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to help you better manage your small business
People who start a business frequently don't know the difference between personal friends and business friends. Until you get the hang of it, it can be confusing.
A personal friend is someone you're comfortable with. You willingly share private pieces of your life. You enjoy being around personal friends.
A business friend is a customer or client. These people trust you to provide certain goods and services. They feel that you have integrity. The relationship is at arm's length and professional.
Example: I know the owner of a small gift shop who is downright unpleasant with some customers who wander into her place. Instead of assuming a professional attitude, she immediately "likes" or "dislikes" shoppers. She treats them accordingly, bringing her own attitudes and preferences into play. Because of unprofessional treatment, many potential shoppers leave and never return. The business suffers because of the owner's treatment of customers. People who come into her shop don't arrive looking for a personal friend. They are attracted by something they saw in the window. They expect, and deserve, respect.
Every business owner will encounter a difficult and demanding customer. Sometimes these types of customers are people you'd rather not deal with. Just be careful not to let your personal preferences drive away customers.
Example: Bob does home improvements. He has a lifetime of experience in carpentry, painting and those small jobs around the house--hanging a door, repairing tile work, seeing to a squeaky stair. His estimates are free, but sometimes when he arrives at the homeowner's place, he turns and leaves without even knocking. He explained to me once that he had seen so many homes and dealt with so many people, he could quickly make a decision whether or not to knock on the door. If the car in the driveway is old and if he sees signs of neglect, he moves on.
This is not professional. Maybe the person has just bought the house. Maybe the old car means that the owner is thrifty. Maybe---anything.
You can run your own business any way you like. But setting up to serve only people you would consider having as personal friends will severely limit the business future. Best growth is achieved by serving business friends in a professional, arm's length manner.
Business friends are customer friends. They appreciate professionalism and they will refer others to you. Personal friends have another agenda.
When you let your personal "likes" and "dislikes" invade your business space, you run the risk of turning away the very customers who can help you grow.
Tuesday, January 20, 2015
Monday, January 19, 2015
Building trust
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to help you better manage your small business
The trust your customers place in you is extremely important. Trust is the bond between you and your customers. Trust results in repeat business and referrals.
Building customer trust happens every time you fulfill your customer's expectations. Every job you complete and every product you sell can result in future business--from the customer and from their referrals.
I learned many valuable lessons from my father. When you do a job, he said, do it well and do it on time. I remembered this every time I started up a business.
Example: When I left corporate America, I started up a graphic arts firm in downtown Manhattan. My customers were brokerage firms, financial people, banks and insurance companies. These people wanted a supplier who could deliver the goods--on time and without errors. On my end, meeting tight deadlines meant having reliable employees, the latest equipment, and setting up a 24-hour operation. With every job, we built customer trust. The job itself was the vehicle--what we were selling was customer trust. The word spread throughout the Wall Street community.
In every business, large or small, delivering what the customer wants is what spells success. That trusting relationship is what growth is all about. If you drop the ball, you run the risk of losing your customer.
Examples: The baker who delivers the wedding cake late has lost a customer. The financial planner who loses his customer's money has lost a customer. The holistic practitioner whose clients go away feeling less than optimal has lost clients. The attorney who drags out the process of drawing up a will loses a customer. The landscaper who plants hostas instead of daylilies has lost a customer.
Bad news travels faster than good. When you betray a customer's trust, you've told that customer to go someplace else. More importantly, you've lost all the referrals the customer might have brought you.
Keep it positive. Keep it right. Keep it on time. This keeps the focus on building trust.
Building trust is what you're selling. It keeps the focus where it should be--not on the product or service you're providing, but on the long term relationship.
to help you better manage your small business
The trust your customers place in you is extremely important. Trust is the bond between you and your customers. Trust results in repeat business and referrals.
Building customer trust happens every time you fulfill your customer's expectations. Every job you complete and every product you sell can result in future business--from the customer and from their referrals.
I learned many valuable lessons from my father. When you do a job, he said, do it well and do it on time. I remembered this every time I started up a business.
Example: When I left corporate America, I started up a graphic arts firm in downtown Manhattan. My customers were brokerage firms, financial people, banks and insurance companies. These people wanted a supplier who could deliver the goods--on time and without errors. On my end, meeting tight deadlines meant having reliable employees, the latest equipment, and setting up a 24-hour operation. With every job, we built customer trust. The job itself was the vehicle--what we were selling was customer trust. The word spread throughout the Wall Street community.
In every business, large or small, delivering what the customer wants is what spells success. That trusting relationship is what growth is all about. If you drop the ball, you run the risk of losing your customer.
Examples: The baker who delivers the wedding cake late has lost a customer. The financial planner who loses his customer's money has lost a customer. The holistic practitioner whose clients go away feeling less than optimal has lost clients. The attorney who drags out the process of drawing up a will loses a customer. The landscaper who plants hostas instead of daylilies has lost a customer.
Bad news travels faster than good. When you betray a customer's trust, you've told that customer to go someplace else. More importantly, you've lost all the referrals the customer might have brought you.
Keep it positive. Keep it right. Keep it on time. This keeps the focus on building trust.
Building trust is what you're selling. It keeps the focus where it should be--not on the product or service you're providing, but on the long term relationship.
Friday, January 16, 2015
Using social media
Free daily tips, information, advice and ideas
to help you better manage your small business.
Social media 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. You don't have to be a rocket scientist to take advantage of social media today.
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 rapidly after workouts, races, shows, and the like. 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 thing to use the technological reach of today's social media. Think how far she could have reached today!
Example: More recently, another woman came to me wondering how to turn her love of baking into a real business. She had baked brownies, scones and other goodies for years. She had been giving them away, providing treats to local gatherings, selling at local fairs and flea markets. I advised her to think of a bigger, 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 social media. She put a basic website in place and began using social media with many pictures of her baked goodies. This was her sales force, along with an enthusiastic word of mouth referral network that developed. The UPS truck now comes to her place every day, loads up packages of baked goods, and delivers them all other the country. All this with no loan, no written business plan and no government help.
The social media of today can quickly turn a small business into a much larger one very quickly. Today, the lady uses her camera as much as she uses her oven. The pictures go up on social media and the orders come in.
Your small business can only grow as large as your business reach. Social media has turned the whole country into a local community.
My personal experience starting up and growing small businesses goes back to 1972. That's when I left corporate America and established a business. Since then, I've had several. I can only imagine how much bigger the businesses would have grown had social media been available to me. Use it. It's easy.
to help you better manage your small business.
Social media 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. You don't have to be a rocket scientist to take advantage of social media today.
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 rapidly after workouts, races, shows, and the like. 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 thing to use the technological reach of today's social media. Think how far she could have reached today!
Example: More recently, another woman came to me wondering how to turn her love of baking into a real business. She had baked brownies, scones and other goodies for years. She had been giving them away, providing treats to local gatherings, selling at local fairs and flea markets. I advised her to think of a bigger, 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 social media. She put a basic website in place and began using social media with many pictures of her baked goodies. This was her sales force, along with an enthusiastic word of mouth referral network that developed. The UPS truck now comes to her place every day, loads up packages of baked goods, and delivers them all other the country. All this with no loan, no written business plan and no government help.
The social media of today can quickly turn a small business into a much larger one very quickly. Today, the lady uses her camera as much as she uses her oven. The pictures go up on social media and the orders come in.
Your small business can only grow as large as your business reach. Social media has turned the whole country into a local community.
My personal experience starting up and growing small businesses goes back to 1972. That's when I left corporate America and established a business. Since then, I've had several. I can only imagine how much bigger the businesses would have grown had social media been available to me. Use it. It's easy.
Thursday, January 15, 2015
Pocketing cash
Free daily tips, information, advice and ideas
to help you better manage your small business.
Some people like to run cash businesses--pocketing the cash received. This is short-sighted and can be downright dangerous.
The IRS can get very creative in going after business owners who pocket cash received. Keep in mind that your own records can indicate discrepancies.
Examples: An upscale restaurant regularly sends out the white tablecloths to a laundry. This can indicate to an investigator just how many meals have been served. When compared to the bank account, a discrepancy might pop into view. Bakeries can be hard pressed to explain the differences between raw materials bought and goods sold. Therapists typically keep an appointment book. When bank deposits do not agree with appointment records, questions will arise that can be hard to explain.
Think carefully about your own situation. Every business keeps records of various types. These can point to a business owner who is pocketing cash.
Example: Robert ran a one-man delivery service for several clients. He picked up groceries from the supermarket and delivered to customers who paid in cash. He expanded to deliver auto parts to garages, restaurant meals to shut-ins, and had an arrangement with a couple of pizza parlors. The payments and tips went into his pocket--until the IRS caught up with him. In an audit of an auto repair shop, an alert auditor noticed the deliveries and that led the IRS to Robert. He could have grown his delivery service into a bigger operation, but he fell into the trap of spending all the cash he received.
Once the IRS gets on a trail, they do not stop. These are people with their own careers to protect. Like any good employee, an auditor is building a reputation and resume.
Example: Bill ran a small printing operation. Frequently, customers paid him in cash. Bill always deposited the cash into his business checking account. This practice kept the records clean and in perfect order. The IRS found no problems when they came calling on a routine audit of the operation.
There are many legitimate ways to get funds out of a business and into your personal account. Talk to your accountant or tax professional. Whatever you do, don't pocket cash received from your customers and clients.
Over a lifetime, I have started up and operated several small businesses. Fortunately, I had good advice from the very beginning. One of the best pieces of advice I ever received was "Never pocket cash received."
to help you better manage your small business.
Some people like to run cash businesses--pocketing the cash received. This is short-sighted and can be downright dangerous.
The IRS can get very creative in going after business owners who pocket cash received. Keep in mind that your own records can indicate discrepancies.
Examples: An upscale restaurant regularly sends out the white tablecloths to a laundry. This can indicate to an investigator just how many meals have been served. When compared to the bank account, a discrepancy might pop into view. Bakeries can be hard pressed to explain the differences between raw materials bought and goods sold. Therapists typically keep an appointment book. When bank deposits do not agree with appointment records, questions will arise that can be hard to explain.
Think carefully about your own situation. Every business keeps records of various types. These can point to a business owner who is pocketing cash.
Example: Robert ran a one-man delivery service for several clients. He picked up groceries from the supermarket and delivered to customers who paid in cash. He expanded to deliver auto parts to garages, restaurant meals to shut-ins, and had an arrangement with a couple of pizza parlors. The payments and tips went into his pocket--until the IRS caught up with him. In an audit of an auto repair shop, an alert auditor noticed the deliveries and that led the IRS to Robert. He could have grown his delivery service into a bigger operation, but he fell into the trap of spending all the cash he received.
Once the IRS gets on a trail, they do not stop. These are people with their own careers to protect. Like any good employee, an auditor is building a reputation and resume.
Example: Bill ran a small printing operation. Frequently, customers paid him in cash. Bill always deposited the cash into his business checking account. This practice kept the records clean and in perfect order. The IRS found no problems when they came calling on a routine audit of the operation.
There are many legitimate ways to get funds out of a business and into your personal account. Talk to your accountant or tax professional. Whatever you do, don't pocket cash received from your customers and clients.
Over a lifetime, I have started up and operated several small businesses. Fortunately, I had good advice from the very beginning. One of the best pieces of advice I ever received was "Never pocket cash received."
Wednesday, January 14, 2015
Two party promotions
Free daily tips, information, advice, and ideas
to help you better manage your small business.
Successful businesses promote. Ways to promote can vary widely from business to business. What works for a small cafe might not work for a car wash.
Some promotions work well in many businesses. Open houses, information sessions, and demonstrations can work for just about everyone.
Set these up yourself, or get together with another business person to offer two party promotions. These promotional activities are easy to organize and they cost little, or nothing in some cases.
Example: A small neighborhood restaurant brings in a group of musicians who perform Irish music on authentic instruments. The musicians do it for the love of the music--and a venue where they can practice and perform. People come to expect the music every Sunday afternoon, and the restaurant is more successful than before. Both parties win.
Example: Spas and salons bring in holistic practitioners to offer introductory sessions explaining their services. The sessions create lots of buzz for the spas and salons, not only among regular clients but among referrals as well. The sessions can lead to more substantive sessions for the nutritionists, hypnosis experts, Reiki and massage practitioners, and others.
Example: A garden center hosts free sessions by experienced gardeners aimed at a public hungry for expertise in horticulture. The sessions are very popular in spring. In summer, the garden center brings in experts to demonstrate how to build fences, how to use pavers to create patios and walkways, and other outdoor activities of interest to homeowners.
Example: A winery hosts art shows as well as artists creating their plein-air works out among the vines in the vineyard. Artists make contacts and come away with sales opportunities not otherwise available to them. The winery attracts more upscale visitors to sample their wines--and buy a case to take home. Both parties are winners.
To set up your own two party promotions, think outside the box. What can get attention? What are the interests of my customers? How do I contain costs? Are there new types of customers I want to attract?
When you've homed in on your two party promotional event, get the word out. Post on your website, Facebook and other social media.
Two party promotions can be very effective in tapping into new customer streams. The excitement created in the community will help spread the word--you'll get more referrals.
to help you better manage your small business.
Successful businesses promote. Ways to promote can vary widely from business to business. What works for a small cafe might not work for a car wash.
Some promotions work well in many businesses. Open houses, information sessions, and demonstrations can work for just about everyone.
Set these up yourself, or get together with another business person to offer two party promotions. These promotional activities are easy to organize and they cost little, or nothing in some cases.
Example: A small neighborhood restaurant brings in a group of musicians who perform Irish music on authentic instruments. The musicians do it for the love of the music--and a venue where they can practice and perform. People come to expect the music every Sunday afternoon, and the restaurant is more successful than before. Both parties win.
Example: Spas and salons bring in holistic practitioners to offer introductory sessions explaining their services. The sessions create lots of buzz for the spas and salons, not only among regular clients but among referrals as well. The sessions can lead to more substantive sessions for the nutritionists, hypnosis experts, Reiki and massage practitioners, and others.
Example: A garden center hosts free sessions by experienced gardeners aimed at a public hungry for expertise in horticulture. The sessions are very popular in spring. In summer, the garden center brings in experts to demonstrate how to build fences, how to use pavers to create patios and walkways, and other outdoor activities of interest to homeowners.
Example: A winery hosts art shows as well as artists creating their plein-air works out among the vines in the vineyard. Artists make contacts and come away with sales opportunities not otherwise available to them. The winery attracts more upscale visitors to sample their wines--and buy a case to take home. Both parties are winners.
To set up your own two party promotions, think outside the box. What can get attention? What are the interests of my customers? How do I contain costs? Are there new types of customers I want to attract?
When you've homed in on your two party promotional event, get the word out. Post on your website, Facebook and other social media.
Two party promotions can be very effective in tapping into new customer streams. The excitement created in the community will help spread the word--you'll get more referrals.
Tuesday, January 13, 2015
Plan every day
Free daily tips, information, advice and ideas
to help you better manage your small business.
Business planning is not difficult. You already do it all the time.
Planning is all about customers/clients. No matter your business, the future depends on them. Customers/clients are the foundation. Today's customers/clients tell you where you are. Tomorrow's tell you where you're headed.
A formal business plan puts all this into perspective. It's what you deserve to have in hand before you make a big expansion move. It's what your banker wants to see when you go for that expansion loan.
Writing up a business plan begins today. The most important part of your plan is your present customer/client base and how you plan to expand to include more.
Pay close attention to your present customers/clients. Get to know them. Get to know how, what and when they buy products and services. Find out what else they want--how you can serve them better. This takes careful attention.
The same applies to the direction in which you're headed. What new base of customers are you targeting? How, what and when will they buy the new products and services you are thinking about offering? What else might they want?
Examples: You are a chiropractor, and you're getting questions from present clients about the benefits of seeing a massage therapist. You run a restaurant, and you're getting requests for gluten-free preparations. You operate a small print shop, and you're asked for a referral to handle small mailings. You have a yoga studio, and people are asking you to recommend a nutritionist. You are an attorney, and you get a call asking for a recommendation for someone to handle a worker's comp claim. You are a landscaper, but can you build a patio? You can troubleshoot and repair my computer networks, but can you help me with social media?
All these examples are clues to possible expansions of small businesses. These clues come from customers/clients looking for products and services to better serve their needs. And they can point the way to your expansion.
Clues come to you almost daily when you're in small business. Don't dismiss these clues. They are valuable planning initiators. Does the question trigger a possible expansion direction for your business?
Expansions can be as simple as adding a new line of products/services. Or you can decide to go off in a completely new direction. Either way, take a hard and in-depth look at the market that will support the new line or the new direction.
Seeing to your planning every day can be of enormous help when the time comes to write up a formal business plan. You already do the daily stuff. Now it's all about the future market. Put the daily stuff together with the future market and you're ready for the banker when he asks to see your business plan.
Don't go all wobbly when you're asked for your business plan. You plan every day. It's now a matter of pulling it all together and matching it with the future market for your goods and services.
to help you better manage your small business.
Business planning is not difficult. You already do it all the time.
Planning is all about customers/clients. No matter your business, the future depends on them. Customers/clients are the foundation. Today's customers/clients tell you where you are. Tomorrow's tell you where you're headed.
A formal business plan puts all this into perspective. It's what you deserve to have in hand before you make a big expansion move. It's what your banker wants to see when you go for that expansion loan.
Writing up a business plan begins today. The most important part of your plan is your present customer/client base and how you plan to expand to include more.
Pay close attention to your present customers/clients. Get to know them. Get to know how, what and when they buy products and services. Find out what else they want--how you can serve them better. This takes careful attention.
The same applies to the direction in which you're headed. What new base of customers are you targeting? How, what and when will they buy the new products and services you are thinking about offering? What else might they want?
Examples: You are a chiropractor, and you're getting questions from present clients about the benefits of seeing a massage therapist. You run a restaurant, and you're getting requests for gluten-free preparations. You operate a small print shop, and you're asked for a referral to handle small mailings. You have a yoga studio, and people are asking you to recommend a nutritionist. You are an attorney, and you get a call asking for a recommendation for someone to handle a worker's comp claim. You are a landscaper, but can you build a patio? You can troubleshoot and repair my computer networks, but can you help me with social media?
All these examples are clues to possible expansions of small businesses. These clues come from customers/clients looking for products and services to better serve their needs. And they can point the way to your expansion.
Clues come to you almost daily when you're in small business. Don't dismiss these clues. They are valuable planning initiators. Does the question trigger a possible expansion direction for your business?
Expansions can be as simple as adding a new line of products/services. Or you can decide to go off in a completely new direction. Either way, take a hard and in-depth look at the market that will support the new line or the new direction.
Seeing to your planning every day can be of enormous help when the time comes to write up a formal business plan. You already do the daily stuff. Now it's all about the future market. Put the daily stuff together with the future market and you're ready for the banker when he asks to see your business plan.
Don't go all wobbly when you're asked for your business plan. You plan every day. It's now a matter of pulling it all together and matching it with the future market for your goods and services.
Monday, January 12, 2015
Promotion ideas
Free daily tips, information, advice, and ideas
to help you better manage your small business.
You need to think beyond holidays to promote your business. You can turn any day into a holiday if you think outside the box.
Example: A florist I know concentrates on promoting his design capabilities. Of course, beautiful flowers are traditional for Mother's Day. It's the biggest day of the year for florists. But he does more. He emails and posts on social media pictures of his designs far ahead of Mother's Day. Beginning in early March, he reaches out to customers, reminding them that he has fresh or custom designs for birthdays, anniversaries, corporate meetings, and more. And, oh yes, remember Mother's Day is coming up.
Today's advertising is much more than an ad in the newspaper. And it can be more than a special reminder of an upcoming special day. Social media has seen to this.
Example: I know an Internet operation built entirely around brownies. Brownies are shipped anywhere. There is no bricks-and-mortar store. Only Internet orders are filled. Regularly, emails are sent out to customers. The email consists of three words: "Time for brownies?" It accompanies a close-up picture of a scrumptious, chocolaty, nut-filled brownie. That's it. Who can resist? The picture of the brownie creates the need for a personal holiday, and the orders come in--for corporate events, organizational meetings, private parties.
Thinking outside the box can help you with promotions. You can tap into holiday excitement or create one of your own. Customers are busy with their own lives. And they might appreciate the picture of a floral design or a brownie you send along. You are becoming part of their lives.
Example: I know an ice cream parlor (yes, they still exist) that devotes most of its space to special events the customers hold there. Birthdays, anniversaries, corporate get-togethers, and parties are much more fun when held in an old fashioned ice cream parlor. It has the red leather covered stools, the gleaming counter, and black and white tiles cover the floor. Of course, much more than ice cream is offered--with frozen yogurt, sugarless concoctions, biscotti and lattes all around. Instead of being just a summertime destination, the place hops all year. Customers schedule their events, and they don't have to worry about cleaning up.
Of course you promote for holidays. But don't miss opportunities that can turn every day into a holiday for your customers.
Businesses build events around more than food and flowers. Chiropractors, fitness instructors, nutritionists, yoga practitioners and others set up open houses offering free talks, demonstrations, question and answer sessions. These types of events attract community attention--and referrals.
to help you better manage your small business.
You need to think beyond holidays to promote your business. You can turn any day into a holiday if you think outside the box.
Example: A florist I know concentrates on promoting his design capabilities. Of course, beautiful flowers are traditional for Mother's Day. It's the biggest day of the year for florists. But he does more. He emails and posts on social media pictures of his designs far ahead of Mother's Day. Beginning in early March, he reaches out to customers, reminding them that he has fresh or custom designs for birthdays, anniversaries, corporate meetings, and more. And, oh yes, remember Mother's Day is coming up.
Today's advertising is much more than an ad in the newspaper. And it can be more than a special reminder of an upcoming special day. Social media has seen to this.
Example: I know an Internet operation built entirely around brownies. Brownies are shipped anywhere. There is no bricks-and-mortar store. Only Internet orders are filled. Regularly, emails are sent out to customers. The email consists of three words: "Time for brownies?" It accompanies a close-up picture of a scrumptious, chocolaty, nut-filled brownie. That's it. Who can resist? The picture of the brownie creates the need for a personal holiday, and the orders come in--for corporate events, organizational meetings, private parties.
Thinking outside the box can help you with promotions. You can tap into holiday excitement or create one of your own. Customers are busy with their own lives. And they might appreciate the picture of a floral design or a brownie you send along. You are becoming part of their lives.
Example: I know an ice cream parlor (yes, they still exist) that devotes most of its space to special events the customers hold there. Birthdays, anniversaries, corporate get-togethers, and parties are much more fun when held in an old fashioned ice cream parlor. It has the red leather covered stools, the gleaming counter, and black and white tiles cover the floor. Of course, much more than ice cream is offered--with frozen yogurt, sugarless concoctions, biscotti and lattes all around. Instead of being just a summertime destination, the place hops all year. Customers schedule their events, and they don't have to worry about cleaning up.
Of course you promote for holidays. But don't miss opportunities that can turn every day into a holiday for your customers.
Businesses build events around more than food and flowers. Chiropractors, fitness instructors, nutritionists, yoga practitioners and others set up open houses offering free talks, demonstrations, question and answer sessions. These types of events attract community attention--and referrals.
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