Tuesday, March 10, 2015

Guarding reputations

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     Your reputation is everything in business. You build your reputation every day. And it spreads, whether it is good or bad.

     Example: Ben runs a small rental operation. He rents carpet cleaners, power washers, concrete mixers, even lawn mowers and power tools needed by homeowners and contractors. When a homeowner called saying she couldn't get the carpet cleaner to work, Ben jumped in his truck and drove to the home to solve the problem. He took along a replacement machine, just in case. But it wasn't needed because Ben showed the homeowner how to run the one she had rented. He stayed and helped her clean the rug in one room. Another time, he rented a lawn mower to landscaper who called to complain that the blade was not sharp. Again, Ben jumped in his truck and took a sharp blade to the landscaper where he was working. 

     Problems can be handled in different ways. Every customer complaint, however, should be handled quickly. Guard your reputation by building customer confidence in you and your business. It's the future relationship that's important.

     Example: Elena runs a small health foods store. She sells organic vegetables, packaged foods, vitamins, supplements and more. When a customer returned a bunch of carrots saying they were woody, Elena refunded the cost and gave the customer a gift certificate in a small amount to be used on anything in the store. The customer used it right away, spending many times more than the value of the gift certificate. 

     By going the extra mile, Elena helped the customer through a disappointing experience. The reputation of the store was protected. And the customer was encouraged to spread the word. 

     Example: Betsy operates a one woman public relations firm. She was a whirlwind of activity with clients. One called to complain that the news release Betsy had written did not get picked up by the local press. Betsy went into action. She called several contacts, got the press release published, and turned a bad situation around. She built customer confidence and prepared the way for future business. 

     Complaints are opportunities. When tackling a complaint, it is useful to remember the golden rule. Treat others as you would want to be treated.

     Carefully guard your reputation by showing your customer that you care about them and their problems, that they can depend on you, and that you always follow through. 

      Your customers expect you to stand behind your products and services. But mistakes happen and difficult situations arise. You guard your future by solving problems.  


Monday, March 9, 2015

Get on social media

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     Many of your current and future customers are living the digital life. Social media is the new go-to. Along with all the mobile options.

     People follow each other on Facebook. They tweet their friends. They text everything. They join LinkedIn, post on Instagram and Pinterest and much more. 

     All sorts of possibilities are open to you today. You have options that didn't exist 5 or 10 years ago, and more are coming at you. And going digital can mean re-thinking your business.

     Example: Tim is a baker who made a drastic transition. He closed his retail bakery, opting for a web-based operation. His website shows the goodies he offers. 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 on his Facebook page and other social media. These drive traffic to his website where they place their orders. Customers once drove several miles to get to his bake shop. Now they order online, and social media does the driving for them--along with UPS and Fedex.

     This bakery operation has used social media and a website to expand to a much bigger operation. There was a transition time, but the bakery is now much bigger than possible with just a storefront with a website. 

     Example: Joyce owns a long-established wellness center offering massages, yoga, and other specialties. She maintained an email list but did not use social media. She decided to take the plunge and started with a completely new website. The site was attractive, easy to navigate, and she emailed an announcement to her clients. After months of keeping up with the costs and maintenance of the site, Joyce took a second hard look. Less than 100 new viewers had actually used the site, and she could attribute very few sales to it. She decided it was time for a change. She left the website in place and reached out on social media with pictures she snapped herself and posted. The response, including referrals, was immediate. Within the first month on Facebook, Joyce added three new clients. Facebook was driving people to her website and viewership there quickly increased. Referrals showed up.

     Businesses once put up a website and that was that. Today, many of those stagnant websites are everywhere--costing time and money, but delivering little. 

     To make websites useful, businesses must drive traffic to them. Social media like Facebook, Twitter, LinkedIn, Instagram, Pinterest and more are doing a good job. They capture the attention of potential clients. Mobile does as well. Then, you can get the desired bump in website viewership and growth. 

     A website is a great tool for small business. But going digital is much more than setting up your website. Use all the social media you deem appropriate to realize your potential.  

Friday, March 6, 2015

Getting referrals

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     Referrals are the lifeblood of every business. Referrals come to you on another person's reputation, friendship or recommendation. 

     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 was dissatisfied with the results and she spread lots of negativity. When the bad words reached the owner, she went into action. She contacted the dissatisfied customer, 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 came in.

     Turning around a dissatisfied customer can be tricky. But it is always worth the effort. You never want bad-mouthing going around the neighborhood--or on the Internet.

     In business, you can always expect referrals. People talk to each other and refer others to your business. But it can be a slow process unless you do some things to increase the flow.  

     More straightforward ways to get referrals are available. Some 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 his business cards at every opportunity. This included several networking events he attended. He also placed a small ad in a local newspaper. Nothing seemed to bring in new customers. John decided to call people he had done work for. First, he asked if they needed any more plumbing work done. Second, he asked each one for referrals--names and phone numbers of people they knew. Everyone needs a plumber sooner or later, he reasoned. Many were happy to give John some referrals. One of these was the owner of several small apartment buildings. Jackpot! The word is spreading, and today John employs two helpers. 

     Example: Angie is a holistic practitioner specializing in massage. To increase referrals she contacts other practitioners--nutritionists, chiropractors, hypnotherapists, and medical doctors. She has set up a network of non-competing practitioners to refer people to each other. Her massage business is growing, based on these referrals. Each practitioner in the network keeps a stack of business cards of the others and hand them out when they refer people. The practice has expanded Angie's massage business considerably--all based on referrals. It has also increased the client base for the others in the small network.

     Referrals arrive at your door predisposed to your services/products. They are leaning in your direction based on the word of a third party. 

      Don't let a week pass without doing something to increase the flow of referrals. The future of your business will happen more quickly. 

Thursday, March 5, 2015

Promote with seniors

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      to help you better manage your small business.

     Seniors are a good source of referrals. And they are a formidable market themselves for your products and services.

     Many seniors are now retired, and more retire every week. They're also living longer than previous generations. They have disposable income--but they've learned to live on budgets. They have many friends, relatives, and associates who trust their judgement. 

     Small businesses typically serve local communities. Tap into the seniors demographic for some surprising promotional opportunities.

     Example: Peter's small computer business needed more customers. He noticed that he got some referrals after giving free computer workshops at a senior center. He would take all comers, showing them how the basics, how to access and use social media, and more advanced demonstrations for those who already used computers. Peter realized that all those grandmothers and grandfathers were spreading the word. He expanded his free demonstrations to other senior centers, and today it is his only promotional activity. Many referrals keep him busy in his business.

     Example: Ellen used to own a small tea shop with only four tables. The shelves were lined with teas of all descriptions. Customers stopped in to have a cup of tea and purchase tea to take home or to give as gifts. At a town street fair, Ellen set up a table offering free cups of tea. Se noticed that her teas were a hit with all age groups--but especially seniors. Later, she began offering tea demonstrations and talks at clubs, group meetings, and senior centers. Today, Ellen has expanded her tea shop into the space next door. She still serves tea and pastries to a loyal clientele, but her business really took off when she began using social media to drive customers to her web page. Seniors have referred people from all over the country to Ellen. They order and Ellen now is spending lots of time daily packaging and shipping teas. 

     Example: Bill runs a small home improvement business. He and his two helpers take care of the odd jobs around the house--painting, replacing a window, cleaning gutters, repairing sheetrock, and other needs. Bill takes a two-pronged approach--especially with seniors. (1) He takes time on his initial visit to listen to the customer's concerns and he homes in on what they want done. He always suggests that he begin with only one job. If they are satisfied, he tells them, he will estimate the next job and tackle it. This puts the client at ease, and it stretches out payments--a real concern with seniors. (2) Bill always asks for referrals and leaves a handful of business cards with the homeowner to give out to friends and neighbors. It's working well to get referrals for upcoming jobs.

     Seniors are a good source of new business and referrals. You can tap into this rich vein of referrals and repeat business if you are sensitive to the concerns of this big market. 

     Businesses are built one customer/client at a time. Working with seniors to get referrals is a good way to extend your reach. Seniors are loyal and they will refer others to you.   

Wednesday, March 4, 2015

Start up at any age

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     People start up small businesses at any age. Age is not part of the equation.

     Doing business comes naturally to the young, just as it does to older people. While they have less experience, young entrepreneurs compensate with loads of enthusiasm and imagination. 

     Example: When I lived in the big city, I walked to the corner every morning to catch the bus. As I approached the bus stop one day, I saw four or five people gathered around a small table. They were picking up and examining things displayed there. Coming closer, I recognized my neighbor's young daughter among the adults--one of whom was the child's mother. It turned out that this 6-year-old had gathered some smooth stones, painted them in blazing colors, and was offering them for sale at a dime each. People smiled, plopped down their dimes, pocketed the stones, and boarded the bus. I decided to catch the next bus, lingering to talk with the youngest entrepreneur I ever met. Why set up your table here, I asked the girl. Because that's where the people are, she answered without hesitation. What will you do with all the dimes, I asked. Save them in my piggy bank, she told me--looking up at her mom. It's almost full, the mother added. As my bus came to a stop, I put a quarter on the table and took a yellow stone. I still have it. 

     Children catch on quickly to the ways of the world. I've often wondered what became of the young stone painter. I'll bet she is successful, no matter the future she chose. 

     You're never too old to start up a business, either. Turning dreams into realities is a state of mind, not age. With a positive attitude, you move forward day by day.

     Example: One of my careers was to head up the Business Owners Institute in New Jersey. Everyone employed there had to have experience operating a small business. That way, we offered hands-on experience in dealing with the problems of starting up and running small businesses. People came to us for help with financing and loans, selling and marketing, expanding and growing their businesses, and any other problem they might have. One day, a lady came wanting advice on starting up a business she had in mind. Right off, she told me that she was 79 years old, and she was concerned that she might be too old to tackle the start-up she had in mind. She moved and talked like a 40-year-old, and I assured her that no one is ever too old to begin. She wanted to establish a bagel shop, and over the next couple of months, we worked together. She arranged to lease space, buy used bagel-making equipment, stock her new shop, put the word out, and get the doors open. Her bagel shop was very successful. About five years later, she sold the place and pocketed a nice retirement income to supplement what she already had.

     I have told these two stories many times. They illustrate the fact that age is not important in starting up and operating a small business. You are never too young or too old to start out on a new path. 

     My lifetime of personal experience starting and growing businesses tells me that you can build just about any business you set your mind to--and at any age. Yes, other things impact decisions--family, health, money, knowledge, the marketplace and more. But the thing that will see you through is attitude..

Tuesday, March 3, 2015

Choosing business partners

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     To grow a small business to the next level can take different paths. One path is to take on a partner.

     Nobody is good at everything. And nobody can do everything. Taking on a partner in business is a way to help round out your strengths. It helps tremendously if partners are compatible with each other and appreciate each other's company.

     Example: Clayton ran a small carpentry business. He had many years experience building the cabinetry in residences, offices and clinics. Business was good, but Clayton wanted to expand and do more. He along with his employees and shop could handle more jobs, but he knew he lacked the "outside" skills--meeting new people, attending events, selling his services. He found a potential partner in Bill. They enjoyed their conversations and respected each other's mind set. Bill had a successful career behind him selling window treatments to residential clients, decorators, and office managers. Clayton and Bill formed a partnership based on all the new business Bill could bring to the cabinet shop over the course of a year. If targets were met, Clayton and Bill would become partners in the ongoing business. 

     Look for partners who bring talents that complement your own. If you're good at production but not so good at selling, do as Clayton did. A careful phasing-in period can be important to iron out the details. 

     Setting up a partnership in an existing business is one thing. Setting up a partnership as a brand new operation is another. 

     Example: Gary had run several successful businesses. Looking around, he saw a new opportunity in real estate--small apartment buildings. Money was not his problem, but Gary realized he would need a detail oriented partner. He began a search--asking business friends, interviewing several possible candidates, and, finally, homing in on a young man named Jose. Jose was bright, energetic, ambitious, a "self-starter" and had held several different jobs in the construction trades while in high school. Best of all, Gary and Jose had compatible personalities. Gary proposed an equal partnership, starting out with one small apartment house. Gary would handle the business end (banks, lawyers, taxes, etc.) while Jose would handle maintenance, tenant complaints, and search out additional properties they could acquire. The partnership was successful. Gary and Jose worked closely together, relying on each other's experience and talents. 

     Care must be exercised in setting up partnerships. Two partners who do the same things get in each other's way. But two partners who complement each other have a better than even chance of success. 

     Two people who work well together and who complement each other's weaknesses can form a successful business partnership. A partnership is sort of like a marriage--you'll have some rough sailing at times, but the journey is worth it. 

Monday, March 2, 2015

Check your operation

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     Your business can benefit from doing a little test. If you have employees, have a friend call your business and report back to you on how callers are treated. Or have the friend make an appointment or come into your shop to browse. 

     Businesses big and small use mystery shoppers to check up on operations. How was the phone answered? Was the employee knowledgeable? Was it a good experience? Are employees dropping the ball?

     By doing this little check-up, you can make improvements in your relationships with employees, with customers and with the general public. The feedback can be eye-opening. 

     I am not suggesting that your hire a professional mystery shopper--it can be costly. Useful results can be obtained by using a trusted friend. 

     Example: Peg runs a hair salon. She checked up on her receptionist by having three friends call and report back to her. Peg wanted to know how quickly her receptionist answered the phone, how well she answered callers' concerns and questions, and how well she did when suggesting products and services to new callers. Two of Peg's three friends reported back that everything went well, questions were answered cheerfully, many questions were fielded and the receptionist was very knowledgeable about services. The third friend reported that the receptionist said she was very busy and couldn't go into detail about products available. Using this input, Peg made one change. All questions about products were to be referred to her personally, since the receptionist simply didn't know product details--and could not be expected to be familiar with various products. Things began to run more smoothly.

     Example: Joe runs a small restaurant, open for breakfast, lunch and dinner. Joe is always on site for dinner, but not earlier in the day. He made arrangements for several friends to report back to him after having breakfast and lunch. Everyone gave lunch a good report, but just about everyone who had breakfast were not happy. The omelet was runny, the sausages were cold, and the bacon was burned. Joe replaced the morning cook.

     Example: Gene is a busy chiropractor. He has a receptionist who handles appointments and other duties. It's just the two of them. He asked friends to call and report back to him. They were instructed to ask about shoulder/leg/back pains and how these might be addressed by chiropractic, together with questions about charges, evening appointments, and more. All reported back positive results. Gene took his receptionist out to dinner, something he had neglected doing in the past. 

     Sometimes, a little mystery shopping can ferret out a problem or an under performing employee. Other times, it can confirm that you have a smoothly running operation. 

     Checking up on your business can help you run a better operation, improve the customer/client relationship, and guard your reputation in the community you serve. A little mystery shopping can be easy and inexpensive. 

     Mystery shopping helps you get an honest opinion from a disinterested party. It can point to improvements to your operation that you might not otherwise see.