Free daily tips, information, advice and ideas
to help you better manage your small business
You are running your small business. Or you are thinking about starting one. It's time to question--again--what you are doing and where you are headed.
Want proof? Throw your thinking forward a thousand years. Archaeologists are sifting through the remains of our civilization. They are perplexed. What could explain the millions of miles of paved roads and the vehicles that must have used them?
Gradually, the scientists home in on a theory. These ancient peoples were sun worshipers. They raced out of their homes at sunrise, driving around the roads to welcome the sun. At sundown, they interrupted their activities to drive around again to bid the sun goodnight. The highway cloverleafs were the temples.
Any given set of facts can be explained in very different ways. It's true with scientists, and it's true with you and your business.
Questions: Am I in the right business? Am I trying to move too quickly? Am I on top of the changing marketplace? Is the money for growth being generated quickly enough internally? Do I really know my clients/customers? Do they really know what I do, and can do, for them? Am I headed in the same direction they are headed? Do I pay enough attention to their needs and concerns? What can I do to better prepare for tomorrow's business world? Should I change directions to better address tomorrow's marketplace? Am I even asking the right questions?
People who run small businesses are fleet of foot. You can change directions quickly. This is a great asset, but it can lead you into blind alleys. Like future archaeologists, you can come to wrong conclusions.
Logical thinking is one of the great achievements of the human mind. But it is not the only tool you have. Intuition is the other tool. Always get logical thinking and intuition in sync with each other before you make that next big move.
Don't drift into changes that pull your business off course. Use logic and intuition to keep you headed in the direction you plan for.
Monday, October 19, 2015
Friday, October 16, 2015
Business friends
Free daily tips, information, advice and ideas
to help you better manage your small business
Business owners frequently don't know the difference between personal friends and business friends. Until you get the hang of it, it can be confusing.
A personal friend is someone you're comfortable with. You willingly share private pieces of your life. You enjoy being around personal friends.
A business friend is a customer or client. These people trust you to provide goods and services. They feel you have integrity. The relationship is at arm's length and professional.
Example: Irene operates a small gift shop. She is downright unpleasant with some customers who wander into her place. Instead of assuming a professional attitude, she immediately "likes" or dislikes" shoppers. She treats them accordingly, bringing her own attitudes and preferences into play. Because of unprofessional treatment, many potential shoppers leave and never return. Irene's business suffers because of her attitude. People who arrive in her shop don't come looking for a personal friend. Perhaps they were attracted by something they saw in the window, or maybe they were referred to the shop by a friend. They expect, and they deserve, respect from Irene.
Every business owner will encounter difficult and demanding customers. Sometimes these types of customers are people you'd rather not deal with. But you should be careful not to let personal preferences drive people away.
Example: Bob does home improvements. He has a lifetime of experience in carpentry, painting, and those small jobs around the house--hanging a door, repairing tile work, seeing to a squeaky stair. His estimates are free, but sometimes when he arrives at the homeowner's place, he turns and leaves without even knocking. He explains that he has seen so many homes and dealt with so many people, he could quickly make a decision whether or not he wanted to deal with the person.
This is not professional. That old car in the driveway might mean that the owner is thrifty. Maybe the person just bought the house and it needs lots of work. Maybe, well, anything.
You can run your business any way you like. But setting up to serve only people you would consider having as personal friends will severely limit your business future. Growth is best achieved by serving business friends in a professional, arm's length manner.
Your customers and clients are your business friends. They appreciate professionalism, and they will refer others to you. Personal friends are quite a different bunch of people.
When you let your personal "likes" and "dislikes" invade your business space, you run the risk of turning away the very customers and clients who can help you grow.
to help you better manage your small business
Business owners frequently don't know the difference between personal friends and business friends. Until you get the hang of it, it can be confusing.
A personal friend is someone you're comfortable with. You willingly share private pieces of your life. You enjoy being around personal friends.
A business friend is a customer or client. These people trust you to provide goods and services. They feel you have integrity. The relationship is at arm's length and professional.
Example: Irene operates a small gift shop. She is downright unpleasant with some customers who wander into her place. Instead of assuming a professional attitude, she immediately "likes" or dislikes" shoppers. She treats them accordingly, bringing her own attitudes and preferences into play. Because of unprofessional treatment, many potential shoppers leave and never return. Irene's business suffers because of her attitude. People who arrive in her shop don't come looking for a personal friend. Perhaps they were attracted by something they saw in the window, or maybe they were referred to the shop by a friend. They expect, and they deserve, respect from Irene.
Every business owner will encounter difficult and demanding customers. Sometimes these types of customers are people you'd rather not deal with. But you should be careful not to let personal preferences drive people away.
Example: Bob does home improvements. He has a lifetime of experience in carpentry, painting, and those small jobs around the house--hanging a door, repairing tile work, seeing to a squeaky stair. His estimates are free, but sometimes when he arrives at the homeowner's place, he turns and leaves without even knocking. He explains that he has seen so many homes and dealt with so many people, he could quickly make a decision whether or not he wanted to deal with the person.
This is not professional. That old car in the driveway might mean that the owner is thrifty. Maybe the person just bought the house and it needs lots of work. Maybe, well, anything.
You can run your business any way you like. But setting up to serve only people you would consider having as personal friends will severely limit your business future. Growth is best achieved by serving business friends in a professional, arm's length manner.
Your customers and clients are your business friends. They appreciate professionalism, and they will refer others to you. Personal friends are quite a different bunch of people.
When you let your personal "likes" and "dislikes" invade your business space, you run the risk of turning away the very customers and clients who can help you grow.
Thursday, October 15, 2015
Business drift
Free daily tips, information, advice and ideas
to help you better manage your small business
All businesses tend to drift. Your business drifts with the marketplace. It drifts with the economy. It drifts with technological change.
You notice your business being pulled this way and that. Change is different from drift. You might change with the changing marketplace--offering organic products to meet new demands.
Drift is when you chase the easy sale and ignore the rest of the business. Your business is drifting when you begin catering to the latest fad in the marketplace--ignoring the thing that made you successful in the first place.
Example: Mary loved making women's hats. She loved designing them. She loved selecting different materials to use in the hats. She also loved to decorate the hats with pins she had made using buttons, beads and seeds. These additional items made the hats "pop" and pushed sales. As time passed, however, Mary noticed that customers asked to buy the special pins, and they left the hats behind. She was happy to be selling things, and she concentrated on turning out pins--even though the pins did not sell for many dollars. Then she got an order for 500 pins. She was suddenly in the pin business and the hats languished on the displays. What had been the accessory became the main product. The business had drifted, becoming something else.
It is gratifying to get a bunch of new orders for your products. In small business, it can also mean that the other items and lines you offer will suffer. Your business is about to drift into new areas--areas that might not be consistent with where you want the business to go.
Example: John had worked on computers since his high school days. While still in college, he opened a computer repair shop. In those days, people would lug their desktops to his shop and he would get everything repaired and in shipshape. After college, John decided to expand his repair shop, addressing a change he spotted in the marketplace. Clients began asking John to come to their operation to install new computers and software, network them, and train employees in the use. Now and then, someone still brings a computer to his place for repair, but these days, John's business is primarily installing, troubleshooting, networking and training at clients' offices.
Sometimes technological changes can result in business drift that makes a lot of sense. But don't ever drift into lines of business that are inconsistent with your long term goals and business plan.
Business drift happens all the time. Be alert to drifts. Before you let a drift change the nature of your business, check it out carefully.
to help you better manage your small business
All businesses tend to drift. Your business drifts with the marketplace. It drifts with the economy. It drifts with technological change.
You notice your business being pulled this way and that. Change is different from drift. You might change with the changing marketplace--offering organic products to meet new demands.
Drift is when you chase the easy sale and ignore the rest of the business. Your business is drifting when you begin catering to the latest fad in the marketplace--ignoring the thing that made you successful in the first place.
Example: Mary loved making women's hats. She loved designing them. She loved selecting different materials to use in the hats. She also loved to decorate the hats with pins she had made using buttons, beads and seeds. These additional items made the hats "pop" and pushed sales. As time passed, however, Mary noticed that customers asked to buy the special pins, and they left the hats behind. She was happy to be selling things, and she concentrated on turning out pins--even though the pins did not sell for many dollars. Then she got an order for 500 pins. She was suddenly in the pin business and the hats languished on the displays. What had been the accessory became the main product. The business had drifted, becoming something else.
It is gratifying to get a bunch of new orders for your products. In small business, it can also mean that the other items and lines you offer will suffer. Your business is about to drift into new areas--areas that might not be consistent with where you want the business to go.
Example: John had worked on computers since his high school days. While still in college, he opened a computer repair shop. In those days, people would lug their desktops to his shop and he would get everything repaired and in shipshape. After college, John decided to expand his repair shop, addressing a change he spotted in the marketplace. Clients began asking John to come to their operation to install new computers and software, network them, and train employees in the use. Now and then, someone still brings a computer to his place for repair, but these days, John's business is primarily installing, troubleshooting, networking and training at clients' offices.
Sometimes technological changes can result in business drift that makes a lot of sense. But don't ever drift into lines of business that are inconsistent with your long term goals and business plan.
Business drift happens all the time. Be alert to drifts. Before you let a drift change the nature of your business, check it out carefully.
Wednesday, October 14, 2015
Educating customers
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.
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.
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.
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