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to help you better manage your small business
Businesses change directions in two ways. They can drift into new markets or they can deliberately strike off down another road.
When you spot your business drifting, it's time to evaluate whether or not you want to follow the drift. It might be the future, or it might be a dead end. Remember the video store?
On the other hand, when you spot a new market opportunity, it can represent a direction you might want to check out. It might work, or it might not.
Example: A small machine shop was a family operation for many years. The shop had long ago installed the computer-driven machines to serve customers in aerospace, medical, and other corporate fields. Then, along came 3-D printing. This new technology could produce parts in plastics and metals. The machine shop owner was reluctant in the beginning to jump into the new field too quickly. But 3-D printing showed the promise of revolutionizing the industry. He installed one of the new machines, began training his people, and began turning out useful pieces--some of which could expand the market he served. He was changing the way his business would serve the marketplace in the future.
Technology can offer all sorts of opportunities to change business direction. Think how social media can point thousands of potential customers to your website. This has changed the direction of many businesses, exploding the reach into new markets.
But things less sexy can change as well. Think food.
Example: A local small farmer is producing lettuces, spinach, and seasonal greens and herbs. He spotted a new product in his fields--the flower buds produced in spring from last year's kale crop. It's fresh, it's local, it's kale, it's new--all the elements to excite the marketplace. Chefs are now using kale buds in various ways--sauteed, in soups, in omelets. The farmer also offers milkweed buds and day lily buds which chefs are using in the same ways. These are "new" products which were there all along, but whose time has come in the marketplace.
Changing the direction of your business offers opportunities to push more products and services into the marketplace. Think outside the box to come up with ways that work for you.
Changing directions in your business can open up new avenues to growth, expansion and future success. Keep an eye on that business plan, however. You don't want to get ahead of your self.
Monday, October 26, 2015
Friday, October 23, 2015
Easy business expansions
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Expanding and growing your small business is not difficult. In fact, it can be downright easy--when you think about it. You build out what you already do, or you make the leap into a new direction.
Service businesses can be very easy to expand. A nutritionist, for example, can offer free cooking demonstrations to be held at meetings of various organizations. Therapists can partner with chiropractors to offer services to a non-competing group. Lawyers can expand into specialty markets--elder law and worker's comp cases are two areas.
Hard goods businesses can also be easy to expand. A bakery, for example, can begin offering goodies on social media and ship out to new customers far and near. Health food stores can add lines of fresh, organic pet foods to the product lines already being sold to humans.
Build on what you already offer when you think about expanding. Watch the marketplace for ideas, and then nudge your operation in a new direction. Some things work. Others, not so much.
Example: Robert is a small independent website designer. He began in a small shop and reached out to potential customers. He expands his business by offering onsite services to small businesses in his area. He helps his clients--at their sites--to buy and install new equipment, network their systems, troubleshoot problems. He is taking it to the next level by offering training sessions.
Example: June operates a small struggling frame shop. She expanded her business by offering local artists an opportunity to hang their works in her frame shop. She holds monthly openings, or meet-the-artist sessions, which are attracting a great deal of attention--especially since she began posting on social media. She is now looking for fiber artists and sculptors to expand further, and her framing operation now includes shadowbox types of frames to accommodate three dimensional art works.
When looking for ways to expand, remember your present clients and customers. They, too, might be heading in different directions. Or they might need a word from you to lead them into serving new markets of their own. Either way, they can represent valid business expansions for you to exploit.
The marketplace is a moving target. When you take aim at one direction, you might hit or you might miss. But you keep trying. Never give up.
to help you better manage your small business
Expanding and growing your small business is not difficult. In fact, it can be downright easy--when you think about it. You build out what you already do, or you make the leap into a new direction.
Service businesses can be very easy to expand. A nutritionist, for example, can offer free cooking demonstrations to be held at meetings of various organizations. Therapists can partner with chiropractors to offer services to a non-competing group. Lawyers can expand into specialty markets--elder law and worker's comp cases are two areas.
Hard goods businesses can also be easy to expand. A bakery, for example, can begin offering goodies on social media and ship out to new customers far and near. Health food stores can add lines of fresh, organic pet foods to the product lines already being sold to humans.
Build on what you already offer when you think about expanding. Watch the marketplace for ideas, and then nudge your operation in a new direction. Some things work. Others, not so much.
Example: Robert is a small independent website designer. He began in a small shop and reached out to potential customers. He expands his business by offering onsite services to small businesses in his area. He helps his clients--at their sites--to buy and install new equipment, network their systems, troubleshoot problems. He is taking it to the next level by offering training sessions.
Example: June operates a small struggling frame shop. She expanded her business by offering local artists an opportunity to hang their works in her frame shop. She holds monthly openings, or meet-the-artist sessions, which are attracting a great deal of attention--especially since she began posting on social media. She is now looking for fiber artists and sculptors to expand further, and her framing operation now includes shadowbox types of frames to accommodate three dimensional art works.
When looking for ways to expand, remember your present clients and customers. They, too, might be heading in different directions. Or they might need a word from you to lead them into serving new markets of their own. Either way, they can represent valid business expansions for you to exploit.
The marketplace is a moving target. When you take aim at one direction, you might hit or you might miss. But you keep trying. Never give up.
Thursday, October 22, 2015
Inspire your employees
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Every business, large or small, needs to optimize the performance of employees. No whips and chains. Just positive stuff.
People appreciate being appreciated. Deep down, all of us crave acceptance. And recognition. That's why a simple "Thank you" goes a long way toward creating renewed enthusiasm and enhancing performance.
Other ways to inspire your employees are effective as well, and they can be used in combination. Here is a laundry list of possibilities.
1. In very small businesses, handing out a $20 bill now and then for extraordinary effort can spur even greater effort and creativity in an employee. Or give a paid day off now and then.
2. Call everyone together and recognize superior performance in front of the group. If you have weekly or monthly meetings, you might do it then.
3. Set up a bonus system to reward superior performance. You can get creative yourself in how you do this, how you select the person getting the bonus, the timing, etc.
4. Set up an employee of the month program. Don't let it become routine. Make it a vital part of the on-going business. Use a plaque to which names can be added, inscribed on metal plates.
5. Make up company tee shirts and hand them out at company picnics or other functions. These can be for a stated reason, or they can be part of the way you run your business.
6. Go the extra mile. If your business is incorporated, consider giving out stock certificates to valuable employees. If parking is a problem at your place, consider putting employee names on parking places--yours should be at the end of the line, not closest to the door. If you don't have a company retirement plan, consider setting one up--you will need professional help with this.
Other options can be effective. Put on your thinking cap. Get creative. Little things that show your thoughtfulness and appreciation are often more effective than making a big splash.
Whatever you do, do it with a "Thank you" to the employee.
Keeping your employees happy keeps you on the road to success. And let's face it. Without the commitment and hard work of employees, your business cannot succeed.
to help you better manage your small business
Every business, large or small, needs to optimize the performance of employees. No whips and chains. Just positive stuff.
People appreciate being appreciated. Deep down, all of us crave acceptance. And recognition. That's why a simple "Thank you" goes a long way toward creating renewed enthusiasm and enhancing performance.
Other ways to inspire your employees are effective as well, and they can be used in combination. Here is a laundry list of possibilities.
1. In very small businesses, handing out a $20 bill now and then for extraordinary effort can spur even greater effort and creativity in an employee. Or give a paid day off now and then.
2. Call everyone together and recognize superior performance in front of the group. If you have weekly or monthly meetings, you might do it then.
3. Set up a bonus system to reward superior performance. You can get creative yourself in how you do this, how you select the person getting the bonus, the timing, etc.
4. Set up an employee of the month program. Don't let it become routine. Make it a vital part of the on-going business. Use a plaque to which names can be added, inscribed on metal plates.
5. Make up company tee shirts and hand them out at company picnics or other functions. These can be for a stated reason, or they can be part of the way you run your business.
6. Go the extra mile. If your business is incorporated, consider giving out stock certificates to valuable employees. If parking is a problem at your place, consider putting employee names on parking places--yours should be at the end of the line, not closest to the door. If you don't have a company retirement plan, consider setting one up--you will need professional help with this.
Other options can be effective. Put on your thinking cap. Get creative. Little things that show your thoughtfulness and appreciation are often more effective than making a big splash.
Whatever you do, do it with a "Thank you" to the employee.
Keeping your employees happy keeps you on the road to success. And let's face it. Without the commitment and hard work of employees, your business cannot succeed.
Wednesday, October 21, 2015
Making critical decisions
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Decisions are a daily concern in operating a small business. Decision making becomes second nature. Most are small, but some are big.
One good way to tackle the big decisions is to use the if/then model. If this happens, then what do I do? If this doesn't work, then what is my second alternative?
If the economy goes south, then I'll concentrate on this group of products/services and let the rest slide. If this type of advertising does not work, then I'll shift to social media alternatives. If a big box store comes to town, then I'll begin offering things they don't carry.
Example: Artists can have a difficult time connecting with the buying public. Juan loved to draw. Growing up, he honed his skills, including painting in oils. He attracted interest, but he noticed that people at shows and festivals bought pen and ink drawings of homes, buildings, bridges and the like. He thought about it, and he decided to concentrate on building a following with people interested in pen and ink. Doing these are easy and quick for Juan, and the word spread quickly. People now call him to come and do a drawing of their home, barn, and other local structures. This is now supporting Juan, and he uses his spare time to produce more oil paintings. His reputation is slowly spreading as an up and coming oil artist to watch--and buy.
Sometimes an interim path can be the main road to the goal you want to eventually reach. Don't disparage baby steps to get you there. Put the if/then decisions to work in building your business.
Example: Joel had time to plan ahead. WalMart announced some 18 months ahead of time that the company would be opening one of their big stores nearby. Joel feared for the future of his small hardware store, and he soon arrived at a "planning ahead" decision. If WalMart came to town, people would be buying everyday hardware items from them, not Joel's hardware store. So, he decided to move from his cramped, in-town store to a sprawling suburban lot on a main road. Simultaneously, he would change the direction of his business. Contractors and homeowners already came to Joel's place to rent the power tools and equipment they needed for a day or two. In his sprawling new location, Joel would have more room and could add more rentals. Today, Joel is in his new place, offering more and more rentals--including trucks and trailers. He has been able to add a repairman to keep the equipment shipshape. He still offers high quality hardware items and power tools for sale--concentrating on items not carried by WalMart.
Sometimes, owners of small businesses get comfortable with the business running itself. But the marketplace is always changing. It can take an outside force to kick start big decisions.
You can never know what the future will bring. But you can get ready for some possible changes in direction using the if/then decision making tool.
to help you better manage your small business
Decisions are a daily concern in operating a small business. Decision making becomes second nature. Most are small, but some are big.
One good way to tackle the big decisions is to use the if/then model. If this happens, then what do I do? If this doesn't work, then what is my second alternative?
If the economy goes south, then I'll concentrate on this group of products/services and let the rest slide. If this type of advertising does not work, then I'll shift to social media alternatives. If a big box store comes to town, then I'll begin offering things they don't carry.
Example: Artists can have a difficult time connecting with the buying public. Juan loved to draw. Growing up, he honed his skills, including painting in oils. He attracted interest, but he noticed that people at shows and festivals bought pen and ink drawings of homes, buildings, bridges and the like. He thought about it, and he decided to concentrate on building a following with people interested in pen and ink. Doing these are easy and quick for Juan, and the word spread quickly. People now call him to come and do a drawing of their home, barn, and other local structures. This is now supporting Juan, and he uses his spare time to produce more oil paintings. His reputation is slowly spreading as an up and coming oil artist to watch--and buy.
Sometimes an interim path can be the main road to the goal you want to eventually reach. Don't disparage baby steps to get you there. Put the if/then decisions to work in building your business.
Example: Joel had time to plan ahead. WalMart announced some 18 months ahead of time that the company would be opening one of their big stores nearby. Joel feared for the future of his small hardware store, and he soon arrived at a "planning ahead" decision. If WalMart came to town, people would be buying everyday hardware items from them, not Joel's hardware store. So, he decided to move from his cramped, in-town store to a sprawling suburban lot on a main road. Simultaneously, he would change the direction of his business. Contractors and homeowners already came to Joel's place to rent the power tools and equipment they needed for a day or two. In his sprawling new location, Joel would have more room and could add more rentals. Today, Joel is in his new place, offering more and more rentals--including trucks and trailers. He has been able to add a repairman to keep the equipment shipshape. He still offers high quality hardware items and power tools for sale--concentrating on items not carried by WalMart.
Sometimes, owners of small businesses get comfortable with the business running itself. But the marketplace is always changing. It can take an outside force to kick start big decisions.
You can never know what the future will bring. But you can get ready for some possible changes in direction using the if/then decision making tool.
Tuesday, October 20, 2015
Pocketing cash received
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No matter your small business, you will sometimes receive cash in payment for goods and services. It does not happen as frequently as it did in the past, but it still happens.
It is tempting to pocket the cash. When you do this, however, you are stealing from your business.
Every business runs on some sort of accounting system. It can be simple and informal or it can be elaborate and formal.
The IRS can get very creative in going after business owners who pocket cash. Keep in mind that your own records can point to discrepancies that will give you away.
Example: Robert used to run a one-man delivery service. He was very successful. He picked up groceries from the supermarket and delivered to customers who paid him in cash. He expanded to deliver auto parts to repair shops, restaurant meals to shut-ins, and he had an arrangement with a couple of pizza shops. The payments and tips went into Robert's pocket--until the IRS caught up with him. In an audit of an auto repair shop, and alert auditor noticed the delivery arrangement. This led them to Robert.
Once the IRS gets on a trail, they do not stop. These people have careers to protect. They are building their own reputation, and if you get in the way, you are toast.
Example: June runs an upscale restaurant. She regularly sends out the white tablecloths to a laundry. This showed an IRS agent that the number of tablecloths that went to the laundry did not agree with the number of meals served. People who paid in cash were not being entered on the restaurant's books. June's tax return was adjusted by the IRS and she paid both a hefty fine and back taxes that they figured she owed.
Example: Jon runs a bakery. When the IRS came calling to do an audit, he proudly showed them his books. He thought he had everything in order. What they found was a big discrepancy between the amounts of raw materials (flour, oil, sugar) that he ordered and the amounts of baked goods sold his account books showed. The discrepancy indicated that Jon was probably pocketing cash received for baked goods.
Example: Kate is a massage therapist. An IRS audit of her operation showed that bank deposits did not agree with her appointment book records. The IRS agent accused Kate of pocketing cash, and she is still fighting with the IRS to resolve the matter.
There are many legitimate ways to get money out of a business and into your personal account. Talk with your accountant or tax professional. Whatever you do, always deposit cash received in your business bank account. Pocketing cash is asking for trouble.
Siphoning off and pocketing cash received by your business is both dangerous and counterproductive to the long term health of your small business. Better to spend your energy building the business.
to help you better manage your small business
No matter your small business, you will sometimes receive cash in payment for goods and services. It does not happen as frequently as it did in the past, but it still happens.
It is tempting to pocket the cash. When you do this, however, you are stealing from your business.
Every business runs on some sort of accounting system. It can be simple and informal or it can be elaborate and formal.
The IRS can get very creative in going after business owners who pocket cash. Keep in mind that your own records can point to discrepancies that will give you away.
Example: Robert used to run a one-man delivery service. He was very successful. He picked up groceries from the supermarket and delivered to customers who paid him in cash. He expanded to deliver auto parts to repair shops, restaurant meals to shut-ins, and he had an arrangement with a couple of pizza shops. The payments and tips went into Robert's pocket--until the IRS caught up with him. In an audit of an auto repair shop, and alert auditor noticed the delivery arrangement. This led them to Robert.
Once the IRS gets on a trail, they do not stop. These people have careers to protect. They are building their own reputation, and if you get in the way, you are toast.
Example: June runs an upscale restaurant. She regularly sends out the white tablecloths to a laundry. This showed an IRS agent that the number of tablecloths that went to the laundry did not agree with the number of meals served. People who paid in cash were not being entered on the restaurant's books. June's tax return was adjusted by the IRS and she paid both a hefty fine and back taxes that they figured she owed.
Example: Jon runs a bakery. When the IRS came calling to do an audit, he proudly showed them his books. He thought he had everything in order. What they found was a big discrepancy between the amounts of raw materials (flour, oil, sugar) that he ordered and the amounts of baked goods sold his account books showed. The discrepancy indicated that Jon was probably pocketing cash received for baked goods.
Example: Kate is a massage therapist. An IRS audit of her operation showed that bank deposits did not agree with her appointment book records. The IRS agent accused Kate of pocketing cash, and she is still fighting with the IRS to resolve the matter.
There are many legitimate ways to get money out of a business and into your personal account. Talk with your accountant or tax professional. Whatever you do, always deposit cash received in your business bank account. Pocketing cash is asking for trouble.
Siphoning off and pocketing cash received by your business is both dangerous and counterproductive to the long term health of your small business. Better to spend your energy building the business.
Monday, October 19, 2015
Question yourself
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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.
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.
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.
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