Free daily tips, information, advice and ideas
to help you better manage your small business.
In business, it's you. You roll with the punch. You ride out the storms.
Economic downturns, endless regulations, employees who do you a favor by just showing up, cash flow problems--it's enough to get you depressed. But depression is not an option. You keep going.
Example: Ella runs a yoga studio. She holds classes and offers private sessions. When her lease was almost up, the landlord notified Ella that the rent would be doubling. She had sixty days to solve the problem. Her alternatives were slim--pay the new rent amount, find another space, or find a compatible business partner. Ella proposed sharing her space with a massage therapist who worked from home and was building a client base. Together, they found a new space, large enough to accommodate both. By splitting the space and the rent, Ella's half was less than she had been paying before the move.
Non-competing small businesses can hold down expenses by sharing space. Artists and artisans, holistic practitioners, chiropractors, medical specialists and others frequently make use of this. Sometimes it is a formal partnership. At other times it is just an informal arrangement.
Example: Ed began his small baking operation by renting a local restaurant's licensed kitchen on days when the restaurant was closed. Here, he baked brownies, cookies and other goodies. Over time Ed built up his business by selling his bakery goods to local corporations, organizations, and other businesses. Suddenly, the restaurant owner announced that he was planning to retire and move away. Ed had six months to make other arrangements. He scrambled to find a suitable place, negotiate a lease, locate and buy used baking equipment, get it installed and inspected, and transition to the new place. Today, Ed's bakery offers a wide variety of bakery items to local restaurants, caterers and others. He built his customer base first, only then worrying about establishing a place of his own.
Finding ways to grow and expand takes creative planning. And time. When the road ahead goes dark, get busy. When storms roll across the ocean you're sailing, ride it out. Never give up. There is always another way.
Unexpected disasters and economic downturns test the metal you're made of. Sudden loss of a major client or a valuable employee means getting busy, not giving up. Plan ahead and roll with the punch.
Monday, April 6, 2015
Friday, April 3, 2015
Professionals expand
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to help you better manage your small business.
Therapists, accountants, lawyers, consultants, medical practitioners and others can find it difficult to attract new clients. Today, one reason is that they have been slow to take advantage of and use social media as a promotional tool.
Example: Sue is a CPA specializing in taxes. After getting permission from some of her clients, she took pictures of them when she announced they were getting big tax refunds. The surprised and smiling faces of clients now pop out on Sue's website. She posts them on Facebook as well. The word spreads and calls from referrals come in. It's not just about tax season. Businesses have on-going tax problems throughout the year.
Example: Frank is a business coach. He helps business owners with cash problems, growing pains, product branding, and more--advising them on ways to streamline their operations and grow. He put his profile on LinkedIn, and he followed up by posting a series of questions and answers that typically concerned owners of small businesses. This resulted in comments and more questions from readers. He answered all of them, directing them to his profile on LinkedIn as well as to his website. All this activity has resulted in some new clients.
Example: Tom is a young attorney. He spends several hours a week at his computer. On his website, he writes a brief blog two or three times each week. Here, he discusses in general terms the problems people can face--what to do with traffic tickets, getting sued, the differences between types of business organization--partnerships, incorporation, LLCs, etc. No legal advice is given out in his write-ups. They are designed to educate and inform. He drives prospective clients to his website, and to the blog, with a presence on Facebook, Twitter, LinkedIn and others. New clients regularly call his office.
Other professionals can use social media to find new clients. Therapists, dentists, chiropractors, consultants, engineers, designers, medical practitioners and others are today tapping into the public's thirst for information.
You attract attention and provide useful information on social media. You are at the beginning stage of forming a relationship. Social media is all about the reader, not the sender. What you post should be about them, not you. Be brief, but always provide a way for them to reach you.
Many additional examples of using social media are scattered throughout these write-ups. As a promotional tool, social media can provide professionals many ways to grow and expand.
to help you better manage your small business.
Therapists, accountants, lawyers, consultants, medical practitioners and others can find it difficult to attract new clients. Today, one reason is that they have been slow to take advantage of and use social media as a promotional tool.
Example: Sue is a CPA specializing in taxes. After getting permission from some of her clients, she took pictures of them when she announced they were getting big tax refunds. The surprised and smiling faces of clients now pop out on Sue's website. She posts them on Facebook as well. The word spreads and calls from referrals come in. It's not just about tax season. Businesses have on-going tax problems throughout the year.
Example: Frank is a business coach. He helps business owners with cash problems, growing pains, product branding, and more--advising them on ways to streamline their operations and grow. He put his profile on LinkedIn, and he followed up by posting a series of questions and answers that typically concerned owners of small businesses. This resulted in comments and more questions from readers. He answered all of them, directing them to his profile on LinkedIn as well as to his website. All this activity has resulted in some new clients.
Example: Tom is a young attorney. He spends several hours a week at his computer. On his website, he writes a brief blog two or three times each week. Here, he discusses in general terms the problems people can face--what to do with traffic tickets, getting sued, the differences between types of business organization--partnerships, incorporation, LLCs, etc. No legal advice is given out in his write-ups. They are designed to educate and inform. He drives prospective clients to his website, and to the blog, with a presence on Facebook, Twitter, LinkedIn and others. New clients regularly call his office.
Other professionals can use social media to find new clients. Therapists, dentists, chiropractors, consultants, engineers, designers, medical practitioners and others are today tapping into the public's thirst for information.
You attract attention and provide useful information on social media. You are at the beginning stage of forming a relationship. Social media is all about the reader, not the sender. What you post should be about them, not you. Be brief, but always provide a way for them to reach you.
Many additional examples of using social media are scattered throughout these write-ups. As a promotional tool, social media can provide professionals many ways to grow and expand.
Thursday, April 2, 2015
Replace lost clients
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to help you better manage your small business.
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.
Wednesday, April 1, 2015
Growing together
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to help you better manage your small business.
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.
to help you better manage your small business.
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.
Tuesday, March 31, 2015
All you need is....
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to help you better manage your small business.
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.
to help you better manage your small business.
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.
Monday, March 30, 2015
Business ideas
Free daily tips, information, advice and ideas
to help you better manage your small business.
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.
to help you better manage your small business.
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.
Friday, March 27, 2015
Other people's money
Free daily tips, information, advice and ideas
to help you better manage your small business.
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.
to help you better manage your small business.
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.
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