Free daily tips, information, advice and ideas
to help you better manage your small business
To get a business out of the garage and into the big time takes lots of dreaming, hard work and vision.
Today's leaders in computer technology and social media started small. So did fast food chains--one place at a time.
The ultimate size of a business depends on the vision of the owner. The main constraint is the marketplace. Markets limit growth.
No matter the size of your dream, the buyers out there for your goods and services will determine just how big you get.
Example: Professional therapists usually work alone, serving a relatively small group of clients. Also working alone, many specialists in massage, Reiki, yoga, personal trainers, even chiropractors and nutritional experts can only handle so many clients. But, by expanding into a wellness center, more clients can be served--and each specialty attracts more clients to take advantage of their services.
Example: Small cafes can specialize, attracting tradespeople looking for hearty breakfasts and quick lunches. Electricians, plumbers, construction crews, landscapers and others start their day very early. They represent a niche market in the fast food business. Look at the market in your area for a new type of fast food. Not talking about Burger King or Starbucks--these places compete for a different market.
Example: Older style gift shops can change direction and grow large by attracting a market segment that is more today. There is a growing niche market for up-scale, high-end, handmade items. A small or outdated gift shop can re-brand itself and grow by addressing this new market. Seek out artists and artisans who create--many of these creative types are looking for a shop to sell the things they make.
If your small business is stuck at the present level, start thinking outside the box. Re-examine your market. Look for new markets. It is the markets that rule--not your dream.
Dreams are the stuff of small business. But markets always trump the thing you might have had in mind when you began.
Tuesday, December 29, 2015
Monday, December 28, 2015
Expand your market
Free daily tips, information, advice and ideas
to help you better manage your small business
Expand your market and you expand your business. When you reach out into markets that are related to what you already do, your business naturally attracts more customers. You grow.
Many of these new customers know you, they appreciate what you do, and they are ready to call you for the new services/products you offer. Also, expanding into related markets can extend your business reach.
This doesn't mean that you take off in a different direction. That's a different kind of expansion. On the contrary, it means expanding into a wider segment of the market you already serve.
Example: Kathy inherited her father's business. For many years, he had developed expertise in selling and repairing gas-fired appliances, furnaces, heaters, and other gas-fired items. He had also collected a huge inventory of parts and supplies, many of them out-of-date and decades old, along with manufacturer's schematics and catalogs extending back some 50 years. The business consisted of 8 employees and two service vans. It pretty much ran itself. But Kathy saw a possible expansion. She developed a new website, offering out-of-date parts, supplies, schematics and catalogs for gas-fired items no longer manufactured or supported by brands. This expanded her market to people all over the country and became a healthy addition to the existing business--which she still operates in the area she serves.
Example: Tom runs an auto repair shop. He handled regular tune-ups, replaced exhaust systems, provided new filters, balanced wheels, and, of course, could troubleshoot problems on his computer set-up. He also started doing minor collision work and saw an opportunity to expand in this area. He put up a steel addition to the garage where he could do more collision repairs, including paint jobs. This was a new expansion for Tom, but the reception in the community was quick and positive. He had successfully expanded into a related market.
Other examples: Bakeries can use social media to expand into wider markets, offering boxes of baked goodies shipped overnight for corporate meetings and private gatherings. Landscapers, who have built their businesses cutting lawns and trimming shrubbery, can expand by offering garden designs and layouts for people wanting to re-work their yards. Computer experts can expand by educating clients on the value of social media--how to use Facebook, for example.
Look around for other segments of the larger market you serve for ways that you can expand your own business. Sometimes, using this idea, it's fairly easy to capture more customers--and grow yourself.
Never try to expand until you take a hard look at your business plan. If it fits, okay. If not, keep looking. The marketplace is huge.
to help you better manage your small business
Expand your market and you expand your business. When you reach out into markets that are related to what you already do, your business naturally attracts more customers. You grow.
Many of these new customers know you, they appreciate what you do, and they are ready to call you for the new services/products you offer. Also, expanding into related markets can extend your business reach.
This doesn't mean that you take off in a different direction. That's a different kind of expansion. On the contrary, it means expanding into a wider segment of the market you already serve.
Example: Kathy inherited her father's business. For many years, he had developed expertise in selling and repairing gas-fired appliances, furnaces, heaters, and other gas-fired items. He had also collected a huge inventory of parts and supplies, many of them out-of-date and decades old, along with manufacturer's schematics and catalogs extending back some 50 years. The business consisted of 8 employees and two service vans. It pretty much ran itself. But Kathy saw a possible expansion. She developed a new website, offering out-of-date parts, supplies, schematics and catalogs for gas-fired items no longer manufactured or supported by brands. This expanded her market to people all over the country and became a healthy addition to the existing business--which she still operates in the area she serves.
Example: Tom runs an auto repair shop. He handled regular tune-ups, replaced exhaust systems, provided new filters, balanced wheels, and, of course, could troubleshoot problems on his computer set-up. He also started doing minor collision work and saw an opportunity to expand in this area. He put up a steel addition to the garage where he could do more collision repairs, including paint jobs. This was a new expansion for Tom, but the reception in the community was quick and positive. He had successfully expanded into a related market.
Other examples: Bakeries can use social media to expand into wider markets, offering boxes of baked goodies shipped overnight for corporate meetings and private gatherings. Landscapers, who have built their businesses cutting lawns and trimming shrubbery, can expand by offering garden designs and layouts for people wanting to re-work their yards. Computer experts can expand by educating clients on the value of social media--how to use Facebook, for example.
Look around for other segments of the larger market you serve for ways that you can expand your own business. Sometimes, using this idea, it's fairly easy to capture more customers--and grow yourself.
Never try to expand until you take a hard look at your business plan. If it fits, okay. If not, keep looking. The marketplace is huge.
Friday, December 25, 2015
Handling problem customers
Free daily tips, information, advice and ideas
to help you better manage your small business
Clients and customers are the heart and soul of your business. Each of them deserves your attention.
But not all of them are worth it. Now and then, you will run across a client or customer who is simply a pain.
Some seem to be late in paying their bills--every time. Others haggle with you on every price. Maybe they bad mouth you to your face or behind your back.
In short, some clients and customers are not worth the effort to keep them happy. It is their way of life to be unhappy, negative, and find fault with everything. And you can be the one in the cross-hairs.
When the situation gets out of hand, it is time for action. It might be useful to your well-being to refer problem customers to your competition--in a nice way, of course.
Example: A customer returns again and again to a florist to complain that the flowers she bought. They always seemed to have promptly died. Once is understandable, but if a pattern develops, it's time to refer her to another florist.
Example: A veterinarian helps a pet overcome an itching problem, but the owner is a know-it-all who insists after several visits that, although the pet is showing positive signs of recovering, the treatment should be changed to something learned on the Internet. The vet suggests that, if the problem occurs again, the owner might try instead the treatment suggested on the Internet.
Example: Painters of interior walls get involved in unreasonable complaints about the exact shade of paint on a wall. They might take this as a sign to change the focus of their business--referring fussy homeowners to other painters and then concentrating on corporate and commercial accounts.
You get the idea. When you cannot satisfy a client or customer, it might be a sign to move on. Or move them on.
Always listen to your clients/customers. They give you valuable clues on the future of your business. That marketplace is always changing.
to help you better manage your small business
Clients and customers are the heart and soul of your business. Each of them deserves your attention.
But not all of them are worth it. Now and then, you will run across a client or customer who is simply a pain.
Some seem to be late in paying their bills--every time. Others haggle with you on every price. Maybe they bad mouth you to your face or behind your back.
In short, some clients and customers are not worth the effort to keep them happy. It is their way of life to be unhappy, negative, and find fault with everything. And you can be the one in the cross-hairs.
When the situation gets out of hand, it is time for action. It might be useful to your well-being to refer problem customers to your competition--in a nice way, of course.
Example: A customer returns again and again to a florist to complain that the flowers she bought. They always seemed to have promptly died. Once is understandable, but if a pattern develops, it's time to refer her to another florist.
Example: A veterinarian helps a pet overcome an itching problem, but the owner is a know-it-all who insists after several visits that, although the pet is showing positive signs of recovering, the treatment should be changed to something learned on the Internet. The vet suggests that, if the problem occurs again, the owner might try instead the treatment suggested on the Internet.
Example: Painters of interior walls get involved in unreasonable complaints about the exact shade of paint on a wall. They might take this as a sign to change the focus of their business--referring fussy homeowners to other painters and then concentrating on corporate and commercial accounts.
You get the idea. When you cannot satisfy a client or customer, it might be a sign to move on. Or move them on.
Always listen to your clients/customers. They give you valuable clues on the future of your business. That marketplace is always changing.
Thursday, December 24, 2015
Reach out with social media
Free daily tips, information, advice and ideas
to help you better manage your small business
Expanding you small business is easier than you might think--if you use social media. Facebook, Twitter, LinkedIn and others do the job for you. And it can be free.
There is a vast audience of people out there who follow social media for all sorts of reasons. Your small business deserves to be one of the reasons. Lots of eyeballs see the stuff you put up on social media.
The key to effective promotions on social media is the picture you put up. Pictures don't have to be professionally done. Any picture that's in focus can be used. Don't use people's faces unless you get permission. You are constantly snapping pictures, aren't you?
You might take pictures of new items you are offering, new services you've added, events, street scenes, and just about anything else. The picture does not necessarily have to be about your business. Use puppies and kittens to capture attention and send viewers to your website for the real deal--no matter what product or service you are promoting.
Example: A retail operation uses Facebook to post announcements of upcoming sales, discounts, coupons, perhaps an open house planned for the following weekend. "Free coffee and cookies this Saturday and check out the big discounts on kitchenware."
Example: A garden center announces an all-day hands-on free session teaching homeowners and professionals how to build a patio, a fire pit, a brick wall. "Demonstrations every hour. Get answers to your questions from experts who will be on hand all day."
Example: A law firm uses Facebook to announce upcoming free seminars on elder care, social security concerns, and other matters involving the legal community. "No legal advice given out Wednesday evening, but all your questions answered by an attorney."
Social media can work wonders for any small business. Using Facebook, Twitter and LinkedIn can perhaps be the best advertising you can mount. And it's free, unless you want to advertise with them.
The social media sites are eager to have you sign up. Just go the the site of choice and follow the easy directions. It will take about 5 minutes.
to help you better manage your small business
Expanding you small business is easier than you might think--if you use social media. Facebook, Twitter, LinkedIn and others do the job for you. And it can be free.
There is a vast audience of people out there who follow social media for all sorts of reasons. Your small business deserves to be one of the reasons. Lots of eyeballs see the stuff you put up on social media.
The key to effective promotions on social media is the picture you put up. Pictures don't have to be professionally done. Any picture that's in focus can be used. Don't use people's faces unless you get permission. You are constantly snapping pictures, aren't you?
You might take pictures of new items you are offering, new services you've added, events, street scenes, and just about anything else. The picture does not necessarily have to be about your business. Use puppies and kittens to capture attention and send viewers to your website for the real deal--no matter what product or service you are promoting.
Example: A retail operation uses Facebook to post announcements of upcoming sales, discounts, coupons, perhaps an open house planned for the following weekend. "Free coffee and cookies this Saturday and check out the big discounts on kitchenware."
Example: A garden center announces an all-day hands-on free session teaching homeowners and professionals how to build a patio, a fire pit, a brick wall. "Demonstrations every hour. Get answers to your questions from experts who will be on hand all day."
Example: A law firm uses Facebook to announce upcoming free seminars on elder care, social security concerns, and other matters involving the legal community. "No legal advice given out Wednesday evening, but all your questions answered by an attorney."
Social media can work wonders for any small business. Using Facebook, Twitter and LinkedIn can perhaps be the best advertising you can mount. And it's free, unless you want to advertise with them.
The social media sites are eager to have you sign up. Just go the the site of choice and follow the easy directions. It will take about 5 minutes.
Wednesday, December 23, 2015
Be prepared in emergencies
Free daily tips, information, advice and ideas
to help you better manage your small business
Bakeries, gift shops, lawyers, landscapers, salons, repair shops, therapists, restaurants, caterers and every other business can suddenly have a disaster on their hands. Every business person deserves to have thought about the possibility ahead of time--and planned for it.
Fire, flood, wind, blackouts, hackers and robbers can shut you down--whether you have a shop or an office or work at home or do business on the web. When the unthinkable happens, put your emergency plan into action and sail through.
Example: Phil runs a small auto repair shop. When the electric suddenly went down, he had to close operations and lost some repair jobs. There was no power to his shop for three days. Phil quickly installed a power generator to a part of his shop and handled some jobs. Some customers were understanding, others were not--they moved on. Since then Phil has made arrangements for a larger, more powerful generator to have on hand to get through future power outages. He also talked with the owner of another small auto repair shop across town--they agreed to handle each other's customers in case of a future emergency.
Example: Diane runs a small neighborhood convenience store. After she was robbed twice, she decided that it was up to her to defend herself and her business. By the time she called for help, the robber was gone without a trace. She bought a handgun, went through the proper licensing and training, and now keeps the firearm handy. She hasn't shot anyone yet, but she did send a knife-wielding robber on his way when she pointed the firearm at him. In the past, Diane was terrified of guns, but today she has the means to defend herself while awaiting the arrival of the police. She is much more confident--especially when she is in the store alone at night.
Example: Amy sells pet foods and supplies online through her website. She does not have a store, but she manages her business in a rented backroom that is cheap and convenient. Orders come in, Amy fills the orders, and she ships out to her growing list of customers. One day, her computer crashed, obliterating lots of information and orders. She had always backed up everything once each week, but the current stuff was gone. It was a wake-up call. Today and every day, Amy now backs up all computer information in the cloud--using one of the available services. Her business is now prepared to ride out crashes and hackers.
Emergencies are more than fire and flood. Give some thought to what might happen, and always be prepared for the unexpected.
to help you better manage your small business
Bakeries, gift shops, lawyers, landscapers, salons, repair shops, therapists, restaurants, caterers and every other business can suddenly have a disaster on their hands. Every business person deserves to have thought about the possibility ahead of time--and planned for it.
Fire, flood, wind, blackouts, hackers and robbers can shut you down--whether you have a shop or an office or work at home or do business on the web. When the unthinkable happens, put your emergency plan into action and sail through.
Example: Phil runs a small auto repair shop. When the electric suddenly went down, he had to close operations and lost some repair jobs. There was no power to his shop for three days. Phil quickly installed a power generator to a part of his shop and handled some jobs. Some customers were understanding, others were not--they moved on. Since then Phil has made arrangements for a larger, more powerful generator to have on hand to get through future power outages. He also talked with the owner of another small auto repair shop across town--they agreed to handle each other's customers in case of a future emergency.
Example: Diane runs a small neighborhood convenience store. After she was robbed twice, she decided that it was up to her to defend herself and her business. By the time she called for help, the robber was gone without a trace. She bought a handgun, went through the proper licensing and training, and now keeps the firearm handy. She hasn't shot anyone yet, but she did send a knife-wielding robber on his way when she pointed the firearm at him. In the past, Diane was terrified of guns, but today she has the means to defend herself while awaiting the arrival of the police. She is much more confident--especially when she is in the store alone at night.
Example: Amy sells pet foods and supplies online through her website. She does not have a store, but she manages her business in a rented backroom that is cheap and convenient. Orders come in, Amy fills the orders, and she ships out to her growing list of customers. One day, her computer crashed, obliterating lots of information and orders. She had always backed up everything once each week, but the current stuff was gone. It was a wake-up call. Today and every day, Amy now backs up all computer information in the cloud--using one of the available services. Her business is now prepared to ride out crashes and hackers.
Emergencies are more than fire and flood. Give some thought to what might happen, and always be prepared for the unexpected.
Tuesday, December 22, 2015
Managing business money
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.
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.
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.
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