Archive for Small Business Owners

Have you recently opened a new small business? What an exciting new time in your life At the introduction of your company to the business world you may be tempted to do everything yourself. This is natural as the business is your own creation. However there is not a single lasting business that is run by literally one person. You must be willing to pass off some of the hundreds of hats that you have to wear in the very early stages. Not only is delegating responsibility to others acceptable but it is really the only way your business can ever hope to expand. Read More→

Categories : Small Business
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Small Business Proprietors challenge

Owning a small business is equal to a lot of hard work. Even though the it is small, and some people might not think it would be hard to run, small business owners face troublesome issues every day. However, most owners would agree that owning their own enterprise is its own reward.

There are many challenges for small business proprietors to face. Since most small ventures are also sole proprietorship, there is no one else for the owner to turn to help fix whatever problems the enterprise is facing. Additionally, a small business owner has to make decisions for every aspect of it, from good business resources, such as what products to order, who to hire and fire, accounting and payroll, the design of it, its insurance, not to mention the actual day to day running of the enterprise itself. Read More→

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Jun
21

Encourage Suggestions For Success

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Successful Encourage SuggestionsSmall Business Owners Voice of ExperienceSuccessfully navigating the first year in business is a major feat and cause for celebration. The following list of encouraging suggestions is from groups of entrepreneurs who have reached the end of their first year in business and are about to launch into year two.

Here are some of the nuggets they offer:

  • Develop a do it now attitude
  • Think positive
  • Know your business get into a type of business you know
  • Don’t be intimidated
  • Ensure that you have enough financing
  • Delegate where you can
  • Welcome challenges as opportunities
  • Seek one or more mentors
  • Be flexible, focused, open to learning, realistic, persistent, proactive
  • Have positive support
  • Set aside money for when things don’t go well
  • Accept help from others
  • Be prepared to work long hours – more than you think
  • Choose a good location
  • Join business networking groups, such as the Chamber of Commerce
  • Develop and use a business plan
  • Differentiate your business from your competitors
  • Develop and use a marketing plan
  • Develop and use an advertizing plan
  • Satisfy your customers
  • Create benefits for your customers
  • Ask questions
  • Provide excellent customer service
  • Listen
  • Check to ensure your customers are satisfied – ask them
  • Get feedback
  • Recognize that your business is separate from yourself
  • Use feedback wisely

As I interact with these groups, hear their wise words, see the passion in their eyes – I realize I am among friends. One of the most impressive characteristics of entrepreneurs is that they simply refuse to surrender to the forces of a poor economy, unemployment or inertia. They are carving a living out of their environment, using their knowledge, their skills and their raw ingenuity. They are a proud, tough group of individuals and I am inspired by their achievements. They are doing it and you can too

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Jun
14

Small Business Marketing Secret

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small business marketing

Here’s a little known secret to small business marketing, growing a business rapidly, that few business owners know, let alone small business owners. It’s called marketing momentum. What that means is that if you do whatever you do with your marketing one time, or just randomly, and sporadically here and there, you won’t ever reach what happens when you hit that “critical mass.”

That’s the level where, once you pass that point your marketing starts to explode into your market, bouncing around in your target market, producing results FAR above what “dabbling” here and there will do.

Ken, the owner of a small construction company, had been “dabbling” in his marketing. When I asked him why he was “dabbling” and not “turning this thing on” he said he was hesitant to turn it on fully because he felt that his marketing seemed to be a bit expensive and he was afraid that it might not work.

When I asked him, how many calls he was getting from his marketing he said, “Not much.” So, I asked him if he knew what his response rate is, that’s how many calls out of every hundred of his marketing touches he did.

He didn’t really know. So, he wasn’t in control of his marketing.

The intent of this article isn’t to go down that path of talking about what works in markeitng and what doesn’t. I’ve got plenty of other articles on that. However, the point I am making is that when your marketing is working at at least the national average for direct marketing, around 0.5% to 1.0%, and if that’s delivering prospects to your door at a price that is consistently that you can afford to acquire a client, TURN IT ON. Your questions shouldn’t be, should I do this, but “how many customers do I want to buy.”

The problem is that most people are looking at the “initial cost of marketing” and not at the “cost to acquire a customer.” Again, I deal with that in other articles.

But, where I’m going in this article is, that, for marketing that works, even barely, then there is such a thing as “marketing momentum” that is either working in your favor if you are consistently doing it, or is working against you if you aren’t doing it consistently.

Bakc to Ken, in construction, as long as he was getting a decent marketing response rate, 0.5% to 1.0%, around the national average, he shouldn’t be “dabbling” at marketing. If he was getting less than that, then “it’s time to fix it.” Don’t EVER fall for the myth that “it takes time to build a business” and continue “waiting for your business to happen.” If it isn’t happening now, it won’t happen later, or over time, just because you’ve done it for a long time.

One-time Marketing Has a Fixed, Repeatable Response Rate – Repeated, Consistent Marketing Explodes to Another Level

But, here’s my original point, if you are getting a response rate of over 1%, or close to it, then “don’t continue to dabble!”

Ken was not consistently sending out his email blasts to his list, nor consistently sending his postcard mailer invitation to his workshops, in fact he was doing his marketing only every few months instead of monthly. He also was working his networking rather sporadically. He was trying a little of this and a little of that and when he would get “a little interest” he’d say, “Well, that didn’t work very well” and back off.

When I had started coaching him, one of the first things we talked about was for him to speak to various business and social associations on a weekly basis. He had tried it once or twice, one this month, another a month or so later. When he didn’t get any calls from the first one, he was rather disappointed, and so he wasn’t anxiously going after others. In fact, the second one was on my insistence for him to get with it. He did get one from the second one who wanted to talk, but that one didn’t buy so he got gun-shy about trying it again.

Categories : Small Business
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business financial

The point of all this is that the size of a company really has no bearing on the concerns of those charged with running it. They are all essentially the same. Nor does any business owner have the time or inclination to be devoured by detail.

Although detail is important to substantiate claims, summary reports are more effective for supporting the needs of business owners. They simply want accurate and reliable information to act on regardless of the form it takes, but preferably not three feet thick de Small Business Owner Concerns

Regardless of company size, the concerns of executive management are all essentially the same. E- Bryce’s Law

I was recently at a gathering of independent consultants from around the Tampa Bay area and we got around to talking about the concerns of owners of small businesses. From this, we devised a list of pet peeves commanding the attention of small-to-medium sized business owners, to with:

Employees

  • Human Resources – staffing and allocations, payroll, benefits, and management.
  • Work environment – facilities and equipment, corporate culture.
  • Systems – implementing business processes productively, and staying abreast of technological developments for competitive advantage.
  • Regulations – complying with rules as established by government and industrial concerns.
  • Time Management – scheduling and devoting time to the proper set of priorities.
  • Financial Resources – managing and planning cash flow and investments for optimal return on investment.

General Planning

Strategy – both short term and long term, including an analysis of the market and competition.

At the end of this session, we discovered that the concerns of small business owners are essentially no different than large corporations, except on a much smaller scale. The only difference was that the small business owner has to move faster than his corporate counterparts simply due to the size of his operation. For example, he doesn’t have time to read voluminous business plans and financial statements. Instead, he requires summary reports which get to the point in a couple of pages. He needs good, sound supporting advice to make his life easier.

This got me thinking about the amount of time and money corporate executives invest in managing their company’s affairs. True, some things require considerable time and effort to investigate, such as researching new products services and checking market conditions, but most of what is done is what I refer to as %22meatball%22 type analysis which should be easy and relatively inexpensive to prepare.

Let me give you an example; a couple of years ago I was working with a Fortune 500 company who had contracted with another firm to produce a Business Systems Plan. This took several months to perform and resulted in a substantial document over three feet thick I kid you not costing the company $1.5 million. I was asked to flip through the document and give an opinion. It only took me a couple of minutes to discover the authors had reused narrative from other client projects in the document and that most of it was superfluous. But the fact that it was incredibly thick and printed on some pretty impressive looking paper, gave the company the feeling they had gotten their money’s worth from the consultants.

Interestingly, the company never acted on the information contained in the document simply because it was so voluminous and they couldn’t find their way through it. In reality, a ten page report could have satisfied the company’s needs, but I guess you can pas.

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