Replace lost clients

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     Sooner or later, you will lose every customer or client you have. They move away. They grow older. They seek out a competitor. They no longer need your service or product. Their brother-in-law opens a similar business.

     Example: Takisha runs a yoga studio offering private and group sessions. When she lost one of her private session clients, she was prepared. The long time client announced that she was retiring from her corporate position and moving to another state. This will be my last session, she told Takisha one evening. Takisha took immediate action. She emailed the opening time slot to all her group session clients and posted it on Facebook. The slot was quickly filled.

     Think ahead. Plan how you will deal with replacing lost clients.

     Example: Carl is an interior decorator. He concentrates on corporate clients, small businesses, professional offices, along with some residential clients. One well-heeled matron

was difficult to deal with, complaining loudly to Carl in front of others about a job he was undertaking for her. It required lots of special orders and the schedules were out of Carl's control. The lady was accustomed to having her own way and disregarded all his explanations. She even complained about the timing of the project on social media. Carl took action--he refunded her deposit and referred her to one of his competitors. 

     Now and then, your relationship with a client cannot be salvaged. The best solution might be to resign the account, back away, and move on.

     Example:  Meg runs a gymnastic operation for children up to about age 12. She attracts new attendees by holding open houses and promoting on social media. But children grow up, and Meg loses them. She decided to expand into dramatic arts, especially for budding teens interested in a career in theater. She found a compatible business partner who was teaching dramatic arts but had no studio. Together, Meg and her new partner now offer programs for young people up to age 18 and beyond. The new operation attracts even more attention to the gymnastics side of the house and many of these young people get exposed to a career they might not have otherwise considered. In the face of losing kids as they turned 12, Meg found a way to expand the overall business. 

     The time to replace clients and customers is when you first get them. Sooner or later, you will lose them all. Think ahead. Have a plan in place. 

     All examples in these write-ups are drawn from actual business situations. Only the names are changed, but the ideas have worked for other business people. 

Growing together

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     Informal arrangements between two or more small business can help both. These are not formal partnerships--that's another subject. 

     But small businesses can share the costs of space and expenses. This arrangement works best with businesses that don't compete with each other but target the same or similar markets.

     Example: Dr. Smith is an ophthalmologist. He wanted to move into larger office space, and at the same time he decided to form an informal relationship with an audiologist. In new offices they maintain their practices entirely separate, but they share the expense of common areas and a single receptionist who serves the two. It's the new Eyes & Ears place in town. 

     A spillover of clients and referrals can occur when two non-competing medical practitioners come together at the same location. Think chiropractors and nutritionists, podiatrists and massage specialists, dermatologists and psychotherapist. Even tradespeople (plumbers, electricians and others) can explore having a common office that can eventually grow into a one-call service for homeowners.  

     Example: Artists and artisans can find it too expensive to afford a working studio that is open to the buying public. But a jewelry maker and a fiber artist can share space without getting in each other's way. By coordinating schedules, one of them is always on hand to answer phones and handle customers. Some take it the next level--with several artists sharing the same big studio. Potters, for example, can share kilns and space. They can welcome the public every day of the week or hold events from time to time. 

     Example: Massage therapists, nutritionists, hypnotherapists and holistic practitioners can benefit by coming together in a shared location. There are instances when these types of informal arrangements grew into full-fledged wellness centers or spa operations.

     You need to think through the benefits and drawbacks of any such arrangement before proceeding. Does is fit in your long term goals? Will it help you in the marketplace? Are you compatible with the other person and the business that will now be next to yours? 

     Growing together is about much more than saving money. Yes, you can save real dollars by sharing space and expenses. But if you cannot get along with the other person, don't do it. 

All you need is....

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     Excuses are everywhere. I didn't set up a business because I didn't have the money. I'll set up that little business of my own when I retire from my cushy corporate job. My business isn't growing because people don't appreciate what I do. There's not enough time for me to do everything.

     In small business you learn to plow through the excuses and get the job done. Playing the blame game and procrastinating won't get you where you want to go. 

     Example: Pam was a whiz at baking. Her kitchen was always abuzz. She loved creating variations on recipes for tarts. She made them big and she made them small. She filled her tarts with jams and jellies, creams and puddings--these were the sweet ones. Then she created savory tarts--bacon and kale, yogurt and spinach, chorizo and cheese. She tested each batch herself, and she gave them away to friends--asking for comments. Finally, she homed in on a line of tarts she thought ready for the marketplace.

     The problems for Pam to get into business seemed overwhelming. She had no kitchen facilities to handle baking. She had very little money. And how would she tackle the marketplace? 

     Continuing: Pam was not one to give up. She contacted a local restaurant and made arrangements to use the restaurant's facilities on Mondays when it was closed. Now she had inspected facilities where she could produce her line of tarts. She made arrangements for labels and shipping boxes. She set up a website showing her tarts and an order form. She took many pictures of the goodies and posted them on social media. Orders began to arrive, a few at first, then more. She boxed the tarts and called United Parcel Service to pick them up and speed them on their way. 

     Pam succeeded in getting established--without baking facilities of her own, without a sales staff, without a delivery van, without a bricks-and-mortar bakery open to the public. With very little money but lots of determination, she was on the road. Her sweet and savory tarts now showed up at corporate meetings, organizational gatherings, seminars and talks far and wide. 

     Getting a product off the ground today is far easier than it used to be. A website can be the focal point, with social media driving eyeballs to it--with orders. Delivery of the product? Take your pick--United Parcel Service, Fedex or the Postal Service. As a business owner today, you pull all the pieces together. All you need is ... yourself.

     Product-based businesses can easily use this example. Service-based businesses present different problems, but much of the foregoing is applicable. 

     

Business ideas

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     My lifetime has been spent starting my own businesses and helping others start theirs. It has convinced me that you can make a business out of anything.

     It makes sense. If you are interested in something, others will be as well. And they can become the market for your products and services. 

     Not all markets are as big as others. If you are only interested in selling the herbs you grow, and you only show up at farm markets, your bottom line won't be very big. But if you sell herbs to a supermarket chain, you might be overwhelmed with orders. 

     Example: Jason loved cars and motorcycles. Growing up, he tinkered and repaired vehicles and spent hours hanging out at auto shops. He went on to college and got an engineering degree. Then he set up a business specializing in two things: restorations of older vehicles back to original condition and building motorcycles from the ground up. He brought some of his work to car shows, and his reputation spread. Restorations of cars that are 20 to 50 years old and in poor condition can take months, sometimes years. While waiting for parts, Jason would concentrate on building or customizing motorcycles for clients. His backlog of work now extends years into the future. 

     Example: Marie loved designing women's clothes. She called it "Throwing together some odds and ends in new ways." Her designs brought compliments and sales. She wanted a business of her own, and she was forced to make a strategic decision. Either she could open her own high end, exclusive design shop, or she could become a design house. She chose the latter. Today, Marie has established herself as the design arm for several manufacturers. She sells her designs to them, freeing her to move on to next year's possibilities. 

     Example: Several years ago, I met a man whose business was repairing and selling old vacuum cleaners. Many in his showroom were 40 or more years old. Old vacuum cleaners were built to last--with all metal parts. Today, many vacuum cleaners are cheaply made--with plastic parts that break and wear out. People in the know, he explained, pay big bucks to have their old vacuum cleaners repaired, or they buy one from his display. He also sold parts. "Where else can you find a part for a vacuum cleaner that's been doing the job for years?" he asked me. 

     Whatever your interests, consider building a business around them. There's a market out there, just waiting to be tapped. True, many are niche markets. But with today's social media, you can reach far and wide to attract attention--as well as more dollars to your bottom line. 

     Collectibles offer many opportunities for unique businesses. I know a store that specializes in LPs, for example. Another offers unique and rare growing plants. Still another sells jigsaw puzzles--and other older board games. And then there is the shop that sells old manual typewriters--restored and ready to begin life again.  

Other people's money

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     Money is always a problem in small business. There's never enough.

     So, let's see. Your business plan is in place. Things are moving in the right direction. But the business is not generating cash as fast as you would like to grow. 

     You need other people's money. The usual sources like banks are not interested. You don't have enough experience in what you're doing. Your business is not old enough. Whatever.

     Example: Judy was renting a plot from a farmer. She specialized in growing greens and veggies for local markets. She had built up quite a clientele for her farm fresh produce, and she needed to expand. Searching around the area, she found a small farm for sale. The problem was money. Judy did not have enough cash for a down payment, and even if she did, no one would approve the loan. On the back of the property she noticed there was a fairly large grove of black walnut trees. It took some negotiating, but Judy managed to buy the farm. She knew that walnut wood went for big bucks, and she got a sizable commitment from a sawmill to buy the walnut trees. Then she got a commitment from the property owner to sell at an agreed price. With all this in hand, she approached a private lender who agreed to advance the funds and hold the mortgage on the property. It was a matter of bringing all the pieces together and closing the deal. 

     Example: Leland was a young man in the landscaping business. One of his on-going jobs was to take care of the grounds of a small apartment building. The owner of the property was impressed with Leland's work and asked if he wanted to buy the building. Leland jumped at the chance, but he told the owner that he could not afford it. Maybe yes, maybe no, said the owner. He showed Leland how to take over the property with two mortgages that the owner was willing to hold. They put in place a long-term large first mortgage at a normal interest rate and a short-term second mortgage at a much higher rate. Income from the rent rolls covered both monthly payments. If Leland didn't make the payments, the owner would take back the property and put it up for sale to someone else. Leland is still a landscaper, but he owns the building. The second mortgage is paid off, and he's making payments on the longer-term mortgage.

     Example: Robert is in the home improvements business. He worked with his customers to finance each job. He required one-third payment upfront, one-third when an agreed-to milepost was reached, and the final one-third when the job was completed. This method can be used in other types of businesses as well. Just remember that the profit comes in that last payment.

     Using other peoples' money in business is quite common. It takes many forms, but the mechanism or concept is pretty much the same. Put it to work and home in on the specific arrangement that will help you start-up, grow and expand. 

     When your supplier delivers and hands you an invoice dated 30 or 60 days hence, you are using other peoples' money. It is a matter of trust that you will pay your bills on time. This simple concept of trust is at the heart of using other peoples' money.    

      

Reaching out

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     Managing your business means you must reach out to the community. Stay in touch with those you serve, and tap into new streams of clients and customers. 

     Today, reaching out has changed. Newspaper and phone book ads are no longer as effective as they once were. Ads in specialty publications, however--especially those that are locally directed--can reach out into those new communities you want to serve. 

     But social media has provided a quantum shift in how you reach out. Facebook, Twitter, LinkedIn, Pinterest, Instagram and others get you in front of eyeballs that no longer read newspapers and phone book ads. These are easy to use and, for the most part, free.

     A Facebook page is a very effective way to reach out and keep in touch. You should be posting pictures frequently of your creations--artists and artisans, bakers and chefs, landscapers and more. Shop owners can post pictures of racks of clothing, cases of jewelry, newly arrived goods, cones of yogurt and squares of chocolate. And anyone can post photos of street scenes, parades, car shows, flea markets, and your newly decorated window. 

     There's more--think selfies and apps. Selfies can be fun. Pictures of yourself can be entertaining and remind clients and customers who you are and that you are there for them. Setting up your own app can make it easy for hungry customers to order ahead and have their meals ready when they arrive at your restaurant. 

     Emails sent to your regulars can be effective in announcing upcoming sales--and other events. Too many emails can be a turn-off, however. Emails should be about your client's and customer's interests, not yours. Keep it brief. 

     Blogs and newsletters can be effective in certain markets. Blogs can be informative and descriptive. They can announce new developments in your industry. A health food store owner can discuss natural foods and the nutritional value of eating fresh. A wellness expert can explain how pain can be managed, how to lose weight, and the value of exercise on body systems. 

     A blog or newsletter is not a personal diary for you. It is feeding the thirst out there for the knowledge you have. Blogs and newsletters posted on your website are marketing tools, and they concentrate on subjects the reader is interested in. Attorneys, accountants, consultants, medical experts and others can explain in depth the ways in which they can help clients. And this attracts referrals.

     Keep in touch, but do it smart. You don't want to come across as a nuisance. Keeping in touch with short reminders, colorful and fun pictures, and clear explanations of some aspect of your business can go a long way to get you growing.

     Done right, your clients and customers will appreciate being reminded of who you are and what you can do for them. And they will refer others to you. 

     To grow, you want to extend your reach in the communities you want to serve. Keeping in touch using social media is a valuable method to have in your toolbox.    

      

Using social media

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     If you don't use Facebook and other social media to promote your business, you're missing opportunities to grow. 

     Facebook, Pinterest, LinkedIn, Twitter and other platforms are useful additions to your marketing tool box. Everyone who operates a small business deserves to make use of them.

     First, it is easy to set up your presence on social media. Even if you are not computer-savvy, you can follow simple directions and be up and running quickly. Just go to the site, and they lead you through it. 

     Second, social media pages put a face on your business. Everyone snaps digital photos these days. Photos are easily uploaded to your Facebook page, for example. Social media platforms are different in their requirements, but I recommend beginning with Facebook. Get your feet wet and then perhaps move on to other platforms.

     Third, social media makes maintenance easy and cheap. You don't need an expert, like you needed to develop a website. With Facebook, for example, you simply check in, post one of those photos you've taken, and say a few words--few is the operative word here. 

     Fourth, social media platforms bring in new business, get referrals, spread the word. People tend to pass your photos around, getting your business in front of more eyeballs. 

     Keep in mind that social media is not like a brochure. It's not an ad, although they will sell you one if you want one. Social media is more like a scroll. It unfolds day by day or week by week. It is not static, it changes as you input more as the days pass. And you are making these changes yourself.

     Make your photos a living record of your business. A baker photographs every cake as it is being made. A florist photographs every arrangement as it comes into view. Show before and after photos. A massage therapist photographs hands (no faces) working on a subject. A landscaper shows the hole being dug, the plant being inserted. 

     Don't try to be professional. Aim for being informative, humorous--and a little craziness can help. These things attract attention. You're not taking photos for display in a gallery. You're having fun, and so are your viewers. 

     Auto repair shops can show a mechanic's hands fiddling with something under the hood. Pest exterminators can take endless pictures of bugs. Even lawyers and accountants can take pictures of public street scenes, auto accidents, close ups of balance sheets, etc. 

     The purpose of the photo is to inform and entertain. They are quick glimpses or slices of life. They have something to do with your business, they are memorable, they remind your clients/customers that you are there for them, and they bring in referrals. 

     You can promote your business in many ways. Almost all cost you money. But social media offers opportunities that reach far beyond other means. And for the most part, they are free!