Wednesday, March 4, 2015

Start up at any age

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     People start up small businesses at any age. Age is not part of the equation.

     Doing business comes naturally to the young, just as it does to older people. While they have less experience, young entrepreneurs compensate with loads of enthusiasm and imagination. 

     Example: When I lived in the big city, I walked to the corner every morning to catch the bus. As I approached the bus stop one day, I saw four or five people gathered around a small table. They were picking up and examining things displayed there. Coming closer, I recognized my neighbor's young daughter among the adults--one of whom was the child's mother. It turned out that this 6-year-old had gathered some smooth stones, painted them in blazing colors, and was offering them for sale at a dime each. People smiled, plopped down their dimes, pocketed the stones, and boarded the bus. I decided to catch the next bus, lingering to talk with the youngest entrepreneur I ever met. Why set up your table here, I asked the girl. Because that's where the people are, she answered without hesitation. What will you do with all the dimes, I asked. Save them in my piggy bank, she told me--looking up at her mom. It's almost full, the mother added. As my bus came to a stop, I put a quarter on the table and took a yellow stone. I still have it. 

     Children catch on quickly to the ways of the world. I've often wondered what became of the young stone painter. I'll bet she is successful, no matter the future she chose. 

     You're never too old to start up a business, either. Turning dreams into realities is a state of mind, not age. With a positive attitude, you move forward day by day.

     Example: One of my careers was to head up the Business Owners Institute in New Jersey. Everyone employed there had to have experience operating a small business. That way, we offered hands-on experience in dealing with the problems of starting up and running small businesses. People came to us for help with financing and loans, selling and marketing, expanding and growing their businesses, and any other problem they might have. One day, a lady came wanting advice on starting up a business she had in mind. Right off, she told me that she was 79 years old, and she was concerned that she might be too old to tackle the start-up she had in mind. She moved and talked like a 40-year-old, and I assured her that no one is ever too old to begin. She wanted to establish a bagel shop, and over the next couple of months, we worked together. She arranged to lease space, buy used bagel-making equipment, stock her new shop, put the word out, and get the doors open. Her bagel shop was very successful. About five years later, she sold the place and pocketed a nice retirement income to supplement what she already had.

     I have told these two stories many times. They illustrate the fact that age is not important in starting up and operating a small business. You are never too young or too old to start out on a new path. 

     My lifetime of personal experience starting and growing businesses tells me that you can build just about any business you set your mind to--and at any age. Yes, other things impact decisions--family, health, money, knowledge, the marketplace and more. But the thing that will see you through is attitude..

Tuesday, March 3, 2015

Choosing business partners

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     To grow a small business to the next level can take different paths. One path is to take on a partner.

     Nobody is good at everything. And nobody can do everything. Taking on a partner in business is a way to help round out your strengths. It helps tremendously if partners are compatible with each other and appreciate each other's company.

     Example: Clayton ran a small carpentry business. He had many years experience building the cabinetry in residences, offices and clinics. Business was good, but Clayton wanted to expand and do more. He along with his employees and shop could handle more jobs, but he knew he lacked the "outside" skills--meeting new people, attending events, selling his services. He found a potential partner in Bill. They enjoyed their conversations and respected each other's mind set. Bill had a successful career behind him selling window treatments to residential clients, decorators, and office managers. Clayton and Bill formed a partnership based on all the new business Bill could bring to the cabinet shop over the course of a year. If targets were met, Clayton and Bill would become partners in the ongoing business. 

     Look for partners who bring talents that complement your own. If you're good at production but not so good at selling, do as Clayton did. A careful phasing-in period can be important to iron out the details. 

     Setting up a partnership in an existing business is one thing. Setting up a partnership as a brand new operation is another. 

     Example: Gary had run several successful businesses. Looking around, he saw a new opportunity in real estate--small apartment buildings. Money was not his problem, but Gary realized he would need a detail oriented partner. He began a search--asking business friends, interviewing several possible candidates, and, finally, homing in on a young man named Jose. Jose was bright, energetic, ambitious, a "self-starter" and had held several different jobs in the construction trades while in high school. Best of all, Gary and Jose had compatible personalities. Gary proposed an equal partnership, starting out with one small apartment house. Gary would handle the business end (banks, lawyers, taxes, etc.) while Jose would handle maintenance, tenant complaints, and search out additional properties they could acquire. The partnership was successful. Gary and Jose worked closely together, relying on each other's experience and talents. 

     Care must be exercised in setting up partnerships. Two partners who do the same things get in each other's way. But two partners who complement each other have a better than even chance of success. 

     Two people who work well together and who complement each other's weaknesses can form a successful business partnership. A partnership is sort of like a marriage--you'll have some rough sailing at times, but the journey is worth it. 

Monday, March 2, 2015

Check your operation

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     Your business can benefit from doing a little test. If you have employees, have a friend call your business and report back to you on how callers are treated. Or have the friend make an appointment or come into your shop to browse. 

     Businesses big and small use mystery shoppers to check up on operations. How was the phone answered? Was the employee knowledgeable? Was it a good experience? Are employees dropping the ball?

     By doing this little check-up, you can make improvements in your relationships with employees, with customers and with the general public. The feedback can be eye-opening. 

     I am not suggesting that your hire a professional mystery shopper--it can be costly. Useful results can be obtained by using a trusted friend. 

     Example: Peg runs a hair salon. She checked up on her receptionist by having three friends call and report back to her. Peg wanted to know how quickly her receptionist answered the phone, how well she answered callers' concerns and questions, and how well she did when suggesting products and services to new callers. Two of Peg's three friends reported back that everything went well, questions were answered cheerfully, many questions were fielded and the receptionist was very knowledgeable about services. The third friend reported that the receptionist said she was very busy and couldn't go into detail about products available. Using this input, Peg made one change. All questions about products were to be referred to her personally, since the receptionist simply didn't know product details--and could not be expected to be familiar with various products. Things began to run more smoothly.

     Example: Joe runs a small restaurant, open for breakfast, lunch and dinner. Joe is always on site for dinner, but not earlier in the day. He made arrangements for several friends to report back to him after having breakfast and lunch. Everyone gave lunch a good report, but just about everyone who had breakfast were not happy. The omelet was runny, the sausages were cold, and the bacon was burned. Joe replaced the morning cook.

     Example: Gene is a busy chiropractor. He has a receptionist who handles appointments and other duties. It's just the two of them. He asked friends to call and report back to him. They were instructed to ask about shoulder/leg/back pains and how these might be addressed by chiropractic, together with questions about charges, evening appointments, and more. All reported back positive results. Gene took his receptionist out to dinner, something he had neglected doing in the past. 

     Sometimes, a little mystery shopping can ferret out a problem or an under performing employee. Other times, it can confirm that you have a smoothly running operation. 

     Checking up on your business can help you run a better operation, improve the customer/client relationship, and guard your reputation in the community you serve. A little mystery shopping can be easy and inexpensive. 

     Mystery shopping helps you get an honest opinion from a disinterested party. It can point to improvements to your operation that you might not otherwise see.  

Friday, February 27, 2015

Grow your business

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     Your small business should be doing more than just making a living for you and your family. If not, get busy.

     Many small businesses are marginal operations. If that's you, do some soul-searching and rethink your business. No one else can do it for you.

     Look at it as if you're traveling down a road. Behind you is "making a living." Ahead, the road forks, and you can choose from the two directions. Either continue as you are or kick the business up a notch. 

     Example: Marisa is a massage therapist. She has successfully attracted clients and the business is rocking along. But it's not enough to send the kids to college. She reaches out to a chiropractor who is essentially in the same situation in his business. After several meetings and conversations, they form a partnership. By working together, they attract more clients to each of them. By combining practices and resources, they can be a bigger operation. Both benefit and both grow. They now have discussed plans to add more specialists and become a full-fledged wellness center. In the future, they might add nutritionists, hypnotherapists, holistic practitioners and others to round out the services offered at the developing wellness center. 

     To make more than a living, look to expand your small business into additional avenues. One way to do this is to partner with another small business. 

     Example: Della opened a consignment shop. She filled it with clothing, toys, furniture, kitchenware, baskets and books. She thought that having many things would attract many customers. Business was just rocking along when she noticed a vibrant market for vintage and antique clothing and jewelry. Della decided to change directions. She eliminated everything except the vintage and antique clothing and jewelry. She put the word out on social media to attract teens, theater groups, high school play producers, party goers, and fiber artists looking for materials. The word spread quickly via her website and Facebook. She has transformed a marginal business into one that addresses a growing market, both walk-ins and over the Internet. 

     Just "making a living" should not be your goal. Solve your particular problem by planning for a better future. You are always at a fork in the road. Choose a better direction and go for it. 

     These write-ups come from my personal experiences. I didn't read them in books or by sitting through boring lectures. I've been there, done that, both in businesses of my own and in coaching thousands of others in small business. Now, in retirement, I'm passing on what I've learned.  

Thursday, February 26, 2015

Answer your phone!

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     Serious business owners have a business phone. And every telephone call is answered--promptly and by a live person.

     The voice answering your phone IS your business. The face of your business leaps into the caller's mind immediately. 

     A voice mail prompt is put in place for your convenience, not the caller's. Voice mail is annoying to callers. These days, many callers simply hang up when they get shunted off to voice mail. 

     Of course, in single proprietor small businesses, restroom breaks are necessary. But you take your cell phone with you, right? If you do have voice mail to catch all calls, check your voice mail frequently. Don't leave them hanging out there in never-never land.

     Example: Wendy was always busy in her dress shop. She ran the place alone. She carefully selected fashionable items to improve the wardrobes of upscale women. She was continually placing accessories on display--a silk scarf here, a silver brooch there. She changed her shop's front window two or three times each week. When the phone rang, she let it go to her voice mail account. Wendy woke up when one caller left a simple message: "I wanted to know if you carried designer clothes. I'll try someplace else."

     You can lose a sale and a customer when you don't answer their phone call. And it is unlikely that the caller will return to you. These days, people are on the move. 

     Example: I write lots of content for local papers and social media sites in my area. I call local businesses every day asking for comments, information, announcements, and the like. The idea is to give them a free write-up, helping them promote their operation. It doesn't cost them anything, other than a 5 or 10 minute conversation, and they reach thousands of prospects. When my call is answered by voice mail, I hang up and go to the next business on my list. Recently, I got a business owner on the line who informed me to "just check my website." I like to put a friendly face on a business with words from you, I told her. "Just check my website," she repeated. "Everything is there." I doubt I'll ever call her again. She missed the free publicity.

     Everybody gets calls from people trying to sell something. They can be annoying and a waste of time. But turning down free publicity is counterproductive. 

     Example: Andrew operated an architectural design firm. When he was out of his office, he always had his calls transferred to his cell phone. One morning his cell phone buzzed as he walked next door to the coffee shop. The caller was from a high-end architectural firm wanting to know if Andrew would consider being part of a large project team working on a big assignment for a major corporation. Today, Andrew has two assistants and new offices, along with a personal assistant who answers every phone call.

     Your future depends on customers and clients being able to reach you--at their convenience, not yours. They deserve your attention whenever they call. 

     Some business owners put rules in place on handling incoming calls. Answer every call no later than the second ring, and do it with enthusiasm. Be professional and helpful. It works.  

Wednesday, February 25, 2015

Finding new employees

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     Adding a new employee is an important step in business. You need an additional person to handle specific tasks you have in mind. Just as important, you need someone who can contribute to the future growth of the business.

     This means that you must look beyond the person's experience. These days, it can be difficult to find people who can read and write, much less get to work every day on time and do the job at hand. 

     Beyond these minimums, you want to look for a particular type of person. You want one who is inquisitive and learns easily, one who is comfortable in his or her own skin, one who knows how to think through things, one who tackles new projects with enthusiasm, one who accepts your direction and runs with it, and one who respects others and gets along well with them. 

     These attributes do not appear on resumes--unless you read between the lines. But these are the important qualities that will help you grow your business. 

     Example: Personally, I've used a simple and inexpensive method to good success. Good employees tend to know other good people who are elsewhere employed. I've called my people together, one at a time, in private conversations, asking them to help us find that new employee we need in our company. I described the qualities and experience a new employee might have. And always, I put them at ease by reassuring them that we are growing and need additional help, not replacing anyone. It worked. They put the word out and some prospects showed up to be interviewed.

     This method doesn't always work. You might enhance or improve results by offering a bonus to the employee who refers someone who is eventually hired. 

     The method has an added advantage. Your private talks with employees conveys the fact that you value their input and they feel more a part of the on-going business. It builds employee morale.  

     Big companies use social media or place ads to find new prospects. The resumes come in and someone in the HR department sorts through them. Finally, a short stack of possibilities lands on the manager's desk. Good prospects are frequently lost in this shuffle.

     Finding that new employee takes effort. You are looking for someone who can hit the ground running. You want them to grow and you want them to help grow the company. It's a double-edged sword, and you are sitting on the point. 

Tuesday, February 24, 2015

Facebook world

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     Facebook has blossomed. The early days of friends keeping in touch has morphed into a formidable promotional tool for small business.

     Getting your business on Facebook is easy. They lead you through the set-up. It's simple and it's free. How does this compare with the other promotional tools in your toolbox?

     After you've established your presence, you're ready to post quick entries. Include a picture--you know, those pictures you are constantly snapping anyway. Eyeballs are drawn to pictures, and they don't have to be professionally done. Upload a photo with every post. 

     The viewer only spends seconds on your Facebook page. But that short time will keep your business in their minds. And they frequently will pass it on to their friends. This expands your referral network. 

     Examples: Massage therapists, chiropractors, and wellness centers post upcoming open houses, events, demonstrations that are meant to attract the public. A retail store posts upcoming sales, discounts, and newly received merchandise. A garden center posts an upcoming all-day, hands-on free session on building fences, patios, fire pits. A consignment shop reaches out to announce and show pictures of new items received. A law firm posts announcements of upcoming free seminars on elder care, social security concerns, reverse mortgages.

     Keep in mind that Facebook postings are quick reads for the viewer, and they are quickly disposed of. You might not get much activity from a single posting of an upcoming event--especially if you post it the day before the event. To attract more attention, post it two weeks ahead of the event, again one week ahead, and finally the day before--all with different pictures.      
     Get creative with the pictures you post. Use one of the pictures you snapped of the inside of your retail space. Show close-ups of dresses, coats, boots, jewelry. Go outside and snap a photo of the front of your store. Zoom in on hands doing a massage. Take a selfie to remind your customers and clients who you are. Pets attract attention--take a picture of your cat curled up around a bottle of beer. 

     You deserve all the help you can get in building your business, especially when it's easy and free. Go to Facebook.com and let them lead you through the set-up. 

     Facebook and other social media work in any small business. Some will work better than others. But you don't know how it will work for you until you jump into the pond.