Monday, September 21, 2015

Thinking ahead

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     Everybody thinks ahead. Thinking ahead is the stuff of dreams and hopes and planning and possibilities. 

     In business, you are continually sorting out the additional things you might do. You think through how to handle current problems. And you think through ways to grow and expand. 

     Example: Alicia is a veterinarian. She concentrates on dogs, cats and small "pocket" pets. Thinking about how to expand, she considered all sorts of possibilities. She made arrangements with a specialist in animal Reiki to offer these services on a regular day each week. It helped, but Alicia wanted to do more. She undertook training and got certified in animal acupuncture. Offering Reiki and acupuncture services has considerably expanded the market she serves--and is bringing more clients to her animal clinic. 

     Example: Josh has an extensive background in computers and all things electronic. He installs computer systems in small and medium size businesses. He networks the set-ups. And he trains employees of clients in the systems they use. Thinking ahead, he began offering new services and training in social media. Josh's clients were all over the map in understanding how to use social media and how it could help them in running their businesses. He began holding training sessions at client's offices. Then, looking ahead, he began setting up sessions that were open to the public. This attracted a great deal of attention, and Josh has added new clients of all his services.

     Example: Judy is an artist who makes jewelry. She set up her original jewelry business to consign her creations to high end gift shops. She also set up her own website. Thinking ahead, she expanded by establishing a presence on Etsy. This had the advantage of reaching a much wider audience. Then she heard about 3D printing and wondered if this process might represent a future way to turn her designs into jewelry creations. Investigating, Judy discovered that an artist was already using 3D printing to create jewelry. She figured that there was room for some competition, and so she decided to take the first step. She is now researching several small 3D printing businesses that will take her designs and turn them into items that will sell in the jewelry market. 

     Thinking ahead is an important part of your job as a business owner. You are sailing your own ship, and you must be ready for an unexpected storm. 

     Storms can be physical--think fire, flood, electrical failure, employees quitting, suppliers disappearing. You must be ready in case one of these things happens.

     Storms can also come at you from the marketplace. Thinking ahead can prepare you for economic downturns, fads and fashions going out of style, the possibilities of social media marketing, and the possibility that a premature expansion might bankrupt your business. Think ahead.

     Thinking ahead means you are sorting out various plans, different ways to address the marketplace and succeed. Always, always reduce everything to actual and projected numbers in your business plan.   

Friday, September 18, 2015

New market paths

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     Small expansions can point the way to new directions for your business. It's a way of testing the market possibilities. 

     You already do this. But do you view it as a test? A way to find new markets? A path toward future expansion? 

     Example: Becky is running a successful jewelry-making operation. It wasn't always so. She began years ago, gradually turning a hobby into a business. With an artistic flair, she turned small found objects into pins, necklaces, earrings. A brooch, for example, she made with buttons and bottle caps. She turned a bent spoon handle into a ring, and so on. But many of her ideas and designs remained locked in her head--for lack of found materials. Becky recently discovered 3D printing, or additive manufacturing, in which items can be created in plastic or metal. When office supply giant Staples began offering the service to the public, Becky tested some of her ideas. She is now headed toward expanding her jewelry-making operation using 3D printing. Her ideas will go into the computer and out will come creations far removed from the days she started as a hobby. Now, Becky can truly create using leading edge technology, and she will be offering limited editions of her unique jewelry.

     Example: Zack's family has been farming for many generations. His father decided decades ago to create an apple orchard. Acres of apple trees began producing many different varieties of apples, and Zack grew up in the family apple business. Most of the apple production was sold in the wholesale markets. He expanded his father's business by offering pick-your-own apples and selling at several farm markets. Then he added a big cider mill, bottling cider for both retail and wholesale markets. This provided new market paths for the farm's apple production. Zack spotted another new market path--the production of hard cider and apple wines. He is now getting licensed and installing the equipment to add another market path to the apple operation. He is busily setting out more apple trees, adding more acres of orchard to supply more apples in his expanding operation. 

     More examples: A chiropractor adds a nutritionist and a massage therapist, headed toward creating a wellness center. A computer repair technician expands by offering coaching and training in social media to small businesses. A consignment shop expands by offering collectibles on eBay, gradually transforming a local business into a national base and destination on its website. An attorney expands by tackling the elder care market. A cafe begins offering gluten-free and vegetarian meals--appealing to new market segments.

     And so it goes. New market paths are all around you. You cannot be all things to all people, but you can test one possibility at a time. 

     Alert business owners investigate and evaluate new market paths. The way forward is always there--waiting for you to take advantage. 
    
     

Thursday, September 17, 2015

Business distractions

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     Business distractions can lead you to more expansion and growth. Or they can lead you down paths that are detrimental to your business.

     Example: Jeff is a photographer. He has built up his business providing product shots for other businesses and corporations. He enjoyed a good and expanding reputation among clients, and referrals came in at a good pace. A friend of Jeff approached him to do some special photography--of a wedding and the reception. As a favor to his friend, Jeff agreed. It was a mistake. The job took Jeff beyond his comfort zone and expertise. In addition, the timing caused Jeff to forego an assignment for a major corporation. Plus, the friend became very demanding in follow-up. Jeff learned a valuable lesson--you cannot be all things to all people, even if they are good friends. He learned to avoid business distractions. 

     Example: Susan operates a hair salon. She was asked by one of her customers to help with a fund-raiser for a local charity. She agreed, and she was good at it. That success brought more townspeople to her door, asking her to help with other community efforts. Susan was suddenly overwhelmed with projects that took more and more of her time. While she enjoyed these philanthropic undertakings, her business suffered. She realized that she must rein in the community efforts in favor of running her own business. She resigned from the committees that were sapping too much of her time, and she began concentrating on the salon again. Susan put a business distraction in its proper place. She still helps out with community efforts, but keeps these distractions in check. 

     Example: Linda is a fiber artist who concentrates on making women's hats. The hats sell very well, especially those Linda decorates with pins she creates using pieces of satin and velvet, buttons and bows, and other things, including silk flowers. Customers began asking to buy the pins separately, leaving the hats behind. Linda faced a business decision. Is the market saying that the appeal for hats is ending? Or is the market saying that her future is in selling pins? Which one is the market distraction going forward? Linda decided to test the market by continuing to offer hats without pins, and she would sell pins separately--adding the pin selected by the customer. It worked out well for Linda who now makes more income for, in many cases, the same product. She solved a business distraction by segmenting the market, increasing her income in the process.

     Business distractions can sometimes point the way to a healthier business model. Other times, you can chase distractions at the expense of your business. 

     When a distraction presents itself in your business, get into your analysis mode. The marketplace is your guiding light. Rework your business plan.   

Wednesday, September 16, 2015

Customer demands

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     Keeping your customers and clients happy can take lots of your time. It is time well-spent. You do whatever it takes to keep customers coming back. If they are not happy, they might not return.

     Customers and clients generally fall into several different categories. Some will complain about everything--it's who they are. Others are the silent types--you never hear anything from them, good or bad. Still others are actively involved with your products or services--you get referrals from them because they are naturally gregarious. 

     So, the demands of your clients and customers have effects on you and your business. It's up to you to sort out customer demands and act accordingly. 

     Example: Jillian designs and sell jewelry through her small shop and through her website. She uses social media to promote her jewelry and this drives customers to the website. She got an email from a customer complaining that the earrings she received were not the ones she ordered. Jillian immediately responded, telling the customer that the correct earrings were already on the way, and "just keep both pairs of earrings, our compliments." The customer thanked Jillian profusely and posted great reviews on social media. 

     Example: Paul operates a small auto repair shop. He has a single lift and two employees. Paul is frequently tackling repairs himself when the phone rings. He lets it go to voice mail, but no one was leaving a message. Paul realized that customers were not being properly handled. He hired a part time, mornings-only person to answer phones and other offices duties. Customers now always get a response when they call--by the second ring. 

     Example: Delano operates a health foods store with a small staff. He got called aside by a customer who complained about treatment by one of the employees. Delano thanked the customer and began watching his operation more closely. He noticed that the employee in question was indeed terse and quick to dismiss customers' questions. Delano began working with the employee to present a better attitude to customers. It has worked out well for Delano, the employee and the customers.

     Simple changes in your operation can sometimes make all the difference in the world dealing with customers. Other times, it can be more difficult to remedy the situation. It's up to you to do whatever it takes.

     Always listen to your clients and customers--whatever their complaint. Then, handle it. The goal is to retain the relationship over the long term. 

     

Tuesday, September 15, 2015

Failing forward

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     Nobody wants to fail. Nobody plans to fail. Failure is not an option with owners of a business.

     But failure can engulf you and your business. When this happens, recognize it for what it is. Step aside and learn from it.

     Example: Jose saw an opportunity. He established a Texas style barbeque restaurant. It was an immediate hit and customers flocked to the place. As months turned into years, Jose noticed a drop in customers. He looked around at the industry in general. What he saw was an increasing interest in farm-to-table operations and in healthy eating establishments. His own restaurant continued to decline in spite of his use of social media to promote barbeque. Jose came to the conclusion that his menu was out of step with the changing times. The marketplace had moved on, his customers were an aging group, and it was decision time. He could continue serving a declining segment of restaurant diners, which would likely fail in the long run, or he could reinvent himself. He took an unusual approach. He continued to offer the barbeque menu--to caterers in the area that served organizations and other gatherings. The restaurant was redesigned, including the menu, to appeal to currently fashionable diner interests in healthy eating and farm-to-table items. 

     Example: Susan is a yoga expert. She offers individual sessions as well as group gatherings. Her business was successful, but the competition was fierce. She was suddenly working twice as hard just to maintain the same level of business. She could see failure looming. She decided to catch the wave of interest in yoga by teaching others. Today, Susan's business is thriving. She concentrates on sessions designed to teach others. Her sessions attract people interested in setting up their own yoga studios. These sessions attract attendees from a wide area, and she is increasing attendance using social media. She also has set up several podcasts and instructional sessions through her website. Susan successfully reinvented her business by concentrating on a market segment she previously did not serve. 

     Example: Growing up, Alex cut lawns for neighbors. When he graduated from high school, he expanded his lawn-cutting business to include suburban businesses and organizations that had lawns needing maintenance. When several of his corporate clients decided to plow up the lawns and plant wild flowers, Alex was attentive to the marketplace. He now is a wild flower expert, and he has grown his business. He still maintains a few lawns, but one by one, they are dropping away.

     When you see failure looming ahead in your business, it is time to transition. Create a new business model. If all else fails, close the door and start again in a new business. 

     Failing forward means paying close attention to the ever-changing marketplace. You can surf many marketplace waves for a very long time. Others, not so much. Catch another wave before you crash into the rocks.  

Monday, September 14, 2015

Redundancy

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     Redundancy is extremely important in business. Especially in small business. You want to back up everything.

     In small business, you are your own back up. There are no big corporate coffers full of cash. There are no extra employees you can call on. There is no extra computer setup. Fires, floods, and power outages can occur with little, or no, warning. 

     Example: Sue runs a small, but successful embroidery operation. She has one embroidery machine. She puts logos on company uniforms, adds names on caps and shirts, and handles work for local sports teams, organizations and other businesses. One day, her machine went down. Repairs would take weeks. She immediately made arrangements with another embroidery operation some distance away to handle current work. And she ordered a second embroidery machine. Now she has backup to handle future emergencies.

     Example: Mary runs a high end gift shop. The hottest items are handmade jewelry. She makes arrangements with artists to supply earrings, necklaces, pins and brooches that will appeal to her customers. Early on, Mary realized that artists worked on their own schedules, but Mary had to be able to supply a large selection for customers. She achieves redundancy by working with a large number of artist-suppliers. Her display cases are always full with more jewelry pieces always in the pipeline.  

     Example: Tom is a trained chef who started his own catering business. A fire broke out in his kitchen, destroying his operation. To keep up with catering jobs already booked, Tom quickly made arrangements with several restaurants to supply items needed to meet schedules. The important thing was to keep the catering business viable. It took a month to get his own kitchen back into full operation, but the clients continued to be served. Today, Tom has put together an informal arrangement with several caterers and restaurants in his area. This small organization can meet the emergency needs for any of the members. 

     Example: Frank has recently established his computer coaching business in his home. He handles several small businesses in the area. Then the power went down for several hours one day. He realized he needed power backup. He now has a generator to supply power without interruption in case of a power emergency. 

     Redundancy can be a valuable asset in small business. Power outages, fire, flood, equipment breakdowns, even employee absences can trigger serious problems in small businesses.

     Backup is very important. See to it before it happens.

     Looking ahead is one of the most important parts of running a small business. You are your own backup. Always have a plan in place--just in case the unthinkable happens. 

Friday, September 11, 2015

Complain, complain

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     Some people spend their whole lives complaining. They seem to be looking for the next thing to complain about. And they find it.

     When your operation attracts a complainer, be prepared. When a complainer gets you in the cross hairs, it's time to go into action.

     You need to defuse the situation. You need to turn the complainer into an advocate who will spread good words about you and your operation. 

     Example: Janice began her business almost by accident. Her kids searched the net for the "right" backpack they wanted. Most of those commercially available were poorly made and were endlessly duplicated. Every one of their friends had the same or a very similar backpack. Then the kids hit pay dirt--they found a small supplier who made backpacks by hand to unusual designs. Janice bought one for each of her kids, and then she bought more to offer on her website to other kids. The orders poured in, and Janice was suddenly in a business of her own. When she has a complaint, which is rare, Janice takes care of it immediately. In fact, complaints get priority over other activities. When a boy complained that the straps did not fit around his growing shoulders, Janice sent straps for an adult man--no questions asked, no charge. The result was the boy singing Janice's praises on social media. 

     Example: Bill runs a restaurant and is active on social media. When a customer posted a negative review of the restaurant on Facebook, Bill went into action. He commented on Facebook as well: "We love complaints. They tell us how we are doing. And we use every complaint to improve and provide better meals, better service, and better lives for the people who visit us." It worked out well. The customer who had complained returned to the restaurant and identified herself. Bill gave her a free meal. 

     Example: Alice runs a pet supply store on Main Street. Next door on one side is a hardware store, and on the other side is a thrift shop. Customers frequently complained to Alice that they could never find a parking space. Owners of the other stores heard the same complaints. Alice took it upon herself to solve the problem. She contacted the town's mayor, and after months of wranglings with the town's bureaucrats, the town provided parking in the back of the row of stores. Today, customers enter the stores from the front or the back, and nobody complains. 

     Complaints should be taken seriously and solved. Complainers are everywhere. You must meet them and turn them around. Keep it positive.

     Success in business means taking care of business. That includes handling complainers--keeping your personal judgments to yourself.