Free daily tips, information and advice for small business
from a lifetime of personal experience running small businesses.
You never know where the next referral is coming from. This simple fact tells you how to treat every visitor to your website, every person who calls your business, and every person who walks in your door.
Example: Mary had her hair done at a local salon. She enthusiastically referred her friends. One came and was dissatisfied with the results. This friend spread a lot of negativity about the salon. When word reached Mary, she went into action. She contacted the dissatisfied person, offering a free "do-over" plus a gift certificate. The owner also called Mary, thanked her for the referral and offered her a gift certificate as well. The bad-mouthing stopped and more referrals rolled in.
Turning a dissatisfied customer around can be a tricky exercise. But it is always worth the extra effort. You don't want bad-mouthing to be going around the neighborhood.
More straightforward ways can be even more effective in spreading the word.
Example: When John got his plumber's license, he had few customers--mainly friends and relatives. He passed out business cards at every opportunity, including several networking sessions he attended. He also placed a small ad in the local newspaper. Nothing seemed to bring in many new customers. John decided to call people he had done some plumbing work for. First, he asked if they needed any additional plumbing work done. Second, he asked for referrals--names and phone numbers of people they knew. Everyone needs a plumber sooner or later, he reasoned. It worked. Several referrals became customers. Today, he employs two helpers.
Referrals are the lifeblood of every business. Referrals come to you on another person's reputation, friendship or recommendation.
Example: Frank used a method similar to the plumber's method. Frank is a business consultant and coach. Tough business. Asking satisfied clients for referrals is a tried and true method to increase your circle of clients. Frank called people he'd worked for and asked for referrals. When he called these referrals, he launched into a conversation about cash flow, finding good employees, and other problems common to all small businesses. It worked well for him. BTW, Frank was careful not to use the word "consultant" when calling the referrals--that word is a turn-off to people in small business.
Referrals arrive at your door pre-disposed to your services/products. Not that they are ready to buy, but they are leaning in your direction.
Work at getting referrals. Whatever method you use, keep it up. Don't let a week go by without doing something to increase referrals.
You deserve a constant flow of referrals to your business. You've invested a lot in the future of your business. Referrals make it happen. Getting more referrals is important to your future success.
Friday, August 8, 2014
Thursday, August 7, 2014
Beyond cash flow
Free daily tips, information and advice for people in small business
from personal business experience--been there, done that.
Small businesses face big time cash flow problems. Bills pile up and there's never enough cash to deal with it.
You are your own backup of last resort. A certain amount of prudent juggling can see you through these times. But sometimes that's not enough.
Example: A small business I know solved the ups and downs of cash flow by putting in place a revolving line of credit with a local bank. It was for $250,000. When incoming cash did not meet the outgoing cash requirements to pay bills and meet payroll, the owner hit the revolving credit line for a cash infusion. It was a short term loan. When the receivables came in, the loan was paid off. Problem solved. Then, the unthinkable happened. Bank policy changed. The owner was notified that the bank would not be offering revolving credit accounts under a million dollars--effective in 30 days. The owner's credit line would be disappearing in short order. He scrambled to find another bank that would meet his requirements.
In small business, you must always think ahead, preparing for any eventuality. The ocean on which you are sailing is always changing--the waves can wash over your ship and storms can sink you to the bottom.
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.
Be prepared for all the things the economy and the marketplace throw at you. The world doesn't end when the cash flow suddenly dips or stops flowing.
You do whatever is necessary to get through the storm. When all is said and done, you know that the sun will come up tomorrow.
Your ingenuity is what got you into business, and your ingenuity will keep you going. You build on what works, and you discard what does not work. I've read about cash flow in books, and I've lived the ups and downs of cash flow in my own businesses. As a matter of fact, I was the owner of the two small businesses in the examples above.
from personal business experience--been there, done that.
Small businesses face big time cash flow problems. Bills pile up and there's never enough cash to deal with it.
You are your own backup of last resort. A certain amount of prudent juggling can see you through these times. But sometimes that's not enough.
Example: A small business I know solved the ups and downs of cash flow by putting in place a revolving line of credit with a local bank. It was for $250,000. When incoming cash did not meet the outgoing cash requirements to pay bills and meet payroll, the owner hit the revolving credit line for a cash infusion. It was a short term loan. When the receivables came in, the loan was paid off. Problem solved. Then, the unthinkable happened. Bank policy changed. The owner was notified that the bank would not be offering revolving credit accounts under a million dollars--effective in 30 days. The owner's credit line would be disappearing in short order. He scrambled to find another bank that would meet his requirements.
In small business, you must always think ahead, preparing for any eventuality. The ocean on which you are sailing is always changing--the waves can wash over your ship and storms can sink you to the bottom.
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.
Be prepared for all the things the economy and the marketplace throw at you. The world doesn't end when the cash flow suddenly dips or stops flowing.
You do whatever is necessary to get through the storm. When all is said and done, you know that the sun will come up tomorrow.
Your ingenuity is what got you into business, and your ingenuity will keep you going. You build on what works, and you discard what does not work. I've read about cash flow in books, and I've lived the ups and downs of cash flow in my own businesses. As a matter of fact, I was the owner of the two small businesses in the examples above.
Wednesday, August 6, 2014
Picking a business
Free daily tips, information and advice for small business
from personal experience--been there, done that.
My first business was computerized typesetting. It was the early 1970s--before Word and before Bill Gates arrived on the scene.
At the time I knew computers and I knew typesetting. It was an easy choice to put the two together.
Many years later, I headed the Business Owners Institute in New Jersey. People came for help, advice, and to talk through problems with someone who had been there, done that in small business.
Others came looking for advice on what business they should go into. This led me to establish a workshop for people wondering what business they could establish. The sessions were popular, both at the Institute and at Kean University.
Picking a business to start is not difficult. Look inside yourself.
Example: A local doctor told me that he had allergies when he was a youngster. His experiences made a lasting impression. College and medical school prepared him to become a doctor. Today, he treats patients suffering through the ragweed season--together with other allergies throughout the year.
This was a long term proposition. But the doctor has built a business on a childhood experience.
Example: A local teacher spent a career in the public school system teaching swimming. When he retired, he started his own business teaching people how to swim--beginners and advanced students alike.
Example: Growing up, Sarah was fascinated with jewelry. She made bracelets and necklaces using seeds and stones. She made brooches and pins out of dried flowers and folded papers. Today she is in the jewelry business. Along the way Sarah took training in working in silver and gold. She now supports her family, selling to a growing list of customers she finds over the Internet and at shows.
Wondering what business to go into? Look at your own background and interests. Settle on the thing you love, the thing you're passionate about, the thing that fascinates you.
Then make a business based on that. If you're interested in something, then be assured that others are interested as well. They are your market. Go for it!
Your business is your life. Make sure you love the thing you are doing. I never wanted to be in a business that I hated. That's why, at 16, I told my dad I did not want to take over the dairy farm where I grew up. At the time, I didn't know what I wanted to do, but I knew it was not cows. The thing that makes America great is it's a place where you can follow your dreams.
from personal experience--been there, done that.
My first business was computerized typesetting. It was the early 1970s--before Word and before Bill Gates arrived on the scene.
At the time I knew computers and I knew typesetting. It was an easy choice to put the two together.
Many years later, I headed the Business Owners Institute in New Jersey. People came for help, advice, and to talk through problems with someone who had been there, done that in small business.
Others came looking for advice on what business they should go into. This led me to establish a workshop for people wondering what business they could establish. The sessions were popular, both at the Institute and at Kean University.
Picking a business to start is not difficult. Look inside yourself.
Example: A local doctor told me that he had allergies when he was a youngster. His experiences made a lasting impression. College and medical school prepared him to become a doctor. Today, he treats patients suffering through the ragweed season--together with other allergies throughout the year.
This was a long term proposition. But the doctor has built a business on a childhood experience.
Example: A local teacher spent a career in the public school system teaching swimming. When he retired, he started his own business teaching people how to swim--beginners and advanced students alike.
Example: Growing up, Sarah was fascinated with jewelry. She made bracelets and necklaces using seeds and stones. She made brooches and pins out of dried flowers and folded papers. Today she is in the jewelry business. Along the way Sarah took training in working in silver and gold. She now supports her family, selling to a growing list of customers she finds over the Internet and at shows.
Wondering what business to go into? Look at your own background and interests. Settle on the thing you love, the thing you're passionate about, the thing that fascinates you.
Then make a business based on that. If you're interested in something, then be assured that others are interested as well. They are your market. Go for it!
Your business is your life. Make sure you love the thing you are doing. I never wanted to be in a business that I hated. That's why, at 16, I told my dad I did not want to take over the dairy farm where I grew up. At the time, I didn't know what I wanted to do, but I knew it was not cows. The thing that makes America great is it's a place where you can follow your dreams.
Tuesday, August 5, 2014
Going digital
Free daily tips, information and advice for small business
from personal experience--been there, done that.
Many of your current--and future--clients and customers are living the digital life. The Internet is the new go-to. Along with all the mobile cousins.
People follow each other on Facebook, tweet their friends, text everything, join LinkedIn, and much more. They check you out on Angie's List and read the reviews on Yelp. Google has a new addition to their maps--you can now upload a virtual tour of your salon, restaurant or store.
All sorts of possibilities are open to you today that didn't exist 10 or 20 years ago. And going digital can mean re-thinking your business.
Example: A baker I know made a drastic transition. He closed his retail bakery storefront, opting for an Internet-based operation. His cookies and pastries are now sold all over the country, delivered overnight if the customer orders before 2 p.m. His customers now find him, and his goodies, on his Facebook page which drives traffic to his website where they place orders. Customers once drove several miles to get to his bake shop. Now they order online--and Facebook does the driving along with UPS and Fedex.
The baker has used the Internet to expand to a much bigger operation. This would not have been possible with just the storefront.
Example: Joyce owned a long-established frame shop. She decided to take the Internet plunge, hired a local website designer, and was pleased with the project when it was done. The site was attractive, easy to navigate, and she emailed an announcement to her corporate and business clients. After months of keeping up with the costs and maintenance of the site, Joyce took a second hard look. Only a couple dozen viewers had actually used the site, and she could not attribute a single sale to it. She decided it was time for a change. She reached out on Facebook with pictures she snapped herself and posted. The response, including referrals, was immediate. Within the first month on Facebook, Joyce had added three new clients. Facebook drives viewers to her website, and viewership there quickly tripled.
Businesses once put up their websites and that was that. Today, many of those stagnant websites are everywhere--costing time and money and delivering little.
To make them useful, businesses now must drive traffic to them. Social media like Facebook, Twitter, LinkedIn, and others are much more likely to capture the attention of potential customers/clients. Mobile apps do the same thing. Then, and only then, do you get that bump in site viewership.
Your business is unique. You test the different ways to attract attention. Going digital is about much more than setting up a website. Get in there and do it. Find out what works best for your business. Through a lifetime of founding and running small businesses, I've learned that you must keep up with the changing times.
from personal experience--been there, done that.
Many of your current--and future--clients and customers are living the digital life. The Internet is the new go-to. Along with all the mobile cousins.
People follow each other on Facebook, tweet their friends, text everything, join LinkedIn, and much more. They check you out on Angie's List and read the reviews on Yelp. Google has a new addition to their maps--you can now upload a virtual tour of your salon, restaurant or store.
All sorts of possibilities are open to you today that didn't exist 10 or 20 years ago. And going digital can mean re-thinking your business.
Example: A baker I know made a drastic transition. He closed his retail bakery storefront, opting for an Internet-based operation. His cookies and pastries are now sold all over the country, delivered overnight if the customer orders before 2 p.m. His customers now find him, and his goodies, on his Facebook page which drives traffic to his website where they place orders. Customers once drove several miles to get to his bake shop. Now they order online--and Facebook does the driving along with UPS and Fedex.
The baker has used the Internet to expand to a much bigger operation. This would not have been possible with just the storefront.
Example: Joyce owned a long-established frame shop. She decided to take the Internet plunge, hired a local website designer, and was pleased with the project when it was done. The site was attractive, easy to navigate, and she emailed an announcement to her corporate and business clients. After months of keeping up with the costs and maintenance of the site, Joyce took a second hard look. Only a couple dozen viewers had actually used the site, and she could not attribute a single sale to it. She decided it was time for a change. She reached out on Facebook with pictures she snapped herself and posted. The response, including referrals, was immediate. Within the first month on Facebook, Joyce had added three new clients. Facebook drives viewers to her website, and viewership there quickly tripled.
Businesses once put up their websites and that was that. Today, many of those stagnant websites are everywhere--costing time and money and delivering little.
To make them useful, businesses now must drive traffic to them. Social media like Facebook, Twitter, LinkedIn, and others are much more likely to capture the attention of potential customers/clients. Mobile apps do the same thing. Then, and only then, do you get that bump in site viewership.
Your business is unique. You test the different ways to attract attention. Going digital is about much more than setting up a website. Get in there and do it. Find out what works best for your business. Through a lifetime of founding and running small businesses, I've learned that you must keep up with the changing times.
Monday, August 4, 2014
Business dreamers
Free daily tips, information and advice for people in small business
from personal experience starting and running small businesses of my own.
You are an entrepreneur. You had a dream and you created a business.
This simple fact separates you from those who dream of starting a business but never get there. They had the dream, but you took it another step and made it happen. They are the business dreamers. You are the business owner.`
Example: A lady breezed into my office one day looking for funding to start-up her dream business. She announced that she was a designer of women's clothing. Judging by the clothes she was wearing, she had exceptional talents and an exquisite eye for fashion. I asked her if she had applied for a bank loan. She was clearly taken aback, replying that banks wanted to be paid back--with interest. She then said that she was looking for a grant--in other words, free money. Now it was my turn to be taken aback. Trying to re-focus and help her get where she eventually wanted to go, I asked if she had sold any of the clothes she had designed. She was incredulous. How could she do that, she asked, without funding to buy materials and equipment, rent a place, and hire a seamstress or two. I was ready to explain how to make a start, generate some sales, and get on the road to that dream business. Instead, she got up saying she was in the wrong place, turned and left, slamming the door behind her.
This is the difference between an entrepreneur and a wannabe. The lady's eventual dream business was getting in the way of actually getting there. She wanted someone else to take the risk of starting up her business.
You already know this what it takes to start up a business. The baby steps you took prepared you for what was ahead.
There are no shortcuts. Only hard work, frustration, persistence and a little luck.
I fear that we have raised a generation or two who believe they deserve everything. They have not been taught the value of hard work. And they know absolutely nothing about small business--what it is, how it works, how it serves the community, and how important it is to the fabric of this nation.
Keep doing what you are doing. Never give up! You, your business and others like you are the stuff that makes America great.
Your problems of running your business are similar to the problems every small-business owner faces. It doesn't matter whether your business is a salon or an allergist, a plumber or a landscaper, an auto repair shop or a bakery, problems that businesses face are similar. You need more referrals (that's the biggie!) and you need the cash flowing. That's what this blog is all about. I didn't read about business in a book--I've been there, done that, hands-on.
from personal experience starting and running small businesses of my own.
You are an entrepreneur. You had a dream and you created a business.
This simple fact separates you from those who dream of starting a business but never get there. They had the dream, but you took it another step and made it happen. They are the business dreamers. You are the business owner.`
Example: A lady breezed into my office one day looking for funding to start-up her dream business. She announced that she was a designer of women's clothing. Judging by the clothes she was wearing, she had exceptional talents and an exquisite eye for fashion. I asked her if she had applied for a bank loan. She was clearly taken aback, replying that banks wanted to be paid back--with interest. She then said that she was looking for a grant--in other words, free money. Now it was my turn to be taken aback. Trying to re-focus and help her get where she eventually wanted to go, I asked if she had sold any of the clothes she had designed. She was incredulous. How could she do that, she asked, without funding to buy materials and equipment, rent a place, and hire a seamstress or two. I was ready to explain how to make a start, generate some sales, and get on the road to that dream business. Instead, she got up saying she was in the wrong place, turned and left, slamming the door behind her.
This is the difference between an entrepreneur and a wannabe. The lady's eventual dream business was getting in the way of actually getting there. She wanted someone else to take the risk of starting up her business.
You already know this what it takes to start up a business. The baby steps you took prepared you for what was ahead.
There are no shortcuts. Only hard work, frustration, persistence and a little luck.
I fear that we have raised a generation or two who believe they deserve everything. They have not been taught the value of hard work. And they know absolutely nothing about small business--what it is, how it works, how it serves the community, and how important it is to the fabric of this nation.
Keep doing what you are doing. Never give up! You, your business and others like you are the stuff that makes America great.
Your problems of running your business are similar to the problems every small-business owner faces. It doesn't matter whether your business is a salon or an allergist, a plumber or a landscaper, an auto repair shop or a bakery, problems that businesses face are similar. You need more referrals (that's the biggie!) and you need the cash flowing. That's what this blog is all about. I didn't read about business in a book--I've been there, done that, hands-on.
Friday, August 1, 2014
Pushing growth
Free daily tips, information and advice for people in small business
from personal experience starting up and growing several small businesses.
Growing your business by doing the same things everyday is one way. Pushing growth by pushing yourself in new directions is another way.
I'm not talking bank loans here. And I'm not talking getting away from your overall business plan.
The idea here is to carefully select among the many client/customer requests you get, and home in on one or two that will push your business into new areas.
Example: A caterer usually delivered and served food to a client's guests. The business was expanded when a much more extensive job was accepted. This client wanted a big tent for a party, tables and chairs, a dance floor and lighting--along with the food and usual service. The caterer had been looking for just this sort of opportunity--it could push the growth of the business into areas beyond food. It was a new level of expansion, a new business branding, and would attract new clients. The event was successful--for both client and caterer. Many referrals came in from attendees at the party.
Example: A chiropractor expanded the business by pushing into related areas of patients' concerns. Arrangements were made with a massage therapist and a nutritional expert. (These specialists sometimes do not have their own facilities.) To kick start the expanded services, the chiropractor held an open house offering free, brief sessions in chiropractic, massage, and nutrition. Several attendees made future appointments and referred others to the "new" place in town that offers continuing information sessions on health matters.
Example: Landscapers typically take care of gardens and yards. A landscaper I know had a good customer who wanted a decorative fence installed. The landscaper knew nothing about fencing, but he knew people who did. He accepted the job, and it pushed him into an area he had never offered before. Today, fencing jobs bring him clients not seen before. And the natural referral network goes round and round the neighborhoods.
Looking for ways to grow, people in small business have a world of opportunities available to them. Rather than tackling growth as a big new project, try easing into a growth path.
When a customer or client trusts you, you can ride that wave of trust into other areas. This has the effect of pushing the growth of your small business.
You can get frustrated and stressed out looking to grow your business. The answer is always inside your own head. What you need is someone helping you find the way. That's what I do with these write-ups, and there's never a charge.
Thursday, July 31, 2014
Performance enhancers
Free daily tips, information and advice for people in small business
from personal experience starting up and running small businesses--been there, done that.
Every business, large and small, needs to optimize the performance of employees. No whips and chains. Just positive stuff.
People appreciate being appreciated. Deep down, all of us crave acceptance. And we want recognition. That's why a simple "Thank you" goes a long way toward enhancing performance.
Many other ways are effective as well. Here's a laundry list--food for thought.
1. In very small businesses, handing out a $20 bill now and then for extraordinary effort can spur even greater effort and creativity in an employee.
2. Call everyone together and recognize superior performance in front of the group. If you have weekly or monthly gatherings of employees, do it then.
3. Set up a bonus system to reward superior performance with bonuses. See one of my previous blogs on variations you might consider--it's titled "Bonuses".
4. Set up an employee of the month program. Don't let it become routine--make it part of the monthly meeting. Use a plaque on which names can be added--inscribed on metal plates.
5. Make up company T-shirts and hand them out at company picnics or other get-togethers. These can be for a good reason--or no reason at all.
6. Go the extra mile: If your business is incorporated, consider giving stock certificates out to your best employees. If parking is a problem at your place, consider putting employee names on parking places--yours should be at the end of the line, not closest to the door. If you don't already offer a retirement plan, consider setting up one--you'll need professional help with this.
Other options can be effective. Put on your thinking cap and get creative. Little things that show your thoughtfulness and appreciation for the person are often more effective than big splashes.
Whatever you do, do it by saying "Thank you" to the employee. Even by itself, a simple "Thank you" goes far in enhancing performance. Make it part of your routine management style.
Running your own business is stressful and frustrating. You need input that is useful and spot on. And that's why I write this blog every day. I know the acid burn when cash flow is not flowing. Been there, done that in several small businesses myself.
from personal experience starting up and running small businesses--been there, done that.
Every business, large and small, needs to optimize the performance of employees. No whips and chains. Just positive stuff.
People appreciate being appreciated. Deep down, all of us crave acceptance. And we want recognition. That's why a simple "Thank you" goes a long way toward enhancing performance.
Many other ways are effective as well. Here's a laundry list--food for thought.
1. In very small businesses, handing out a $20 bill now and then for extraordinary effort can spur even greater effort and creativity in an employee.
2. Call everyone together and recognize superior performance in front of the group. If you have weekly or monthly gatherings of employees, do it then.
3. Set up a bonus system to reward superior performance with bonuses. See one of my previous blogs on variations you might consider--it's titled "Bonuses".
4. Set up an employee of the month program. Don't let it become routine--make it part of the monthly meeting. Use a plaque on which names can be added--inscribed on metal plates.
5. Make up company T-shirts and hand them out at company picnics or other get-togethers. These can be for a good reason--or no reason at all.
6. Go the extra mile: If your business is incorporated, consider giving stock certificates out to your best employees. If parking is a problem at your place, consider putting employee names on parking places--yours should be at the end of the line, not closest to the door. If you don't already offer a retirement plan, consider setting up one--you'll need professional help with this.
Other options can be effective. Put on your thinking cap and get creative. Little things that show your thoughtfulness and appreciation for the person are often more effective than big splashes.
Whatever you do, do it by saying "Thank you" to the employee. Even by itself, a simple "Thank you" goes far in enhancing performance. Make it part of your routine management style.
Running your own business is stressful and frustrating. You need input that is useful and spot on. And that's why I write this blog every day. I know the acid burn when cash flow is not flowing. Been there, done that in several small businesses myself.
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