Free daily tips, information and advice for people in small business
from someone who has been there, done that in several operations.
Back at the beginning of the 1900s, automobiles were arriving on the scene. Vehicles were replacing wagons and buggies--and the horses that provided the power.
The venerable Studebaker company had been making wagons for decades. Management decided to begin manufacturing automobiles. The company changed direction.
Meanwhile, the marketplace adjusted to the lessened demand for horses. As time passed, there were fewer and fewer wagons and buggies--and fewer horses needed to pull them.
Farmers who produced the grains eaten by the horses suddenly found themselves with a surplus of grain. What to do with the glut?
The response of the marketplace was to change direction. Those grains that the horses once ate became the breakfast cereals that humans still eat today.
There are valuable lessons to be learned from all this. When the marketplace changes, your business must change with it. You can change what you produce, like the Studebaker company. Or you can change how a product or service is perceived and purchased.
Example: Food is on everyone's mind. Not only must we eat, but today the concern has moved to what we eat. A farmer can make a living growing and selling fresh produce in the local market--I know several who do. One of them is bringing to market a product new to his offerings. It's the flower buds produced in spring from last year's kale. It's fresh, it's kale, it's new--all the elements to excite the marketplace. Use them by throwing into an omelet--the same can be done with milkweed buds or day lily buds.
Local farms are typically small businesses. They are in the ideal position to be on the leading edge of marketplace demands. You might not change horse feed into breakfast cereal, but lots of room exists for innovation in fresh foods.
Questions? I retired when I turned 75. You can email me at AlWarr16@gmail.com with your questions. Put BLOG in the subject line so I don't delete. Quick answers from my 40+ years experience founding and growing small businesses. Your privacy is always respected.
Friday, May 16, 2014
Thursday, May 15, 2014
Face the music
Free daily tips, information and advice for people in small business
from someone who has been there, done that in founding and growing small operations.
When you're growing a business, you need to face the music from time to time. Old songs lose their edge. Singing styles can change.
The music that moved you in the past can start to show its age. When this happens to you, get yourself into a quiet place. Leave behind the phone, the television, and all the other technological distractions.
Ask yourself some honest questions. And start the process to get some honest answers.
1. Where am I headed? Do I need to rethink this thing? Do I spring out of bed every morning? Despite the daily grind, am I as enthusiastic as when I began?
2. Am I in the right business? Has the world passed me by? Should I consider changing my direction? Should I close the door and begin again?
3. Can I grow internally? Or do I need funds to help me take the next step? Is my business plan sufficient to support the road I'm taking? Do I need a new business plan?
4. Am I comfortable using the new social media? Do I need to educate myself in the value of Facebook? Is this a directional change that I want to take?
This is not a weekly exercise. But it will prove useful to do at least a couple of times a year.
Asking these questions in that quiet session will result in an amazing thing. It will focus you on the future. It will help clarify goals. It will bring the long term aspects of your business to bear on the daily grind.
With answers comes a fresh look. Not necessarily at the time you put yourself through this, but later. At odd times, all sorts of ideas will begin to pop into your mind. It's a way to force some organization on the mental processes. It helps you get beyond the daily stresses.
It's good to face the music now and then.
Questions? I retired when I turned 75. You can email me at AlWarr16.gmail.com with your questions. Put BLOG in the subject line so I don't delete it. Quick answers from my 40+ years experience founding and growing small business. Your privacy always respected.
from someone who has been there, done that in founding and growing small operations.
When you're growing a business, you need to face the music from time to time. Old songs lose their edge. Singing styles can change.
The music that moved you in the past can start to show its age. When this happens to you, get yourself into a quiet place. Leave behind the phone, the television, and all the other technological distractions.
Ask yourself some honest questions. And start the process to get some honest answers.
1. Where am I headed? Do I need to rethink this thing? Do I spring out of bed every morning? Despite the daily grind, am I as enthusiastic as when I began?
2. Am I in the right business? Has the world passed me by? Should I consider changing my direction? Should I close the door and begin again?
3. Can I grow internally? Or do I need funds to help me take the next step? Is my business plan sufficient to support the road I'm taking? Do I need a new business plan?
4. Am I comfortable using the new social media? Do I need to educate myself in the value of Facebook? Is this a directional change that I want to take?
This is not a weekly exercise. But it will prove useful to do at least a couple of times a year.
Asking these questions in that quiet session will result in an amazing thing. It will focus you on the future. It will help clarify goals. It will bring the long term aspects of your business to bear on the daily grind.
With answers comes a fresh look. Not necessarily at the time you put yourself through this, but later. At odd times, all sorts of ideas will begin to pop into your mind. It's a way to force some organization on the mental processes. It helps you get beyond the daily stresses.
It's good to face the music now and then.
Questions? I retired when I turned 75. You can email me at AlWarr16.gmail.com with your questions. Put BLOG in the subject line so I don't delete it. Quick answers from my 40+ years experience founding and growing small business. Your privacy always respected.
Wednesday, May 14, 2014
Negotiating
Free daily tips, information and advice for people in small business
from someone who has been there, done that in several small operations.
Everyone negotiates. Children learn early in life that they sometimes must negotiate with their parents to get what they want.
As we grow up, we learn to negotiate at every turn. In your vehicle, you negotiate your way through an intersection. In a store, you negotiate your way through the aisles to find what you want.
Before you sign that lease for space, you negotiate terms. At your bank, you negotiate the best deal for growing your business.
Example: To negotiate, you need leverage. One way to negotiate better terms on space you want to lease is to show the landlord that you know something about the future economy. Landlords want certainty. In an economy that is iffy, you might get better terms on the "little" stuff by offering to sign for 5 years instead of 3. Sometimes, this can bring the monthly rate down. Plus, the "little" stuff can mean more to you than to the landlord. These might include lower electricity rates, heating costs or some construction changes. Landlords might be willing to exchange these for the longer term lease--and the certainty it brings.
If you have never been involved in negotiating, then you need some experience. A simple way to begin is to stop by a flea market. You spy a coffee mug that's priced at $10. You look over the other items on the table. You pick up the coffee mug, and you offer the seller $5. The seller counters with $8. You say you might go $6. You home in on the difference and pay the seller $7. Back at your place, you set the mug on the shelf--it will never hold coffee. It is a trophy and a constant reminder of your negotiating skill.
While this little activity is a simplistic learning experience, it can serve you well. The target of negotiating is to reduce costs. It works with landlords, bankers, labor unions, suppliers, and other business needs.
Basically, you put yourself in the other person's shoes. What is important to the other side? What are the weaknesses of the other side? How can you structure the deal to give the other side what they really want, and at the same time save you some money.
Questions? I retired when I turned 75. You can email me at AlWarr16@gmail.com with your questions. Put BLOG in the subject line so I don't delete your email. Expect quick answers from my 40+ years experience founding and running small businesses. Your privacy is always respected.
from someone who has been there, done that in several small operations.
Everyone negotiates. Children learn early in life that they sometimes must negotiate with their parents to get what they want.
As we grow up, we learn to negotiate at every turn. In your vehicle, you negotiate your way through an intersection. In a store, you negotiate your way through the aisles to find what you want.
Before you sign that lease for space, you negotiate terms. At your bank, you negotiate the best deal for growing your business.
Example: To negotiate, you need leverage. One way to negotiate better terms on space you want to lease is to show the landlord that you know something about the future economy. Landlords want certainty. In an economy that is iffy, you might get better terms on the "little" stuff by offering to sign for 5 years instead of 3. Sometimes, this can bring the monthly rate down. Plus, the "little" stuff can mean more to you than to the landlord. These might include lower electricity rates, heating costs or some construction changes. Landlords might be willing to exchange these for the longer term lease--and the certainty it brings.
If you have never been involved in negotiating, then you need some experience. A simple way to begin is to stop by a flea market. You spy a coffee mug that's priced at $10. You look over the other items on the table. You pick up the coffee mug, and you offer the seller $5. The seller counters with $8. You say you might go $6. You home in on the difference and pay the seller $7. Back at your place, you set the mug on the shelf--it will never hold coffee. It is a trophy and a constant reminder of your negotiating skill.
While this little activity is a simplistic learning experience, it can serve you well. The target of negotiating is to reduce costs. It works with landlords, bankers, labor unions, suppliers, and other business needs.
Basically, you put yourself in the other person's shoes. What is important to the other side? What are the weaknesses of the other side? How can you structure the deal to give the other side what they really want, and at the same time save you some money.
Questions? I retired when I turned 75. You can email me at AlWarr16@gmail.com with your questions. Put BLOG in the subject line so I don't delete your email. Expect quick answers from my 40+ years experience founding and running small businesses. Your privacy is always respected.
Tuesday, May 13, 2014
Daily list
Free daily tips, information and advice for people in small business
from someone who has been there, done that in several small operations.
It began many years ago when I was in college. To pay my way, I always had two or three part time jobs. Meetings and writing deadlines kept be on my toes (I was editor of my college newspaper.) And then there was the class schedule--if it's Tuesday, it must be organic chemistry and economics.
At some point during those four years, I began keeping a daily list of things to be done. During the day, I would jot down the things that were waiting to be done and other items that could be put off to tomorrow. I kept the list handy--in my pocket with me at all times.
My daily list was very helpful. I came to depend on it. I didn't have to clutter up my day thinking (worrying) about the things I had not yet accomplished. I simply consulted my list.
Keeping a daily list organizes you. It frees up your thinking so you can concentrate on other things--like being creative, dreaming, planning, thinking through the ideas that arise. The daily grind of meeting schedules becomes the responsibility of the list.
Joining corporate America after college, my daily list grew. It then included items with a star beside the entry. Stars meant importance. Notations with stars had priority--they must be done that day. Items with stars were prioritized--1, 2, 3, etc.
Leaving corporate America to set up my first business, my list expanded considerably. And it took on a new tone. Meet with the banker. Follow up with my best customer. Update my insurance coverage. Order supplies. Interview a prospective employee. Clean up the storage room and take out the trash.
My daily lists have always included little items alongside the big items. Items go on the list as they occur to me. I have found it amazing what can be accomplished by using the list. It's a way of forward thinking, and, at the same time, it grounds me solidly in today's activities.
My list relieves me of constantly worrying about things to be done. It's a way of walking myself into the future in an organized way. Several times each day, I take out my list, check off those things that have been done, and add more as I think of them.
Over the years, my daily list has become a game, a source of satisfaction, and a record of things accomplished. This in itself speaks to the value of the daily list--the date I bought the car, the date I signed the lease, the date I wrote up a plan for a new business venture.
Get the crap out of your head and onto a daily list. You'll find you have more free time to think about the important stuff.
Questions? I retired when I was 75. You can email me at AlWarr16@gmail.com with your questions. Put BLOG in the subject line. You get quick answers from my 40+ years experience founding and growing small businesses. Your privacy is always respected.
from someone who has been there, done that in several small operations.
It began many years ago when I was in college. To pay my way, I always had two or three part time jobs. Meetings and writing deadlines kept be on my toes (I was editor of my college newspaper.) And then there was the class schedule--if it's Tuesday, it must be organic chemistry and economics.
At some point during those four years, I began keeping a daily list of things to be done. During the day, I would jot down the things that were waiting to be done and other items that could be put off to tomorrow. I kept the list handy--in my pocket with me at all times.
My daily list was very helpful. I came to depend on it. I didn't have to clutter up my day thinking (worrying) about the things I had not yet accomplished. I simply consulted my list.
Keeping a daily list organizes you. It frees up your thinking so you can concentrate on other things--like being creative, dreaming, planning, thinking through the ideas that arise. The daily grind of meeting schedules becomes the responsibility of the list.
Joining corporate America after college, my daily list grew. It then included items with a star beside the entry. Stars meant importance. Notations with stars had priority--they must be done that day. Items with stars were prioritized--1, 2, 3, etc.
Leaving corporate America to set up my first business, my list expanded considerably. And it took on a new tone. Meet with the banker. Follow up with my best customer. Update my insurance coverage. Order supplies. Interview a prospective employee. Clean up the storage room and take out the trash.
My daily lists have always included little items alongside the big items. Items go on the list as they occur to me. I have found it amazing what can be accomplished by using the list. It's a way of forward thinking, and, at the same time, it grounds me solidly in today's activities.
My list relieves me of constantly worrying about things to be done. It's a way of walking myself into the future in an organized way. Several times each day, I take out my list, check off those things that have been done, and add more as I think of them.
Over the years, my daily list has become a game, a source of satisfaction, and a record of things accomplished. This in itself speaks to the value of the daily list--the date I bought the car, the date I signed the lease, the date I wrote up a plan for a new business venture.
Get the crap out of your head and onto a daily list. You'll find you have more free time to think about the important stuff.
Questions? I retired when I was 75. You can email me at AlWarr16@gmail.com with your questions. Put BLOG in the subject line. You get quick answers from my 40+ years experience founding and growing small businesses. Your privacy is always respected.
Monday, May 12, 2014
Bird watching
Free daily tips, information and advice for people in small business
from someone who has been there, done that in several small operations.
So what does bird watching have to do with your business?
High atop a column, part of which provides the support of my front porch roof, a couple of robins set up housekeeping. They built a nest there, and they come back every year to raise a family. Then they move on.
What the robins do is basic to nature. They live and reproduce according to basic instincts.
Too often humans drift far afield from their core. It happens in our personal lives and it happens in our business lives.
We live in a world of distractions. It's largely a world we've created--in commerce, in technology, in politics, in many daily concerns that--frequently--have little to do with our core.
Example: An environmental engineer gets caught up in the lengthy permitting process for a project. Getting the permits in place saps his attention and distracts him so much so that he ignores new developments in environmental science. In the interest of satisfying the tedious process of permit approvals, the project is saddled with outdated solutions. Looking back, the engineer comes to regret some of his recommendations--though valid at the time, he knows he could have done better.
What originally moved us to create our business is too often lost in the daily operations. Day by day, we are pulled away from the core. The core passion that caused us to start up the business gets left behind.
Example: A lady was inspired to open a bakery by the looks on children's faces when they sampled her brownies. Her passion caused her to expand into cookies and cakes. She began to concentrate on high-end, and high-priced, cakes. The business is very successful, and these days, she concentrates almost entirely on specialty cakes. But she misses the kids' faces when they used to bite into her brownies.
Businesses have a way of pulling you in various directions. Be careful not to abandon your core passion.
I have found it useful from time to time to watch the robins. They never drift far from their core nature.
Questions? I retired when I turned 75. You can email me at AlWarr16@gmail.com with your business questions. Put BLOG in the subject line.
Quick answers on handling customers, getting referrals, finding funding, expanding the business, managing employees, organizing and more from my extensive experience in founding and running small businesses.
from someone who has been there, done that in several small operations.
So what does bird watching have to do with your business?
High atop a column, part of which provides the support of my front porch roof, a couple of robins set up housekeeping. They built a nest there, and they come back every year to raise a family. Then they move on.
What the robins do is basic to nature. They live and reproduce according to basic instincts.
Too often humans drift far afield from their core. It happens in our personal lives and it happens in our business lives.
We live in a world of distractions. It's largely a world we've created--in commerce, in technology, in politics, in many daily concerns that--frequently--have little to do with our core.
Example: An environmental engineer gets caught up in the lengthy permitting process for a project. Getting the permits in place saps his attention and distracts him so much so that he ignores new developments in environmental science. In the interest of satisfying the tedious process of permit approvals, the project is saddled with outdated solutions. Looking back, the engineer comes to regret some of his recommendations--though valid at the time, he knows he could have done better.
What originally moved us to create our business is too often lost in the daily operations. Day by day, we are pulled away from the core. The core passion that caused us to start up the business gets left behind.
Example: A lady was inspired to open a bakery by the looks on children's faces when they sampled her brownies. Her passion caused her to expand into cookies and cakes. She began to concentrate on high-end, and high-priced, cakes. The business is very successful, and these days, she concentrates almost entirely on specialty cakes. But she misses the kids' faces when they used to bite into her brownies.
Businesses have a way of pulling you in various directions. Be careful not to abandon your core passion.
I have found it useful from time to time to watch the robins. They never drift far from their core nature.
Questions? I retired when I turned 75. You can email me at AlWarr16@gmail.com with your business questions. Put BLOG in the subject line.
Quick answers on handling customers, getting referrals, finding funding, expanding the business, managing employees, organizing and more from my extensive experience in founding and running small businesses.
Friday, May 9, 2014
Getting sued
Free daily tips, information and advice for people in small business
from someone who has been there, done that in several small operations.
Everyone, it seems, is lawsuit happy in today's world. And it's only getting worse.
Examples: The homeowner is sued by the burglar who slipped on the hallway rug and broke his leg. The store owner is sued by a customer who claimed that a can of beans fell off a high shelf and hit her head, resulting in continuing headaches. The computer expert is sued because the website he designed does not work as promised.
If you are in business today, plan on getting sued. Some lawsuits are frivolous and never amount to anything other than wasting your valuable time. Others are more serious, and the likelihood of getting sued increases daily.
What to do? How do you protect yourself, your personal assets, and your business?
1. Separate your personal life from your business life. Make your business into a legal entity in its own right--incorporation, limited liability, partnership, etc. See a lawyer, or Google the word "incorporation" and go through the results to find something that works for you. Personally, I no longer recommend a "doing business as" or DBA type of business--it can expose you personally to anything that happens in your business.
2. Make sure you have a good insurance agent. The law insists that businesses carry workers comp insurance. Business-owned vehicles must carry insurance, and some businesses must post bonds for work to be done. But what about other types of coverage?
Liability insurance is written to cover broken legs, cracked skulls and other mishaps. Make sure the amount of liability insurance you carry is consistent with a reasonable reading of today's jury awards. What is your exposure? If you are an artisan whose only exposure to the public is at art shows, this is one thing. On the other hand, if you are a shop owner where people are constantly browsing, the exposure is greater--slipping on wet floors or icy sidewalks is not uncommon.
Another type of liability insurance is the excess liability type. Think of it as an umbrella that protects over and above existing policies. This has become more popular as higher jury awards have occurred.
Flood insurance covers businesses located in flood plains. It used to be cheap, but the federal regulations have recently changed, resulting in much higher premiums. If you haven't checked it recently, it's time to call your insurance agent and get updated.
Key person or partner insurance is a type of life insurance. Each partner is insured so that, if one partner is deceased or becomes incapacitated, the amount of insurance is sufficient to buy out the remaining partner or partners. The business can continue without being cluttered with heirs who might have other ideas about business.
Insurance can help you better sleep at night. A serious conversation with your insurance agent can help you decide what's appropriate in your situation.
Questions? I retired when I turned 75. You can email me at AlWarr16@gmail.com with your questions.
Put BLOG in the subject line. Quick answers from my 40+ years of experience founding and running small businesses. Your privacy is always respected.
from someone who has been there, done that in several small operations.
Everyone, it seems, is lawsuit happy in today's world. And it's only getting worse.
Examples: The homeowner is sued by the burglar who slipped on the hallway rug and broke his leg. The store owner is sued by a customer who claimed that a can of beans fell off a high shelf and hit her head, resulting in continuing headaches. The computer expert is sued because the website he designed does not work as promised.
If you are in business today, plan on getting sued. Some lawsuits are frivolous and never amount to anything other than wasting your valuable time. Others are more serious, and the likelihood of getting sued increases daily.
What to do? How do you protect yourself, your personal assets, and your business?
1. Separate your personal life from your business life. Make your business into a legal entity in its own right--incorporation, limited liability, partnership, etc. See a lawyer, or Google the word "incorporation" and go through the results to find something that works for you. Personally, I no longer recommend a "doing business as" or DBA type of business--it can expose you personally to anything that happens in your business.
2. Make sure you have a good insurance agent. The law insists that businesses carry workers comp insurance. Business-owned vehicles must carry insurance, and some businesses must post bonds for work to be done. But what about other types of coverage?
Liability insurance is written to cover broken legs, cracked skulls and other mishaps. Make sure the amount of liability insurance you carry is consistent with a reasonable reading of today's jury awards. What is your exposure? If you are an artisan whose only exposure to the public is at art shows, this is one thing. On the other hand, if you are a shop owner where people are constantly browsing, the exposure is greater--slipping on wet floors or icy sidewalks is not uncommon.
Another type of liability insurance is the excess liability type. Think of it as an umbrella that protects over and above existing policies. This has become more popular as higher jury awards have occurred.
Flood insurance covers businesses located in flood plains. It used to be cheap, but the federal regulations have recently changed, resulting in much higher premiums. If you haven't checked it recently, it's time to call your insurance agent and get updated.
Key person or partner insurance is a type of life insurance. Each partner is insured so that, if one partner is deceased or becomes incapacitated, the amount of insurance is sufficient to buy out the remaining partner or partners. The business can continue without being cluttered with heirs who might have other ideas about business.
Insurance can help you better sleep at night. A serious conversation with your insurance agent can help you decide what's appropriate in your situation.
Questions? I retired when I turned 75. You can email me at AlWarr16@gmail.com with your questions.
Put BLOG in the subject line. Quick answers from my 40+ years of experience founding and running small businesses. Your privacy is always respected.
Thursday, May 8, 2014
And another thing
Free daily advice for people in small business
from someone who has been there, done that.
It happens all the time. You've done it. I've done it.
We tend to pigeon hole our business friends. We remember them for one thing, while they engage in additional activities that might interest us.
When you are running a business, you must guard against this. It's a constant problem--to tell, remind, inform, and otherwise educate your clients and customers in all the things you can do for them.
Example: You hired a web designer and the result was spectacular. Then you needed someone to set you up in social media. So you called your web designer and asked for a recommendation. That's when he told you, "I do that. I can help you with that." You had only thought of your web designer in one way. And he had not informed you of the other things he could do for you.
Example: Clients depend on your accounting firm to handle their taxes. But they are not aware that your firm also helps business owners prepare for the eventual sale of the business. You must remind them of your additional expertise so that when the time comes that they need those services, you are the first one they think to call.
Example: Regular diners are very happy with the healthy meals they enjoy at your small restaurant. But they forget that you also run a catering operation. When they are preparing for that family get-together or the corporate meeting, they call another caterer. You've missed an opportunity because you have not reminded them that you can do more.
"And another thing..." becomes a regular part of your conversation and interaction with clients and customers. The other things you do can grow your operation--if only everyone knew about them. It's up to you to keep the world informed.
Questions? Email me direct at AlWarr16@gmail.com and put BLOG in the subject line.
I am retired and I am not selling anything. Your privacy is always respected.
from someone who has been there, done that.
It happens all the time. You've done it. I've done it.
We tend to pigeon hole our business friends. We remember them for one thing, while they engage in additional activities that might interest us.
When you are running a business, you must guard against this. It's a constant problem--to tell, remind, inform, and otherwise educate your clients and customers in all the things you can do for them.
Example: You hired a web designer and the result was spectacular. Then you needed someone to set you up in social media. So you called your web designer and asked for a recommendation. That's when he told you, "I do that. I can help you with that." You had only thought of your web designer in one way. And he had not informed you of the other things he could do for you.
Example: Clients depend on your accounting firm to handle their taxes. But they are not aware that your firm also helps business owners prepare for the eventual sale of the business. You must remind them of your additional expertise so that when the time comes that they need those services, you are the first one they think to call.
Example: Regular diners are very happy with the healthy meals they enjoy at your small restaurant. But they forget that you also run a catering operation. When they are preparing for that family get-together or the corporate meeting, they call another caterer. You've missed an opportunity because you have not reminded them that you can do more.
"And another thing..." becomes a regular part of your conversation and interaction with clients and customers. The other things you do can grow your operation--if only everyone knew about them. It's up to you to keep the world informed.
Questions? Email me direct at AlWarr16@gmail.com and put BLOG in the subject line.
I am retired and I am not selling anything. Your privacy is always respected.
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