Free daily tips, information and advice for people in small business
from a lifetime of personal experience founding and growing small businesses.
Testimonials are referrals that are blind. Nevertheless, they are valuable.
A referral occurs when Sue tells her friend Mary that Bill runs the best auto repair shop in town. The message is straightforward and between two women who know each other. Mary goes to Bill's shop on the word of Sue, thus confident that Bill will do a good job.
A testimonial occurs when Sue allows Bill to quote her good experience in his advertising. Bill might put Sue's words in a brochure or on his website page--Sue's testimonial lends credence to Bill's service and reputation. He might also put her testimonial in a social media setting.
Angie's List is built on the testimonial concept. People provide their experiences with a variety of businesses--electricians, plumbers, landscapers, carpenters, florists, and many more. It helps people who don't know you to come in on the word of someone else.
Your small business might or might not be part of Angie's List. But you can still ask your customers/clients for testimonials. When you do this, try to get their permission to use their name--full name is best, first name only is second best but valuable--and their city. When people read the testimonial, it helps them put a face on it.
Example: After repairing her brakes, Bill asked Sue for a testimonial. As she paid the bill, she wrote the following: "Bill's Auto Repair gets you in and gets you out--pronto. His technician fixed my brake problem while I waited and I was on my way." She signed it simply "Sue" and declined to name the town or use her last name. Bill has used her testimonial to good advantage ever since, including the "like" Sue placed on his Facebook page.
Testimonials can be powerful. They inspire confidence in potential customers/clients by bringing in the word of a disinterested third party.
Get testimonials whenever you can, and use them wherever it makes sense.
After a lifetime of founding and operating several small businesses, plus working directly with more than 2,000 small business owners, I am now retired. I'll happily answer your questions at no charge. Email me at AlWarr16@gmail.com and put BLOG in the subject line. Your privacy is always respected.
Tuesday, July 1, 2014
Monday, June 30, 2014
Gift certificates
Free daily tips, information and advice for people in small business
from a lifetime of personal experience founding and operating small businesses.
Gift certificates are a good way to promote your business. They can extend your reach into the community you serve.
Think of gift certificates as up-scale coupons.
Gift certificates take many forms. I've used gift certificates printed on post cards and mailed to existing customers. I've worked with business owners who had an artist create elaborate gift certificates to be handed out at shows and special events. Stock gift certificates--blank and ready to be filled in--are available at office supply stores and online, but they might not have the "feel" of specially created ones.
Example: I know a lady who runs a wellness center. She started out as a specialist in several types of massage. To expand the wellness center she created, she brought in other specialists--yoga, Reiki, hypnosis, nutrition, and others. She has used gift certificates for the massages she gives. This promotes the center and the other specialties. The certificates come pre-printed in $25, $50 and $100 denominations. Her clients buy these for themselves and to use as gifts to friends. It helps to bring in referrals.
Gift certificates can be for any amount and still be very effective. Depending on the circumstances, a $10 gift certificate can bring you a new customer as quickly as one in the amount of $100.
Example: An artist I know makes costume jewelry. She specializes in using unusual and inexpensive materials--no gold or silver here. What she is selling is her unique and creative ability to bring together everyday things in new ways. She regularly attends local shows and events, and she hands out $5 gift certificates to everyone who stops at her table. Her pins and earrings, bracelets and necklaces sell for prices beginning at $25. She gets a response much better than she would if she posted a 20% markdown. Some people use the gift certificate for themselves right away; others seek her out later or pass them on to friends. Again, the gift certificates bring in referrals.
My experience in my own operations as well as working with others has convinced me that the dollar amount is much superior to the percentage amount. Gift certificates with dollar amounts printed on them get much better attention--and better retention--than those printed with percentage amounts. Anything that's printed with "$10" has the feel of real money.
Example: Small businesses can show appreciation toward employees by giving them gift certificates. One 30-employee company I know hands out $10 gift certificates to employees at holiday time and a $50 certificate on the employee's birthday. The employee can choose from three different types of certificates--a local coffee shop, a craft beer house, or a supermarket.
In this case the gift certificate is a "thank you" to employees. But it is also a very important promotional tool for the three businesses where the gift certificates are used.
After a lifetime founding, operating and expanding small businesses of my own, I spend my time these days coaching and writing about small business. You get free answers from my experience to your questions about anything to do with small business. Email me at AlWarr16@gmail.com and put BLOG in the subject line so I don't delete. Your privacy is always respected.
from a lifetime of personal experience founding and operating small businesses.
Gift certificates are a good way to promote your business. They can extend your reach into the community you serve.
Think of gift certificates as up-scale coupons.
Gift certificates take many forms. I've used gift certificates printed on post cards and mailed to existing customers. I've worked with business owners who had an artist create elaborate gift certificates to be handed out at shows and special events. Stock gift certificates--blank and ready to be filled in--are available at office supply stores and online, but they might not have the "feel" of specially created ones.
Example: I know a lady who runs a wellness center. She started out as a specialist in several types of massage. To expand the wellness center she created, she brought in other specialists--yoga, Reiki, hypnosis, nutrition, and others. She has used gift certificates for the massages she gives. This promotes the center and the other specialties. The certificates come pre-printed in $25, $50 and $100 denominations. Her clients buy these for themselves and to use as gifts to friends. It helps to bring in referrals.
Gift certificates can be for any amount and still be very effective. Depending on the circumstances, a $10 gift certificate can bring you a new customer as quickly as one in the amount of $100.
Example: An artist I know makes costume jewelry. She specializes in using unusual and inexpensive materials--no gold or silver here. What she is selling is her unique and creative ability to bring together everyday things in new ways. She regularly attends local shows and events, and she hands out $5 gift certificates to everyone who stops at her table. Her pins and earrings, bracelets and necklaces sell for prices beginning at $25. She gets a response much better than she would if she posted a 20% markdown. Some people use the gift certificate for themselves right away; others seek her out later or pass them on to friends. Again, the gift certificates bring in referrals.
My experience in my own operations as well as working with others has convinced me that the dollar amount is much superior to the percentage amount. Gift certificates with dollar amounts printed on them get much better attention--and better retention--than those printed with percentage amounts. Anything that's printed with "$10" has the feel of real money.
Example: Small businesses can show appreciation toward employees by giving them gift certificates. One 30-employee company I know hands out $10 gift certificates to employees at holiday time and a $50 certificate on the employee's birthday. The employee can choose from three different types of certificates--a local coffee shop, a craft beer house, or a supermarket.
In this case the gift certificate is a "thank you" to employees. But it is also a very important promotional tool for the three businesses where the gift certificates are used.
After a lifetime founding, operating and expanding small businesses of my own, I spend my time these days coaching and writing about small business. You get free answers from my experience to your questions about anything to do with small business. Email me at AlWarr16@gmail.com and put BLOG in the subject line so I don't delete. Your privacy is always respected.
Friday, June 27, 2014
Cash business
Free daily tips, information and advice for people in small business
from personal experience founding, operating and growing several small businesses.
Some people like to run cash businesses--pocketing most of the money received. It is short-sighted and can be downright dangerous.
The IRS can get creative in going after people who pocket the cash received. Keep in mind that your own records can indicate that cash is being taken from the business.
A good example is the restaurant that regularly sends tablecloths out to a laundry--this can indicate just how many meals have been served, and, hence, an indication of what the bank account balance should be. Bakeries and other businesses can be hard-pressed to explain discrepancies between raw materials bought and goods sold. Think carefully about your own situation.
Example: Robert ran a one-man delivery service for a variety of clients. He picked up groceries from the supermarket and delivered to a customer who paid him in cash. He expanded to deliver auto parts to garages, restaurant meals to shut-ins, and had an arrangement with a couple of pizza shops. The payments and tips went into his pocket until the IRS caught up with him. Robert might have grown his delivery service into a bigger business, but he fell into the trap of spending all the cash.
Example: Bill ran a small printing business. Frequently, he was paid in cash, and he always deposited the cash into the business bank account. This practice kept the records in perfect order, and the paper trail was clean when the IRS came calling.
There are many legitimate ways to get funds out of a business. It is tempting to pocket the cash received from a customer. The more prudent reaction is to deposit the cash in the business account at the bank.
Still active after a lifetime in business--founding, operating, growing several. Nowadays, I provide free daily tips and advice to people in small business. If you have a question, email me AlWarr16@gmail.com and put BLOG in the subject line. I'm not selling anything, and you privacy is always respected.
from personal experience founding, operating and growing several small businesses.
Some people like to run cash businesses--pocketing most of the money received. It is short-sighted and can be downright dangerous.
The IRS can get creative in going after people who pocket the cash received. Keep in mind that your own records can indicate that cash is being taken from the business.
A good example is the restaurant that regularly sends tablecloths out to a laundry--this can indicate just how many meals have been served, and, hence, an indication of what the bank account balance should be. Bakeries and other businesses can be hard-pressed to explain discrepancies between raw materials bought and goods sold. Think carefully about your own situation.
Example: Robert ran a one-man delivery service for a variety of clients. He picked up groceries from the supermarket and delivered to a customer who paid him in cash. He expanded to deliver auto parts to garages, restaurant meals to shut-ins, and had an arrangement with a couple of pizza shops. The payments and tips went into his pocket until the IRS caught up with him. Robert might have grown his delivery service into a bigger business, but he fell into the trap of spending all the cash.
Example: Bill ran a small printing business. Frequently, he was paid in cash, and he always deposited the cash into the business bank account. This practice kept the records in perfect order, and the paper trail was clean when the IRS came calling.
There are many legitimate ways to get funds out of a business. It is tempting to pocket the cash received from a customer. The more prudent reaction is to deposit the cash in the business account at the bank.
Still active after a lifetime in business--founding, operating, growing several. Nowadays, I provide free daily tips and advice to people in small business. If you have a question, email me AlWarr16@gmail.com and put BLOG in the subject line. I'm not selling anything, and you privacy is always respected.
Thursday, June 26, 2014
Convenience stores
Free daily tips, information and advice for people in small business
from personal experience in founding, operating, and expanding small businesses.
Convenience stores are located in many neighborhoods. They might be individually owned or a part of a national chain.
This blog is about individually owned convenience stores. National chains are a different animal.
Convenience stores exist for a reason--convenience of the shopper. Customers know they are usually paying more at these stores. They expect to pay more for the convenience.
Example: I worked with the owner of an in-town convenience store. He was in the process of opening a second store in a nearby town and needed help getting through the permitting process. I did a walk-through in the existing store and asked to see his store room. He pointed to the store's shelves lined with brand names of canned goods, cereals, cleaning supplies, etc. What he had in the store was on the shelves--no back-ups in the back room. He had eliminated the distributor or wholesaler (these people sell in case lots or more) by shopping at the local supermarkets. He watched the big store sales like a hawk, and he swooped in to buy a few of the items he knew he could re-sell at a higher price. He was conserving cash by buying in small quantities at on-sale prices--buy low, sell high. And he did not need costly storage space.
There are other ways to organize a convenience store.
Example: Another owner of a small store asked me to coach him through the process of preparing a business plan to be submitted to the bank for a loan. His operation employed a different concept--the merchandise on his shelves came from case lots stored in his back room. But they were case lots of overstocks and other discounted case lots of foods and selected other items he knew his customers would buy. He, too, was buying low and selling high. But he had the additional expense of maintaining a store room.
Setting up and running an individually-owned convenience store takes some careful planning. It's all about the market and what the marketplace will support. Then, and only then, can you select the method you want to use to stock the shelves.
My lifetime of experience covers founding, operating, expanding businesses of my own, as well as helping many others with small-business problems. If you have questions, I respond daily with answers. Email me at AlWarr16@gmail.com and put BLOG in the subject line. No charge, and your privacy is always respected.
from personal experience in founding, operating, and expanding small businesses.
Convenience stores are located in many neighborhoods. They might be individually owned or a part of a national chain.
This blog is about individually owned convenience stores. National chains are a different animal.
Convenience stores exist for a reason--convenience of the shopper. Customers know they are usually paying more at these stores. They expect to pay more for the convenience.
Example: I worked with the owner of an in-town convenience store. He was in the process of opening a second store in a nearby town and needed help getting through the permitting process. I did a walk-through in the existing store and asked to see his store room. He pointed to the store's shelves lined with brand names of canned goods, cereals, cleaning supplies, etc. What he had in the store was on the shelves--no back-ups in the back room. He had eliminated the distributor or wholesaler (these people sell in case lots or more) by shopping at the local supermarkets. He watched the big store sales like a hawk, and he swooped in to buy a few of the items he knew he could re-sell at a higher price. He was conserving cash by buying in small quantities at on-sale prices--buy low, sell high. And he did not need costly storage space.
There are other ways to organize a convenience store.
Example: Another owner of a small store asked me to coach him through the process of preparing a business plan to be submitted to the bank for a loan. His operation employed a different concept--the merchandise on his shelves came from case lots stored in his back room. But they were case lots of overstocks and other discounted case lots of foods and selected other items he knew his customers would buy. He, too, was buying low and selling high. But he had the additional expense of maintaining a store room.
Setting up and running an individually-owned convenience store takes some careful planning. It's all about the market and what the marketplace will support. Then, and only then, can you select the method you want to use to stock the shelves.
My lifetime of experience covers founding, operating, expanding businesses of my own, as well as helping many others with small-business problems. If you have questions, I respond daily with answers. Email me at AlWarr16@gmail.com and put BLOG in the subject line. No charge, and your privacy is always respected.
Wednesday, June 25, 2014
Business advice
Free daily tips, information and advice for people in small business
from my lifetime in business--been there, done that.
I am often asked for advice. Emails arrive telling me about a problem and asking for possible solutions.
My answers are quick, to the point, and free. Sometimes, just by reaching out to an experienced business person, the business owner can clarify his/her own thinking and proceed with a certain confidence not otherwise possible.
Example: A lady once asked me how she could increase her sales in her small pet supply store. When I asked her what she was doing to promote her place, the answer came back: ads every week in the local paper. I suggested she set up a Facebook page, post pictures of pets, and start reaching out. "But I don't sell pets," she objected. "And I know nothing about Facebook." Later, she realized how easy it was to attract attention with pictures of puppies and kittens, and she emailed me back that sales had more than doubled--in a relatively short period of time. Hers had been a simple question, and it was solved with a simple answer.
Everyone has had the experience of talking about problems with others. The more personal the problem, the more reluctant we become in discussing it. We look for a trusted friend or expert.
Owners of small businesses face this problem in seeking advice on business problems. You need to talk with someone who has "been there, done that" and can relate to the overall problems of running a business.
Example: A young man once asked what business he could go into. He wanted to go into business, but he was perplexed as to the type of business he should pursue. In a quick back-and-forth, I helped him realize that he already had the answer. "Look inside," I told him. "Find the thing you are most passionate about and set up your business around that idea." Today, he owns a small construction company--he builds additions to homes and occasionally whole houses. His passion of building things has become his business.
A business can be set up using any idea. Of course, some ideas are bigger than others. But the market is big enough in this country to accommodate any idea you might be passionate about. If you are interested in something, others are interested as well. It's a matter of finding them.
The same is true of expanding your business. The marketplace rules. Expand in the direction the market is moving. And always seek advice from someone who has actually run a business.
I've spent a lifetime in business--establishing, operating, expanding. I know what cash flow feels like when there isn't any. Email me your questions: AlWarr16@gmail.com and put BLOG in the subject line so I don't delete. At this point, I've helped thousands of business owners. Get free answers to your questions, and I always respect your privacy.
from my lifetime in business--been there, done that.
I am often asked for advice. Emails arrive telling me about a problem and asking for possible solutions.
My answers are quick, to the point, and free. Sometimes, just by reaching out to an experienced business person, the business owner can clarify his/her own thinking and proceed with a certain confidence not otherwise possible.
Example: A lady once asked me how she could increase her sales in her small pet supply store. When I asked her what she was doing to promote her place, the answer came back: ads every week in the local paper. I suggested she set up a Facebook page, post pictures of pets, and start reaching out. "But I don't sell pets," she objected. "And I know nothing about Facebook." Later, she realized how easy it was to attract attention with pictures of puppies and kittens, and she emailed me back that sales had more than doubled--in a relatively short period of time. Hers had been a simple question, and it was solved with a simple answer.
Everyone has had the experience of talking about problems with others. The more personal the problem, the more reluctant we become in discussing it. We look for a trusted friend or expert.
Owners of small businesses face this problem in seeking advice on business problems. You need to talk with someone who has "been there, done that" and can relate to the overall problems of running a business.
Example: A young man once asked what business he could go into. He wanted to go into business, but he was perplexed as to the type of business he should pursue. In a quick back-and-forth, I helped him realize that he already had the answer. "Look inside," I told him. "Find the thing you are most passionate about and set up your business around that idea." Today, he owns a small construction company--he builds additions to homes and occasionally whole houses. His passion of building things has become his business.
A business can be set up using any idea. Of course, some ideas are bigger than others. But the market is big enough in this country to accommodate any idea you might be passionate about. If you are interested in something, others are interested as well. It's a matter of finding them.
The same is true of expanding your business. The marketplace rules. Expand in the direction the market is moving. And always seek advice from someone who has actually run a business.
I've spent a lifetime in business--establishing, operating, expanding. I know what cash flow feels like when there isn't any. Email me your questions: AlWarr16@gmail.com and put BLOG in the subject line so I don't delete. At this point, I've helped thousands of business owners. Get free answers to your questions, and I always respect your privacy.
Tuesday, June 24, 2014
Percent off
Free daily tips, information and advice for people in small business
from personal experience--been there, done that--in my own small businesses as well as helping
thousands of others over a lifetime.
Retail shops commonly offer sales. A sale attracts attention and brings in customers.
Two very different methods are used. "Dollars off" and "percent off" types of promotions can get new people to notice your business, and they remind existing customers who you are.
Example: The owner of a small retail shop decided to put everything (with few exceptions) on sale at 20% off the marked prices. The shop specialized in women's fashionable clothing and accessories. The sale did not go as well as the owner had expected, and I was asked for advice. I suggested a different method--put the word out that certain items were marked down set dollar amounts, $10, $20 or as much as $50 off on selected items. This time the sale went much better.
Sometimes, it is better to offer real dollars off as opposed to percentages off. Both work, but a set dollar amount off has an immediate psychological effect in customers' minds.
Example: A small auto repair shop I know uses both methods in tandem. The owner here uses coupons. Side by side, coupons offer $10 off an oil change and 10% off other auto services. Coupons are available in print (ads, flyers, post cards) and on the Internet (social media, emails, website). The $10 off coupon brings people to the shop, and the 10% brings them back again.
It's all about the perception created in the minds of current and potential customers. It's hard to ignore that $10 bill you find laying on the sidewalk--you bend over and pick it up. Not so with percent off.
The next time you consider having a sale at your business, try the "dollars off" type of promotion. And don't ignore the value of coupons with a "dollars off" value--they get used or they get passed around to other people.
Still active after a lifetime founding and growing businesses, and helping others. Email me your questions and I provide free answers from my experience working with thousands of small businesses. Send to AlWarr16@gmail.com and put BLOG in the subject line so I don't delete. Your privacy is always respected.
from personal experience--been there, done that--in my own small businesses as well as helping
thousands of others over a lifetime.
Retail shops commonly offer sales. A sale attracts attention and brings in customers.
Two very different methods are used. "Dollars off" and "percent off" types of promotions can get new people to notice your business, and they remind existing customers who you are.
Example: The owner of a small retail shop decided to put everything (with few exceptions) on sale at 20% off the marked prices. The shop specialized in women's fashionable clothing and accessories. The sale did not go as well as the owner had expected, and I was asked for advice. I suggested a different method--put the word out that certain items were marked down set dollar amounts, $10, $20 or as much as $50 off on selected items. This time the sale went much better.
Sometimes, it is better to offer real dollars off as opposed to percentages off. Both work, but a set dollar amount off has an immediate psychological effect in customers' minds.
Example: A small auto repair shop I know uses both methods in tandem. The owner here uses coupons. Side by side, coupons offer $10 off an oil change and 10% off other auto services. Coupons are available in print (ads, flyers, post cards) and on the Internet (social media, emails, website). The $10 off coupon brings people to the shop, and the 10% brings them back again.
It's all about the perception created in the minds of current and potential customers. It's hard to ignore that $10 bill you find laying on the sidewalk--you bend over and pick it up. Not so with percent off.
The next time you consider having a sale at your business, try the "dollars off" type of promotion. And don't ignore the value of coupons with a "dollars off" value--they get used or they get passed around to other people.
Still active after a lifetime founding and growing businesses, and helping others. Email me your questions and I provide free answers from my experience working with thousands of small businesses. Send to AlWarr16@gmail.com and put BLOG in the subject line so I don't delete. Your privacy is always respected.
Monday, June 23, 2014
Shoot the moon
Free daily tips, information and advice for people in small business
from my personal experience--been there, done that--in my own businesses and helping others.
Technology offers many opportunities for small business. Using today's technology, your place of business can be at home--or in the local coffee shop.
I'm not just talking tablets and cell phones here. And you don't have to be a rocket scientist to take advantage of our galloping technology.
Example: A woman once came to me for advice on starting up a business idea she had. It was the 1980s, and she had heard that magnets were being used to help speed recovery of sports injuries. She wanted to put magnets inside horse blankets so that horses could recover more quickly after workouts, races, shows, etc. I sent her off to do more market research by talking with prospective buyers. When she returned, she had orders in hand. Her business was self-funded from day one--no loan, no written business plan, no government help.
It's one thing to use technology as a product basis. It's quite another to use the technological reach of today's Internet capabilities.
Example: Another woman came to me wondering how to turn her love of baking brownies into a real business. She had baked brownies for years, giving them away, providing treats to local gatherings, selling at local fairs and flea markets. I advised her to think of a larger, more substantial market--corporate meetings, organizations holding seminars, spas and retreats, and the like. How to reach out? By using the many possibilities offered by the Internet. She put a basic website in place, and began using social media--these were now her sales force, together with an enthusiastic word of mouth trail. The UPS truck now comes to her place every day, loads up packages of brownies, and delivers them all over the United States. All this with no loan, no written business plan, and no government help.
Technology can be used in various ways in small business. It can form the basis of a business, or it can provide the foundation for sales and marketing. Or both.
Technology provides you with the means to shoot the moon. Go for it.
My personal experience with small business extends back to 1972--that's when I left corporate America and established my first business. These days I write about business and coach people in small business. Questions? Email me at AlWarr16@gmail.com and put BLOG in the subject line so I don't delete. Your privacy is always respected.
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