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to help you better manage your small business
There is a great and growing interest in health and healthy living. Wellness therapies have exploded in recent years.
Therapists face special problems when it comes to the business end of their operation. Too many work alone. Individuals offer therapeutic massage, marriage and nutritional counseling, reflexology, yoga, meditation, and other therapies.
Instead of several people coming together to create a small business, therapists are frequently one person businesses. The market, while growing, can be thin and clients few.
Example: Joyce's specialty is reflexology. Over time she developed a client base passionate about her services. She traveled to them. To get her own office, Joyce partnered with Ella, who specialized in deep tissue massage. Together, they leased a large space--they were planning ahead. Then they attracted a life counselor and a nutritionist to join them. Next, they added yoga--one expert who had a following of individuals. Soon the business had grown to the point they needed a receptionist to schedule appointments. Recently, Joyce and Ella have talked with a practitioner of Jin Shin Jyutsu about joining the wellness center.
Establishing a bigger wellness center is one way therapists can grow. By bringing together several specialists, a wellness center can attract more attention and clients than one therapist acting alone. There is a definite spillover effect as well--clients talk to one another and a social media presence spreads the word around.
Example: Stan is a chiropractor. He, too, needed to attract more clients. He did not want to expand into a wellness center. Instead, he brings in other experts talking about their specialties. The events are open to the public. A nutritionist talks about healthy eating and fields questions from the audience. At another session, a hypnotherapist helps people stop smoking. Later, an expert in Chinese herbal medicine talks about treating ailments without pills. These experts do not practice at Stan's place, but the other experts get referrals--as does Stan for his chiropractic.
If you are a therapist, you might benefit from partnering with other therapists to create a wellness center. Or, like the chiropractor, you might turn your place into a healthy living information and education center.
Whatever you do, keep you long term plan firmly in mind. That great marketplace awaits, but don't venture out into unknown territory without a firm plan.
Monday, February 22, 2016
Friday, February 19, 2016
Managing your cash flow
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Small businesses face big time cash flow problems. Outgoing invoices or bills don't get paid on time. And incoming bills for rent, electric, supplies and more demand payment.
You are your own backup of last resort. A certain amount of prudent juggling can see you through--usually. But sometimes that is just not enough.
Example: A small manufacturing business solved the ups and downs of cash flow by putting in place a revolving line of credit with a local bank. It was for a significant amount of money. When incoming cash did not meet the outgoing cash requirements, the owner hit the revolving line of credit for a cash infusion. It was a short term loan. When the receivables came in, the loan was paid off. Problem solved.
Example: An even smaller business handled the ups and downs of cash flow in a different manner. Due to its small size, this business was not eligible for a revolving line of credit. The owner juggled outgoing payments for materials and supplies, balancing bills with cash to pay them. When a shortfall still existed, he held his own paycheck until the bank account could handle it. He always wrote his paycheck, but he threw it into the desk drawer awaiting the day when it would clear the bank account. Sometimes, this took weeks.
Example: A pet store owner sometimes did not have enough cash on hand or in the bank account to pay for supplies and goods for resale. She used credit cards to pay the bills on time, taking advantage of any discounts offered for on-time payment, and then she set aside funds every week to cover the credit card charges that would be coming on the next billing cycle. By paying off the credit card on time when the statement came, she gave herself a free loan. This, of course, does not work if you simply let credit card charges pile up--you'll owe big time interest charges.
The marketplace and the economy can throw all sorts of problems at you. In small business, one of the worst problems you'll face is the problem of cash flow. Be prepared when your cash flow stops flowing.
Your ingenuity is what got you into business, and your ingenuity will keep you going. You can build on what works, and you can discard what does not work.
to help you better manage your small business
Small businesses face big time cash flow problems. Outgoing invoices or bills don't get paid on time. And incoming bills for rent, electric, supplies and more demand payment.
You are your own backup of last resort. A certain amount of prudent juggling can see you through--usually. But sometimes that is just not enough.
Example: A small manufacturing business solved the ups and downs of cash flow by putting in place a revolving line of credit with a local bank. It was for a significant amount of money. When incoming cash did not meet the outgoing cash requirements, the owner hit the revolving line of credit for a cash infusion. It was a short term loan. When the receivables came in, the loan was paid off. Problem solved.
Example: An even smaller business handled the ups and downs of cash flow in a different manner. Due to its small size, this business was not eligible for a revolving line of credit. The owner juggled outgoing payments for materials and supplies, balancing bills with cash to pay them. When a shortfall still existed, he held his own paycheck until the bank account could handle it. He always wrote his paycheck, but he threw it into the desk drawer awaiting the day when it would clear the bank account. Sometimes, this took weeks.
Example: A pet store owner sometimes did not have enough cash on hand or in the bank account to pay for supplies and goods for resale. She used credit cards to pay the bills on time, taking advantage of any discounts offered for on-time payment, and then she set aside funds every week to cover the credit card charges that would be coming on the next billing cycle. By paying off the credit card on time when the statement came, she gave herself a free loan. This, of course, does not work if you simply let credit card charges pile up--you'll owe big time interest charges.
The marketplace and the economy can throw all sorts of problems at you. In small business, one of the worst problems you'll face is the problem of cash flow. Be prepared when your cash flow stops flowing.
Your ingenuity is what got you into business, and your ingenuity will keep you going. You can build on what works, and you can discard what does not work.
Thursday, February 18, 2016
Get with it on Facebook
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to help you better manage your small business
If you don't use Facebook to promote your business, you're missing big time opportunities. Facebook can help you grow and expand.
Just to be clear--I don't have any connection with Facebook (other than a page of my own), and I don't get anything from Facebook by this writing. Facebook is a valuable addition to your marketing tool box. And everyone in small business deserves to take advantage of it.
First, a Facebook page is easy to set up and use. Even if you are not computer savvy, you can follow the simple directions and be up and running in about five minutes. Just go to Facebook.com and begin.
Second, a Facebook page puts a photo face on your business. Everyone snaps digital photos these days. Photos on Facebook do NOT have to be professionally done. And they are easily uploaded.
Third, a Facebook page is easy to maintain. You don't have to hire an expert. You simply check in every day and add more photos and comments. Quick and easy.
Fourth, a Facebook page brings in new business. As people "like" the things you put up on your page, they pass them around. This puts your business in front of more eyeballs.
Keep in mind that your Facebook page is a living thing. It's like a scroll that keeps unfolding day by day. It attracts attention because it is not static. It changes. And you make the changes yourself.
Photos: Bakers photograph every cake being made. Florists photograph every flower arrangement. If you sell eye glass frames, get up close and personal--photos can show eyeballs peering through frames. Auto repair shops show a mechanic's hands fiddling with anything under the hood. Pest exterminators can take endless pictures of bugs. And anyone can attract attention with photos of kittens, puppies, flowers--the idea is to capture the viewer, then add a short comment from you.
Some small businesses post pictures on Facebook almost every day. It keeps them in peoples' minds. It keeps people coming back. It spreads the word about your business. And for the most part, it's free.
Promoting your business once cost a significant part of your budget. Along came Facebook. Yes, you can buy ads, but you can attract lots of attention at no cost. Ain't America amazing?
to help you better manage your small business
If you don't use Facebook to promote your business, you're missing big time opportunities. Facebook can help you grow and expand.
Just to be clear--I don't have any connection with Facebook (other than a page of my own), and I don't get anything from Facebook by this writing. Facebook is a valuable addition to your marketing tool box. And everyone in small business deserves to take advantage of it.
First, a Facebook page is easy to set up and use. Even if you are not computer savvy, you can follow the simple directions and be up and running in about five minutes. Just go to Facebook.com and begin.
Second, a Facebook page puts a photo face on your business. Everyone snaps digital photos these days. Photos on Facebook do NOT have to be professionally done. And they are easily uploaded.
Third, a Facebook page is easy to maintain. You don't have to hire an expert. You simply check in every day and add more photos and comments. Quick and easy.
Fourth, a Facebook page brings in new business. As people "like" the things you put up on your page, they pass them around. This puts your business in front of more eyeballs.
Keep in mind that your Facebook page is a living thing. It's like a scroll that keeps unfolding day by day. It attracts attention because it is not static. It changes. And you make the changes yourself.
Photos: Bakers photograph every cake being made. Florists photograph every flower arrangement. If you sell eye glass frames, get up close and personal--photos can show eyeballs peering through frames. Auto repair shops show a mechanic's hands fiddling with anything under the hood. Pest exterminators can take endless pictures of bugs. And anyone can attract attention with photos of kittens, puppies, flowers--the idea is to capture the viewer, then add a short comment from you.
Some small businesses post pictures on Facebook almost every day. It keeps them in peoples' minds. It keeps people coming back. It spreads the word about your business. And for the most part, it's free.
Promoting your business once cost a significant part of your budget. Along came Facebook. Yes, you can buy ads, but you can attract lots of attention at no cost. Ain't America amazing?
Wednesday, February 17, 2016
Running twice as fast
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to help you better manage your small business
Today's world is very different from that of yesterday. And tomorrow's world will be even more unrecognizable.
A degree of certainty is required when you run a business. Right now, your operation is caught up in a juggernaut of change.
Just consider energy. Without electricity, your computer will go dark, banks and supermarkets will close, gas stations will shut down, and all your appliances will become useless--unless you have a generator.
Hydroelectric and nuclear plants produce significant streams of electricity. Solar and wind farms produce electricity in relatively small amounts. Oil and gas produce electricity big time. Coal, the biggest generator of electricity, is being banned.
Like it or not, we live in an age that depends on electricity. Owners of small businesses need to think about the days of brownouts, or, worse, crashes with no power for a month or longer.
Other uncertainties will affect your business in the future. We are in a continuing debate on health care. Is the future in small, community-based, privately run health or wellness clinics? Or big government bureaucracies? Is another health care system on the horizon?
Another uncertainty is genetically modified foods. These pervade the food chain in this country--not so in the rest of the world. A reaction to GMO foods is afoot--some cities and states are trying to ban GMO foods, or, at least, label them.
Still another uncertainty is the future of 3-D printing. This new technology is already producing devices that will forever change manufacturing--both large and small. 3-D printing companies are already making parts for the automotive industry, aerospace, health care, home and personal products--including jewelry, lighting fixtures, shoe wear and more. Recently, a 3-D printed automobile appeared on TV news.
All that, and the 300-pound gorilla is already among us. Computing technology, the Internet, and communications advances have revolutionized the world in just 30 years. This revolution is just beginning.
Business owners tend to get enmeshed in today's problems. Give some thought to where we're headed. Thinking about trends will help you better structure your business to survive and prosper.
Uncertainties are everywhere. In the past, we had time to absorb one uncertainty before the next one hit. No longer. Today, we must run twice as fast just to stay in the same place.
to help you better manage your small business
Today's world is very different from that of yesterday. And tomorrow's world will be even more unrecognizable.
A degree of certainty is required when you run a business. Right now, your operation is caught up in a juggernaut of change.
Just consider energy. Without electricity, your computer will go dark, banks and supermarkets will close, gas stations will shut down, and all your appliances will become useless--unless you have a generator.
Hydroelectric and nuclear plants produce significant streams of electricity. Solar and wind farms produce electricity in relatively small amounts. Oil and gas produce electricity big time. Coal, the biggest generator of electricity, is being banned.
Like it or not, we live in an age that depends on electricity. Owners of small businesses need to think about the days of brownouts, or, worse, crashes with no power for a month or longer.
Other uncertainties will affect your business in the future. We are in a continuing debate on health care. Is the future in small, community-based, privately run health or wellness clinics? Or big government bureaucracies? Is another health care system on the horizon?
Another uncertainty is genetically modified foods. These pervade the food chain in this country--not so in the rest of the world. A reaction to GMO foods is afoot--some cities and states are trying to ban GMO foods, or, at least, label them.
Still another uncertainty is the future of 3-D printing. This new technology is already producing devices that will forever change manufacturing--both large and small. 3-D printing companies are already making parts for the automotive industry, aerospace, health care, home and personal products--including jewelry, lighting fixtures, shoe wear and more. Recently, a 3-D printed automobile appeared on TV news.
All that, and the 300-pound gorilla is already among us. Computing technology, the Internet, and communications advances have revolutionized the world in just 30 years. This revolution is just beginning.
Business owners tend to get enmeshed in today's problems. Give some thought to where we're headed. Thinking about trends will help you better structure your business to survive and prosper.
Uncertainties are everywhere. In the past, we had time to absorb one uncertainty before the next one hit. No longer. Today, we must run twice as fast just to stay in the same place.
Tuesday, February 16, 2016
Kick it up a level
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to help you better manage your small business
So you are rocking along in your business. You got it off the ground, and things seem pretty stable. But you worry.
People are buying your goods and services. Your bottom line is healthy. Still, you worry about tomorrow.
You know that the marketplace is changing. The younger crowds have different interests. People in middle age are moving on. The older crowds are, well, getting older. The crowds are changing, and you worry.
Restaurant example: Bob runs a popular eaterie. People stop in for breakfast, lunch and dinner. Bob noticed that receipts were level over the past year. Sure, there were ups and downs with the seasons, but that was to be expected. He decided to add music, and he tested it by inviting a local Irish band to entertain on Sunday afternoons. The group played traditional Irish musical instruments, but they had trouble finding a place to practice. Bob's invitation to them solved their problem. They played for three hours--they called it a practice session, diners at the restaurant called it entertainment, and Bob called it a success. The restaurant attracted new people on Sunday afternoon, they came back for meals on other days, and they spread the word. Bob had kicked his operation up to the next level. Now he's considering adding music on other days.
Hair salon example: Sue specialized in high end hair cutting and coloring. Her salon attracted a steady clientele, but Sue wanted to expand the operation. She noticed the growing interest in the marketplace for health and wellness products and activities. She took a two-pronged approach. First, she brought in organic and natural hair care products including colorants, and she promoted the lines on social media. Second, she arranged with wellness practitioners to come in on Tuesdays to talk about their specialties, demonstrate activities, and answer questions. Many new people showed up to learn about chiropractic, massage, nutrition, hypnotherapy, and many types of yoga. Sue is building the basis for a full-fledged wellness center that she plans to establish in the future.
Any business can be kicked up to the next level. Expansions that grow out of current business activities are always open to you. They can carry you step-wise into growth situations. The key is staying on top of the marketplace--where people are currently, and where they are going.
Before you try to kick your business up to the next level, always do the critical thinking of your business plan. A plan begins with knowing the marketplace--where it is, and where it is headed.
to help you better manage your small business
So you are rocking along in your business. You got it off the ground, and things seem pretty stable. But you worry.
People are buying your goods and services. Your bottom line is healthy. Still, you worry about tomorrow.
You know that the marketplace is changing. The younger crowds have different interests. People in middle age are moving on. The older crowds are, well, getting older. The crowds are changing, and you worry.
Restaurant example: Bob runs a popular eaterie. People stop in for breakfast, lunch and dinner. Bob noticed that receipts were level over the past year. Sure, there were ups and downs with the seasons, but that was to be expected. He decided to add music, and he tested it by inviting a local Irish band to entertain on Sunday afternoons. The group played traditional Irish musical instruments, but they had trouble finding a place to practice. Bob's invitation to them solved their problem. They played for three hours--they called it a practice session, diners at the restaurant called it entertainment, and Bob called it a success. The restaurant attracted new people on Sunday afternoon, they came back for meals on other days, and they spread the word. Bob had kicked his operation up to the next level. Now he's considering adding music on other days.
Hair salon example: Sue specialized in high end hair cutting and coloring. Her salon attracted a steady clientele, but Sue wanted to expand the operation. She noticed the growing interest in the marketplace for health and wellness products and activities. She took a two-pronged approach. First, she brought in organic and natural hair care products including colorants, and she promoted the lines on social media. Second, she arranged with wellness practitioners to come in on Tuesdays to talk about their specialties, demonstrate activities, and answer questions. Many new people showed up to learn about chiropractic, massage, nutrition, hypnotherapy, and many types of yoga. Sue is building the basis for a full-fledged wellness center that she plans to establish in the future.
Any business can be kicked up to the next level. Expansions that grow out of current business activities are always open to you. They can carry you step-wise into growth situations. The key is staying on top of the marketplace--where people are currently, and where they are going.
Before you try to kick your business up to the next level, always do the critical thinking of your business plan. A plan begins with knowing the marketplace--where it is, and where it is headed.
Monday, February 15, 2016
Postcards from tomorrow
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to help you better manage your small business
Few people claim to be able to predict the future. Those who do are usually wrong. I'm talking about predicting future events, not today's weather forecast for tomorrow.
In business, we project where we want to be in the future. We set goals. And then we begin taking steps to get there. We ignore this at our peril. Stepping into our future business is prudent.
There is an element of caution in the steps we take in business. We see a possible expansion, we take a preliminary step in that direction, and, if it works, we might proceed. Because we are committing time and resources, we've learned to exercise caution. If not, we can be courting business failure.
Example: When videos became the rage, John opened a video store. He obtained a beginning stock of video cassettes, rented a store front, and held a grand opening. The store quickly became a destination. John rushed to sign another lease on the empty store next door. His operation blossomed, and he vastly increased his stock videos. Then a national video chain store came to town. If that were not bad enough, technology moved on. There was less demand for videos. Within ten years, John's store had shrunk back into its original space and he struggled to meet the rent. Today, he has closed both stores but he still offers videos--from a dispensing machine.
Tomorrow has a way of coming at you. No matter how carefully you might plan, tomorrow will surely bring surprises. Be ready.
Example: Ben operated a machine shop for many years. He had about 10 employees, supplying precision-machined products to the aerospace, automotive and health care industries. Then, the age of 3-D printing dawned. Ben scoffed at the idea that this technology could ever be a threat to his machine shop. So, he refused to install one of the new 3-D printing machines or hire a programmer with the skills to operate it. Today, Ben is down to 3 employees while a competing operation is snapping up his customers--supplying their needs with their new 3-D printers. Ben missed his opportunity.
It's not just technology that changes--and changes rapidly. The marketplace changes as well. People today are quite different from the people of yesterday. They demand different products, different services, and different customer service.
Today's marketplace is not yesterday's marketplace. And tomorrow's marketplace will not be like today's. Make sure your business is positioned to meet tomorrow's marketplace. Think about it and get ready.
to help you better manage your small business
Few people claim to be able to predict the future. Those who do are usually wrong. I'm talking about predicting future events, not today's weather forecast for tomorrow.
In business, we project where we want to be in the future. We set goals. And then we begin taking steps to get there. We ignore this at our peril. Stepping into our future business is prudent.
There is an element of caution in the steps we take in business. We see a possible expansion, we take a preliminary step in that direction, and, if it works, we might proceed. Because we are committing time and resources, we've learned to exercise caution. If not, we can be courting business failure.
Example: When videos became the rage, John opened a video store. He obtained a beginning stock of video cassettes, rented a store front, and held a grand opening. The store quickly became a destination. John rushed to sign another lease on the empty store next door. His operation blossomed, and he vastly increased his stock videos. Then a national video chain store came to town. If that were not bad enough, technology moved on. There was less demand for videos. Within ten years, John's store had shrunk back into its original space and he struggled to meet the rent. Today, he has closed both stores but he still offers videos--from a dispensing machine.
Tomorrow has a way of coming at you. No matter how carefully you might plan, tomorrow will surely bring surprises. Be ready.
Example: Ben operated a machine shop for many years. He had about 10 employees, supplying precision-machined products to the aerospace, automotive and health care industries. Then, the age of 3-D printing dawned. Ben scoffed at the idea that this technology could ever be a threat to his machine shop. So, he refused to install one of the new 3-D printing machines or hire a programmer with the skills to operate it. Today, Ben is down to 3 employees while a competing operation is snapping up his customers--supplying their needs with their new 3-D printers. Ben missed his opportunity.
It's not just technology that changes--and changes rapidly. The marketplace changes as well. People today are quite different from the people of yesterday. They demand different products, different services, and different customer service.
Today's marketplace is not yesterday's marketplace. And tomorrow's marketplace will not be like today's. Make sure your business is positioned to meet tomorrow's marketplace. Think about it and get ready.
Friday, February 12, 2016
Ignoring advice
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to help you better manage your small business.
Okay. You have an idea. A great idea. You want to start a small business. Or, you want to take your existing business in another direction.
In your excitement, you mention it to several people. You discuss your idea with several friends and acquaintances.
Example: Elaine wanted to establish a big new website. Her idea was to have a platform to sell just about anything. It would work like an auction but it would not be an auction site. The platform would act as an intermediary between sellers and buyers. Buyers would peruse the items up for auction, and then they would place their bids against a pre-set deadline. As the deadline approached, bidding would intensify. Finally, there would be a winner. Elaine would take a percentage, and everybody was happy.
Everyone said it would not work. There would be technical and legal problems. No one would be attracted to bid on stuff they had never seen in person.
Of course, eBay exploded into a formidable presence. But eBay might never have happened--had its founders thought too much about all the negative advice they must have received.
Example: Ella trained as a hair stylist. She worked in several salons to nail down lots of experience. Her idea was to have her own salon--one day. That day came unexpectedly when the owner of a local salon became ill and placed her salon up for sale. Ella scrambled to put together the funding. But all her friends said to wait for a better economy. They questioned her lack of experience in running a business. They advised her against the deal. Ella considered the advice, but she went ahead anyway. It was an opportunity that she felt might not come again. Today, Ella is confidently operating the salon and planning to expand.
When you are in business, or when you want to start a business, your friends will offer advice--whether or not you ask for it. They feel compelled to offer advice--mostly negative. But that's one of the main reasons they themselves are not in business.
Business is all about optimism, confidence in yourself, and seeing a path into the future. If the opportunity is real and your gut feeling tells you to proceed, then by all means, go ahead. You will never know if success is around the corner unless you take the risk.
Before you jump, always do a business plan--concentrating on the market. The numbers you generate in the business plan will be the best advice you can take advantage of.
to help you better manage your small business.
Okay. You have an idea. A great idea. You want to start a small business. Or, you want to take your existing business in another direction.
In your excitement, you mention it to several people. You discuss your idea with several friends and acquaintances.
Example: Elaine wanted to establish a big new website. Her idea was to have a platform to sell just about anything. It would work like an auction but it would not be an auction site. The platform would act as an intermediary between sellers and buyers. Buyers would peruse the items up for auction, and then they would place their bids against a pre-set deadline. As the deadline approached, bidding would intensify. Finally, there would be a winner. Elaine would take a percentage, and everybody was happy.
Everyone said it would not work. There would be technical and legal problems. No one would be attracted to bid on stuff they had never seen in person.
Of course, eBay exploded into a formidable presence. But eBay might never have happened--had its founders thought too much about all the negative advice they must have received.
Example: Ella trained as a hair stylist. She worked in several salons to nail down lots of experience. Her idea was to have her own salon--one day. That day came unexpectedly when the owner of a local salon became ill and placed her salon up for sale. Ella scrambled to put together the funding. But all her friends said to wait for a better economy. They questioned her lack of experience in running a business. They advised her against the deal. Ella considered the advice, but she went ahead anyway. It was an opportunity that she felt might not come again. Today, Ella is confidently operating the salon and planning to expand.
When you are in business, or when you want to start a business, your friends will offer advice--whether or not you ask for it. They feel compelled to offer advice--mostly negative. But that's one of the main reasons they themselves are not in business.
Business is all about optimism, confidence in yourself, and seeing a path into the future. If the opportunity is real and your gut feeling tells you to proceed, then by all means, go ahead. You will never know if success is around the corner unless you take the risk.
Before you jump, always do a business plan--concentrating on the market. The numbers you generate in the business plan will be the best advice you can take advantage of.
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