be done personally when you see them, or it can be through emails or phone calls. Simply ask them for three referrals and follow through by contacting each one they give you. This new person doesn't know you, but both of you know the person who gave you the referral. You already have your opening line: "Mary mentioned that you might be interested in what I do." Be very brief. Follow up by sending them an email, or, at the very least, point them to your website or your Facebook page.
Social media has opened up many possibilities that didn't exist before. It is changing everything. Even that post card can now be turned into a coupon that attracts attention all over the net.
Every small business is different. What works at one might not work at another. And what works today might not work tomorrow. Think through your own situation and get busy. Go after those referrals.
to help you better manage your small business.
Referrals bring you the best new clients and customers. John refers Marie and she walks in your door or she calls for more information. Marie is ready to hear your proposal or give your products a favorable browse.
So, how do you keep the word going around the community you are targeting? Referring other people to a business you've dealt with is a natural thing.
You want to tell others where you bought those new shoes. When your neighbor compliments you on your well-kept yard, you launch into a conversation that refers your landscaper. And when your friend hurts her back, you know the chiropractor who can help.
There are many ways to enhance this natural referral process. Here are three possibilities for you and your business.
Example: Sue runs a women's clothing and accessories shop. Every day Sue snaps pictures of items in her place. She selects one and posts it on her Facebook page and other social media. This continuing stream of pictures captures the attention of Sue's regular customers, and they frequently pass the pictures on to their friends and acquaintances. This process has greatly expanded the reach of Sue's shop. She now regularly attracts new customers from an area much larger than before. Her referral network is growing--and it costs her little in terms of money and time.
Example: An ice cream store uses an older, but no less effective, method of extending its referral network. Here, picture post cards are used. One side of the card shows a colorful picture of a scrumptious ice cream concoction. On the other side is the name and address of the recipient, a stamp, and a simple message: "Bring this card in and get a dollar off anything you want. Or pass it along to a friend." The owner mails these cards to a customer list. Many cards are returned to the store, by both existing customers and new ones. The advantage of a post card over Facebook is clear. Facebook gets a two-second viewing and might be passed on to a friend. The post card is kept--taped to the refrigerator or tacked to the bulletin board or passed on. That one dollar off makes the card feel like money. Type the "$1.00 off" in big, bold type.
Example: A method I have used is more direct. Get in touch with your existing clients/customers and ask them for referrals. This can be done personally when you see them, or it can be through emails or phone calls. Simply ask them for three referrals and follow through by contacting each one they give you. This new person doesn't know you, but both of you know the person who gave you the referral. You already have your opening line: "Mary mentioned that you might be interested in what I do." Be very brief. Follow up by sending them an email, or, at the very least, point them to your website or your Facebook page.
Social media has opened up many possibilities that didn't exist before. It is changing everything. Even that post card can now be turned into a coupon that attracts attention all over the net.
Every small business is different. What works at one might not work at another. And what works today might not work tomorrow. Think through your own situation and get busy. Go after those referrals.
Wednesday, February 4, 2015
Corporate vs. small business
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to help you better manage your small business
Leaving corporate America and starting up your own small business is difficult. I know. I did it myself.
If you are considering doing this, be careful. You need some preparation. Corporate America and small business are totally different. They occupy different planets, they speak different languages, and they hold out different futures.
Example: For 10 years I headed up the Business Owners Institute of New Jersey. We helped many people establish their first business. And we helped many more dealing with the everyday problems of growing, finding financing, getting referrals, and other operating problems they brought to the table.
A lady once walked in the door looking for advice on buying a franchise. She had taken a buyout from a major corporation, so money was not the problem. She ran a single idea past me--she wanted advice on buying a donuts franchise. I posed two groups of questions.
1. Who will make the donuts at 4 a.m. when your employees call in sick--or simply don't show up. Do you know how to run the coffee machines?
2. What are your personal interests and passions? What have you spent your time doing when you were away from your corporate position in the past?
When she thought through the implications of this, she decided against buying the donuts franchise. She went on to establish her own marketing consulting firm, helping other small and medium size businesses do what they were ill-equipped to do themselves. Much later, we had a good laugh talking about how donuts are made.
Corporate America does not prepare you for establishing and operating a small business. In corporate America you have many corporate resources to call on. You depend on the company sales force, production people, human resources, and all the rest. In small business, look in the mirror.
You might enjoy what you do in corporate America, but you have all the company's capabilities at your disposal. In small business, it's you.
Before jumping out of your corporate position, investigate the small business world. It's quite different. Look ahead before taking the step. You will be your own boss in small business. But you will be doing everything else as well.
to help you better manage your small business
Leaving corporate America and starting up your own small business is difficult. I know. I did it myself.
If you are considering doing this, be careful. You need some preparation. Corporate America and small business are totally different. They occupy different planets, they speak different languages, and they hold out different futures.
Example: For 10 years I headed up the Business Owners Institute of New Jersey. We helped many people establish their first business. And we helped many more dealing with the everyday problems of growing, finding financing, getting referrals, and other operating problems they brought to the table.
A lady once walked in the door looking for advice on buying a franchise. She had taken a buyout from a major corporation, so money was not the problem. She ran a single idea past me--she wanted advice on buying a donuts franchise. I posed two groups of questions.
1. Who will make the donuts at 4 a.m. when your employees call in sick--or simply don't show up. Do you know how to run the coffee machines?
2. What are your personal interests and passions? What have you spent your time doing when you were away from your corporate position in the past?
When she thought through the implications of this, she decided against buying the donuts franchise. She went on to establish her own marketing consulting firm, helping other small and medium size businesses do what they were ill-equipped to do themselves. Much later, we had a good laugh talking about how donuts are made.
Corporate America does not prepare you for establishing and operating a small business. In corporate America you have many corporate resources to call on. You depend on the company sales force, production people, human resources, and all the rest. In small business, look in the mirror.
You might enjoy what you do in corporate America, but you have all the company's capabilities at your disposal. In small business, it's you.
Before jumping out of your corporate position, investigate the small business world. It's quite different. Look ahead before taking the step. You will be your own boss in small business. But you will be doing everything else as well.
Tuesday, February 3, 2015
Drifting along
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to help you better manage your small business.
Businesses drift. Your business drifts with the changing market. It drifts with the economy. It drifts with social media. You're pulled this way and that.
You want to change with the changing economy. And you want to change with the changing social media. But change is not drift. Change is what you do consciously. Drift simply carries you along a path you might not want.
Your business is drifting when you chase the easy sale and ignore the rest of the business. Your business is drifting when you begin catering to the latest fad in the marketplace.
Example: Mary loved making women's hats. She loved designing them. She loved selecting different materials to use in the hats. She also loved to decorate the hats with pins she had made using buttons, beads and seeds. These additional items made the hats "pop" and led to sales. As time passed, however, Mary noticed that customers asked to buy the special pins, and the left the hat behind. She was happy to be selling things, and she concentrated on turning out pins. Then she got an order for 500 pins. She was suddenly in the pin business and the hats languished on the displays. What had been the accessory became the main product. She had let her business drift--without really paying attention to the longer term implications.
It's always gratifying to get a whole bunch of new orders. In small businesses, it can also mean that the other items and lines you offer will suffer. Your business is about to drift into new areas--areas that might not be consistent with where you want the business to go.
Example: John had worked on computers since his high school days. While still in college, he opened a computer repair shop. In those days, people would lug their computers to his place and he would get everything repaired and in shipshape. After college, John decided to expand his repair shop. Customers began asking John to come to their offices to install new machines, network them, and train their employees. He decided to go with the drift, and it was a good decision. Now and then, a person still brings in a computer for repair or upgrade, but mostly, John spends his time at his clients' locations--installing, troubleshooting, networking and training others.
A drift in your business can tell you that the marketplace is changing. It's an indicator. But it's up to you to decide whether or not to go with the drift. Do it with your eyes open. Don't drift into lines of business that are inconsistent with your long term goals and business plan.
Taking care of business means taking care of drifts. They happen all the time. Pick and choose those that you want to follow, and discard the rest.
to help you better manage your small business.
Businesses drift. Your business drifts with the changing market. It drifts with the economy. It drifts with social media. You're pulled this way and that.
You want to change with the changing economy. And you want to change with the changing social media. But change is not drift. Change is what you do consciously. Drift simply carries you along a path you might not want.
Your business is drifting when you chase the easy sale and ignore the rest of the business. Your business is drifting when you begin catering to the latest fad in the marketplace.
Example: Mary loved making women's hats. She loved designing them. She loved selecting different materials to use in the hats. She also loved to decorate the hats with pins she had made using buttons, beads and seeds. These additional items made the hats "pop" and led to sales. As time passed, however, Mary noticed that customers asked to buy the special pins, and the left the hat behind. She was happy to be selling things, and she concentrated on turning out pins. Then she got an order for 500 pins. She was suddenly in the pin business and the hats languished on the displays. What had been the accessory became the main product. She had let her business drift--without really paying attention to the longer term implications.
It's always gratifying to get a whole bunch of new orders. In small businesses, it can also mean that the other items and lines you offer will suffer. Your business is about to drift into new areas--areas that might not be consistent with where you want the business to go.
Example: John had worked on computers since his high school days. While still in college, he opened a computer repair shop. In those days, people would lug their computers to his place and he would get everything repaired and in shipshape. After college, John decided to expand his repair shop. Customers began asking John to come to their offices to install new machines, network them, and train their employees. He decided to go with the drift, and it was a good decision. Now and then, a person still brings in a computer for repair or upgrade, but mostly, John spends his time at his clients' locations--installing, troubleshooting, networking and training others.
A drift in your business can tell you that the marketplace is changing. It's an indicator. But it's up to you to decide whether or not to go with the drift. Do it with your eyes open. Don't drift into lines of business that are inconsistent with your long term goals and business plan.
Taking care of business means taking care of drifts. They happen all the time. Pick and choose those that you want to follow, and discard the rest.
Monday, February 2, 2015
If / then decisions
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to help you better manage your small business.
Decisions are a daily concern in your small business. They become second nature. But do you step aside now and then to make the "if / then" decisions?
Planning ahead sorts through the possibilities of "if / then" and brings up some alternative courses of action.
If the economy goes south, then I'll concentrate on certain products/services not emphasizing the rest. If this type of advertising does not work, then I'll shift to alternatives. If a big box store comes to town, then I'll begin offering the things they don't carry.
Example: Joel had time to plan ahead. WalMart announced some 18 months ahead that the company would be opening one of their big stores nearby. Joel feared for the future of his small hardware store, and he soon arrived at a "planning ahead" decision. He would move from the cramped, in-town location to a suburban location on a main road. Simultaneously, he would change the direction of his business. Contractors and homeowners already came to Joel's place to rent the power tools and equipment they needed for a day or two. In his sprawling new location, Joel would have more room and could add more rentals. Today, Joel is in his new place, offering more and more rentals--including trucks and trailers. He has been able to add a repairman to keep the equipment shipshape. He still offers high quality hardware items and power tools for sale--concentrating on items not carried by WalMart.
Sometimes, owners of small businesses get comfortable with the business running itself. But the marketplace is continually changing. You already know how to plan ahead, but it can take an outside force to kick start the big decisions.
Example: Artists can have a difficult time connecting with the buying public. Juan loved to draw. Growing up, he honed his skills, including painting in oils. He attracted interest, but he noticed that people at shows and festivals bought pen and ink drawings of homes, buildings, bridges and the like. He thought about it, and he decided to concentrate on building a following with people interested in pen and ink. Doing these are easy and quick for Juan, and the word spread quickly. People now call him to come and do a drawing of their home, barn, and other local structures. This is now supporting Juan, and he uses his spare time to produce more oil paintings. His reputation is spreading as an artist to watch.
Sometimes, an interim path can be the road to the goal you want to eventually reach. Don't disparage baby steps to get you there. Put the if / then decisions to work in your business.
When your business shows signs of slowing, it's time to hunker down, plan ahead and figure out a better path forward. No better time than the present to tackle the if / then decisions.
to help you better manage your small business.
Decisions are a daily concern in your small business. They become second nature. But do you step aside now and then to make the "if / then" decisions?
Planning ahead sorts through the possibilities of "if / then" and brings up some alternative courses of action.
If the economy goes south, then I'll concentrate on certain products/services not emphasizing the rest. If this type of advertising does not work, then I'll shift to alternatives. If a big box store comes to town, then I'll begin offering the things they don't carry.
Example: Joel had time to plan ahead. WalMart announced some 18 months ahead that the company would be opening one of their big stores nearby. Joel feared for the future of his small hardware store, and he soon arrived at a "planning ahead" decision. He would move from the cramped, in-town location to a suburban location on a main road. Simultaneously, he would change the direction of his business. Contractors and homeowners already came to Joel's place to rent the power tools and equipment they needed for a day or two. In his sprawling new location, Joel would have more room and could add more rentals. Today, Joel is in his new place, offering more and more rentals--including trucks and trailers. He has been able to add a repairman to keep the equipment shipshape. He still offers high quality hardware items and power tools for sale--concentrating on items not carried by WalMart.
Sometimes, owners of small businesses get comfortable with the business running itself. But the marketplace is continually changing. You already know how to plan ahead, but it can take an outside force to kick start the big decisions.
Example: Artists can have a difficult time connecting with the buying public. Juan loved to draw. Growing up, he honed his skills, including painting in oils. He attracted interest, but he noticed that people at shows and festivals bought pen and ink drawings of homes, buildings, bridges and the like. He thought about it, and he decided to concentrate on building a following with people interested in pen and ink. Doing these are easy and quick for Juan, and the word spread quickly. People now call him to come and do a drawing of their home, barn, and other local structures. This is now supporting Juan, and he uses his spare time to produce more oil paintings. His reputation is spreading as an artist to watch.
Sometimes, an interim path can be the road to the goal you want to eventually reach. Don't disparage baby steps to get you there. Put the if / then decisions to work in your business.
When your business shows signs of slowing, it's time to hunker down, plan ahead and figure out a better path forward. No better time than the present to tackle the if / then decisions.
Friday, January 30, 2015
Take time off
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to help you better manage your small business.
Taking a vacation was always difficult for me. Over the years in several businesses, I set them up so that they could run without me. But something else was afoot.
I grew up on a dairy farm. It was 24/7/365. No holidays, no vacation. All those cows had to be milked twice every day.
This early life instilled in me a formidable work ethic. Today, at 78, if I'm not doing something, I feel I'm wasting time. It's the same with most people who operate businesses.
In running my own businesses, I never hesitated taking an afternoon off or disappearing for a long weekend. I didn't call in, but I worried. My employees could always reach me by phone if they ran into a problem they could not handle. They rarely called.
Example: Mike started a small business running a computer repair shop. Gradually, he expanded and offered additional services. He would go to the offices of his clients, install new computers and software, network the setup and train employees. Soon, Mike had three employees and a service van on the road. Then he broke his leg. He was laid up for the better part of a month, running his business from his bed. Constantly on the phone, he directed his employees at every turn. Tired and exasperated, he shouted at an employee one day to handle the problem. It was an eye-opener for Mike. Not only did the employee handle the problem, but he did not call Mike again until the next day. Mike learned a valuable lesson--depend on your employees. They can handle most problems themselves if you will stay out of the way.
Many of you have employees, or you will as you grow. Train them how to handle problems and how to handle customers. Then step back and let them make their own decisions. To get the best out of employees, you must put them on their own. Help them grow.
This doesn't mean that employees run the business. That's your job.
Even if you manage a unit of a larger company, the same applies. Train your people, including someone to do your job. When you get that promotion, someone is ready to take over your position. Company management will be confident that your leaving won't disrupt operations.
Don't wait until you break your leg to take some time off. You need time away from your daily grind to clear your head, let your thoughts roam, and think through some fresh ideas. See how your business operates without your being there all the time.
Taking time off lets you see how well things are handled in your absence. This can give you clues to additional training your employees might need.
to help you better manage your small business.
Taking a vacation was always difficult for me. Over the years in several businesses, I set them up so that they could run without me. But something else was afoot.
I grew up on a dairy farm. It was 24/7/365. No holidays, no vacation. All those cows had to be milked twice every day.
This early life instilled in me a formidable work ethic. Today, at 78, if I'm not doing something, I feel I'm wasting time. It's the same with most people who operate businesses.
In running my own businesses, I never hesitated taking an afternoon off or disappearing for a long weekend. I didn't call in, but I worried. My employees could always reach me by phone if they ran into a problem they could not handle. They rarely called.
Example: Mike started a small business running a computer repair shop. Gradually, he expanded and offered additional services. He would go to the offices of his clients, install new computers and software, network the setup and train employees. Soon, Mike had three employees and a service van on the road. Then he broke his leg. He was laid up for the better part of a month, running his business from his bed. Constantly on the phone, he directed his employees at every turn. Tired and exasperated, he shouted at an employee one day to handle the problem. It was an eye-opener for Mike. Not only did the employee handle the problem, but he did not call Mike again until the next day. Mike learned a valuable lesson--depend on your employees. They can handle most problems themselves if you will stay out of the way.
Many of you have employees, or you will as you grow. Train them how to handle problems and how to handle customers. Then step back and let them make their own decisions. To get the best out of employees, you must put them on their own. Help them grow.
This doesn't mean that employees run the business. That's your job.
Even if you manage a unit of a larger company, the same applies. Train your people, including someone to do your job. When you get that promotion, someone is ready to take over your position. Company management will be confident that your leaving won't disrupt operations.
Don't wait until you break your leg to take some time off. You need time away from your daily grind to clear your head, let your thoughts roam, and think through some fresh ideas. See how your business operates without your being there all the time.
Taking time off lets you see how well things are handled in your absence. This can give you clues to additional training your employees might need.
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