Monday, November 17, 2014

Managing small business

     Free tips, information, advice, and ideas, 
     with examples from real small businesses.

     Managing a small business is difficult. The basic problem is you are too close to the actual work being done. In fact, you might well be the only employee.

     You handle sales, production, customer service, ordering materials and supplies, scheduling, and everything else that comes up. Then you turn off the lights and take out the trash.

     The head of a big company has other people to handle all these pieces of the operation. To use an analogy, the head of a corporation is like the conductor of a symphony orchestra. The strings and woodwinds and percussion players play their individual parts, and the conductor puts it all together. 

     Well, that might be you one day. Meantime, your small business is you. You play all the parts.

     To manage your small business so that it grows in an orderly fashion, you must pay attention to planning ahead. Planning turns growth into an orderly process. Planning sets milestones to help you know you're on the right track.

     First, set your long-term goal. This can take some soul-searching on your part. A massage therapist, for example, can set a long-term goal of growing into a wellness center--offering much more than massage therapy.

     Second, set some milestones that, over time, will head your small business toward that long-term goal. This is a matter working backward from the long-term goal to where you are now. Tie your milestones to target dates in the future. A plumber, for example, might set a milestone in the future to add another service van and another employee.

     Third, each milestone will require that you answer certain questions. Will the consumer market you serve support each of your milestones? What effect will technology play? Will you need outside funding or can you grow using only internally-generated funds? Can you use a business partner? Will you need additional space, equipment, employees, or other inputs?

     Fourth, turn all this into hard numbers for each milestone with a projected date. Make certain that projected income from your projected sales efforts more than covers projected expenses. Numbers have a way of turning idle dreams into hard realities. 

     Managing means staying on top of an ever-changing world. Long-term goals and milestones can change as well. Planning ahead helps you sleep at night--after you take out the trash and turn off the lights. 

Friday, November 14, 2014

Voicemail goodbye

     Free daily tips, information, advice, and ideas,
     with examples from real small businesses.

     Statistics show that the days of voicemail are numbered. Recently published numbers reveal that more than three quarters of people do not leave messages when they are sent to voicemail. The simply hang up.

     So why do so many small businesses still depend on voicemail? The answer is simple. Voicemail is convenient for the business--not the caller. And that is bad for business.

     More and more consumers are turning away from voicemail, favoring text messages and emails instead. Consumers know what's convenient for them--even if businesses are slow to catch on. 

     The situation has led to the rise of speech-to-text providers. They turn voice messages into text messages and send them on. Big businesses can afford this extra service, but small businesses are likely to consider it a needless expense.

     All this confirms what I have long suspected. And it comes from my own experience in running businesses. For almost ten years back in the 1990s, I headed the Business Owners Institute in New Jersey. We received a continuing stream of phone calls, and every one of them was answered by a live person--usually before the third ring.

     Nowadays, in active retirement, I write about small business. This means that I speak with many business owners every week. During the last decade, I have been amazed at the number of voicemail prompts I get. Usually, I simply hang up and try again later.

     Prompting a client or customer to go to voicemail simply delays--and sometimes kills--a relationship. Owners of small businesses need to realize that telephones are for the convenience of the customers--not the business. Phones should be answered promptly by a person. If the caller is trying to sell you something, you can simply hang up.

     But if a client/customer is calling to place an order, or make an appointment, it might never happen if your system flips them to voicemail. And you never want to miss that first call from a referral.

     Today, savvy business owners are turning their smart phone into their business phone. You have it with you all the time, and you answer it when it interrupts you. At the very least, have calls from your business phone automatically and seamlessly transferred to your smart phone.

     Technology gallops along at a furious pace. It's hard to keep up with what's available, much less what can be useful or not in your small business. Don't get lost in the glitz and glitter of the latest thing. Keep the focus on the business end of what you're doing.   

     

Thursday, November 13, 2014

Expanding your services

     Free daily tips, information, advice, and ideas, 
     with examples from real small businesses. 

     Expanding a business takes careful thought and planning. But sometimes an idea for expansion just comes at you.

     Listen carefully to your clients/customers. They can point you in a new direction, a new future that you might not have considered.

     Example: Guthilda runs a salon and spa. When she took notice that many of her clients were undergoing cancer treatments, she felt badly for them and wanted to help. She decided to add oncology esthetician services. After doing a search, she found an independent certified esthetician and made arrangements to offer the service at the salon. It has worked out well.

     Example: Jonathan runs a landscaping business. He does lots of fall cleanups, winter prunings, spring plantings and year-round mulchings. Many of his customers had questions about shrubs and perennials that Jonathan could not answer. He realized that this might be an area for expanding. He made contact with a Master Gardener and they formed an informal partnership--working together and referring customers to each other. Both benefited. 

     Example: Law school and the bar exam behind her, Annabelle opened her own law office.The first year was filled with traffic tickets, real estate closings, drawing up wills, forming partnerships--and handling worker's comp cases. She suddenly saw a bright future for her law practice if she concentrated on worker's comp cases. The more she dug into the field, the better it looked as a way forward. Today, Annabelle has added a partner and together they devote full time to worker's comp cases. Her firm's reputation is spreading and referrals regularly show up at her door. 

     Be alert to expansion possibilities. New directions for your business pop up on a regular basis. Pick the good ones, test them out, and select the best. Good things can happen to those with eyes to see and the patience to follow through.

     Before heading off into a big expansion, however, always do--or re-do--your business plan. Whether you plan in your head or write out a formal document, it's that projected bottom line that will keep you in focus. 

     More on expansions and business planning can be found scattered throughout these write-ups. In my own businesses, I tended to plan by jotting down ideas on whatever piece of paper happened to be at hand, throwing all these into a drawer, and once every three months or so, go through them. Sometimes, I threw them all away. Other times, I found the nugget that pointed the way forward. In my case, I let the ideas simmer for a while before heading off in another direction.     

Wednesday, November 12, 2014

Hiring good employees

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     with examples from real small businesses and my experience.

     Finding good employees can be a real problem. Most of the good people already have jobs. You can hire good people away from another employer, but it will cost you.

     To find a good employee for your business, begin by defining what that new person will contribute. New employees must fit into your overall business plan. Ask yourself a couple of questions. Where do you want to go? How can a new employee help get you there?

     Many people who apply for a job don't have basic skills. They don't know how to get to work on time. They don't know how to read and write. They don't know how to answer a telephone. They don't know how to apply themselves to a problem, solve it, and move on to the next one.

     In my own experience, I have placed ads in the Help Wanted section of the newspaper. And then I dreaded the responses. Most of the people who responded didn't know how to clean a toilet. I felt sorry for them, but I sent them on their way.

     Good employees have sparkle in their eyes. They have learned self-discipline. They want to learn new things. They want to be a part of your business. They want to contribute to the success of something bigger than themselves. They want to feel good about what they do.

     Through trial and error, I learned to look beyond the experience the applicant had. I learned that I could teach them the specific tasks I wanted them to do. I learned to look beyond the resume--if fact, if they entered my office and handed me their resume, I simply laid it on the desk and began a conversation.

     My first question was, have you been in the military? If the person had served in the military, I knew that he/she had learned self-discipline and could tackle any task I might have. The applicant had already learned to work in a team effort. The applicant had already learned to respect others. If the person did not have the specific experience that would be useful, no matter. I could teach them everything they needed to know--providing they had the basics.

     Our public schools today are little more than baby-sitting operations. Students are not taught to engage life. Anything goes--there is little if any discipline. Educators are experimenting with the lives of our young people, coddling them, and not preparing them for real life situations they will certainly face later on.

     So, when you look for your next employee, forget the resume. Resumes can be manufactured. Look for fire in the belly and self-discipline. Look for people who can contribute to the team. Look for someone who can eventually replace you.

     At this point, there are more than 150 write-ups in this blog. They cover my lifetime experiences in starting up, operating, managing, growing and expanding businesses of my own. I don't sell anything. I'm just passing on what I've learned in my 78 years.  

Tuesday, November 11, 2014

Growing with Facebook

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     with examples taken from real small businesses.

     If you are not using Facebook to grow your small business, you are missing a big opportunity. Facebook is easy to use and it's free.

     Promotions on Facebook begin with putting your small business up on the Facebook site. They lead you through it--and it is simplicity itself. Then, start uploading pictures--you're snapping pictures all the time, aren't you?

     Pictures attract attention. They don't have to be professionally done. But they should be interesting--a close-up of a slice of cake if you're a baker, hands massaging shoulders if you're a therapist, flowers blooming if you're a florist or landscaper, a street scene if you're a cafe. Even attorneys can announce free sessions on elder care using Facebook. You get the idea.

     You post a picture on Facebook with a few words and you're done. If you only post once a month, you won't get much return. But if you post two or three times a week, the response can be significant. It depends on the business and how active you are.

     Example: A consignment shop specializes in fashionable women's clothing. A manikin is dressed in every outfit or dress or coat that comes in. A picture goes up on the shop's Facebook page. Handbags are shown with a close-up of the label. Boots and scarves and sweaters and more show up on the Facebook pages every week. The shop attracts widespread attention. Women call and reserve items to be picked up later, or they rush by after their workday. Facebook has helped turn this consignment shop into a fast moving operation. 

     Example: A massage therapist posts pictures of hands working on clients--never showing a face. Pictures of hands massaging shoulders, necks, arms and legs trigger all sorts of responses from people seeing the pictures on Facebook. The response is more calls for more appointments from more people. 

     Example: Retail operations can show pictures of new products, new items being used, along with announcements of sales, discounts, gift certificates, and events set for weekends.
Close-ups of jewelry, potted plants, baked goods, clothing, a deck under construction, and just about any other item can get a response on Facebook. Now and then, take pictures of sections of the inside of your place and post them with a brief comment--this reminds people of who you are and what you can do for them. 

     People in small business need all the publicity they can get--especially when it's free. Take advantage of what Facebook offers. No matter the business you're in, you'll be pleasantly surprised at how well Facebook can promote what you do.

     One last word--I don't have any connection with Facebook other than I'm on Facebook myself. I'm not promoting Facebook for any monetary gain. But it is one of the best promotional tools you can use in small business. 

Monday, November 10, 2014

Social media clues

     Free daily tips, information, advice, and ideas,
     with examples from real small businesses.

     Many business owners think of social media as a one-way street. You put something up on the Internet, and buyers come calling.

     But social media is a two-way street. If you pay close attention, buyers will tell you what they want. And you need to be paying attention to this information.

     If your Facebook page is not attracting hits and likes, then you have not attracted their attention. The people out there are not interested. It doesn't mean that they have no interest. It can mean that they are not interested enough to linger on your page--much less like it and send it on to their friends.

     Social media reaches out to people of all persuasions. All these new technologies can expose you and your business to new markets. But you must be involved on your end as well.

     Example: Heather is a Reiki expert. She has a local clientele that is growing. When she went on Facebook and LinkedIn, a funny thing happened. She expanded in a way that she had not considered. Not only did she begin pulling clients from farther afield, but several people pointed her in a completely new direction--teaching Reiki long distance. She reworked her website and now offers courses on Reiki over the Internet. These clients can be anywhere.

     Example: Patrick runs a cafe offering breakfast and lunch only. He was somewhat reluctant to create a Facebook presence. When he did, he got some comments back that helped him expand. His current customers were mainly trades people--electricians, plumbers, and carpenters stopped in for breakfast or lunch. There was a sprinkling of professionals and office workers. Patrick noticed comments from office workers and professionals who wanted to eat "healthy" at breakfast and lunch. He began adding items to the menu and saw that just about everyone was ordering "healthy"--including those tradespeople. Patrick had caught a market wave by listening to social media feedback. The cafe is much fuller than before.

     Social media is a good way for small businesses to reach out. It's also a good way for your clients/customers to reach in. Feedback is a valuable tool for expanding. 

     When you listen, people will tell you much more on social media than they will in person. They will say what they like, don't like, want, and will buy. Sometimes, it takes reading between the lines, or filling in the blanks--but the feedback is there.

     Having your own social media presence is like having your own business consultant. If you listen carefully, your Facebook or LinkedIn or Google+ pages can help you grow and expand. More write-ups on social media are scattered throughout this blog. So far, I've written 170 entries. Check 'em out! 

       

Friday, November 7, 2014

Window dressing

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     examples from real businesses

     Small shops and stores have opportunities not available to other small businesses. It's the window on the street.

     Dressed up windows get attention. Drivers slow down when a decorated window catches their attention. Strollers on the sidewalk stop, look, and come inside. But window dressing is much more these days.

     Example: Greta runs an upscale consignment shop specializing in "gently worn" women's fashions. Consignments come from professionals, executives, and women in the entertainment field. Dresses, gowns, outfits, coats, boots, handbags, jewelry and other accessories fill her shop. Greta changes her shop's window at least twice each week. She takes pictures of her window, including closeups showing detail and labels, and posts them on Facebook daily. She does no other advertising, but her windows and Facebook postings draw people from three states. The word is passed around and referrals come in. Items that don't sell within two weeks are donated to local charities. It's a fast-moving, high end operation. And the window is the focus. 

     Example: Lisa runs an upscale gift shop. She offers handmade items from artists and artisans. She changes her shop's windows once each week, highlighting new items. The streets of this small town are full of window shoppers--coming here for holidays, town events, and just to get away from the big cities where they live and work. They have disposable income and Lisa's window dressings pull them into her shop. They browse through pottery and glass items, small furniture and turned wood sculptures, jewelry and fiber art, and hundreds of other items. Frequently, Lisa clears out one window and invites an artist to set up an easel and create a painting--it always draws a crowd. Pictures go up on Facebook, Instagram, Pinterest and other social media. 

     A shop's windows can provide the marketing focus for a small business. Yes, it's extra work, but what else are you going to do while you wait for the customers to arrive?

     Even in this new age of social media, people still love to window shop. Many years ago, I frequented a small restaurant in Manhattan's SOHO. The kitchen was in the front window. As you walked down the street, you were suddenly confronted with a chef and his helper busily preparing meals--just beyond the big plate glass. People stopped, watched, and were suddenly hungry.

     Turn your window into a marketing focus for your business. If you can capture the interest of passers by, you can draw them inside. It's a marketing tool frequently missed in today's world of small business. Combine that with social media postings, and you have a winner.