Free daily tips, information, advice and ideas
to help you better manage your small business.
Fires and floods, blackouts and robbers can shut you down--whether you have a shop or office or work on the web. When the unthinkable happens, put in place that plan you've already thought about.
Example: Frank runs a computer service business. His computers are tied into those of his clients, and many are large corporations. He can diagnose, troubleshoot, and repair their software problems from his set-up. His system automatically generates an invoice anytime his computers do work online for clients. Then the power went off. When he checked the power outage footprint with the power company, he learned that all his clients were without power as well. He reasoned that everybody would get power restored at the same time. But that was not the case. Several of his clients had back-up power systems that cut on when the power went off. Frank did not. He is now investigating how he can hard wire his system to those of his clients.
Example: Diane runs a small convenience store. After she was robbed twice, she decided that it was up to her to defend herself and her business. She bought a handgun, put herself through licensing and training, and now keeps the firearm handy. She has not shot anyone, but she did send a knife-wielding robber on his way when she pointed the firearm at him. In the past, she was terrified of guns, but today she has the means to protect herself while waiting for the police to arrive.
Example: Jill's gift shop was located near the river. In the middle of the holiday shopping season after Thanksgiving, the river flooded. Water flowed into Jill's shop, ruining everything it touched. She had flood insurance, but she did not have loss of business insurance. And she had to close the shop for two weeks while she was getting everything back in shape. When her lease came up for renewal the next year, Jill moved to higher ground.
Emergencies are not unusual in business. Power outages, flooding and storms can come with little warning. Robbers can show up anytime.
Be prepared by planning ahead.
In business, you are your own back-up. How will you manage your business if you break your leg? What will you do if there's a fire?
Tuesday, August 11, 2015
Monday, August 10, 2015
When referrals drop off
Free daily tips, information, advice and ideas
to help you better manage your small business.
Every small business owner knows the value of referrals. Referrals come to your business on another's recommendation.
When you notice a drop-off in the number of referrals you are getting, you need to take action. It's not something to ignore and simply hope for better economic times. It won't pass by itself.
Good business people do not blame other people or other situations for their problems. They go to work to solve their problems.
Example: Dean is a fitness expert and personal trainer. When he began his business, he got lots of referrals. His clients recommended others to his services, and he signed up new clients. Six months in, however, he noticed that referrals were few and far between. New people were not calling him or showing up. Looking at the situation, Dean realized that his clients had told everyone they knew about him and his programs. He had exhausted their circle of friends. To break out into new circles of people, Dean mounted a social media campaign. He solicited testimonials from his current clients, got their permission to use their words, and began posting on his new Facebook page. It paid off. New people called and became clients. More importantly, Dean broke into new circles of people interested in his services.
Example: Ellen runs a small coffee shop. She attracts local people to her breakfasts and lunches--no dinners. It took a couple of years to get established and become the go-to place for a local clientele. Ellen began to notice that it was the same crowd that showed up every day and that some of them seemed to be drifting away--they didn't come as often as they had done before. She looked at the staff, the cook, the service, and the cashier--and she found two problems. The cashier was so busy texting or talking on her phone that a line formed--waiting to pay the bill. And serving meals promptly was so lax that the meal was cold when delivered to customers. Ellen replaced the cashier and a waiter, neither one of whom understood the basics of customer service.
Using social media to reach out to more circles of friends can improve your business with more referrals. And seeing to customer service, and improving it, can do the same.
When referrals drop off, see to your operation. You'll more than likely find that the fault lies with you. Keep those referrals coming.
to help you better manage your small business.
Every small business owner knows the value of referrals. Referrals come to your business on another's recommendation.
When you notice a drop-off in the number of referrals you are getting, you need to take action. It's not something to ignore and simply hope for better economic times. It won't pass by itself.
Good business people do not blame other people or other situations for their problems. They go to work to solve their problems.
Example: Dean is a fitness expert and personal trainer. When he began his business, he got lots of referrals. His clients recommended others to his services, and he signed up new clients. Six months in, however, he noticed that referrals were few and far between. New people were not calling him or showing up. Looking at the situation, Dean realized that his clients had told everyone they knew about him and his programs. He had exhausted their circle of friends. To break out into new circles of people, Dean mounted a social media campaign. He solicited testimonials from his current clients, got their permission to use their words, and began posting on his new Facebook page. It paid off. New people called and became clients. More importantly, Dean broke into new circles of people interested in his services.
Example: Ellen runs a small coffee shop. She attracts local people to her breakfasts and lunches--no dinners. It took a couple of years to get established and become the go-to place for a local clientele. Ellen began to notice that it was the same crowd that showed up every day and that some of them seemed to be drifting away--they didn't come as often as they had done before. She looked at the staff, the cook, the service, and the cashier--and she found two problems. The cashier was so busy texting or talking on her phone that a line formed--waiting to pay the bill. And serving meals promptly was so lax that the meal was cold when delivered to customers. Ellen replaced the cashier and a waiter, neither one of whom understood the basics of customer service.
Using social media to reach out to more circles of friends can improve your business with more referrals. And seeing to customer service, and improving it, can do the same.
When referrals drop off, see to your operation. You'll more than likely find that the fault lies with you. Keep those referrals coming.
Friday, August 7, 2015
Sell less, earn more
Free daily tips, information, advice and ideas
to help you better manage your small business.
You struggle in your small business to find the right balance for a healthy operation. This involves pricing your product or service, holding down expenses, and getting the word out--especially on social media.
Optimizing bottom line income is a constant concern. Many of the inputs that flow to the bottom line are always changing. It can be difficult to get the balance that makes sense.
Sometimes, you can avoid getting lost in the weeds by increasing your prices. Upping your prices lets you play in a different ball game. Former problems no longer obtain.
Example: Shawn is an artisan working in leather. He makes belts and handbags. He displays and sells from his own showroom, and he consigns items to a dozen or so additional boutiques and galleries. Shawn wanted to grow, but he did not want to hire people and establish a production operation for his designs--he wanted to keep the business based on his own output. This presented him with a dilemma which he turned into an opportunity. He decided to increase his prices significantly--every product doubled in price overnight. Belts that had sold for $35 were now priced at $75, and handbags that yesterday sold for $85 now had a price tag of $150. As Shawn expected, there was an immediate dip in sales. But three months later, he was earning more on fewer sales.
Example: Sarah runs a hair salon. She has increased her prices to the point that she only accepts two appointments each day. Increasing her prices led to fewer appointments, but she is making more by selling less.
Your pricing goes a long way toward defining your product or service. The marketplace has a wide tolerance for pricing. But, all things equal, the value received by the client or customer is largely perceived to be determined by the price paid.
Of course, no one will pay $100 for a cup of coffee. There are limits to pricing, but many people are today paying $8 for a cup of coffee. Back when a cup cost less than a dollar, who knew people would pay $8?
Whole businesses can be built on the public's perception and willingness to pay more. And existing businesses can earn more by selling less.
to help you better manage your small business.
You struggle in your small business to find the right balance for a healthy operation. This involves pricing your product or service, holding down expenses, and getting the word out--especially on social media.
Optimizing bottom line income is a constant concern. Many of the inputs that flow to the bottom line are always changing. It can be difficult to get the balance that makes sense.
Sometimes, you can avoid getting lost in the weeds by increasing your prices. Upping your prices lets you play in a different ball game. Former problems no longer obtain.
Example: Shawn is an artisan working in leather. He makes belts and handbags. He displays and sells from his own showroom, and he consigns items to a dozen or so additional boutiques and galleries. Shawn wanted to grow, but he did not want to hire people and establish a production operation for his designs--he wanted to keep the business based on his own output. This presented him with a dilemma which he turned into an opportunity. He decided to increase his prices significantly--every product doubled in price overnight. Belts that had sold for $35 were now priced at $75, and handbags that yesterday sold for $85 now had a price tag of $150. As Shawn expected, there was an immediate dip in sales. But three months later, he was earning more on fewer sales.
Example: Sarah runs a hair salon. She has increased her prices to the point that she only accepts two appointments each day. Increasing her prices led to fewer appointments, but she is making more by selling less.
Your pricing goes a long way toward defining your product or service. The marketplace has a wide tolerance for pricing. But, all things equal, the value received by the client or customer is largely perceived to be determined by the price paid.
Of course, no one will pay $100 for a cup of coffee. There are limits to pricing, but many people are today paying $8 for a cup of coffee. Back when a cup cost less than a dollar, who knew people would pay $8?
Whole businesses can be built on the public's perception and willingness to pay more. And existing businesses can earn more by selling less.
Thursday, August 6, 2015
Planning simplified
Free daily tips, information, advice and ideas
to help you better manage your small business.
Business planning is not difficult. You already do it. In business, planning is second nature.
Planning is all about clients and customers. No matter your business, your future depends on them. Today's clients and customers tell you where you are. Tomorrow's clients and customers tell you where your business is headed.
To simply the planning process, begin with your present clients and customers. They can point the way to your future.
Example: You are a chiropractor. Your clients are asking questions about massage and nutrition. Should you add other capabilities to your practice? Should you head to becoming a wellness center?
Example: You help me troubleshoot and repair my computer set-up and networks. Can you help me exploit the possibilities of social media, teach me how to use it, and point my business to wider appeal?
Example: You have a thriving yoga studio. Clients are asking if you can help them with losing weight. Should you add other regimens to your practice by partnering with other specialists?
Example: You operate a restaurant. More clients are asking for gluten-free preparations and vegetarian dishes. Should you change your menu offerings? And how about the current interest in farm-fresh?
Example: You are an attorney. You are getting calls asking if you can handle special problems--worker's comp, elder law, a business sale. Should you add a specialty or two? Or concentrate on one avenue?
Example: You operate a small print shop. You get a request to handle small mailings. You suddenly realize the potential of offering small direct mailings--completing the circle of one-stop printing/mailing jobs.
Your business planning begins with the marketplace and where it's headed. A starting point is to listen to your current clients and customers.
They will tell you all sorts of possibilities for future expansion. Your job is to sort through the suggestions and home in on what makes sense to you and your business future.
You can take the clues and re-structure your business. Always keep an eye on the bottom line numbers that a new direction will lead to. Also, is the new direction a passing fad in the marketplace? Or is it a more permanent change?
Never make a big change in your business without first doing a formal business plan. The plan is where you reduce the marketplace to real numbers. But small changes in direction don't require all the effort that goes into a formal business plan.
to help you better manage your small business.
Business planning is not difficult. You already do it. In business, planning is second nature.
Planning is all about clients and customers. No matter your business, your future depends on them. Today's clients and customers tell you where you are. Tomorrow's clients and customers tell you where your business is headed.
To simply the planning process, begin with your present clients and customers. They can point the way to your future.
Example: You are a chiropractor. Your clients are asking questions about massage and nutrition. Should you add other capabilities to your practice? Should you head to becoming a wellness center?
Example: You help me troubleshoot and repair my computer set-up and networks. Can you help me exploit the possibilities of social media, teach me how to use it, and point my business to wider appeal?
Example: You have a thriving yoga studio. Clients are asking if you can help them with losing weight. Should you add other regimens to your practice by partnering with other specialists?
Example: You operate a restaurant. More clients are asking for gluten-free preparations and vegetarian dishes. Should you change your menu offerings? And how about the current interest in farm-fresh?
Example: You are an attorney. You are getting calls asking if you can handle special problems--worker's comp, elder law, a business sale. Should you add a specialty or two? Or concentrate on one avenue?
Example: You operate a small print shop. You get a request to handle small mailings. You suddenly realize the potential of offering small direct mailings--completing the circle of one-stop printing/mailing jobs.
Your business planning begins with the marketplace and where it's headed. A starting point is to listen to your current clients and customers.
They will tell you all sorts of possibilities for future expansion. Your job is to sort through the suggestions and home in on what makes sense to you and your business future.
You can take the clues and re-structure your business. Always keep an eye on the bottom line numbers that a new direction will lead to. Also, is the new direction a passing fad in the marketplace? Or is it a more permanent change?
Never make a big change in your business without first doing a formal business plan. The plan is where you reduce the marketplace to real numbers. But small changes in direction don't require all the effort that goes into a formal business plan.
Wednesday, August 5, 2015
Helping your community
Free daily tips, information, advice and ideas
to help you better manage your small business.
There is a lot of interest today in helping the less fortunate among us. All sorts of schemes are put forth by politicians--these are mostly designed to get votes in the next election.
But business owners can get involved in helping others in a more helpful way. Look for ways to become a more vital part of the community.
Example: Arthur runs an auto repair shop. He employs three workers who are trained technicians. In addition, Arthur brings in young people who have an interest in vehicles. They are not employees, and they don't do any hands-on work at the shop. Instead, they observe, learn, follow the technicians around and ask questions, learning as they go. Arthur is providing an opportunity for young people to get acquainted with business, with vehicle repair, and all the rest. He has watched several young people go on to have careers in the field.
Technical schools teach various trades, but students stuck in public high schools don't get much hands-on exposure to career paths. But just about any business can provide a valuable community service by exposing young people to real career paths.
Example: Margie is a CPA specializing in taxes. She handles clients in small and medium-sized businesses. And she does more. She realized years ago that kids in school don't necessarily appreciate the value of business in general or, specifically, accounting and taxes. She volunteered to hold sessions at local schools showing how important businesses were to the local community, and, in particular, how important learning math can be to the successful operation of any business. Teachers regularly bring Margie in for brief sessions, and some have steered students on field trips to Margie's offices--as well as to her clients' offices. The youngsters see up close how businesses work and how important math can be.
These types of interactions with your community can pay off. It spreads knowledge in a way quite different from in-school sessions. It helps young people see the connections that make communities work. And it exposes youngsters to possible career paths they might not otherwise consider.
Perhaps more importantly, involvement with youngsters in the community educates them into the basics of business. And, after all, it's small business that provides most of the jobs, the goods and services that communities depend on.
Your involvement in your community is much more important than all the schemes politicians foist upon us. Politicians have a temporary and ulterior motive, but you have a future community to care about.
Young people are the future. They will take over after you're gone. They will be running the businesses that make communities work. And you have a big time interest in this.
to help you better manage your small business.
There is a lot of interest today in helping the less fortunate among us. All sorts of schemes are put forth by politicians--these are mostly designed to get votes in the next election.
But business owners can get involved in helping others in a more helpful way. Look for ways to become a more vital part of the community.
Example: Arthur runs an auto repair shop. He employs three workers who are trained technicians. In addition, Arthur brings in young people who have an interest in vehicles. They are not employees, and they don't do any hands-on work at the shop. Instead, they observe, learn, follow the technicians around and ask questions, learning as they go. Arthur is providing an opportunity for young people to get acquainted with business, with vehicle repair, and all the rest. He has watched several young people go on to have careers in the field.
Technical schools teach various trades, but students stuck in public high schools don't get much hands-on exposure to career paths. But just about any business can provide a valuable community service by exposing young people to real career paths.
Example: Margie is a CPA specializing in taxes. She handles clients in small and medium-sized businesses. And she does more. She realized years ago that kids in school don't necessarily appreciate the value of business in general or, specifically, accounting and taxes. She volunteered to hold sessions at local schools showing how important businesses were to the local community, and, in particular, how important learning math can be to the successful operation of any business. Teachers regularly bring Margie in for brief sessions, and some have steered students on field trips to Margie's offices--as well as to her clients' offices. The youngsters see up close how businesses work and how important math can be.
These types of interactions with your community can pay off. It spreads knowledge in a way quite different from in-school sessions. It helps young people see the connections that make communities work. And it exposes youngsters to possible career paths they might not otherwise consider.
Perhaps more importantly, involvement with youngsters in the community educates them into the basics of business. And, after all, it's small business that provides most of the jobs, the goods and services that communities depend on.
Your involvement in your community is much more important than all the schemes politicians foist upon us. Politicians have a temporary and ulterior motive, but you have a future community to care about.
Young people are the future. They will take over after you're gone. They will be running the businesses that make communities work. And you have a big time interest in this.
Tuesday, August 4, 2015
Grappling with demons
Free daily tips, information, advice and ideas
to help you better manage your small business.
Demons are common in movies. Demons show up in fantastic shapes and sizes--all for the sake of entertainment.
Demons in business are not entertaining. You grapple with them every day. They take up lots of your time, and you must prepare for the unexpected visit.
Example: Don is a computer whiz. He helps people in business solve the computer problems that plague them. He does new set-ups, networking, back-ups, social media connectivity, and he trains his clients' employees. Don's business experienced ups and downs with cash flow--until he began selling his clients on the value of monthly retainers. Clients now pay a set amount every month to have his services always available and he is always on call. His cash flow demon is now caged.
Example: Dawn used to run a pet grooming service. She set up the business in her garage and ran it successfully for several years. Then a demon appeared. A dog being groomed died on the table. The owner sued. Dawn had no insurance and she had never registered her business or incorporated. Incorporating a small business is very easy and quick these days. It puts a wall of separation between the business and the owner's assets. Today, Dawn is out of business and she is struggling to save her home because of the lawsuit. She could have protected herself against this demon by incorporating her business.
Example: Oscar is a hypnotherapist. He has private clients and he runs sessions for people wanting to lose weight. Some of these clients pay with cash. Oscar got into the bad habit of pocketing the cash and never declaring it on his tax returns. This went on for several years. Then the IRS came calling, wanting to do an audit. They wanted to see his records, including the lists of attendees at his sessions. When these records were matched with Oscar's tax returns, a discrepancy was found. He now owes the IRS a large sum of back tax liabilities, together with interest and a fine. The IRS demon is not one to mess around with--feed it properly to keep it at bay.
All sorts of demons can show up at your door when you are in business. It's not just lawsuits and tax problems. Regulations and technology can breathe down your neck as well.
Business is a lot of things. You worry about day-to-day operations, suppliers, customers, the changing market--the list is almost endless. Don't neglect giving some thought to the demons that can hound you.
to help you better manage your small business.
Demons are common in movies. Demons show up in fantastic shapes and sizes--all for the sake of entertainment.
Demons in business are not entertaining. You grapple with them every day. They take up lots of your time, and you must prepare for the unexpected visit.
Example: Don is a computer whiz. He helps people in business solve the computer problems that plague them. He does new set-ups, networking, back-ups, social media connectivity, and he trains his clients' employees. Don's business experienced ups and downs with cash flow--until he began selling his clients on the value of monthly retainers. Clients now pay a set amount every month to have his services always available and he is always on call. His cash flow demon is now caged.
Example: Dawn used to run a pet grooming service. She set up the business in her garage and ran it successfully for several years. Then a demon appeared. A dog being groomed died on the table. The owner sued. Dawn had no insurance and she had never registered her business or incorporated. Incorporating a small business is very easy and quick these days. It puts a wall of separation between the business and the owner's assets. Today, Dawn is out of business and she is struggling to save her home because of the lawsuit. She could have protected herself against this demon by incorporating her business.
Example: Oscar is a hypnotherapist. He has private clients and he runs sessions for people wanting to lose weight. Some of these clients pay with cash. Oscar got into the bad habit of pocketing the cash and never declaring it on his tax returns. This went on for several years. Then the IRS came calling, wanting to do an audit. They wanted to see his records, including the lists of attendees at his sessions. When these records were matched with Oscar's tax returns, a discrepancy was found. He now owes the IRS a large sum of back tax liabilities, together with interest and a fine. The IRS demon is not one to mess around with--feed it properly to keep it at bay.
All sorts of demons can show up at your door when you are in business. It's not just lawsuits and tax problems. Regulations and technology can breathe down your neck as well.
Business is a lot of things. You worry about day-to-day operations, suppliers, customers, the changing market--the list is almost endless. Don't neglect giving some thought to the demons that can hound you.
Monday, August 3, 2015
Surfing the markets
Free daily tips, information, advice and ideas
to help you better manage your small business.
Building a business means staying on top of markets. But markets change. Markets are like waves on the ocean.
One after another, market waves rush toward the shore. How do you catch the next wave and surf to the safety of a beach? And what do you do then?
Example: Stacey runs a successful consignment shop. She specializes in high end women's clothing and accessories. Her shop attracts business and professional women. They eagerly buy the name brand outfits, handbags, shoes and jewelry Stacey was known for. Frequently, these buyers used these items 2-3-4 times and then they returned them to consign again. These customers were riding a marketplace wave. They dressed in the latest fashions and saved money. Then, Stacey caught a market wave herself. She began putting up pictures of every new item on social media. Every day, she added a new item to her Facebook page. She caught the social media wave that exploded her consignment business.
Example: Jon runs an interior design business, working with residential and commercial clients. He caught a marketing wave when he contacted realtors and offered to provide staging services--getting a home ready to show to prospective buyers. This provided Jon with a successful expansion of his business. To take it to the next level, he began offering short videos showing realtors, agents and homeowners how to stage a home to attract buyers. Jon provided free short video trailers on social media--along with longer videos that he offered for sale. These attracted realtors who hired Jon to do stagings, as well as in-person talks and demonstrations for real estate agents. Jon took his design business to the next level.
If your business is already riding a growth wave, look around and find the next wave. Surf it to the next level. Don't get beached. Ride the next wave.
Starting out, your business is riding a start-up wave. To grow, you must catch the next marketing wave. It can be as simple as using social media to expand your reach.
to help you better manage your small business.
Building a business means staying on top of markets. But markets change. Markets are like waves on the ocean.
One after another, market waves rush toward the shore. How do you catch the next wave and surf to the safety of a beach? And what do you do then?
Example: Stacey runs a successful consignment shop. She specializes in high end women's clothing and accessories. Her shop attracts business and professional women. They eagerly buy the name brand outfits, handbags, shoes and jewelry Stacey was known for. Frequently, these buyers used these items 2-3-4 times and then they returned them to consign again. These customers were riding a marketplace wave. They dressed in the latest fashions and saved money. Then, Stacey caught a market wave herself. She began putting up pictures of every new item on social media. Every day, she added a new item to her Facebook page. She caught the social media wave that exploded her consignment business.
Example: Jon runs an interior design business, working with residential and commercial clients. He caught a marketing wave when he contacted realtors and offered to provide staging services--getting a home ready to show to prospective buyers. This provided Jon with a successful expansion of his business. To take it to the next level, he began offering short videos showing realtors, agents and homeowners how to stage a home to attract buyers. Jon provided free short video trailers on social media--along with longer videos that he offered for sale. These attracted realtors who hired Jon to do stagings, as well as in-person talks and demonstrations for real estate agents. Jon took his design business to the next level.
If your business is already riding a growth wave, look around and find the next wave. Surf it to the next level. Don't get beached. Ride the next wave.
Starting out, your business is riding a start-up wave. To grow, you must catch the next marketing wave. It can be as simple as using social media to expand your reach.
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