Free daily tips, information, advice and ideas
to help you better manage your small business
Many people dream of leaving the corporate world to start a small business of their own. It's a big move, and it takes careful planning.
Before you jump, do your homework. Jane simply resigned her position at a big corporation, rented a store and began selling chocolates. It was a hard lesson learned--she failed. In her second business, Jane did lots of careful planning before she began selling chocolates using her website and social media--without a shop. She had better luck.
Home in on your interest. A small business can be built around any interest you might have--collectibles, food, clothing, artworks, consulting, design, wellness, the list is endless. Any interest represents a market.
Study the market. No business survives without clients/customers. Who are they? How many can you attract? Why will they spend with you? What is your competition--and how can you beat it? How can you use social media to promote and build your business?
Get a part time job. Target the industry where you'll be starting your business. Get some experience in the trenches. Study eBay and Amazon before opening a store. Help out at a greenhouse before you begin growing plants for sale.
Write up a plan. You can plan in your head, but writing it down forces you to create a step-by-step process. A written plan gets your priorities sorted out. Then, reduce everything to bottom line numbers. Numbers force reality. Total sales less expenses tells you if you are healthy.
Get a handle on funding. No matter what you do, you will need money--to get started, to get the business off the ground, and to survive for a year or two. Do you self-fund? Borrow from Aunt Sallie? Get a loan from a bank? Go for crowd funding? Will the business generate enough bottom line cash to pay your salary AND support future growth?
Longer term planning. Look ahead to future retirement and fit your business into this thinking. Can you eventually sell the business? Can you keep the business running in your golden years? Are you planning to establish the first of many franchised operations?
Leaving corporate and starting your own business is a big move. Corporate America and Small Business America occupy different planets, speak different languages, require different attitudes. Do your homework upfront and you can avoid some pitfalls later.
In small business, you are the juggler of...everything. And the most important thing you juggle is planning ahead. Neglect planning and you are flying blind.
Friday, January 1, 2016
Thursday, December 31, 2015
Finding buyers for artworks
Free daily tips, information, advice and ideas
to help you better manage your small business
Artists and artisans have a difficult time connecting with buyers. Their creations can languish in their studios. But it need not be.
Painters, photographers, sculptors, illustrators, weavers, fiber artists and others produce works that sell in the right venue. Different venues, however, attract different people. There's the rub.
High end galleries still show high end works. Particular galleries have homed in on a particular market segment. They select works they think will appeal to the buyers they attract.
Some galleries have morphed into high-end gift shops. They serve more of a second tier market. Customers who frequent these shops are likely to be well-heeled with disposable incomes. But they are not necessarily knowledgeable buyers of art works. Frequently they are looking for handmade gifts.
Many artists and artisans use the Internet. They establish a website or use sites like Etsy or even eBay to attract buyers. They also use social media to show their works--Facebook is one example.
Example: Ella paints realistic pictures in oils and acrylics. She has exhibited in galleries, attended up-scale shows, and has taken some private commissions. She supplements her income by teaching. Her classes are popular--with beginners as well as with advanced students. She has found that she gets real enjoyment teaching young people. Her studio is in a converted garage, and she convenes classes there. She runs several multi-class sessions during the year. All this activity has spread her reputation, resulting in sales.
Example: Travis is a sculptor. He works in bronze, and it is a tough market to conquer. To bring in income, he made arrangements with other sculptors to produce their bronze castings. He works also with museums and galleries to produce fine reproductions. Recently, he has begun selling fine reproductions to gift shops and decorators. He uses Facebook to drive interest to his website.
Example: Mary is a weaver and designer. She turns out small rugs and wall hangings. She has a website and is on social media. All this activity keeps her busy with projects that come from decorators, collectors, high income individuals, and galleries. She does a show twice each year where regulars seek her out and she meets new people. With her artist's eye, her knowledge of fibers, and her weaving skills, she has tapped into a new market segment. She produces woven pictures of people and animals, working from photographs. Private commissions are coming in.
Artists and artisans today have more opportunities than ever before. Social media drives people to you. There is a real market out there for whatever you do. And there is a real market in teaching others.
With today's marketing opportunities, artists and artisans no long need starve in the garret. Reach out to the buying public.
to help you better manage your small business
Artists and artisans have a difficult time connecting with buyers. Their creations can languish in their studios. But it need not be.
Painters, photographers, sculptors, illustrators, weavers, fiber artists and others produce works that sell in the right venue. Different venues, however, attract different people. There's the rub.
High end galleries still show high end works. Particular galleries have homed in on a particular market segment. They select works they think will appeal to the buyers they attract.
Some galleries have morphed into high-end gift shops. They serve more of a second tier market. Customers who frequent these shops are likely to be well-heeled with disposable incomes. But they are not necessarily knowledgeable buyers of art works. Frequently they are looking for handmade gifts.
Many artists and artisans use the Internet. They establish a website or use sites like Etsy or even eBay to attract buyers. They also use social media to show their works--Facebook is one example.
Example: Ella paints realistic pictures in oils and acrylics. She has exhibited in galleries, attended up-scale shows, and has taken some private commissions. She supplements her income by teaching. Her classes are popular--with beginners as well as with advanced students. She has found that she gets real enjoyment teaching young people. Her studio is in a converted garage, and she convenes classes there. She runs several multi-class sessions during the year. All this activity has spread her reputation, resulting in sales.
Example: Travis is a sculptor. He works in bronze, and it is a tough market to conquer. To bring in income, he made arrangements with other sculptors to produce their bronze castings. He works also with museums and galleries to produce fine reproductions. Recently, he has begun selling fine reproductions to gift shops and decorators. He uses Facebook to drive interest to his website.
Example: Mary is a weaver and designer. She turns out small rugs and wall hangings. She has a website and is on social media. All this activity keeps her busy with projects that come from decorators, collectors, high income individuals, and galleries. She does a show twice each year where regulars seek her out and she meets new people. With her artist's eye, her knowledge of fibers, and her weaving skills, she has tapped into a new market segment. She produces woven pictures of people and animals, working from photographs. Private commissions are coming in.
Artists and artisans today have more opportunities than ever before. Social media drives people to you. There is a real market out there for whatever you do. And there is a real market in teaching others.
With today's marketing opportunities, artists and artisans no long need starve in the garret. Reach out to the buying public.
Wednesday, December 30, 2015
Space lease or rent
Free daily tips, information, advice and ideas
to help you better manage your small business
Every small business needs space. No matter what you do, you will need a place to do it.
Artists rent studios, therapists lease space, chiropractors need a place to see and treat clients, and so it goes. Retailers need stores, accountants and attorneys need offices. Even if you have a home office, you are renting from yourself.
Leasing or renting space usually involves a document to be signed. It will spell out the terms and conditions--you need to pay attention.
Example: Ellen ran into trouble when her lease came up for renewal. She opened and operated a small ice cream shop under a 3-year lease. The shop was very successful. She used Facebook to promote and she hosted events at her place--birthday parties, open houses, fund raisers, and the like. In her third year, she approached the landlord about renewing the lease. He wanted another 3-year lease at a much higher rate. Ellen wanted a 5-year lease at the same rate. Negotiations went nowhere, so Ellen looked around town for another location. She had considered adding to the ice cream she offered--she had toyed with expanding into coffees, including espresso, a smoothie bar, and fancy chocolates. She found a much bigger space at the same rate she had been paying and for a 5-year lease. It also had a patio that could be used. So, Ellen told the present landlord goodbye, moved, expanded, and never looked back.
Example: Roberto was a consulting therapist who needed space where he could meet clients. Two rooms would suffice--a private office and a reception room. He found an appropriate space in a building full of other professionals. Roberto knew that the landlord had trouble renting such a small space, so he negotiated a 5-year lease at a relatively low rent. As part of the negotiating, Robert insisted that the landlord include heat and electric. The landlord agreed--such a small space would not use much heat or electric. But it meant a lot to Roberto.
Some leases have lots of small print that can include all sorts of add-ons. In addition to heat and electric, the lease might ask you to pay for snow removal, garbage pick-up, signage, parking spaces, even taking care of plants and yards.
Before signing a lease, read it carefully. You might want to pass it by a trusted friend or business person or even an attorney.
Leases and rental agreements are legal documents. Once signed by you and the landlord, the terms and conditions apply.
to help you better manage your small business
Every small business needs space. No matter what you do, you will need a place to do it.
Artists rent studios, therapists lease space, chiropractors need a place to see and treat clients, and so it goes. Retailers need stores, accountants and attorneys need offices. Even if you have a home office, you are renting from yourself.
Leasing or renting space usually involves a document to be signed. It will spell out the terms and conditions--you need to pay attention.
Example: Ellen ran into trouble when her lease came up for renewal. She opened and operated a small ice cream shop under a 3-year lease. The shop was very successful. She used Facebook to promote and she hosted events at her place--birthday parties, open houses, fund raisers, and the like. In her third year, she approached the landlord about renewing the lease. He wanted another 3-year lease at a much higher rate. Ellen wanted a 5-year lease at the same rate. Negotiations went nowhere, so Ellen looked around town for another location. She had considered adding to the ice cream she offered--she had toyed with expanding into coffees, including espresso, a smoothie bar, and fancy chocolates. She found a much bigger space at the same rate she had been paying and for a 5-year lease. It also had a patio that could be used. So, Ellen told the present landlord goodbye, moved, expanded, and never looked back.
Example: Roberto was a consulting therapist who needed space where he could meet clients. Two rooms would suffice--a private office and a reception room. He found an appropriate space in a building full of other professionals. Roberto knew that the landlord had trouble renting such a small space, so he negotiated a 5-year lease at a relatively low rent. As part of the negotiating, Robert insisted that the landlord include heat and electric. The landlord agreed--such a small space would not use much heat or electric. But it meant a lot to Roberto.
Some leases have lots of small print that can include all sorts of add-ons. In addition to heat and electric, the lease might ask you to pay for snow removal, garbage pick-up, signage, parking spaces, even taking care of plants and yards.
Before signing a lease, read it carefully. You might want to pass it by a trusted friend or business person or even an attorney.
Leases and rental agreements are legal documents. Once signed by you and the landlord, the terms and conditions apply.
Tuesday, December 29, 2015
Growing business larger
Free daily tips, information, advice and ideas
to help you better manage your small business
To get a business out of the garage and into the big time takes lots of dreaming, hard work and vision.
Today's leaders in computer technology and social media started small. So did fast food chains--one place at a time.
The ultimate size of a business depends on the vision of the owner. The main constraint is the marketplace. Markets limit growth.
No matter the size of your dream, the buyers out there for your goods and services will determine just how big you get.
Example: Professional therapists usually work alone, serving a relatively small group of clients. Also working alone, many specialists in massage, Reiki, yoga, personal trainers, even chiropractors and nutritional experts can only handle so many clients. But, by expanding into a wellness center, more clients can be served--and each specialty attracts more clients to take advantage of their services.
Example: Small cafes can specialize, attracting tradespeople looking for hearty breakfasts and quick lunches. Electricians, plumbers, construction crews, landscapers and others start their day very early. They represent a niche market in the fast food business. Look at the market in your area for a new type of fast food. Not talking about Burger King or Starbucks--these places compete for a different market.
Example: Older style gift shops can change direction and grow large by attracting a market segment that is more today. There is a growing niche market for up-scale, high-end, handmade items. A small or outdated gift shop can re-brand itself and grow by addressing this new market. Seek out artists and artisans who create--many of these creative types are looking for a shop to sell the things they make.
If your small business is stuck at the present level, start thinking outside the box. Re-examine your market. Look for new markets. It is the markets that rule--not your dream.
Dreams are the stuff of small business. But markets always trump the thing you might have had in mind when you began.
to help you better manage your small business
To get a business out of the garage and into the big time takes lots of dreaming, hard work and vision.
Today's leaders in computer technology and social media started small. So did fast food chains--one place at a time.
The ultimate size of a business depends on the vision of the owner. The main constraint is the marketplace. Markets limit growth.
No matter the size of your dream, the buyers out there for your goods and services will determine just how big you get.
Example: Professional therapists usually work alone, serving a relatively small group of clients. Also working alone, many specialists in massage, Reiki, yoga, personal trainers, even chiropractors and nutritional experts can only handle so many clients. But, by expanding into a wellness center, more clients can be served--and each specialty attracts more clients to take advantage of their services.
Example: Small cafes can specialize, attracting tradespeople looking for hearty breakfasts and quick lunches. Electricians, plumbers, construction crews, landscapers and others start their day very early. They represent a niche market in the fast food business. Look at the market in your area for a new type of fast food. Not talking about Burger King or Starbucks--these places compete for a different market.
Example: Older style gift shops can change direction and grow large by attracting a market segment that is more today. There is a growing niche market for up-scale, high-end, handmade items. A small or outdated gift shop can re-brand itself and grow by addressing this new market. Seek out artists and artisans who create--many of these creative types are looking for a shop to sell the things they make.
If your small business is stuck at the present level, start thinking outside the box. Re-examine your market. Look for new markets. It is the markets that rule--not your dream.
Dreams are the stuff of small business. But markets always trump the thing you might have had in mind when you began.
Monday, December 28, 2015
Expand your market
Free daily tips, information, advice and ideas
to help you better manage your small business
Expand your market and you expand your business. When you reach out into markets that are related to what you already do, your business naturally attracts more customers. You grow.
Many of these new customers know you, they appreciate what you do, and they are ready to call you for the new services/products you offer. Also, expanding into related markets can extend your business reach.
This doesn't mean that you take off in a different direction. That's a different kind of expansion. On the contrary, it means expanding into a wider segment of the market you already serve.
Example: Kathy inherited her father's business. For many years, he had developed expertise in selling and repairing gas-fired appliances, furnaces, heaters, and other gas-fired items. He had also collected a huge inventory of parts and supplies, many of them out-of-date and decades old, along with manufacturer's schematics and catalogs extending back some 50 years. The business consisted of 8 employees and two service vans. It pretty much ran itself. But Kathy saw a possible expansion. She developed a new website, offering out-of-date parts, supplies, schematics and catalogs for gas-fired items no longer manufactured or supported by brands. This expanded her market to people all over the country and became a healthy addition to the existing business--which she still operates in the area she serves.
Example: Tom runs an auto repair shop. He handled regular tune-ups, replaced exhaust systems, provided new filters, balanced wheels, and, of course, could troubleshoot problems on his computer set-up. He also started doing minor collision work and saw an opportunity to expand in this area. He put up a steel addition to the garage where he could do more collision repairs, including paint jobs. This was a new expansion for Tom, but the reception in the community was quick and positive. He had successfully expanded into a related market.
Other examples: Bakeries can use social media to expand into wider markets, offering boxes of baked goodies shipped overnight for corporate meetings and private gatherings. Landscapers, who have built their businesses cutting lawns and trimming shrubbery, can expand by offering garden designs and layouts for people wanting to re-work their yards. Computer experts can expand by educating clients on the value of social media--how to use Facebook, for example.
Look around for other segments of the larger market you serve for ways that you can expand your own business. Sometimes, using this idea, it's fairly easy to capture more customers--and grow yourself.
Never try to expand until you take a hard look at your business plan. If it fits, okay. If not, keep looking. The marketplace is huge.
to help you better manage your small business
Expand your market and you expand your business. When you reach out into markets that are related to what you already do, your business naturally attracts more customers. You grow.
Many of these new customers know you, they appreciate what you do, and they are ready to call you for the new services/products you offer. Also, expanding into related markets can extend your business reach.
This doesn't mean that you take off in a different direction. That's a different kind of expansion. On the contrary, it means expanding into a wider segment of the market you already serve.
Example: Kathy inherited her father's business. For many years, he had developed expertise in selling and repairing gas-fired appliances, furnaces, heaters, and other gas-fired items. He had also collected a huge inventory of parts and supplies, many of them out-of-date and decades old, along with manufacturer's schematics and catalogs extending back some 50 years. The business consisted of 8 employees and two service vans. It pretty much ran itself. But Kathy saw a possible expansion. She developed a new website, offering out-of-date parts, supplies, schematics and catalogs for gas-fired items no longer manufactured or supported by brands. This expanded her market to people all over the country and became a healthy addition to the existing business--which she still operates in the area she serves.
Example: Tom runs an auto repair shop. He handled regular tune-ups, replaced exhaust systems, provided new filters, balanced wheels, and, of course, could troubleshoot problems on his computer set-up. He also started doing minor collision work and saw an opportunity to expand in this area. He put up a steel addition to the garage where he could do more collision repairs, including paint jobs. This was a new expansion for Tom, but the reception in the community was quick and positive. He had successfully expanded into a related market.
Other examples: Bakeries can use social media to expand into wider markets, offering boxes of baked goodies shipped overnight for corporate meetings and private gatherings. Landscapers, who have built their businesses cutting lawns and trimming shrubbery, can expand by offering garden designs and layouts for people wanting to re-work their yards. Computer experts can expand by educating clients on the value of social media--how to use Facebook, for example.
Look around for other segments of the larger market you serve for ways that you can expand your own business. Sometimes, using this idea, it's fairly easy to capture more customers--and grow yourself.
Never try to expand until you take a hard look at your business plan. If it fits, okay. If not, keep looking. The marketplace is huge.
Friday, December 25, 2015
Handling problem customers
Free daily tips, information, advice and ideas
to help you better manage your small business
Clients and customers are the heart and soul of your business. Each of them deserves your attention.
But not all of them are worth it. Now and then, you will run across a client or customer who is simply a pain.
Some seem to be late in paying their bills--every time. Others haggle with you on every price. Maybe they bad mouth you to your face or behind your back.
In short, some clients and customers are not worth the effort to keep them happy. It is their way of life to be unhappy, negative, and find fault with everything. And you can be the one in the cross-hairs.
When the situation gets out of hand, it is time for action. It might be useful to your well-being to refer problem customers to your competition--in a nice way, of course.
Example: A customer returns again and again to a florist to complain that the flowers she bought. They always seemed to have promptly died. Once is understandable, but if a pattern develops, it's time to refer her to another florist.
Example: A veterinarian helps a pet overcome an itching problem, but the owner is a know-it-all who insists after several visits that, although the pet is showing positive signs of recovering, the treatment should be changed to something learned on the Internet. The vet suggests that, if the problem occurs again, the owner might try instead the treatment suggested on the Internet.
Example: Painters of interior walls get involved in unreasonable complaints about the exact shade of paint on a wall. They might take this as a sign to change the focus of their business--referring fussy homeowners to other painters and then concentrating on corporate and commercial accounts.
You get the idea. When you cannot satisfy a client or customer, it might be a sign to move on. Or move them on.
Always listen to your clients/customers. They give you valuable clues on the future of your business. That marketplace is always changing.
to help you better manage your small business
Clients and customers are the heart and soul of your business. Each of them deserves your attention.
But not all of them are worth it. Now and then, you will run across a client or customer who is simply a pain.
Some seem to be late in paying their bills--every time. Others haggle with you on every price. Maybe they bad mouth you to your face or behind your back.
In short, some clients and customers are not worth the effort to keep them happy. It is their way of life to be unhappy, negative, and find fault with everything. And you can be the one in the cross-hairs.
When the situation gets out of hand, it is time for action. It might be useful to your well-being to refer problem customers to your competition--in a nice way, of course.
Example: A customer returns again and again to a florist to complain that the flowers she bought. They always seemed to have promptly died. Once is understandable, but if a pattern develops, it's time to refer her to another florist.
Example: A veterinarian helps a pet overcome an itching problem, but the owner is a know-it-all who insists after several visits that, although the pet is showing positive signs of recovering, the treatment should be changed to something learned on the Internet. The vet suggests that, if the problem occurs again, the owner might try instead the treatment suggested on the Internet.
Example: Painters of interior walls get involved in unreasonable complaints about the exact shade of paint on a wall. They might take this as a sign to change the focus of their business--referring fussy homeowners to other painters and then concentrating on corporate and commercial accounts.
You get the idea. When you cannot satisfy a client or customer, it might be a sign to move on. Or move them on.
Always listen to your clients/customers. They give you valuable clues on the future of your business. That marketplace is always changing.
Thursday, December 24, 2015
Reach out with social media
Free daily tips, information, advice and ideas
to help you better manage your small business
Expanding you small business is easier than you might think--if you use social media. Facebook, Twitter, LinkedIn and others do the job for you. And it can be free.
There is a vast audience of people out there who follow social media for all sorts of reasons. Your small business deserves to be one of the reasons. Lots of eyeballs see the stuff you put up on social media.
The key to effective promotions on social media is the picture you put up. Pictures don't have to be professionally done. Any picture that's in focus can be used. Don't use people's faces unless you get permission. You are constantly snapping pictures, aren't you?
You might take pictures of new items you are offering, new services you've added, events, street scenes, and just about anything else. The picture does not necessarily have to be about your business. Use puppies and kittens to capture attention and send viewers to your website for the real deal--no matter what product or service you are promoting.
Example: A retail operation uses Facebook to post announcements of upcoming sales, discounts, coupons, perhaps an open house planned for the following weekend. "Free coffee and cookies this Saturday and check out the big discounts on kitchenware."
Example: A garden center announces an all-day hands-on free session teaching homeowners and professionals how to build a patio, a fire pit, a brick wall. "Demonstrations every hour. Get answers to your questions from experts who will be on hand all day."
Example: A law firm uses Facebook to announce upcoming free seminars on elder care, social security concerns, and other matters involving the legal community. "No legal advice given out Wednesday evening, but all your questions answered by an attorney."
Social media can work wonders for any small business. Using Facebook, Twitter and LinkedIn can perhaps be the best advertising you can mount. And it's free, unless you want to advertise with them.
The social media sites are eager to have you sign up. Just go the the site of choice and follow the easy directions. It will take about 5 minutes.
to help you better manage your small business
Expanding you small business is easier than you might think--if you use social media. Facebook, Twitter, LinkedIn and others do the job for you. And it can be free.
There is a vast audience of people out there who follow social media for all sorts of reasons. Your small business deserves to be one of the reasons. Lots of eyeballs see the stuff you put up on social media.
The key to effective promotions on social media is the picture you put up. Pictures don't have to be professionally done. Any picture that's in focus can be used. Don't use people's faces unless you get permission. You are constantly snapping pictures, aren't you?
You might take pictures of new items you are offering, new services you've added, events, street scenes, and just about anything else. The picture does not necessarily have to be about your business. Use puppies and kittens to capture attention and send viewers to your website for the real deal--no matter what product or service you are promoting.
Example: A retail operation uses Facebook to post announcements of upcoming sales, discounts, coupons, perhaps an open house planned for the following weekend. "Free coffee and cookies this Saturday and check out the big discounts on kitchenware."
Example: A garden center announces an all-day hands-on free session teaching homeowners and professionals how to build a patio, a fire pit, a brick wall. "Demonstrations every hour. Get answers to your questions from experts who will be on hand all day."
Example: A law firm uses Facebook to announce upcoming free seminars on elder care, social security concerns, and other matters involving the legal community. "No legal advice given out Wednesday evening, but all your questions answered by an attorney."
Social media can work wonders for any small business. Using Facebook, Twitter and LinkedIn can perhaps be the best advertising you can mount. And it's free, unless you want to advertise with them.
The social media sites are eager to have you sign up. Just go the the site of choice and follow the easy directions. It will take about 5 minutes.
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