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August 26 Recovering From (and Avoiding) BurnoutAccording to today's featured article from BusinessWeek Small Business, "Burnout" is defined as, "a reaction to constant, relentless, day-in, day-out stress, the kind that starts as soon you get up in the morning and doesn't stop until you put your head on the pillow—and probably not even then. "It's a psychological syndrome that occurs in response to chronic stress in the work environment..." So, how can you diagnose whether or not you are suffering from burnout? Per the featured piece, some of the symptoms include: (i) exhaustion—a fatigue you just can't kick (much more to it than being tired); (ii) loss of enthusiasm for your work; (iii) a loss of faith in your abilities; (iv) short-temperedness and overreaction; and (v) you may start making more mistakes than usual or allow things to fall through the cracks. Any of these sound familiar? My answer: a resounding "YES!!"
According to the BusinessWeek piece, if your level of burnout is high, there is a strong likelihood that you may become physically sick or worse, become clinical depressed ("characterized by a general feeling of hopelessness, trouble sleeping, and eating too much or too little.") So, how can you combat the burnout blues? Work even harder in the 1980s mode of "no pain no gain"? Answer: NO. What you need to do is work less; and, if you can, take time off on a regular basis to recharge. Let's not forget that stress results in the damaging "fight or flight" andrenaline rush in your body. Exercise uses up this extra adrenaline. So, try to get in some exercise daily. Next, take some time to find out your passion and work toward pursuing it. Finally, to ensure that the burnout does not recur, find out the cause of the stress in your life and eliminate it. Yes, this might be extremely difficult but it is necessary.
For me, trying to counteract burnout is a daily exercise in self-disciple but I've actually put together a list of non-pharmaceutical ways to beat the stress. I would say it works 90% of the time. So,why am I still suffering from burnout? Well, that's because I do not yet have the courage to eliminate the stress causing factors in my life. But I'll do what I need to do soon.
And so should you. First step? Read the featured article and start making your own burnout busting plan of action.
BWSmallBiz -- Managing August 7, 2009
Beat BurnoutRecognizing the signs and taking action can save your sanity and your businessBy Ann Field A little bit of stress can be a productivity booster, an extra push to help rev up your performance. Then there's the acute short-term strain that can be caused by anything from a family emergency to unexpectedly having to make a major presentation. Burnout is different. It's a reaction to constant, relentless, day-in, day-out stress, the kind that starts as soon you get up in the morning and doesn't stop until you put your head on the pillow—and probably not even then. "It's a psychological syndrome that occurs in response to chronic stress in the work environment," says Christina Maslach, a pioneering researcher in burnout and a professor of psychology at the University of California at Berkeley. Business owners, who typically work nonstop, juggling many balls at once, may be more susceptible than many others, says Michael Leiter, a professor of psychology at Acadia University in Nova Scotia and an expert on burnout. "Most entrepreneurs experience a bout of burnout at some point in their careers," says Leiter. And a bad economy can make the day-in, day-out pressures of running a business even worse. That's why it's imperative for small business owners to understand what burnout is and how to deal with it. The signs are not that hard to recognize, but it's important not to confuse them with symptoms of other conditions, such as depression. If you're burned out, you first need to find a way to reenergize yourself. It can be a bit trickier to diagnose the underlying cause of your burnout and devise an effective response. Here's how to get started. June 30 Get Exposure; Improve SalesSTILL BUSY WITH THE DAY JOB!!!
I know, I owe you all a few posts, but apparently, just as everyone is slowing down for the summer, my life is speeding up! To make up, I've decided to feature 2 articles from Small Biz Trends on Marketing. Hopefully, I'll get back on track with more frequents posts soon.
FEATURED ARTICLE 1
This first featured article is one of the most interesting pieces I've read in a while. It provides insight into the psychology of selling. To be honest, it reminds me of the many debates I've had with my Dad on this topic. He believes you should first find out what your target audience's needs are and try to meet them. I believe you should first decide what you want to do then figure out how to "sell" your audience on the idea by showing them how your product service can fit in their lifestyles. The author's verdict: Dad wins; I lose.
This piece shows how my Dad's aproach, by being the "path of least resistance", will almost always lead to success. Am I convinced? It's possible. Note, however, that either strategy can only succeed if is based on solid market research. So, remember to take the time to do this.
Sales: It’s About Them, Not You Posted By Diane Helbig On June 28, 2009 In Small Business Advice So you have a product or service that you think is the greatest thing yet. You believe that people should really want it. And they will as long as you do a good job of explaining why. You think that sales is persuading and convincing. Sales is really about matching your product or service with someone else’s needs. It’s not about trying to fit your product or service into their world, or about convincing them that they should have your product or service. I see too many salespeople and small business owners who have this backwards. They think they are supposed to ‘sell’ their product/service...That can be a costly mistake. FEATURED ARTICLE 2
This second featured piece relates to using the media to increase exposure for yourself and your venture. It provides advice how you can establish yourself as an expert in your field by:
"1. Write a comment or rebuttal whenever you see an article regarding your industry or a situation that impacts on your business.
2. Contact television and cable news producers with timely information that makes you their only choice for an interview.
3. Speak at trade and public events where your topic attracts many who attend and on-site sales."
I personally think that the extroverts among us should really give serious thought to utilizing this approach.
How to Become the Center of Everyone’s Attention Posted By Shirley Frazier On June 29, 2009 In Marketing Tips It’s easy to watch someone else get all the glory. All you have to do is stand and listen. But if you’re an entrepreneur who craves media attention, you may ask yourself, “Why isn’t that me in front of the camera?” Molding your business into an industry and media darling takes time and planning. If you truly want free publicity, it’s up to you to start and maintain the process of becoming an industry leader. Here are three painless steps to begin. June 05 Using Customer Testimonials To Help Market Your BusinessIt seems as if I don't buy anything these days without first reading customer testimonials on the internet. Don't get me wrong, I've always been an extremely conscientous shopper. But before, I would only rely on expert opinions to guide me when making major purchase. However, after a while, I realized that my experience with the product / service was usually completely different from that of the experts. Seriously, I cannot tell you how many times I've had to sleep in subpar hotel rooms that received glowing endorsements from travel books like Fodors or Frommers. The same can be said for my experience with products that were recommended by Consumer Reports.
As such, I now rely on customer reviews to give me the inside scoop on the product or service. According to today's featured article from Small Business Trends, "Customer testimonials help establish trust because they come from someone who has direct experience with your product....They believe that the average person is “like them” and isn’t offering the recommendation with an ulterior motive, which is what makes them incredibly powerful." Let's not forget that their reviews are usually spot on.
Given all of this, small business owners should use positive customer testimonials to help them market their businesses. The question is, how does one go about doing this? This is where today's featured piece comes in - the author discusses five ways to get the reviews without annoying your customers. The plan of action allows you to get access to your clients through the following means: (i) Company Emailings, (ii) Order Confirmations/Follow Ups, (iii) Create an Event Around It, (iv) Offer Incentives At Checkout, (v) Challenge Them To Create Their Own. Based on the information provided in the featured article, these are all low cost solutions that are very easy to implement.
So, read the featured article, develop your own plan of action and start gathering those testimonials! Just remember, that this project is NOT time consuming; and it is almost certain that these positive customer reviews will give you an edge over your competition.
How to Solicit Testimonials Without Being Annoying Posted By Lisa Barone On June 4, 2009 @ 9:00 am In Small Business Advice I mentioned yesterday how powerful customer testimonials can be as a method of [2] establishing Web site trust and credibility. But how do you ask for them without sounding needy, annoying or flat out driving people away? The truth is, it’s really not that hard. Happy people like sharing their experiences. They like being part of something exciting and cool. Sometimes they just need to be reminded to say something. We’re the ones that typically make it awkward.
Customer testimonials help establish trust because they come from someone who has direct experience with your product. Thanks to the heavy hands of marketers, consumers place more trust in testimonials than they do in most other marketing messages. They believe that the average person is “like them” and isn’t offering the recommendation with an ulterior motive, which is what makes them incredibly powerful. Asking your customers to submit a testimonial to your Web site doesn’t have to be a painful process. In fact, you should be working several natural ways into everyday business. June 02 Avoiding The Seven Deadly Sins That Affect Small Biz OwnersAlmost everybody in western culture (especially those of us who are christians) are familiar with the seven deadly sins. You know, lust, gluttony, greed, sloth, wrath, envy and pride. Well, according to today's featured article from CNN Small Business, there are seven deadly sins that primarily affect small business owners. They are as follows:
1) Sloppy accounting
2) Unrealistic pricing
3) Naive hiring
4) Fear of firing
5) Lack of standards
6) Lack of controls
7) Poor branding
As you know, this blog focuses on providing actionable solutions to you. Sometimes, however, we need that "mirror piece" that gives us a reflection of the effects of our bad habits. Personally, I know I'm guilty of sins # 4 and 5 (fear of firing and lack of controls, respectively). I know it's not pretty, but to find solutions, we first have to accept and acknowledge the problems.
So take a quick look at the featured piece. Yeah, I know it's written in that slide show format that can be annoying, but trust me, it's worth your while.
Seven deadly sinsFrom sloppy accounting to poor hiring, here are the business-killing traps that every entrepreneur must avoid.
SLOPPY ACCOUNTING Done properly, accounting is a diagnosis of everything that's right and wrong with your company. You should be able to complete a pro forma income statement at the beginning of the year that shows your recipe for making money. Crucially, you need to understand the ratio of sales to expenses that will result in profitability. You want to be able to say, "This business needs to gross $800K for me to have a $100K profit," as opposed to merely saying, "I hope I can make $100K one day." May 28 Survivial Through DiversificationDiversification - it's a concept that's based on old-school common sense: can't we all remember our mothers and/or grandmothers advising us against "putting all of our eggs in one basket"? This advice, is of course, rooted in the belief that we minimize our probability of loss if we spread our assets across areas that have different (and oftentimes counter-balancing) exposure to risk.
Recently, however, we've seen the limitations of diversification in the finance industry (apparently it doesn't work as well when the system is dogged by corruption). For those who have seen their savings disappear in front of their eyes, there might be some reservation about putting your faith here again. As our featured article from Small Business Trends show, however, many small business owners are finding success in the pragmatism surrounding this concept. As such, these business owners (instead of being rooted to their existing product / service lines or "the way they've always done things") are stepping back and taking a fresh look at ways in which they can provide "value" to customers. In essence, they are giving serious thought to how they can "adapt [their] process to open up another potential client pool?"
As you can imagine, the featured article highlights small business owners who were able to successfully do just that. To see diversification in action, however, you need to look no further than your local Target store. Target built its reputation by being a higher-end version of Walmart. However, with the economic downturn, they understand that their customers would not have as much disposable income to spend on a lot of their existing wares. Their solution: open a dollar store section that provided similar high-end quality for the low, low price of $1 to $2. Next, use economic principles like economies of scale to provide non-perishable household goods and groceries for 66% of the price charged in the normal supermarkets and pharmacies. As such, Target is in the process of diversifying into product lines that provide for their customers' day-to-day needs.
It is understandable if, after years of seeing our business through a certain light, we eventually develop tunnel vision. But, read the featured article - you'll be surprised as the creativity of some of these business owners. Hopefully, these stories will give you the inspiration you need to apply diversification (and potentially profitable) principles to your own going concern.
Posted By Diane Helbig On May 27, 2009 @ 3:06 am In Retail Trends, Small Business Advice The companies that seek out different market segments are the ones that will survive this environment. How do they do it? They look at their product or service and then at their current client/market base. Then they take a step back and ask - Is there another segment that could use my product or service? Can I adapt my process to open up another potential client pool? According to a May 4, 2009 [1] article in Crain’s Cleveland Business, companies like Wright Tool Company are exploring different market segments like advanced energy and medical technology. Retail locations like Next Energy Store of Kirtland, Ohio are looking for new products to sell. These companies are looking for ways to continue to provide value. When their current prospect base started to dwindle they stepped outside of their situation and considered alternatives. They got creative and found other markets to prospect in; they found new prospects. May 07 Partnering With The Major Players In Your IndustryDo you know how sometimes you read something and the idea is so simple you ask yourself, "Why didn't I think of this before?!" Well, that is my reaction to today's featured piece from the New York Times which deals with small businesses expanding their reach by teaming up with the larger companies in their field. After I read the piece, I also realized that this is a basic tenet for small businesses in the SBA's 8(a) program in that they are always encouraging small businesses to seek subcontracts from larger contractors. Why didn't I think to apply that to the private sector?
Well, better late than never; and ,as you can see from this article, even giants of industry like Microsoft, American Express and FedEx are finding this strategy to be quite feasible. This is because generally, these large companies are able to capitalize on the small business owners' penchant for ingenuity and innovation. For small businesses this partnership is great because they get access to the "expansive reach" of their larger partner and they can also "piggyback to some extent on their marketing power."
Like I keep saying, we have to find a way to turn this crisis into an opportunity. In these tough times, even larger companies are feeling the pinch financially. As such, they are more open to listen to your ideas than ever before! So, read the piece, take the time to identify the major players in your industry, then get started on a marketing plan that shows the ways in which you can add value to them and their clients. It's now or never people! Good Luck!
Partnerships Based on Service, Not SizeBy MICKEY MEECE
April 30, 2009
The eXpresso Corporation, a start-up company in Palo Alto, Calif., followed a well-worn path in technology by aligning with Microsoft, Cisco, Salesforce.com and other big-name companies to market its services. “All of these major corporations, at some point, have a need for new, innovative products and services because they can’t develop them all in-house,” said John Howard, vice president for business development at eXpresso, which offers an online service that allows people to store, edit and share Microsoft Office documents. “They look to start-ups for the next great things they want to add to their product offerings.” May 04 Turn All Your Employees Into SalespeopleI have to admit that I wasn't a believer when I first started reading today's featued article from Forbes. I mean turn everyone of your employees into salespeople? Of course this is great conceptually, but is it realistic to believe that this is even possible? Let's be honest, most people are just not effective at selling things; I know - I was one of them. In business, isn't it more important to capitalizing on people's strengths and leave the selling to the peofessionals?
However, I was intrigued by the featured piece and as I continued reading, I realized that the type of sales skills being promoted were not at all complicated and could be carried out by most employees. First and foremost, the non-sales employees are not required to bring in leads. They are, however, given a huge commission for ever lead that that eventually becomes a client. To help your employees earn this commission, employers need to ensure that they all have a "two minute elevator pitch" that highlights everything the company can do. This ensures they are ready if they come across a potential target client in their daily lives. In addition, it seems that just about everyone is one facebook, linkedin and other social networking sites these days. Train your employees in how to use this for your advantage. Finally, give your employees a voice - check-in with them on what is working and what isn't.
Of course this is just a very brief summary of the ideas offered in the featured article. To get more insight you must read the entire piece. Though I started out a skeptic, I must say I am now a convert. And, if you think about it, in today's economy, don't we need "all hands on deck"?
Put Your Sales Effort On Steroids Miriam Marcus, 04.30.09, 10:00 AM ET
Gifted salespeople--those silver-tongued closers who can peddle saltwater to castaways--are the lifeblood of many a small company, though finding and keeping them can be a real challenge. Here's a thought: What if, with a little training and persistence, all staffers--regardless of task or tenure--could contribute to the sales effort? That's precisely the philosophy at Roundarch, a Chicago-based designer of Web sites and nifty mobile applications. "Every one of Roundarch's 175 employees, from the most senior to junior, is empowered to seek and close new business," says President Jeff Maling. "In fact, we depend on it." Roundarch used to have a dedicated sales team, but five years ago began pushing much of that responsibility to its eight vice presidents and those below. Indeed, some of the company's bigger projects in recent years have originated from junior staffers. April 22 Can You Afford To Be Green?April 20 No Pain - No GainThankfully I'm able to blog again!! - Microsoft's bloging system has been down for days! Hope there was no inconvenience... Now on to today's post:
Though I have written a lot of posts for this blog, I must say that today’s featured article from Entrepreneur Magazine is one of my favorites. In this piece, the author advises small business owners to “ignore [the] short-term pain” of this recession and “focus on long-term gain” instead. I have, at times, used this mantra in my personal life; and, for the most part, it has proven to be highly successful. I have to admit, though, that I am also a “Type A” person that requires immediate gratification and recognition for my hard work. However, we all know, there will be no “immediate gratification” in this economy - that is why the featured articl’es inspirational pointers are needed now more than ever.
In today’s this piece, the author discusses 5 reasons why focusing on long-term gain will eventually make us richer and more successful. Richer and more successful?! - I like the sound of that! Here are the headings for the 5 points.
1) Business is still the best wealth-building vehicle ever created. 2) Business allows you to leverage your greatest strengths -- and overcome your most glaring weaknesses
3) Recessions are short-term. Recoveries are long-term.
4) Great successes are often achieved by “doing the opposite.”
5) Business is one of the most creative endeavors you could ever undertake -- or attempt to master.
Of course the author discusses these points in detail in the actual article. So, why not take a look? I mean, just about all of us have been employees at one point or another so we know that what he is saying is true. Seeing that we know he is not a purveyor of false hope, why not take a few minutes out of your day to get the inspiration you need to keep moving forward?
Ignore short-term pain and get started today. By Brad Sugars | April 13, 2009 Already, there are signs that the freeze of our current economic winter is starting to thaw, and the reality is that six percentage points of decline in GDP is not a 50 percent decline -- no matter how the media wants to peddle the numbers.
It’s time to get over the fact that things are slow and get on with what you need to do now to enjoy the fruits of the economic spring and summer that will be here soon.
April 10 Minimize Your Negative EmotionsIn my March 12th post, titled, Putting It All Together, I advised the following:“ If you want your company to be in the second category [i.e. companies that will emerge stronger from the recession], you have to develop a way to clamp down on your emotions (in this case fear), and clear your mind to make careful, informed, well thought out decisions.”I then pointed to the featured Inc. Magazine article as a “blueprint” for doing this. This is because the author of that piece was refocusing business owners away from their emotions toward logical business decision-making. Today’s featured piece from Fortune Small Business also acknowledges that negative emotions can diminish your ability to make sound business decisions. However, this article not only focuses on fear, but also on anger and ambivalence. In addition, instead of just turning off the emotion and refocusing your mind toward being logical, the author, a psychoanalyst, tries to help the three subject entrepreneurs, “ recogniz[e] old behavioral templates, revis[e] the outmoded responses they generate and creat[e] solutions that are appropriate to the present day.” To do this, he tries to analyze each individual’s past to find “why” he automatically gravitates to his preferred emotional response.I thought this approach was genius. My automatic response to frustration and fear is anger. Using the insight gained from this piece, I realize that the root cause is directly related to the values with which I was raised. Because I am now more mindful of my “go to” response whenever a negative event occurs, I am not only able to clamp down on the emotion, I now understand that I don’t have to go with my “automatic response”, I am now an adult and I get to choose how I handle any given situation. And in these uncertain times, that small amount of control, makes all the difference in the world.
How to control negative emotions
In tough times, keeping your cool is essential. By April 8, 2009: 9:21 AM ET
(Fortune Small Business) -- During an economic storm, everything solid melts into air. When it's not clear if there's a tomorrow to work toward, how do you keep morale up and communication channels open? To help you stay afloat, here's my brief field guide to anger, fear and ambivalence, three negative emotions that many business owners wrestle with today. March 26 To Discount or Not?For consumers with job security and financial stability, this recession is a gift from above: I have never seen such vastly reduced prices in my life! Unfortunately, I am in the “cash-strapped” consumer category, so even with the amazing sale prices, I can still only afford to window shop. Despite the national pull back in consumer spending, however, one has to wonder whether a “race to the bottom” with respect to prices is the only way for businesses to compete for the limited consumer cash. I mean, businesses start incurring a loss when the sale price becomes less that the vendor’s purchasing price. And, the primary goal of most businesses is still to “turn a profit” right? While this is generally true, some entrepreneurs may argue that selling at a loss while keeping their customer base happy is more favorable than having stockpiles of unsold inventory and no customers. Hmmm…. seriously, are these really the only options available to entrepreneurs? And if so, how can you determine what is the best strategy for your business? This is where the featured article from Inc. Magazine comes in. It highlights three business owners who implemented three different pricing strategies. It shows the reasoning behind each strategy, the owner's expectations at the outset and finally the consumers’ response. I think this piece is also useful because it not only underscores the business owners’ creativity and ingenuity, it proves that there is no right or wrong way to do this. So my advice: review the featured piece, and then use the featured plans as inspiration in developing a pricing strategy that is uniquely suited to your business. Pricing: How Low Can You Really Go? Businesses reexamine their prices From: Inc. Magazine, March 2009 | By: Ryan McCarthy Tempted to cut prices? You're not alone. With slumping sales, many businesses have been quick to offer discounts. "Cutting prices is by far the easiest marketing technique you can use," says Frank Luby, a partner in Simon-Kucher & Partners, a pricing and marketing consultancy. But price cuts raise some tough questions: Will deep discounts cheapen your brand? Once you cut prices, can you raise them again? How do you deal with narrower margins? Says Luby: "I try to get my clients to think about where they want to be as a brand when things turn around." Here are three companies that made big pricing changes and the results of those decisions. March 24 Why You Must Use Written ContractsI’ve had limited posts on this blog for two whole weeks because of the requirements of the “day job”. Well, thankfully, things seem to be slowing down and as such, I’ll once again be able to make daily posts (at least for the foreseeable future). Today’s topic? – The importance of using written contracts. As a lawyer, this is a no-brainer for me. It doesn’t matter who the other party is – a friend, a family member or just a business associate, so long as there is an agreement that involves rights, obligations and remedies – there must be a written contract. In reality, however, most people don’t feel they need a contract when they are dealing with friends or family members or even some business relationships. They believe that asking for a written contract is a sign that there is a lack of trust in the relationship. As the featured articles from Small Business Trends shows, however, written contracts are necessary because they serve to clarify the terms of any agreement. Whether written or verbal, an agreement is supposed to represent a “meeting of the mind”. The problem with verbal agreements is that sometimes what is said by one party is different from what is heard by the counter-party. Words have different meanings and parties can, in good-faith, interpret language in different ways. You greatly reduce this problem when you utilize a written contact at the outset. And, even if the agreement devolves to the point where a third-party neutral (like a judge or arbitrator), a written contract provides a vital tool in helping the neutral determine an equitable outcome. Still not convinced that written contacts are a necessary part of doing business? Well, check out the stories highlighted in the featured articles. Note, also, that at the end of the second piece, the author pointed you in the direction of “sites with sample contracts. Two… [she likes] are: FindLegalForms.com and FindLaw’s Small Business Center.”
Death by Contract — Or Lack Thereof Posted By Diane Helbig On March 8, 2009 @ 11:20 pm In Small Business Advice
Everyday I watch companies fail to initiate a contract with their clients only to find out there is a significant difference in the understanding of the scope of work. Your relationship with your client is of the utmost importance. You want to be sure there is a clear understanding of what you are going to do for them, what the cost is, and how you expect to receive payment. This clarity eliminates any misunderstandings.
Subcontractors - One More Reason For A Contract Posted By Diane Helbig On March 22, 2009 @ 9:01 pm In Small Business Advice Subcontractors. This is a relationship that screams for a contract. You are asking someone who is not an employee to do work for you. You will be paying them. There are parameters that should be nailed down, agreed to, and put in writing. A subcontractor contract does not have to be long or terribly wordy. The purpose is to detail the expectations on both sides of the table.
March 12 Putting It All TogetherEach day I scour news sources to find articles that offer actionable solutions (or sometimes inspiration) to post on this blog. The range of topics covered include: finance, management tips, technology, etc. Though I try to provide commentary that shows how the information provided can be beneficial to the average business owner, I’m sure some of you may be wondering, “how can we put it all together?” Well, today’s featured piece from Inc. Magazine, shows you to do just that. The article is based on the author’s month-long case analysis of a small business owner named Lisa Kristine. He describes in very great detail the initial consultation he had with her following a 2 month period where her revenues were reduced by 50%. As you can imagine, at that point Lisa was pretty stressed and fearful. Despite her obvious anxiety, the author forced her to face the reality of a $200,000 per year shortfall for at least the next 12 months. Lisa’s response: "Omigod," … "I'm going to be $200,000 short?" To calm this surge into panic, the author encouraged Lisa to take a deep breath and just try to focus on the steps that can be taken to offset this shortfall. I call this process “widening the landscape of options”. He then went on to walk Lisa through the many to the solutions and options that are currently available to her. Though most of the author’s recommended solutions are already discussed in great detail by previous posts on this blog, I decided to feature this article because I want you all to see how the “survival process” works. As the author states throughout the piece, though the recession will cause some, “businesses will go under,… [other] companies will emerge stronger.” If you want your company to be in the second category, you have to develop a way to clamp down on your emotions (in this case fear), and clear your mind to make careful, informed, well thought out decisions. Today’s featured piece provides a blueprint for doing just that.
Street Smarts: Surviving the Recession It requires conquering your fears and making the right choices. Many business owners won't do either From: Inc. Magazine, March 2009 | By: Norm Brodsky Fear can be a motivator, but it can also lead you into bad decisions, particularly in times like these. I have no doubt that a lot of business owners have spent the past couple of months implementing cost-saving plans and survival strategies that will weaken their companies and damage their long-term prospects. They've done it because they've been afraid, and fear makes us shortsighted. With the economy falling apart around us, we forget that recessions always end. Yes, some businesses will go under, but some companies will emerge stronger. If you want yours to be among the latter, you need to be careful about which costs you cut and which deals you offer your customers. These thoughts came to mind after my first meeting with another one of the entrepreneurs I'll be following in the months to come. Her name is Lisa Kristine, and she is a fine-art photographer. I met her on a recent trip to San Francisco, where I was taping a video about my book, The Knack. The video producer mentioned that her partner, Lisa, had some questions she wanted to ask me about her photography business. I said I'd be happy to talk to her and asked where she was based. In Sonoma, the producer said, about an hour north of the city, but she also had a gallery in Sausalito, on the other side of the Golden Gate Bridge. As it happened, my wife, Elaine, and I were free the next day, and we arranged to meet Lisa the following afternoon.
March 11 Encourage Your Customers To “Buy-Local”One of the best things about living in New York City is the uniqueness of our many small neighborhoods. Despite the fact that it is a City of over 8 million residents, New York is not homogenous. Instead, it has diversity and intimacy that is hard to rival. This feeling of community is not limited to Manhattan - it even extends to the four outer boroughs. Queens residents (like myself) will attest to the fact that Kew Gardens, is different from Forest Hills, which is different from Jackson Heights, etc. As the featured article from BusinessWeek shows, some small business owners have found a way to capitalize on the community spirit in many similar neighborhoods around the country. They have launched campaigns to encourage their neighbors to eschew the large stores and buy local. I personally think this is a great idea! Nothing makes me happier than walking around my neighborhood buying from each shopkeeper, having conversations with each owner, developing relationships... (Last Christmas, my Aunt Jackie was amazed that it took me 2 hours to simply pick up a few grocery items!) And, just in case you were wondering, this isn’t limited only to entrepreneurs with a store front. Some “buy-local” groups are offering coupon books that give their customers discounts for patronizing other businesses in the community! Now that is what a cooperative is all about! As the data in the featured article shows, local residents seem to be responding to this "buy local" campaign! Though everyone is feeling the pinch financially, most recognize that if they allow their local businesses to fail, they will also be sacrificing the soul and spirit of their neighborhoods. And, it is clear from the response that most people are simply not willing to do that. So, read the article, sift through the many ideas to find the ones you think will work in your community. If you are an organizer, get your fellow entrepreneurs together to start your very own “buy local” program. If you don’t have time, contact your local chamber of commerce and make some suggestions. As summer is fast approaching, long days with street fairs and block parties are now on our radar. Aren't these the perfect opportunies for you to introduce this "buy local" program / concept to your neighbors?
To Beat Recession, Indies Launch Buy-Local Push Small business owners are banding together to encourage consumers to shop nearby independents. Would such a campaign help your business? By John Tozzi The buy-local movement isn't new. For the past decade, independent businesses have banded together to urge local consumers to spend more of their dollars closer to home. Proponents say doing so helps build vibrant local economies by keeping money circulating in the area rather than elsewhere, while detractors say the economic benefits are negligible. Now, amid the sinking national economy, some small-business owners are saying buy-local efforts have helped insulate them from the worst of the downturn. That's the case for Chuck Robinson, owner of Village Books in Bellingham, Wash., who helped launch the city's buy-local effort in 2003. While sales have dropped 4% since Jan. 1 at his 40-employee, $3.5 million bookshop and adjacent card store, he says that's less severe than other booksellers he's talked to in places that don't have buy-local efforts. According to a national survey by the nonprofit Institute for Local Self-Reliance in Minneapolis, independent retailers in cities with buy-local campaigns saw holiday sales fall 3.2% from the prior year, while those in cities with no such movements recorded a 5.6% drop. Nationwide, retail sales fell 9.8% in December 2008 vs. the prior year, according to the Commerce Dept. February 27 The Importance Of Minimizing GoalsThe title of today’s featured article from Forbes is, “Why Goal Setting Can Lead To Disaster.” I can’t believe I am saying this, but I completely agree with the research findings upon which that statement is based. This will come as a shock for those who know me personally. Just to give you some insight into my background, the name of the high school I attended is Excelsior – which is Latin for “yet higher” – and they never let us forget it. And, though I will seem like a geek for admitting this, I really internalized all that “shoot for the stars and if you fail you’ll land on the moon” stuff. At 10 years old I decided that I was going to be a lawyer by 23. I did the research, developed a plan, and then focused completely on implementation. Explore other careers? Nope – not for me. Take time out for fun and maybe going away for spring break? No way! The admission essay I wrote when applying to law school was titled, “The Importance of Setting Goals”. In it, I recounted the single-minded dedication that allowed me to reach that point, and my absolute commitment to the practice of law. And you know what? It worked! I got into the law school of my choice, graduated at the age of 23 – exactly as I had planned 13 years earlier.
Some of you may ask, “And this is a problem how?” Well, after becoming a lawyer I really didn’t have a clue as to what I really wanted from life. You see, unlike most people, I didn’t spend my adolescence looking at the big picture – contemplating not only where I wanted to go but why. As the cliché says, I had “missed the forest for the trees.” Individuals and organizations that have this single-minded commitment to achieving specific goals usually forget to factor in all the possible and probable repercussions of actually meeting their goals. And usually, troubling signs of impending catastrophe are ignored because achieving the specified objective is the only thing that matters. The featured article (which is based on research from University of Pennsylvania’s Wharton Business School) has multiple examples of this: (i) Ford bypassing common safety checks in its development of the Pinto so that it could build an automobile within the price range and time-line specified by its CEO; (ii) Enron providing incentives to their salespeople based on the volume of revenue – not the soundness or profitability - of the trades they generated; and (iii) Sears mechanics choosing to perform unnecessary repairs or overcharge customers just so that they can meet the company’s target of billing $147 per hour. Though the Forbes piece highlights many more examples, you get the picture. And, like on Wall Street (where salaries and bonuses were based on meeting sales goals that incentivized the development of junk securities instead of prime assets), the result was disaster.
So am I advising you, a small business owner, to forego setting goals for your company and employees altogether? No. I am simply saying that you should not be so tied to them. Leave some wiggle room for, you know…reality. One of the immediate benefits of this is the improved morale of your employees. Per the featured piece, the pressure of meeting highly specific goals usually leads to workers engaging in risky and unethical behavior to meet these targets. In addition, according to their findings, most employees already have an intrinsic motivation to do their jobs to the best of their ability. However, by overindulging in goal setting, employers run the risk of devaluing this internal drive and replacing it with something the authors call a “hedonistic treadmill” (wherein your employees will only respond to constant pressure from external goals).
But setting goals is not all bad. As such, the question is, how can you utilize it effectively? According to the Forbes article, it “should be undertaken modestly and carefully, with a focus more on personal rather than financial gain.” While that sounds really nice, the conceptual correlation between that statement and your bottom line is a bit ambiguous. Personally, I now approach each goal by not only asking what I want to achieve and how, but also “why”. In so doing, I have become a recent convert to something that used to annoy me about our new President – his affinity for setting out guiding principles before developing a plan. In the beginning, my response was, “forget principles, I want details!” But soon I began to see the advantages of using this approach; implicit in the development of these principles is the acknowledgement that “there is more than one way to skin a cat”. (Yeah, the imagery of this cliché is gross but you get the point). Doing this allows you to really clarify why you have decided on a course of action. It also gives you maximum flexibility in how to actually achieve your objective (and also deal with any unforeseen issues that may arise). Finally, it forces you to look at the big picture – to see how each goal fits into you larger, overarching strategy. So forget specificity - as this is shaping up to be quite an unpredictable year, our adaptability and our commitment to our guiding principles are the only things we can count on.
Why Goal Setting Can Lead To Disaster In early 1969, just as the U.S. was preparing to reach John F. Kennedy's lofty goal of sending Americans to the moon, the famed Ford executive Lee Iacocca gave a similarly ambitious mandate to his team of engineers.
Faced for the first time with competition from low-cost, high-mileage foreign imports, Iacocca set a specific target: Ford would design a new automobile that weighed less than 2,000 pounds and sold for under $2,000, and it would be on the showroom floor in time for the 1971 model year. What resulted was a mad dash to create the Ford Pinto.
The rush to roll out the Pinto had lethal consequences. Common-sense safety checks took a backseat to meeting Iacocca's deadline. In particular, engineers failed to examine the decision to place the Pinto's fuel tank only 10 inches behind the rear axle. When the Pinto was rear-ended, it often went up in flames. Fiery rear-end crashes caused 53 deaths, numerous injuries and a string of costly lawsuits.
It was a valuable lesson about the hazards of setting goals. In pursuit of such mandates, employees will ignore sound business practices, risk the company's reputation and violate ethical standards. This lesson, however, has not been absorbed by corporate America. To the contrary, ambitious goal setting has become endemic in American business practice and scholarship over the last half century. Goals have pervaded industries as diverse as automotive repair, banking and information systems, even spilling over to the debate on how to improve America's public schools
February 23 “Quality”, “Value” and Your BusinessThese days, the word “value” is popping up everywhere. Surprisingly, even luxury brands are incorporating and promoting this concept. [For example, Starbucks is now offering instant coffee, and Vogue magazine is now highlighting pieces that sell for less than $100]. Note however, that despite the lower price point, consumers still believe that these companies are offering quality products and services. This is a direct result of the long term association of these brands with high-end products. As a small business, your company may not have the built-in name recognition of these larger brands. Despite this disadvantage, you too can build trust and a strong association with quality in the minds of your consumers. According to today’s featured article from BusinessWeek, this can be done in 6 easy steps. First you must highlight the advantages of your product or service over what is currently being offered by your competitors. This can be done by providing background information about the product, and also via product or service demonstrations that give consumers a “feel” for what you are selling. Next, you are advised to reinforce your marketing claims by using hard data and testimonials from satisfied customers. Finally, to emphasize your commitment to quality and value, the author advises you to provide guarantees for all the products or services you sell. That being said, can I guarantee that implementation of these steps will immediately drive customers to your business? The simple answer: I can’t. What I do know, however, is that it cannot hurt to try. In this economy, we should follow the path of the larger brands and do everything we can to build an association between our businesses and quality/value. As such, I strongly advise you to check out the details behind these steps by reviewing the featured BusinessWeek piece.
How to Build Trust in Your Business
Customers need a reason to believe in your company. Here's how to woo skeptics
By Doug Hall
Whatever happened to trust? Banks don't trust one another enough to make loans. Customers don't trust banks. Republicans don't trust Democrats. Democrats don't trust Republicans. Independents don't trust anyone.
When distrust rules, it's harder for entrepreneurs to sell customers on the wonders of their new products and services. That means entrepreneurs need to create what I call a real reason to believe, which leads to credibility for you and your company. Here are six ways to do that, along with some of the most innovative examples I've seen in the past year.
1. THE WHOLE STORY.
Tell customers precisely how you can do what other companies can't. Explain why your recipe, production process, or design is different. I recently met with a company that was first to build plastic parts three times stronger than aluminum. What did they tell me to allay my skepticism? That they can do this because they've invented a way to incorporate carbon fibers into the injection molding process.
February 20 Get Your Employees Vested In the Success Of Your BusinessMost of my friends are corporate lawyers who make the kind of six-figure salary the rest of us can only dream about. Though their jobs provide them with the financial security they need, there is a sense of restlessness because they do not believe their work serves any real purpose. (Trust me – making rich people richer is not particularly fulfilling). Don’t get me wrong, they wouldn’t trade places with you or me – after all money is a really important part of life. But still, they cannot help but wish things were different. And you know what? It can actually be different! Though you may not be able to give your employees daunting six-figure salaries, you can give them something much more important – a sense of appreciation; the feeling that you value their contributions and are willing to incorporate their ideas into your business plan. This is especially important in this era when most employees are demoralized by the uncertainty surrounding their own jobs (as a direct result of massive layoffs taking place throughout the country and possibly, your own organization). Though you may not be able to offer them complete job security, motivate them by openly acknowledging that their contributions are vital to the success of your enterprise. Not sure how to go about doing this? Then the featured article from Entrepreneur.com is for you - it breaks down the actions that you need to take in four simple steps. First, you must actually give your employees room to showcase their expertise. Second, after ensuring that you and your employees have a clear understanding of what you expect from each other, give them some level of control over the decisions that directly affect them. Third, encourage your employees to collaborate with each other in order to develop new, innovative strategies for the future of your business. Fourth, consistently share vital information with your employees; let them know how their ideas, actions and external factors like the economy are affecting your business. That way they are always in the loop and won’t be blindsided by any tough decisions you have to make. As you can see (and I have proven this in my own career), the best thing you can do for your business is to let your employees feel as if they matter. Get the best out of them by giving them a stake in the success of your business. So, I strongly encourage you to read the featured article from Entrepreneur, and get started on the implementation process - because now, more than ever, you need your employees to give you peak performance.
Let your employees, contractors and consultants know your success is their success. By Romanus Wolter | Entrepreneur Magazine - February 2009 When you're a startup entrepreneur, the people you work with are some of your most valuable assets. Your team motivates you when you're down, shares their experiences when you need new strategies and partners with you when you're looking to open new markets. Your challenge is to motivate and inspire all your workers, many of whom may not be full-time employees. You also need independent contractors and consultants to meet your clients' expectations. Your success depends on how well you focus their attention on your requirements and leverage their limited time and resources to benefit your business.
February 10 3 Steps To A Comprehensive Marketing PlanWhen I first started this blog, I thought the best way to assist business owners would be to help them find ways to minimize expenses. After all, if consumers aren’t buying and banks are lending, that is the only way to balance your books right?! That is very simple accounting. Imagine my surprise when, in the course of my research, I learned that all of the experts unanimously recommended that business owners increase their marketing efforts? Increase Marketing! How can that be?! Doing this would only boost costs with little return as most consumers are simply holding on to what little cash they have left! However, after a while, I became a believer in the ideas espoused by these experts. The new goal then was to use this blog to give entrepreneurs information on how to market effectively by providing value to your clients (see February 2nd and January 27th posts). However, despite my new conversion, I was still concerned with minimizing costs and maximizing scope of this marketing. As such, I happily featured posts that encouraged you to use the internet as the cornerstone for your marketing efforts by. My most recent posts on this topic discussed increasing the effectiveness of your website and using taking advantage of social networking sites. At first, the featured article from Forbes, about how to assess your marketing options, seemed to reinforce the proposals from the experts previously featured on this blog. By the end, however, I realized my first impression was wrong. First, it’s scope it much broader - it is advising you to first prepare a comprehensive marketing plan before you do anything else. Thankfully, he synthesizes his ideas into three steps: (i) Build On Your Believers; (ii) Only Tackle What You Can Manage and (iii) Take All Vendor Advice With a Boulder of Salt. The first point encourages you to building loyalty in your existing customers instead of chasing what the author calls “phantom customers”. Conceptually, this idea is the same as my post about marketing to your former customers via email. However, as a former cold caller (please don’t hold it against me!) I do believe that developing and capitalizing on a constant source of new “prospects” should be a main factor in just about any marketing plan. Second, in advising entrepreneurs to only “tackle what they can manage” the author asks you to eschew the use of any kind of internet marketing (like blogs and social network sites) that requires a fair bit of maintenance and administration to remain current. He actually describes these as marketing fads. Personally, I disagree. Yes, a daily blog would be too much work. However, a monthly or bi-weekly one? Not so much. Also after taking a look at the social networking sites, they are not complicated and I do believe most people spend more time just aimlessly surfing the web anyway. Wouldn’t it make more sense to do so with a goal that is helpful to your bottom line? Finally, I believe that the third point, viewing vendors with a pound of salt is generally good advice. As it relates to Yahoo and Google in this piece? I do not have enough knowledge in this area to comment. So, why did I post an article that does not necessarily support my viewpoint? Because on this Blog, I am not a "vendor" – my only agenda is to help you save your business. With that in mind, I have a duty to give you as many options as possible by posting a wide range of opinions. We are not all the same so though I may disagree with some aspects of this piece, someone out there will find the proposed solutions helpful. That is A-OK with me.
How To Assess Your Marketing Options Marketing in the digital age offers entrepreneurs a bewildering array of enticing tools. But how to test them all with limited resources?
Answer: Only pursue the ones that align most closely with your strategic marketing plan. If you don't have a plan, prepare to blow a lot of precious cash on cool ideas that promise the world and deliver little--not because they are bad ideas, but because they are bad ideas for your company.
Here are three rules of thumb for assessing your marketing options.
February 02 Highlight Product Benefits To Entice Frugal CustomersHello. My name is Charmaine and I am a recovering shopaholic. It should come as no surprise that the economy was the catalyst for the change in my behavior. And, from the most recent economic markers, it seems I am not the only person in the country who can no longer afford to shop “frequently or compulsively”. Per the featured article from BusinessWeek, shopping for entertainment (or in my case for stress relief) is over. No longer will people brag about how much they paid for an item; but instead, how little. The era of value shopping has arrived! As small business owners, we all have to learn how to adjust to these new times. Before the economy tanked, most people (myself included) would just buy everything in the store that appealed to them then figure out what to do with the purchases when they got home. Now, the “why” question is happening in the store before each decision to buy. In these difficult times, every purchase must be rationalized. As such, you, as a business owner must be vigilant in highlighting the benefits of the products you offer. The BusinessWeek article recommends the use of well placed signs as one of the easiest and most effective way to do this! (Using the same concept, service providers should probably start working on brochures that do the same.) In the featured article, the author used Whole Foods and William Sonoma as examples of a couple of stores that have already implemented this practice successfully. From my personal experience, other standouts include Trader Joe’s and most recently, Sephora. As a consumer, I really appreciate the stores that have gone in that direction. Not only do they assist me in the necessary rationalization process, they also make it easier for me to choose what I want from the hundreds of choices that are available. For me, buying products at Sephora has become more pleasurable since they started using signs that point to the bestsellers, customer favorites, magazine editor’s favorites, etc. As a result, I now feel more confident in my purchases there (even if is sometimes a bit more expensive) because I know I have made an informed decision. An example of the need for much information, on the other hand, is my experience with the two liquor stores in my area. I am a recent convert to Italian cooking – and that means just about every recipe lists wine as an ingredient. Regardless of what they say on the Food Network, I am not willing to spend $20 for a bottle of wine that is mainly used for cooking. I do, however, want to buy something that is drinkable. However, when I go to the liquor stores, I am completely overwhelmed by the options that are available! As I am not a wine connoisseur, just the thought of choosing makes me apprehensive. The owners of both stores are extremely friendly so, if theyaren’t too busy, they’ll usually take the time to make recommendations. In my opinion, these are prime candidates for the "sign" idea discussed above. It would be perfect if I could just walk into either of store and see signs that: (i) highlight the features and benefits of each of the main types of wines they sell and (ii) the owner's recommendation for each category and price range. Yes, I know it is a bit more work up-front, but, as discussed in the featured article, the result will probably be increased sales (and also customer loyalty). Though I’ve had to give up my weekly shopping trips to Target and Ikea, I look forward to this new era of value consumerism. As the Buddhists’ would say, my addiction to shopping is no longer leading me around like a bull with a ring in its nose. I am once again a free-thinking adult - and that means I make decisions based on necessity and information. The quicker you adjust to this new reality, by implemeng some of the strategies outlined in the featured article, the quicker you will see the uptick in sales you desire.
How to Win Frugal Consumers and Influence Them to Buy
Consumer shopping habits are changing. But the right sign, well placed, can bring sales even in a recession, says retail guru Paco Underhill
American shoppers are complex: They're excitable, but often creatures of habit; sensitive to influence, but harder to manipulate than marketers like to acknowledge. And now, as Americans consume more sparingly, an already complicated retail pas de deux has become even more so.
To find out how stores are responding, I called Paco Underhill. He was one of the first to study how people shop, and over the past 20 years or so his consulting firm, Envirosell, has worked for the likes of Best Buy (BBY), Gap (GPS), and Wal-Mart (WMT). Underhill gathers information for clients by videotaping and tracking shoppers in stores, often for weeks at a time; he collects some 50,000 hours of video every year.
January 27 Change Your Perspective – Grow Your BusinessYesterday, I went to the Queens Mediation Network (QMN) in Jamaica, NY to provide volunteer mediation services. During a conversation with two of the administrators, I was informed that even QMN is experiencing a palpable slow-down in business – and their services are FREE! As a partial response, QMN recently established a mediation steering committee to brainstorm ideas that will help the agency serve its constituents more effectively. Clearly, the managers at QMN believe that the key to solving their problems lie in looking at things from a new perspective. That, exactly, is the central idea behind today’s featured article from Small Business Trends. The author, an entrepreneur who operates a computer consulting business, gives advice on how you can grow your own business by implementing “4 overlooked strategies”. Half of the strategies in this piece revolve around ways to help you maintain your existing customer base. One tactic – offering add-on’s at a nominal fee - may seem counter-intuitive (especially when the stated goal is growing business). However, consumers love to feel that they are getting a bargain. And, having a reputation of providing “value for the money” will definitely increase loyalty among your customer base in this economy. The second half of the strategies provides tips on how to expand your existing clientele. According to this article, volunteering is an excellent way to do this. From a business perspective, volunteering gives you the chance to network and show the advantages of your products and services. And, you get to do all of this while giving back to society! Another approach the author recommends, however – partnering with other small business owners – may seem way off base in this “dog eat dog” world. Just remember – keep an open mind! I really think the author is on to something here. After all, every customer needs a wide range of goods and services. Through partnering, not only do you have access to your partner’s clientele, if you offer them a special discount, you will be one step closer to instilling loyalty and expanding your own customer base! Obviously, this list of strategies is not exhaustive. This article only serves as an example of how doing something as simple as applying a new perspective, can have a positive impact on the growth of your business. So put on that thinking cap and start brainstorming! Think you‘ve unearthed more great ideas? Click on the comment button below to share your thoughts.
4 Overlooked Strategies to Grow Your Service Business
Posted By Matt Rodela On January 12, 2009 @ 5:13 am In Small Business Advice
How can you stay above water when it seems all external forces are working against you?
Now is not the time for business as usual. It’s time to get creative and think outside-of-the-box for ways to increase profit. It’s always a good idea to tweak the services you offer to keep them fresh and competitive.
Lets go over a few techniques that I am using to diversify my computer consulting business that can easily be translated to your own service business.
1. Provide Optional Add-ons for Existing Products or Services
This is akin to the drive-through attendant asking if you’d like “fries with that.” Take a look at your primary product or service and brainstorm ways you can add low-cost options.
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