Free daily tips, information, advice and ideas
to help you better manage your small business.
Managing a small business means managing money. If all your expenses and payments add up to less than income, you can point to a healthy bottom line.
The money left over after all the bills are paid at the end of the month is money you can use to grow and expand. Look at it as your growth capital. Use it to sock away for a rainy day, or use it to buy new equipment, more products for resale, maybe even add an employee.
Example: Nancy runs a flower shop. Income exceeds expenses, but it's not enough to fund an expansion she has in mind. With Mother's Day coming, Nancy went to work. She blasted out emails to current and former customers. She took dozens of pictures and posted them on Facebook, LinkedIn, Instagram and other social media. With little expense, Nancy put her flower shop in front of hundreds of eyeballs. Orders began arriving for Mother's Day and Nancy had to hire several part timers to handle the work. With the excess bottom line dollars generated, Nancy added a new line of silk flowers and arrangements. She would expand her flower shop business to include corporate offices, banks, and other organizations looking for revolving flower arrangements for their establishments. Nancy self-funded her expansion.
Example: Alex runs a home improvements business. Projects typically run $5,000 to $25,000. He requires 1/3 on contract signing, 1/3 when an agreed-upon milestone is reached and the final 1/3 at the completion of the project. His work is almost self-funding. Alex is careful to separate the accounting for each project, and he is very much aware that the bottom line excess, or profit, is in that last payment--not upfront. This money management scheme has allowed Alex to grow confidently--those last payments have funded his addition of new equipment as well as hiring additional workers.
Example: Judy is a certified Pilates specialist. She used her personal credit cards to get into business--paying for training and equipment. It took many clients, both private and group sessions, to pay off the bills Judy had run up on her credit cards. Using credit cards means borrowing money, and that means paying interest charges--a much higher rate than you might get with a bank loan. Sometimes, it's the only way forward, but do it only with your eyes open. Judy has a long term plan to establish a wellness center offering services from other specialists. It will take months to clear up the credit card bills, but Judy will eventually be able to realize her ultimate business dream.
In business, you learn to manage your money or you won't survive. But with good management, you can self-fund your growth.
Managing money in your business takes creativity, ingenuity and a willingness to take risks. Keep your eyes open and your thinking clear.
Tuesday, December 22, 2015
Monday, December 21, 2015
Single person biz start-ups
Free daily tips, information, advice and ideas
to help you better manage your small business
Many small businesses are single person operations. Before you jump in and start up a small business, step back and take a look at yourself.
What business do you go into? You have several interests that you are passionate about. It might be physical fitness or gardening or video games or music or some artistic pursuit.
One person businesses exist in all these--and more--small businesses. If you are passionate about something, others are as well. And they represent your potential market.
Any interest can be turned into a viable business. You have an interest. Now, you must study the market. Without a market, there is no business. Whatever the business, it's the buyers who will get you off the ground and headed toward becoming successful.
Example: Jesse began playing guitar as a youngster. In high school he was a member of a band. That was 10 years ago. He decided to turn his interest in guitar into a small business built around music. He began teaching guitar to others and built up a following. As his teaching increased, he decided to open a small music shop where he sells and repairs guitars--and is adding more equipment his clients want. He is still a one person business, but he is doing what he loves.
Example: Matt loved sailing. Whenever he had time away from his corporate position, he was at the local lake. Deciding he would make a transition, Matt began offering informal sailing lessons to others. His reputation spread. He got himself certified as an instructor in water safety. This brought in more clients. He began giving group as well as private lessons. When he was ready, he quit his corporate job and set up a small sail shop at the lake. Today, he sells sailing gear and supplies and sailboats. It took several years to make the transition, but today, Matt is happily planning to add an employee.
Example: The arts and crafts field offers many opportunities to establish a small business. Artists and artisans today offer painting and pottery, fibers and wools, beading and beads, jewelry, wood turning, basketry, quilting, glass, metal work and many others. They can work alone or ban together to work with others--the choice is theirs. They set up websites and post on social media--attracting widespread attention. Some are members of co-ops. Others offer their creations through gift shops--or they establish high end gift shops of their own. All can turn their passion into a small business.
Doing something you love can make business seem easy. The thing to remember is you must attract a marketplace of buyers.
to help you better manage your small business
Many small businesses are single person operations. Before you jump in and start up a small business, step back and take a look at yourself.
What business do you go into? You have several interests that you are passionate about. It might be physical fitness or gardening or video games or music or some artistic pursuit.
One person businesses exist in all these--and more--small businesses. If you are passionate about something, others are as well. And they represent your potential market.
Any interest can be turned into a viable business. You have an interest. Now, you must study the market. Without a market, there is no business. Whatever the business, it's the buyers who will get you off the ground and headed toward becoming successful.
Example: Jesse began playing guitar as a youngster. In high school he was a member of a band. That was 10 years ago. He decided to turn his interest in guitar into a small business built around music. He began teaching guitar to others and built up a following. As his teaching increased, he decided to open a small music shop where he sells and repairs guitars--and is adding more equipment his clients want. He is still a one person business, but he is doing what he loves.
Example: Matt loved sailing. Whenever he had time away from his corporate position, he was at the local lake. Deciding he would make a transition, Matt began offering informal sailing lessons to others. His reputation spread. He got himself certified as an instructor in water safety. This brought in more clients. He began giving group as well as private lessons. When he was ready, he quit his corporate job and set up a small sail shop at the lake. Today, he sells sailing gear and supplies and sailboats. It took several years to make the transition, but today, Matt is happily planning to add an employee.
Example: The arts and crafts field offers many opportunities to establish a small business. Artists and artisans today offer painting and pottery, fibers and wools, beading and beads, jewelry, wood turning, basketry, quilting, glass, metal work and many others. They can work alone or ban together to work with others--the choice is theirs. They set up websites and post on social media--attracting widespread attention. Some are members of co-ops. Others offer their creations through gift shops--or they establish high end gift shops of their own. All can turn their passion into a small business.
Doing something you love can make business seem easy. The thing to remember is you must attract a marketplace of buyers.
Friday, December 18, 2015
Know your business friends
Free daily tips, information, advice and ideas
to help you better manage your small business
Everyone has two types of friends--personal and casual. Personal friends are those close to you. Casual friends are the other people you know, but you don't share every secret with them.
A third type of friend is the business friend. These are the people who buy your goods and services. They depend on you, and you depend on them. It is a relationship for mutual benefit.
If you treat your business friends as personal friends, some will be turned off by the attention. They will view your attentions as an invasion of their privacy.
If you treat your business friends as casual friends, you run another risk. They can misinterpret your attention (or lack of) as your being less than serious.
So, what is a business friend? Two examples tell the tale.
Example: Elaine promotes her fashionable shop for women with social media posts of new designs she offers. Twice each year, she mounts a live fashion show with models wearing the designs carried in the shop. Models mingle with guests. Shoes, handbags and accessories are prominently displayed. Before and after the show, pictures are posted on social media. In addition, Elaine has developed a mailing list and she uses it in two ways. She sends a Thank You card anytime someone spends over $100 in the shop. And she sends out gift certificates along with an invitation to special private showings. Elaine also makes herself available at all times to answer questions, discuss trends, and be the go-to adviser for clothing and accessories. All these activities contribute to building the business friend base.
Example: Marsha started out with a small yoga studio, attracting a loyal base of business friends with her training, expertise, and relaxed attitude. Her clients lingered after their sessions, and she listed carefully to their concerns and problems. They had questions about nutrition, meditation, massage and other alternative therapies. So, a couple of years ago, Marsha decided to grow her business into more than her yoga sessions. Since then, she has attracted other professionals who offer a wide range of therapies. Together, they schedule open houses, programs, events, and information sessions built around the interests of the growing base of business friends. Everyone at the wellness center is sensitive to clients, trained to listen, spend time together and freely furnish information. With many pictures and posts on social media, the base of business friends continues to grow. Marsha still sees private yoga clients herself, but her wellness center has expanded far beyond yoga.
When you listen, your customers will show you the way forward. With business friends, it's all about their interests, their concerns, their needs.
to help you better manage your small business
Everyone has two types of friends--personal and casual. Personal friends are those close to you. Casual friends are the other people you know, but you don't share every secret with them.
A third type of friend is the business friend. These are the people who buy your goods and services. They depend on you, and you depend on them. It is a relationship for mutual benefit.
If you treat your business friends as personal friends, some will be turned off by the attention. They will view your attentions as an invasion of their privacy.
If you treat your business friends as casual friends, you run another risk. They can misinterpret your attention (or lack of) as your being less than serious.
So, what is a business friend? Two examples tell the tale.
Example: Elaine promotes her fashionable shop for women with social media posts of new designs she offers. Twice each year, she mounts a live fashion show with models wearing the designs carried in the shop. Models mingle with guests. Shoes, handbags and accessories are prominently displayed. Before and after the show, pictures are posted on social media. In addition, Elaine has developed a mailing list and she uses it in two ways. She sends a Thank You card anytime someone spends over $100 in the shop. And she sends out gift certificates along with an invitation to special private showings. Elaine also makes herself available at all times to answer questions, discuss trends, and be the go-to adviser for clothing and accessories. All these activities contribute to building the business friend base.
Example: Marsha started out with a small yoga studio, attracting a loyal base of business friends with her training, expertise, and relaxed attitude. Her clients lingered after their sessions, and she listed carefully to their concerns and problems. They had questions about nutrition, meditation, massage and other alternative therapies. So, a couple of years ago, Marsha decided to grow her business into more than her yoga sessions. Since then, she has attracted other professionals who offer a wide range of therapies. Together, they schedule open houses, programs, events, and information sessions built around the interests of the growing base of business friends. Everyone at the wellness center is sensitive to clients, trained to listen, spend time together and freely furnish information. With many pictures and posts on social media, the base of business friends continues to grow. Marsha still sees private yoga clients herself, but her wellness center has expanded far beyond yoga.
When you listen, your customers will show you the way forward. With business friends, it's all about their interests, their concerns, their needs.
Thursday, December 17, 2015
Arranging for new space
Free daily tips, information, advice and ideas
to help you better manage your small business
Expanding? Need space for that new small business? Moving your operation out of the house?
You have three choices--lease the space you need, share a space with another business, or you can buy the building.
Example: Rita was excited. She was about to realize her dream of establishing her own retail shop. She found the perfect storefront in an upscale small town. The landlord asked a reasonable rent, but he wanted a one-year lease. This raised a red flag in Rita's mind. On the one hand, if her store didn't do well, she would be out of the lease in 12 months. On the other hand, if all went well, she would be in a bad position to negotiate a continuing lease. The landlord could insist on doubling the rent, knowing she would not want to move. Or perhaps he had other plans for the building and was simply looking for rental income for one year. Rita believed in her dream business, and she held her ground--she told the landlord she wanted a 5-year lease or she would look elsewhere. Her persistence paid off. The landlord counter-offered and they settled on a 3-year lease.
Example: John is a furniture designer. He could not afford a storefront of his own, so he went looking for another type of space. He found a gift shop that catered to high end buyers of works produced by up-and-coming artists and artisans. He made arrangements to display his chairs and tables on a consignment basis. Also, he uses Facebook and Etsy to reach out to the public.
Example: Diane is a personal trainer. She sees private clients in their homes, and she sees employees in company fitness centers. She is building a following with the eye to establish her own place in the future. But her plans don't stop there. Diane would like to expand eventually into a full-fledged wellness center, offering space to nutritionists, massage specialists, and other health and wellness practitioners. With her goal firmly in mind, her business plan is writing itself.
Finding the space you need for your business can be daunting. The opportunities can vary.
Explore the possibilities and work them through your business plan. Make certain that your decision matches your long term goals.
Finding space appropriate to your business is a vital part of managing. Even if you are running a home-based business, you need space. And, what happens when you grow and expand beyond the bedroom or garage?
to help you better manage your small business
Expanding? Need space for that new small business? Moving your operation out of the house?
You have three choices--lease the space you need, share a space with another business, or you can buy the building.
Example: Rita was excited. She was about to realize her dream of establishing her own retail shop. She found the perfect storefront in an upscale small town. The landlord asked a reasonable rent, but he wanted a one-year lease. This raised a red flag in Rita's mind. On the one hand, if her store didn't do well, she would be out of the lease in 12 months. On the other hand, if all went well, she would be in a bad position to negotiate a continuing lease. The landlord could insist on doubling the rent, knowing she would not want to move. Or perhaps he had other plans for the building and was simply looking for rental income for one year. Rita believed in her dream business, and she held her ground--she told the landlord she wanted a 5-year lease or she would look elsewhere. Her persistence paid off. The landlord counter-offered and they settled on a 3-year lease.
Example: John is a furniture designer. He could not afford a storefront of his own, so he went looking for another type of space. He found a gift shop that catered to high end buyers of works produced by up-and-coming artists and artisans. He made arrangements to display his chairs and tables on a consignment basis. Also, he uses Facebook and Etsy to reach out to the public.
Example: Diane is a personal trainer. She sees private clients in their homes, and she sees employees in company fitness centers. She is building a following with the eye to establish her own place in the future. But her plans don't stop there. Diane would like to expand eventually into a full-fledged wellness center, offering space to nutritionists, massage specialists, and other health and wellness practitioners. With her goal firmly in mind, her business plan is writing itself.
Finding the space you need for your business can be daunting. The opportunities can vary.
Explore the possibilities and work them through your business plan. Make certain that your decision matches your long term goals.
Finding space appropriate to your business is a vital part of managing. Even if you are running a home-based business, you need space. And, what happens when you grow and expand beyond the bedroom or garage?
Wednesday, December 16, 2015
Get on social media
Free daily tips, information, advice and ideas
to help you better manage your small business
Social media represents a huge tool for small businesses. Facebook, Twitter, Instagram, LinkedIn and others extend your reach far and near.
Whether you want to reach more people in your local area or reach out across the land, social media can do the job.
Example: You are a graphic artist turned photographer. You get your portfolio together and publish an e-book on Amazon/Kindle. Make connections on LinkedIn, teasing interest with pictures, and point them to your e-book and your website. If you are looking to connect with an employer, grab your Kindle and show your interviewer what you've accomplished using Amazon's technology. Round out your promotions by posting on Twitter and Facebook.
Example: You operate a gift shop or consignment shop. To attract attention, you post pictures of newly arrived items on Facebook. The word spreads to your regulars--and they pass the pictures on to their friends, enlarging your circle of customers. Reach out and show the world what you have to offer.
Example: You own a restaurant. Get an app so that your customers can check out your specials for the day, make a reservation, and place an other as they leave their offices. When they arrive at your place, their meal is ready. Post pictures of mouth-watering entrees every day on Facebook, and use Twitter to round out the promotional activities.
Example: You run a pet shop--a complete line of supplies but no animals. Nevertheless, you take pictures of your dogs and cats at home and post these on Facebook to attract attention. With a few words, you have done your promotion for the day. People are attracted by the pictures, and they click on your website or they come to your shop.
Using social media can be very effective in getting the word out in the community. Your website can be thought of as your anchor, social media drives people to the website or to your place of business.
Pictures are the key here. Get in the habit of snapping shots of things that will get attention. Then post them--this is your advertising for the day.
Social media is a godsend for small business. You can reach out to the whole world with the simple click of a button.
to help you better manage your small business
Social media represents a huge tool for small businesses. Facebook, Twitter, Instagram, LinkedIn and others extend your reach far and near.
Whether you want to reach more people in your local area or reach out across the land, social media can do the job.
Example: You are a graphic artist turned photographer. You get your portfolio together and publish an e-book on Amazon/Kindle. Make connections on LinkedIn, teasing interest with pictures, and point them to your e-book and your website. If you are looking to connect with an employer, grab your Kindle and show your interviewer what you've accomplished using Amazon's technology. Round out your promotions by posting on Twitter and Facebook.
Example: You operate a gift shop or consignment shop. To attract attention, you post pictures of newly arrived items on Facebook. The word spreads to your regulars--and they pass the pictures on to their friends, enlarging your circle of customers. Reach out and show the world what you have to offer.
Example: You own a restaurant. Get an app so that your customers can check out your specials for the day, make a reservation, and place an other as they leave their offices. When they arrive at your place, their meal is ready. Post pictures of mouth-watering entrees every day on Facebook, and use Twitter to round out the promotional activities.
Example: You run a pet shop--a complete line of supplies but no animals. Nevertheless, you take pictures of your dogs and cats at home and post these on Facebook to attract attention. With a few words, you have done your promotion for the day. People are attracted by the pictures, and they click on your website or they come to your shop.
Using social media can be very effective in getting the word out in the community. Your website can be thought of as your anchor, social media drives people to the website or to your place of business.
Pictures are the key here. Get in the habit of snapping shots of things that will get attention. Then post them--this is your advertising for the day.
Social media is a godsend for small business. You can reach out to the whole world with the simple click of a button.
Tuesday, December 15, 2015
Sailing through the holidays
Free daily tips, information, advice and ideas
to help you better manage your small business
We are in the middle of the holiday shopping season. Owners of small businesses must promote aggressively if they want to attract buyers of goods and services.
Example: Carlos is a chef with his own restaurant. He regularly posts mouth-watering entrees and desserts on his Facebook page. He puts the word out that he has partnered with local farms to offer fresh, farm-to-table ingredients. He also puts the word out that he has arranged to have his own app so that people can order ahead and the meal is ready when they arrive. He partners with non-profit groups to hold fundraisers for them--especially attractive during the holiday season. It's a rat race, but it is working--Carlos is seeing a steady stream of new faces dining at his place. And they are referring others.
Example: Fran is a certified acupuncture expert. She sees more and more people looking for relief from stress, aches and pains, post-surgery concerns, and other ailments. To increase awareness, Fran brings in holistic practitioners for informational meetings, free demonstrations, question and answer sessions. This had led to more interest in acupuncture and a wider acceptance of its benefits. In addition, Fran is beginning to plan a full-fledged wellness center offering several holistic treatments. During the holiday season, she partners with non-profits to hold open houses and fundraisers.
Example: Guy runs a fitness center. During holiday seasons, people tend to have other things on their minds. To counteract this, Guy is bringing in experts in other fields to stoke interest and attendance. A hypnosis practitioner is set to hold sessions on weight reduction and stopping smoking. A nutritionist will be educating people on better eating habits. Guy is also sending out email reminders to his list of clients, reminding them not to skip fitness opportunities during holidays.
To attract more attention, retail businesses hold sales. In addition, hold open houses, offer a trunk sale, bring in a guitar player, set up talks by experts. How about offering apple cider and cookies?
Small business people are nothing if not creative. And hard-headed. And persistent. Remember to wave as you are sailing through the holidays.
to help you better manage your small business
We are in the middle of the holiday shopping season. Owners of small businesses must promote aggressively if they want to attract buyers of goods and services.
Example: Carlos is a chef with his own restaurant. He regularly posts mouth-watering entrees and desserts on his Facebook page. He puts the word out that he has partnered with local farms to offer fresh, farm-to-table ingredients. He also puts the word out that he has arranged to have his own app so that people can order ahead and the meal is ready when they arrive. He partners with non-profit groups to hold fundraisers for them--especially attractive during the holiday season. It's a rat race, but it is working--Carlos is seeing a steady stream of new faces dining at his place. And they are referring others.
Example: Fran is a certified acupuncture expert. She sees more and more people looking for relief from stress, aches and pains, post-surgery concerns, and other ailments. To increase awareness, Fran brings in holistic practitioners for informational meetings, free demonstrations, question and answer sessions. This had led to more interest in acupuncture and a wider acceptance of its benefits. In addition, Fran is beginning to plan a full-fledged wellness center offering several holistic treatments. During the holiday season, she partners with non-profits to hold open houses and fundraisers.
Example: Guy runs a fitness center. During holiday seasons, people tend to have other things on their minds. To counteract this, Guy is bringing in experts in other fields to stoke interest and attendance. A hypnosis practitioner is set to hold sessions on weight reduction and stopping smoking. A nutritionist will be educating people on better eating habits. Guy is also sending out email reminders to his list of clients, reminding them not to skip fitness opportunities during holidays.
To attract more attention, retail businesses hold sales. In addition, hold open houses, offer a trunk sale, bring in a guitar player, set up talks by experts. How about offering apple cider and cookies?
Small business people are nothing if not creative. And hard-headed. And persistent. Remember to wave as you are sailing through the holidays.
Monday, December 14, 2015
Extending your market
Free daily tips, information, advice and ideas
to help you better manage your small business
Keeping up with what is going on in the markets you serve is part of running a small business. Markets continually change, they mature, and new markets appear. It ain't easy keeping up.
Always give the market what it wants. Customers and clients give you the clues you need. It's up to you to provide the goods and services that will satisfy the marketplace.
Example: Alex is a struggling artist. His large abstract paintings have attracted attention, and he has made sales. But buyers are few and far between. He is confident that in the long run he will be successful. The problem for Alex was how to get through the time it will take until he sells enough of his larger works to support his family. The answer came unexpectedly at a show he was attending. He overheard several people saying that there was nothing inexpensive enough to be considered as gifts for friends. It was a clue to a market segment Alex had not considered. He began turning out small paintings, quickly done, framed, and at reasonable prices. These began selling on his website, at shows, and to gift shops. Now he doesn't worry about income while he concentrates on his larger, more expensive, abstracts. The market is providing him with a bridge to his long-term goal.
Example: Nicole is a Pilates expert. She has her own studio where she sees clients. To exploit people's growing interest in fitness and wellness, she got her instructor's certification. She put the word out on social media and got good response. Nicole now teaches Pilates to others interested in the field while still seeing private clients. It is an extension of what she was already doing, but the teaching sessions bring in additional income. All of this activity has resulted in more referrals.
Example: Mary inherited her mother's small consignment shop. It was long-established and filled with vintage collectibles, games and toys, jewelry and small antiques--no clothing. Mary knew that the market out there was bigger than the locals who frequented her shop. So she reached out on social media, posting pictures every week of new arrivals. She also expanded by using eBay and Etsy to sell long distance. She turned a local destination consignment shop into a bigger and healthier business. The marketplace Mary serves is much bigger than that of her mother's shop.
A big part of managing your business is staying on top of the ever-changing marketplace. Sometimes, the change is in what people want. Other times, technology can propel your business into a bigger marketplace.
Your clients and customers move with the times. Businesses must do the same. To grow, take a step beyond what works today.
to help you better manage your small business
Keeping up with what is going on in the markets you serve is part of running a small business. Markets continually change, they mature, and new markets appear. It ain't easy keeping up.
Always give the market what it wants. Customers and clients give you the clues you need. It's up to you to provide the goods and services that will satisfy the marketplace.
Example: Alex is a struggling artist. His large abstract paintings have attracted attention, and he has made sales. But buyers are few and far between. He is confident that in the long run he will be successful. The problem for Alex was how to get through the time it will take until he sells enough of his larger works to support his family. The answer came unexpectedly at a show he was attending. He overheard several people saying that there was nothing inexpensive enough to be considered as gifts for friends. It was a clue to a market segment Alex had not considered. He began turning out small paintings, quickly done, framed, and at reasonable prices. These began selling on his website, at shows, and to gift shops. Now he doesn't worry about income while he concentrates on his larger, more expensive, abstracts. The market is providing him with a bridge to his long-term goal.
Example: Nicole is a Pilates expert. She has her own studio where she sees clients. To exploit people's growing interest in fitness and wellness, she got her instructor's certification. She put the word out on social media and got good response. Nicole now teaches Pilates to others interested in the field while still seeing private clients. It is an extension of what she was already doing, but the teaching sessions bring in additional income. All of this activity has resulted in more referrals.
Example: Mary inherited her mother's small consignment shop. It was long-established and filled with vintage collectibles, games and toys, jewelry and small antiques--no clothing. Mary knew that the market out there was bigger than the locals who frequented her shop. So she reached out on social media, posting pictures every week of new arrivals. She also expanded by using eBay and Etsy to sell long distance. She turned a local destination consignment shop into a bigger and healthier business. The marketplace Mary serves is much bigger than that of her mother's shop.
A big part of managing your business is staying on top of the ever-changing marketplace. Sometimes, the change is in what people want. Other times, technology can propel your business into a bigger marketplace.
Your clients and customers move with the times. Businesses must do the same. To grow, take a step beyond what works today.
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