Free daily tips, information, advice and ideas
to help you better manage your small business
Your clients and customers don't always know the best solution to their problem. This is an opportunity for you to educate them--and grow your business at the same time.
It's true in many businesses--dentists and therapists, computing and technology experts, landscaping and home remodeling, gift shops and health food stores, gyms and auto repair shops.
It's up to you to dig beneath the surface, make certain you identify the problems, and offer solutions to make clients happy. Or, take them by the hand and educate them on the many additional possibilities open to them.
Example: Frank is an expert in computer technology, social media, networking and more. He realized that people in small business understand the value of computers in accounting and taxes, but that they have little understanding of the value of social media. Frank began informal sessions to educate his clients in how to use social media to grow and expand their operations. These sessions were so successful, Frank expanded them. Now he's teaching his clients the use of social media--and attracting additional clients to his business.
Example: Jim is a specialist in home remodeling. He brings lots of experience to his visits with customers. He provides much more than just free estimates. If it's a kitchen, he quickly sketches out some possibilities, asking questions about the special needs of the cook--islands for special work, hanging racks for pans, storage for small appliances, etc. For offices, Jim discusses what kinds of work will be done there--placement of lighting and windows, storage cabinets and racks or shelving. If children are in the house, he reminds the client that the children will be growing up and leaving--what will they do with the extra space?
Educating your customers can transform the selling experience. It can turn one job into an on-going relationship. It can also set up future sales.
More examples: A dentist concentrates on selling smiles, not crowns and fillings. An audiologist reminds clients that no one pays the bill until 60 days of satisfactory experience have passed. A landscaper shows his client what the new flower garden will look like using all the computer tools in his handy laptop. Lawyers educate clients on the laws applicable to the case at hand.
Make educating your clients a part of your business. An educated client will return to you again and again--and refer others to you.
Wednesday, October 14, 2015
Tuesday, October 13, 2015
Shipping charges
Free daily tips, information, advice and ideas
to help you better manage your small business
But wait! We'll double the offer! And shipping is free!
We've all heard the pitch on cable for kitchen items or cleaning products. These pitches come fast and furious. They must work, or they would not be so plentiful.
There is a clue here that can be useful in any small business. If you sell online (and why aren't you?), take heed of the free shipping ploy.
Sellers have learned that people hate it when you low-ball the price of an item only to tack on a shipping charge when they go to checkout. It's annoying to get all the way to checkout and then face another charge. When it has happened to me, I simply abandon the shopping cart and go to another website.
The thing that cable advertisers have learned is to include shipping charges in the price of the product and make a big deal of free shipping. Some sellers add a "handling" charge which can cost as much as the item itself. But they still get to emphasize that shipping is free.
Small businesses that sell through a website can tackle this problem in another way--by raising item prices. This accomplishes two things at the same time: you weed out bargain seekers and eliminate that annoying shipping charge.
Example: Wendy is an artist who hand paints silk scarves with colorful and original designs. She sells at high end gift shops, shows, and through her website. On her website, she priced her scarves at $75 and up in the past and at checkout a shipping charge was added. Wendy decided to make changes. Today, all orders are gift-wrapped, priced at $100 and up, and shipping charges have been eliminated. She is realizing more sales.
Example: Ellen sells dozens of different teas through her website and ships to customers far and near. On orders of $25 or more, shipping is free. Under $25, buyers pay for shipping. It has worked well for Ellen.
Example: Tom sells all sorts of games through his website. They run the gamut from board games to older computer games. Some are small and lightweight, while others are large and heavyweight. His customers don't seem to mind shipping charges.
Adding shipping charges to your sale can affect customers in different ways. Some are turned off by shipping charges. Others don't seem to mind. It depends on your market and how you work with it.
If your sales involve shipping, it will pay to experiment with the shipping charge problem. In general, the heavier and bulkier the item, the less concerned with a shipping charge a customer will be.
to help you better manage your small business
But wait! We'll double the offer! And shipping is free!
We've all heard the pitch on cable for kitchen items or cleaning products. These pitches come fast and furious. They must work, or they would not be so plentiful.
There is a clue here that can be useful in any small business. If you sell online (and why aren't you?), take heed of the free shipping ploy.
Sellers have learned that people hate it when you low-ball the price of an item only to tack on a shipping charge when they go to checkout. It's annoying to get all the way to checkout and then face another charge. When it has happened to me, I simply abandon the shopping cart and go to another website.
The thing that cable advertisers have learned is to include shipping charges in the price of the product and make a big deal of free shipping. Some sellers add a "handling" charge which can cost as much as the item itself. But they still get to emphasize that shipping is free.
Small businesses that sell through a website can tackle this problem in another way--by raising item prices. This accomplishes two things at the same time: you weed out bargain seekers and eliminate that annoying shipping charge.
Example: Wendy is an artist who hand paints silk scarves with colorful and original designs. She sells at high end gift shops, shows, and through her website. On her website, she priced her scarves at $75 and up in the past and at checkout a shipping charge was added. Wendy decided to make changes. Today, all orders are gift-wrapped, priced at $100 and up, and shipping charges have been eliminated. She is realizing more sales.
Example: Ellen sells dozens of different teas through her website and ships to customers far and near. On orders of $25 or more, shipping is free. Under $25, buyers pay for shipping. It has worked well for Ellen.
Example: Tom sells all sorts of games through his website. They run the gamut from board games to older computer games. Some are small and lightweight, while others are large and heavyweight. His customers don't seem to mind shipping charges.
Adding shipping charges to your sale can affect customers in different ways. Some are turned off by shipping charges. Others don't seem to mind. It depends on your market and how you work with it.
If your sales involve shipping, it will pay to experiment with the shipping charge problem. In general, the heavier and bulkier the item, the less concerned with a shipping charge a customer will be.
Monday, October 12, 2015
Build with social media
Free daily tips, information, advice and ideas
to help you better manage your small business
Social media offers many opportunities for establishing and building a small business. Start with your tablet, your desktop, your phone. Take pictures and selfies.
With today's technology, you can build your business at home or in the local coffee shop. You can start with a single sale and grow from there.
Example: Jack became intrigued with hydroponics. He thought that growing things without soil was simply amazing. He experimented in his basement, setting up racks of water-filled containers under grow lights where he began growing basil and lettuce. Next, he experimented with tomatoes. He gave some away to a neighbor who was a chef. This led to a conversation in which they discussed Jack's furnishing lettuce and tomatoes to the restaurant. Jack added to his basement hydroponic setup and today supplies several restaurants with fresh tomatoes and greens--year round. He has used social media to reach out to additional customers, and he is looking to eventually expand into an older, unused warehouse building--and serve a much bigger market.
Example: Jill loves baking and discovered the many uses of ginger in cookies and cakes, even brownies and scones. She put pictures of her creations on social media and began building her business. Today, you'll find Jill's ginger goodies at corporate meetings, organizational gatherings, spas and retreats, as well as at upscale food stores. Jill's only sales force is social media, and her bakery is totally devoted to items incorporating ginger. UPS trucks come every day to take away packages being delivered to waiting customers.
Example: Takisha runs a pet supply store--no animals sold here, but everything needed for your dog, cat, or pocket pet. To increase traffic and sales, Takisha decided to add puppies--not for sale, but from local adoption agencies. She installed the puppies in the front window of her Main Street shop, and she posted pictures of them on social media. To build interest, she took selfies with each puppy and posted a deadline date (3 or 4 days hence) when the puppy was to be returned to the adoption agency. This created a sense of urgency and brought people into the shop where they bought all sorts of pet supplies--and sometimes adopted a puppy.
Your small business can grow and expand in direct proportion to how much you promote it. Today's social media provides a wealth of opportunity not available 20 years ago.
Don't think you have to be a professional photographer to take pictures for social media. You don't need museum quality. Just about any picture will do. Who can resist a picture of a puppy--and passing it on to friends?
to help you better manage your small business
Social media offers many opportunities for establishing and building a small business. Start with your tablet, your desktop, your phone. Take pictures and selfies.
With today's technology, you can build your business at home or in the local coffee shop. You can start with a single sale and grow from there.
Example: Jack became intrigued with hydroponics. He thought that growing things without soil was simply amazing. He experimented in his basement, setting up racks of water-filled containers under grow lights where he began growing basil and lettuce. Next, he experimented with tomatoes. He gave some away to a neighbor who was a chef. This led to a conversation in which they discussed Jack's furnishing lettuce and tomatoes to the restaurant. Jack added to his basement hydroponic setup and today supplies several restaurants with fresh tomatoes and greens--year round. He has used social media to reach out to additional customers, and he is looking to eventually expand into an older, unused warehouse building--and serve a much bigger market.
Example: Jill loves baking and discovered the many uses of ginger in cookies and cakes, even brownies and scones. She put pictures of her creations on social media and began building her business. Today, you'll find Jill's ginger goodies at corporate meetings, organizational gatherings, spas and retreats, as well as at upscale food stores. Jill's only sales force is social media, and her bakery is totally devoted to items incorporating ginger. UPS trucks come every day to take away packages being delivered to waiting customers.
Example: Takisha runs a pet supply store--no animals sold here, but everything needed for your dog, cat, or pocket pet. To increase traffic and sales, Takisha decided to add puppies--not for sale, but from local adoption agencies. She installed the puppies in the front window of her Main Street shop, and she posted pictures of them on social media. To build interest, she took selfies with each puppy and posted a deadline date (3 or 4 days hence) when the puppy was to be returned to the adoption agency. This created a sense of urgency and brought people into the shop where they bought all sorts of pet supplies--and sometimes adopted a puppy.
Your small business can grow and expand in direct proportion to how much you promote it. Today's social media provides a wealth of opportunity not available 20 years ago.
Don't think you have to be a professional photographer to take pictures for social media. You don't need museum quality. Just about any picture will do. Who can resist a picture of a puppy--and passing it on to friends?
Friday, October 9, 2015
Multi-business promotions
Free daily tips, information, advice and ideas
to help you better manage your small business
Successful businesses promote. Ways to promote vary widely. What works for a therapist might not work so well for an auto repair shop.
Some promotional activities work well in many businesses. Open houses, networking events, informational sessions and demonstrations can work for just about any business.
Two or more businesses can join together to hold a promotional event that benefits both businesses. The event can be easy to organize and cost little.
Example: Spas and salons can bring in holistic practitioners to offer introductory sessions explaining their services. The sessions create buzz for the spas and salons, not only among regular clients but among referrals as well. The sessions can lead to more substantive sessions for nutritionists, hypnotherapists and massage experts. Such promotions can lead to permanent arrangements between the salon and the therapist, leading to the establishment of a wellness center.
Example: A small neighborhood restaurant brings in a group of musicians who perform Irish music on authentic instruments. The musicians do it for the love of the music--and a venue where they can practice and perform. People come to expect the music every Sunday afternoon, and the restaurant is more successful than before. Both parties win with this type of promotion.
Example: A video production company teams with several computer experts to offer free sessions and demonstrations open to the public. The sessions attract people in business who get answers to their questions on computer equipment and software problems. These people also get an introduction to the marketing advantages of video. A local caterer has joined the sessions, furnishing food to the attendees. It has become a regular monthly multi-business promotional event.
Example: A garden center hosts free sessions by experienced gardeners and landscapers. The events attract homeowners who contract with the landscapers and buy materials from the garden center.
Multi-business promotions can be very effective in attracting new customer streams. With these types of promotions, you are coming at prospective customers from a different angle of interest.
To set up a multi-business promotion, think outside the box. What types of new customers do I want to attract? What are they interested in? What other non-competing businesses can help attract attention?
Once you've decided on a promotion, and once you've homed in on a partnering business, it's time to promote the promotion. Get the word out on social media--well in advance of the big day.
to help you better manage your small business
Successful businesses promote. Ways to promote vary widely. What works for a therapist might not work so well for an auto repair shop.
Some promotional activities work well in many businesses. Open houses, networking events, informational sessions and demonstrations can work for just about any business.
Two or more businesses can join together to hold a promotional event that benefits both businesses. The event can be easy to organize and cost little.
Example: Spas and salons can bring in holistic practitioners to offer introductory sessions explaining their services. The sessions create buzz for the spas and salons, not only among regular clients but among referrals as well. The sessions can lead to more substantive sessions for nutritionists, hypnotherapists and massage experts. Such promotions can lead to permanent arrangements between the salon and the therapist, leading to the establishment of a wellness center.
Example: A small neighborhood restaurant brings in a group of musicians who perform Irish music on authentic instruments. The musicians do it for the love of the music--and a venue where they can practice and perform. People come to expect the music every Sunday afternoon, and the restaurant is more successful than before. Both parties win with this type of promotion.
Example: A video production company teams with several computer experts to offer free sessions and demonstrations open to the public. The sessions attract people in business who get answers to their questions on computer equipment and software problems. These people also get an introduction to the marketing advantages of video. A local caterer has joined the sessions, furnishing food to the attendees. It has become a regular monthly multi-business promotional event.
Example: A garden center hosts free sessions by experienced gardeners and landscapers. The events attract homeowners who contract with the landscapers and buy materials from the garden center.
Multi-business promotions can be very effective in attracting new customer streams. With these types of promotions, you are coming at prospective customers from a different angle of interest.
To set up a multi-business promotion, think outside the box. What types of new customers do I want to attract? What are they interested in? What other non-competing businesses can help attract attention?
Once you've decided on a promotion, and once you've homed in on a partnering business, it's time to promote the promotion. Get the word out on social media--well in advance of the big day.
Thursday, October 8, 2015
Organic business planning
Free daily tips, information, advice and ideas
to help you better manage your small business
Business planning is not difficult. You already do business planning all the time.
It is all about marketing. It is all about customers/clients. No matter your business, your future depends on them. They are the foundation.
Today's customers tell you where you are. Tomorrow's customers tell you where you are headed. A formal business plan puts all this into perspective. And a business plan grows out of those future customers.
Figure out who tomorrow's customers will be for your products and services. How many customers can you attract? Turn all this into future sales numbers. So much for your current products and services.
Then, figure out what additional products/services you can add. Again, how many customers will these new products/services attract? Turn all this into future sales numbers. So it goes.
Examples: You are a chiropractor, and you're getting questions from present clients about the benefits of seeing a massage therapist. You run a restaurant, and you're getting requests for gluten-free preparations. You operate a small print shop, and you're asked for a referral to handle small mailings. You have a yoga studio, and people are asking you to recommend a nutritionist. You are an attorney, and you get a call asking for a recommendation for someone to handle a worker's comp claim. You are a landscaper, but can you build a patio? You can troubleshoot and repair my computer networks, but can you help me with social media?
All these examples are clues to possible expansions of small businesses. These clues come from customers/clients looking for products and services to better serve their needs. And they can point the way to your expansion.
Clues come to you almost daily. Don't dismiss these clues. They are valuable planning initiators. Does the question trigger a possible expansion direction for your business?
Expansions can be as simple as adding a new line of products. Or you can decide to go off in a completely new direction. Either way, take a hard look at the market that will support the new direction or the new line.
Planning is a way of everyday life. It's organic. It's part of you. You already do the daily stuff. Now it's all about the future market. Turn it into numbers projected into the future, and you have your business plan.
Don't go all wobbly when you are asked for your business plan. You do it every day. Now, put numbers to tomorrow's market.
to help you better manage your small business
Business planning is not difficult. You already do business planning all the time.
It is all about marketing. It is all about customers/clients. No matter your business, your future depends on them. They are the foundation.
Today's customers tell you where you are. Tomorrow's customers tell you where you are headed. A formal business plan puts all this into perspective. And a business plan grows out of those future customers.
Figure out who tomorrow's customers will be for your products and services. How many customers can you attract? Turn all this into future sales numbers. So much for your current products and services.
Then, figure out what additional products/services you can add. Again, how many customers will these new products/services attract? Turn all this into future sales numbers. So it goes.
Examples: You are a chiropractor, and you're getting questions from present clients about the benefits of seeing a massage therapist. You run a restaurant, and you're getting requests for gluten-free preparations. You operate a small print shop, and you're asked for a referral to handle small mailings. You have a yoga studio, and people are asking you to recommend a nutritionist. You are an attorney, and you get a call asking for a recommendation for someone to handle a worker's comp claim. You are a landscaper, but can you build a patio? You can troubleshoot and repair my computer networks, but can you help me with social media?
All these examples are clues to possible expansions of small businesses. These clues come from customers/clients looking for products and services to better serve their needs. And they can point the way to your expansion.
Clues come to you almost daily. Don't dismiss these clues. They are valuable planning initiators. Does the question trigger a possible expansion direction for your business?
Expansions can be as simple as adding a new line of products. Or you can decide to go off in a completely new direction. Either way, take a hard look at the market that will support the new direction or the new line.
Planning is a way of everyday life. It's organic. It's part of you. You already do the daily stuff. Now it's all about the future market. Turn it into numbers projected into the future, and you have your business plan.
Don't go all wobbly when you are asked for your business plan. You do it every day. Now, put numbers to tomorrow's market.
Wednesday, October 7, 2015
Raising your prices
Free daily tips, information, advice and ideas
to help you better manage your small business
Most small businesses operate on a thin margin. Income scarcely exceeds expenses, leaving little room to grow.
If this describes your situation, you might give some thought to your pricing. You might be letting your competition guide your pricing instead of the marketplace.
Markets for goods and services are all over the map. You can price low and attract bargain seekers. You can price to meet the competition and struggle to bring clients and customers to you. Or you can price higher and attract a higher end market segment.
Example: A hairdresser can struggle to make a living pricing haircuts at $10. Raise the price to $50 and the bargain seekers go elsewhere. Raise the price again, and you'll better define who seeks you out for that special haircut. By raising your prices you will serve fewer clients, but you can have a healthier bottom line.
Example: A baker will not sell many cupcakes carrying a price tag of $100 each. But that same baker can sell a creatively designed cake for a special occasion at $100 or more. Bargain hunters will buy cakes at the supermarket, but buyers who appreciate and can pay for creatively designed cakes will come to you.
This shows what can happen when you target certain market segments by raising your prices. Pricing positions your business in the public's minds.
Figuring out and targeting your client/customer base is crucial to growing a healthy business. Adjusting your pricing to a particular market segment helps you do this. You want to attract those who appreciate and will pay for your quality products/services and your superior customer service. You price to attract those types of people.
Example: A fabric artist who designs and sells women's accessories priced competitively with WalMart will struggle to make a living. By raising prices for a hand-painted scarf to $100 or more, however, the WalMart shoppers are weeded out in favor of a more appreciative crowd.
Example: A pet groomer who offers an inexpensive grooming service can double or triple prices by offering a little more. Get the word out to drop off your dog on your way to work and pick up after work. The groomer not only grooms, but "babysits" the dog all day. This convenience is worth much more to the customer.
Figure out what market segment you want to serve. Then set your prices to attract those people. You can build a healthier business by pricing to a higher end of the market.
to help you better manage your small business
Most small businesses operate on a thin margin. Income scarcely exceeds expenses, leaving little room to grow.
If this describes your situation, you might give some thought to your pricing. You might be letting your competition guide your pricing instead of the marketplace.
Markets for goods and services are all over the map. You can price low and attract bargain seekers. You can price to meet the competition and struggle to bring clients and customers to you. Or you can price higher and attract a higher end market segment.
Example: A hairdresser can struggle to make a living pricing haircuts at $10. Raise the price to $50 and the bargain seekers go elsewhere. Raise the price again, and you'll better define who seeks you out for that special haircut. By raising your prices you will serve fewer clients, but you can have a healthier bottom line.
Example: A baker will not sell many cupcakes carrying a price tag of $100 each. But that same baker can sell a creatively designed cake for a special occasion at $100 or more. Bargain hunters will buy cakes at the supermarket, but buyers who appreciate and can pay for creatively designed cakes will come to you.
This shows what can happen when you target certain market segments by raising your prices. Pricing positions your business in the public's minds.
Figuring out and targeting your client/customer base is crucial to growing a healthy business. Adjusting your pricing to a particular market segment helps you do this. You want to attract those who appreciate and will pay for your quality products/services and your superior customer service. You price to attract those types of people.
Example: A fabric artist who designs and sells women's accessories priced competitively with WalMart will struggle to make a living. By raising prices for a hand-painted scarf to $100 or more, however, the WalMart shoppers are weeded out in favor of a more appreciative crowd.
Example: A pet groomer who offers an inexpensive grooming service can double or triple prices by offering a little more. Get the word out to drop off your dog on your way to work and pick up after work. The groomer not only grooms, but "babysits" the dog all day. This convenience is worth much more to the customer.
Figure out what market segment you want to serve. Then set your prices to attract those people. You can build a healthier business by pricing to a higher end of the market.
Tuesday, October 6, 2015
Risky business
Free daily tips, information, advice and ideas
to help you better manage your small business
If your mother had not taken the risk of carrying you to term, you would not be reading this. If you had not taken the risk of failing, you would not be in business.
Life is full of risks. A tree limb can fall on you, but you walk under trees. An oncoming vehicle can swerve in front of you, but you still drive here and there.
In business you are continually taking risks. You offer additional products and services. You tackle new markets. You change the way you manage.
At every turn, you face the danger of failing. Small or large, failure is always a possibility. The small failures prepare you to take the bigger risks.
Many small businesses never grow and expand because of the fear of failure. The massage therapist who could expand into a wellness center, but doesn't. The landscaper who could expand into a garden center, but doesn't. The tax specialist who could expand into a full accounting operation, but doesn't.
To grow a small business into a larger operation takes a dream, a plan, and a follow-up. Taking risks along the way is part of the game.
Of course, if you've built your small business to the size that you're comfortable with and you don't want to grow bigger, that's one thing. But if your dream is still not realized, then taking risks can get you there.
Example: Mary established her small bakery and tried baking all sorts of goodies until she settled on the mix of products that brought in retail customers and wholesale clients. She let the business "settle in" for a few years. Then, Mary decided that the time was right for taking the next step. She took a big loan, expanded into a second operation. She was on the way to franchising neighborhood bakeries. By taking the small risks over time, she was following her long term plan--and the biggest risk of her business life.
A funny thing happens to most business owners. They get into business and it works. Years of struggle establishing the operation finally are in the rear view mirror.
Then they become fearful that any changes will destroy what they have built. They begin to avoid the little risks, and the big risks are out of the question. They nibble around the edges of the business, never becoming what they could achieve.
Never take unnecessary risks. And, before taking a giant leap, always think through what you are about to do. That fear of failure can serve you well. Just don't let it keep you from taking the big risks. Your mother didn't hesitate carrying you.
When you run a business, you learn many things. Everything you do carries a risk, and not all risks turn out well. Learn from failure and keep on going toward your dream.
to help you better manage your small business
If your mother had not taken the risk of carrying you to term, you would not be reading this. If you had not taken the risk of failing, you would not be in business.
Life is full of risks. A tree limb can fall on you, but you walk under trees. An oncoming vehicle can swerve in front of you, but you still drive here and there.
In business you are continually taking risks. You offer additional products and services. You tackle new markets. You change the way you manage.
At every turn, you face the danger of failing. Small or large, failure is always a possibility. The small failures prepare you to take the bigger risks.
Many small businesses never grow and expand because of the fear of failure. The massage therapist who could expand into a wellness center, but doesn't. The landscaper who could expand into a garden center, but doesn't. The tax specialist who could expand into a full accounting operation, but doesn't.
To grow a small business into a larger operation takes a dream, a plan, and a follow-up. Taking risks along the way is part of the game.
Of course, if you've built your small business to the size that you're comfortable with and you don't want to grow bigger, that's one thing. But if your dream is still not realized, then taking risks can get you there.
Example: Mary established her small bakery and tried baking all sorts of goodies until she settled on the mix of products that brought in retail customers and wholesale clients. She let the business "settle in" for a few years. Then, Mary decided that the time was right for taking the next step. She took a big loan, expanded into a second operation. She was on the way to franchising neighborhood bakeries. By taking the small risks over time, she was following her long term plan--and the biggest risk of her business life.
A funny thing happens to most business owners. They get into business and it works. Years of struggle establishing the operation finally are in the rear view mirror.
Then they become fearful that any changes will destroy what they have built. They begin to avoid the little risks, and the big risks are out of the question. They nibble around the edges of the business, never becoming what they could achieve.
Never take unnecessary risks. And, before taking a giant leap, always think through what you are about to do. That fear of failure can serve you well. Just don't let it keep you from taking the big risks. Your mother didn't hesitate carrying you.
When you run a business, you learn many things. Everything you do carries a risk, and not all risks turn out well. Learn from failure and keep on going toward your dream.
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