Anyone in business today realizes both the natural dependency on computers in the workplace, and also the potential dangers associated with storing important data on them. Today's business owners are constantly being reminded that their company's data is at risk by the daily reports on various news stations, or even their favorite business-related website.
But what can a typical small business owner do to protect their network from these threats that are broadcasted in so many ways? Dangers lurk at every turn on the Internet. There are thousands of attacks or areas of security that could be discussed, but I am going to try and focus on three general nuisances associated with today's computers: viruses, spy-ware, and traditional "hackers" that will intentionally try to exploit your computer systems for various reasons. All of these attacks, although different, serve a specific purpose for the attacker, yet basically translate into three things for a business: lost productivity, lost data, and the end result? lost money.
Here is brief descriptions of what the aforementioned attacks are, consist of, and what a typical small business can do to protect their technology investments.
Virus: A computer virus shares some traits with an actual virus that gets people sick. A computer virus must piggyback on top of some other program or document in order to get executed. Once it is running, it is then able to infect other programs or documents. Obviously, the analogy between computer and biological viruses stretches things a bit, but there are enough similarities that the name sticks. A computer virus can have many intentions. One common goal is the virus's desire to infect as many machines as possible. Some are harmless and are no more then an attempt for a hacker to spread their name and get recognition amongst their peers. However, this can still lead to slow computer performance or programs acting up. On the other side of the coin, viruses can be extremely harmful and delete data, cause complete computer interruption, give someone unauthorized access to your company data, or even be used in conjunction with thousands of other infected computers to launch grand-scale attacks. Viruses are still mostly transferred via email; however newer attacks will entice you via an email to a malicious website that will exploit a flaw in your computer to install the virus.
Protection from Viruses: If you are reading this article, and you still do not have current (this is very important) anti-virus software running on EVERY single computer you own, then shame on you. With all of the marketing commotion that surrounds viruses, you should already have antivirus software on all of your computers. If you don't, then hurry to the store and purchase it. Popular software in the antivirus market is made by Symantec (www.symantec.com) and McAfee (www.mcafee.com). Larger companies may look into a system that will scan emails prior to the email getting to a user's inbox for viruses. Also, be wary of what you open in your email. Do not open emails from people you do not know, and even if you do know the sender, take extra caution, as most viruses today will trick you into believing that the virus is sent from someone that you know.
Spyware: You may know spyware by one of its many names, adware, malware, trackware, scumware, thiefware, snoopware, and sneakware. Because of its stealthy nature, most Internet users are more familiar with the symptoms of spyware infection: sluggish PC performance, increased pop-up ads, unexplained homepage change, and mysterious search results. For virtually everyone surfing the Internet, malware and adware are a nuisance, but if you do not detect spyware on your PC, it can lead to much more serious consequences such as identity theft. Many people wonder how they get spyware installed onto their computer in the first place. Typically, spyware is installed onto your PC without your knowledge because the programs are usually hidden within other software. For example, when you are browsing a website, and a pop-up appears to install the latest online Casino game, it probably will give you that game, but you've also just installed spyware along with that. Another avenue for Spyware to infect your machine is through popular Peer-to-Peer File Sharing software such as Kazaa. The financial impact on a business that is plagued by spyware can toll very high. Costs paid to computer consultants to remove spyware, and a user's overall lost of productivity from a slow-performing computer can add up very quickly.
Protection from Spyware: Spyware is a huge problem in today's computing environment. Fighting Spyware starts with smarter use of your computer. The best defense against spyware and other unwanted software is not to download it in the first place. Here are a few helpful tips that can protect you from downloading software you don't want. Only download programs from web sites you trust, read all security warnings, license agreements, and privacy statements associated with any software you download, and never click "agree" or "OK" to close a window. Instead, click the red "x" in the corner of the window or press the Alt + F4 buttons on your keyboard to close a window, and be wary of popular "free" music and movie file-sharing programs, and be sure you clearly understand all of the software packaged with those programs. If you do happen to install Spyware on your computer, there are some tools available to assist in the removal of spyware. Be careful however when downloading these "free" spyware removal softwares, as even some of the removal tools incorporate spyware into their software. A popular product that does a good job of removing spyware is Lavasoft's Adaware (www.lavasoft.com). Larger organizations can look to companies such as Computer Associates (www.ca.com) for enterprise protection. There are instances when there is simply just too much spyware installed on a machine where these tools cannot help, and you'll be forced to format your hard drive and reinstall your operating system.
Hackers: The term hacker has many different meanings to many different people. A dictionary might define the word hacker as follows, "A person who breaks into, or attempts to break into, or use, a computer network or system without authorization, often at random, for personal amusement or gratification, and not necessarily with malicious intent. 2. [An] unauthorized user who attempts to or gains access to an information system 3. A technically sophisticated computer expert who intentionally gains unauthorized access to targeted protected resources, loosely, a computer enthusiast. 4. A person who uses a computer resource in a manner for which it is not intended or which is in conflict with the terms of an acceptable-use policy, but is not necessarily malicious in intent." As you can see, a hacker is someone with a very high aptitude in computing. By studying the inherent design of computer systems, a hacker will then attempt to compromise those systems for a purpose. Typically, they use a collection of tools easily downloadable on the Internet to exploit a flaw in a program or hardware system. Hackers do what they do for various reasons. Some do it for simple prestige amongst their peers, others for financial gain, and others do it to make a political statement. The impact of your network's security being breached can lead to very serious financial losses. Imagine your customer database being sold to a competitor or even what public response would be if you had to tell your customers that their personal information was stolen?
Protection from Hackers: I was once told, that no matter how good a safe you buy, there will still always be a locksmith that can un-lock it. The same goes for protection against hackers. However the amount of people with the expertise to bypass most security defenses, available to companies, are few and far in between. To keep your network safe, the following three items are an absolute must. A quality firewall at your network's perimeter to filter what goes in and out of your internet connection, desktop level firewalls to keep internal company computers safe, and the importance of performing updates to your computer's operating system and applications. Firewalls simply stated, filter data passing through them. They are in essence, inspectors that allow and deny data to be passed through them based on certain rules. Most quality firewalls will protect your network by letting the good data through and keeping the bad out. Recommended firewalls for small businesses can be purchased from companies such as Cisco (www.cisco.com), Watchguard (www.watchguard.com) or Sonic Wall (www.sonicwall.com). Firewall vendors typically have many different models available, so consult with your network security professional on what to buy. The important thing is that you have one in place. Desktop level firewalls provide a true multi-layered approach to security. This added level of protection strengthens your computer systems defense, and is especially helpful to companies that have remote workers. Most companies today do have firewalls on their corporate network; however no one ever thinks about the company president's laptop that gets brought home everyday. The president brings his laptop home and sets up his trusty remote connection back into his office over his broadband home Internet connection. The once protected laptop is now completely unprotected and connected directly to the corporate office, which gives a direct avenue for virus and hackers onto your corporate network. The great thing about desktop firewalls is that you can get some great ones for free! If you use the Microsoft Windows XP operating system, simply upgrade to service pack 2 and it includes a free and easy to use desktop level firewall. If you do not have Windows XP or just do not want to use their firewall, Zone Alarm (www.zonealarm.com) offers a great desktop level firewall. The last level of defense is to keep your networked systems up to date with the latest patches and fixes from their respective manufacturers. I will assume that most companies use Microsoft Windows products for most of their computing needs, so to keep your system updated simply go to http://windowsupdate.microsoft.com. You should check for updates twice a month.
Even though this article simply brushes the surface of network security, I hope it gives you insight as to some potential dangers out there and real incentive to implement better security for your company. Just as you have an alarm system at your office, please take the necessary steps to protect your company's computer network and data. If not, the costs of recovery I guarantee you will far exceed the costs to implement a secure network.
Jarrett M. Pavao studied at the University of Miami, is a Microsoft Certified System Engineer, and Citrix Certified Administrator. Jarrett is the Director of Business Technologies for Docutek, a systems integrator in Boca Raton, FL. Jarrett can be contacted at jpavao@docuteksolutions.com with any network security related questions or concerns.
Tuesday, August 14, 2007
Small Business Marketing - Clarify Success
When you hear the word "success" does it bring on visions of fame and fortune for your business? Have you clarified and articulated what that success will look like for your business and how you'll know when you've achieved it?
What's the definition of success for your business? Most small businesses are selling their time and expertise to deliver a service to their clients. So the question I want you to reflect upon is this? "What does success look like?"
Now before you start answering with responses like, "I'll do $X Million in sales this year." - STOP! That's not what I meant. The question is? "What does success look like for your client(s)?" Remember, your clients? Isn't it generally fair to say you're in business to provide a service to your clients? When you do it right, what does it actually look like for the client?
Don't get me wrong. I understand that we're in business to make money - to make a living for ourselves. But that's rarely enough in life. Most of the service providers I know love working with and servicing their clients. If you focus on taking care of that, the rest will almost certainly take care of itself. So what does success look like for the client when you do it right?
Spend some time and clarify success for your service business. What are you passionate about? What is it that you're trying to do for your clients? What difference do you want to make? What do you "love" doing for them? What is it that they will have or be able to do because they bought your service from you?
This definition covers a broad range of issues for you and your business. All aspects of your business must be working well together to achieve this success. Be as specific as you can.
Now, if you really want to make this a valuable exercise for your business, then I challenge you to take the results of your own brainstorming and sit down with a few of your best client(s) to see what they think and get their input.
I think you can see that this type of reflection goes beyond listing your services or the results of your services. This is not, "I'm providing marketing and business growth services to help my clients' realize greater return on their marketing investments." Instead, let's get down to, "Clients won't have to struggle with their marketing efforts, wondering how they're going to get more clients. They will be able to easily generate a consistent supply of high-quality leads and convert them into more business so they can focus on what they love doing - servicing their clients." See the difference?
For most small business owners I've known and worked with, owning their own business is a "dream." Unfortunately, if they're constantly stressed about how and where to find more business, then their "dream" may become their "worst nightmare."
Success then for my clients means helping them put a more systematic approach in place to ensure they're constantly generating leads and converting them into more business so they can realize their "dream."
When you clarify success in this way, you'll be able to devote your attention to continuously improve what you do and how you deliver your services to your clients. You'll be motivated to ensure you're delivering that value to your clients and not just doing what you always do so the clients will pay their bills. With success clarified, you'll be able to ask yourself, "How is what I'm doing today contributing to delivering success for my client?" And here's the real kicker - because of your focus on your clients' success, expect to see more success for your own business!
What's the definition of success for your business? Most small businesses are selling their time and expertise to deliver a service to their clients. So the question I want you to reflect upon is this? "What does success look like?"
Now before you start answering with responses like, "I'll do $X Million in sales this year." - STOP! That's not what I meant. The question is? "What does success look like for your client(s)?" Remember, your clients? Isn't it generally fair to say you're in business to provide a service to your clients? When you do it right, what does it actually look like for the client?
Don't get me wrong. I understand that we're in business to make money - to make a living for ourselves. But that's rarely enough in life. Most of the service providers I know love working with and servicing their clients. If you focus on taking care of that, the rest will almost certainly take care of itself. So what does success look like for the client when you do it right?
Spend some time and clarify success for your service business. What are you passionate about? What is it that you're trying to do for your clients? What difference do you want to make? What do you "love" doing for them? What is it that they will have or be able to do because they bought your service from you?
This definition covers a broad range of issues for you and your business. All aspects of your business must be working well together to achieve this success. Be as specific as you can.
Now, if you really want to make this a valuable exercise for your business, then I challenge you to take the results of your own brainstorming and sit down with a few of your best client(s) to see what they think and get their input.
I think you can see that this type of reflection goes beyond listing your services or the results of your services. This is not, "I'm providing marketing and business growth services to help my clients' realize greater return on their marketing investments." Instead, let's get down to, "Clients won't have to struggle with their marketing efforts, wondering how they're going to get more clients. They will be able to easily generate a consistent supply of high-quality leads and convert them into more business so they can focus on what they love doing - servicing their clients." See the difference?
For most small business owners I've known and worked with, owning their own business is a "dream." Unfortunately, if they're constantly stressed about how and where to find more business, then their "dream" may become their "worst nightmare."
Success then for my clients means helping them put a more systematic approach in place to ensure they're constantly generating leads and converting them into more business so they can realize their "dream."
When you clarify success in this way, you'll be able to devote your attention to continuously improve what you do and how you deliver your services to your clients. You'll be motivated to ensure you're delivering that value to your clients and not just doing what you always do so the clients will pay their bills. With success clarified, you'll be able to ask yourself, "How is what I'm doing today contributing to delivering success for my client?" And here's the real kicker - because of your focus on your clients' success, expect to see more success for your own business!
Cash Flow: Why Chaos Equals Poor Cash Flow
Recently one of my customers told me the chaos swirling through his company was the result of poor cash flow. If only he had more money, his company would run better.
I must respectfully disagree.
Poor business processes produce chaos. Chaos leads to poor cash flow. Fix the poor business processes and the cash flow problems disappear.
What business processes am I talking about?
1. Having a clear picture of who your customer is.
Here's what my customer looks like: My customer is a small business owner looking for ways to make his or her business run better. He or she is often overwhelmed by all the tasks that must be completed and often does not have time for the really important business functions of strategic planning and forecasting and may not have a great deal of experience in those areas.
What does your customer look like? What challenges are they facing? What do they struggle with everyday?
2. Using that picture to develop services and products that provide value to your customer.
Based on my picture of my customer I can provide my customer with time saving services and products that teach them skills or provide knowledge they can use to solve the challenges they face everyday.
How can you help your customer? What products or services can you offer that will save them money or time? What problems can you help them solve?
3. Developing a plan of delivery.
What works best for your customer and how can you deliver that in a way that makes you money? My customers need both general knowledge for running a business and specific knowledge for running their particular business. And they're short on time. Therefore, I can combine a product like a manual of general information with one-on-one consulting services for their specific situation. If I deliver it over the phone or the internet, they can access my knowledge at a time that is convenient for them.
What ways can you think of to make your delivery more valuable and useful to your customers. The easier it is, the more your customers will love it.
4. Ensuring that you will be able to collect what is owed to you by establishing good credit policies.
Do you need to extend credit? Can you get paid at the time of delivery?
Can you get your customers to pay you by credit card? Can you ask for a deposit up front? Who will you extend credit to--what criteria will you use? I am happy to say that in all my time in business, I have had only one customer who did not pay me and I learned very valuable lessons from that experience. It caused me to change my process and I haven't had any problems since then.
Think through your business processes to see where the holes are. Booting the chaos out of your business by developing good business processes is the best way in the world to improve cash flow.
I must respectfully disagree.
Poor business processes produce chaos. Chaos leads to poor cash flow. Fix the poor business processes and the cash flow problems disappear.
What business processes am I talking about?
1. Having a clear picture of who your customer is.
Here's what my customer looks like: My customer is a small business owner looking for ways to make his or her business run better. He or she is often overwhelmed by all the tasks that must be completed and often does not have time for the really important business functions of strategic planning and forecasting and may not have a great deal of experience in those areas.
What does your customer look like? What challenges are they facing? What do they struggle with everyday?
2. Using that picture to develop services and products that provide value to your customer.
Based on my picture of my customer I can provide my customer with time saving services and products that teach them skills or provide knowledge they can use to solve the challenges they face everyday.
How can you help your customer? What products or services can you offer that will save them money or time? What problems can you help them solve?
3. Developing a plan of delivery.
What works best for your customer and how can you deliver that in a way that makes you money? My customers need both general knowledge for running a business and specific knowledge for running their particular business. And they're short on time. Therefore, I can combine a product like a manual of general information with one-on-one consulting services for their specific situation. If I deliver it over the phone or the internet, they can access my knowledge at a time that is convenient for them.
What ways can you think of to make your delivery more valuable and useful to your customers. The easier it is, the more your customers will love it.
4. Ensuring that you will be able to collect what is owed to you by establishing good credit policies.
Do you need to extend credit? Can you get paid at the time of delivery?
Can you get your customers to pay you by credit card? Can you ask for a deposit up front? Who will you extend credit to--what criteria will you use? I am happy to say that in all my time in business, I have had only one customer who did not pay me and I learned very valuable lessons from that experience. It caused me to change my process and I haven't had any problems since then.
Think through your business processes to see where the holes are. Booting the chaos out of your business by developing good business processes is the best way in the world to improve cash flow.
Small Business Savvy: Reaching Key Big Business Decision Makers
As a solo entrepreneur or small business owner, one of our key challenges can be reaching key decision makers in larger companies. Getting to the right person who can seal the deal can be a frustrating experience, especially if you don't have a game plan. Here are three ways to connect with the right people.
Cold Calling
In this age of voice mail, reaching prospects by phone has become more difficult. Cold calling will most likely reap stronger results if you're trying to reach small business owners, where connecting with the owner by phone is more likely, but with persistence you can reach corporate managers as well. There are several important steps you need to take to get results from cold calling-
Make sure you write a phone script that, in 30 seconds, will convey what you do and what benefit similar customers have gained from your service. This is essential. You're phone script must answer the prospect's question, "what's in it for me"?
Practice your phone script until it feels natural and fits your communication style.
Make sure it conveys your excitement about your offering.
When you get the right person on the phone, tell them you have some exciting information for them and would they be able to give you 30 seconds to share it.
End your script with an intriguing piece of information, specific product results that are impressive, or a question that will make them want to know more.
Be persistent. Keep calling at different times of the day until you get the prospect on the phone. Leaving a message is rarely successful, but if you can't ever catch the person on the phone, you can always give it a try.
When you get a prospect on the phone, ask their permission to have 30 seconds of their time. When the 30 seconds are up, ask their permission to continue.
Also, script how you'll respond to the different possible responses you're likely to receive from the prospect. For example, if the prospect says they're not sure they want to meet with you, what will you say?
If the prospect allows you to continue past 30 seconds, tell them you'll be in their area on a certain day and ask if you could meet with them for 20 minutes to continue the conversation.
Remember that if you're calling targeted prospects, it's just a numbers game. Call enough people and you'll make some appointments. Make enough appointments and you'll close some sales. Calculating the call to appointments to sales ratio is important in determining if cold calling is working for you.
Warm Calling
You probably have a database of customers and a network of other professionals. Put a simple request out to your database telling them that you have some exciting information, pertinent articles or new products or services and you need to connect with, for example, operations managers in mid-level companies. Ask if anyone knows someone that they could connect you with that fits that category. Offer them a reward, gift certificate or coupon if you feel they need an incentive. If possible, see if they will arrange an introduction by calling or e-mailing this person to let them know about you. Then contact these "warm" leads. They'll be much more likely to respond to your communication. To make this work, you must be very clear about what type of person you need to meet. Saying that you need to meet corporate managers, for example, is much too broad. Those in your database also need to feel that you will not make them look bad or take advantage of their contact, so you need to be clear about why you want to meet these types of people.
Focused Networking
If you were an operations or mid-level manager, where would you hang out in your free time? What business and social organizations would you join? What speakers or topics would you motivate you to attend a meeting?
If you can answer these questions, you can plan to attend the same meetings or socialize in the same places. There are many swim and golf clubs, for example, that are frequented by corporate executives. Even telling people at church about what you do and who you'd like to meet can yield results. Every industry has it's own professional organization and most of them welcome guests.
Volunteer to work on a committee.
Offer to speak to one of these groups on a relevant topic.
Offer gift certificates to be used in a drawing at an organizational meeting.
Focused networking means using your networking time in places where you can connect with your target customer or others who can connect you with your target customer. Before you attend even one focused networking meeting, be sure to have a one or two sentence description of what you do and what problems you solve. Make it intriguing, so people want to know more. Is focused networking a quick fix? Nope. It takes time to build relationships. But once you get started, if you gain a few happy customers in the group, chances are they'll be a ripple effect and you'll find your business being recommended to others regularly. In addition, you may connect with some people who can become sources for your warm calling campaign.
As a small business owner, it's important to develop a network of other business owners so you can support each other and share contacts. Consider developing a six month strategy that includes all of these approaches. Be very, very specific about the type of prospect you're looking for. Track your results so you learn how your time is best spent. I guarantee that six months from now you'll be looking at some very positive results!
Cold Calling
In this age of voice mail, reaching prospects by phone has become more difficult. Cold calling will most likely reap stronger results if you're trying to reach small business owners, where connecting with the owner by phone is more likely, but with persistence you can reach corporate managers as well. There are several important steps you need to take to get results from cold calling-
Make sure you write a phone script that, in 30 seconds, will convey what you do and what benefit similar customers have gained from your service. This is essential. You're phone script must answer the prospect's question, "what's in it for me"?
Practice your phone script until it feels natural and fits your communication style.
Make sure it conveys your excitement about your offering.
When you get the right person on the phone, tell them you have some exciting information for them and would they be able to give you 30 seconds to share it.
End your script with an intriguing piece of information, specific product results that are impressive, or a question that will make them want to know more.
Be persistent. Keep calling at different times of the day until you get the prospect on the phone. Leaving a message is rarely successful, but if you can't ever catch the person on the phone, you can always give it a try.
When you get a prospect on the phone, ask their permission to have 30 seconds of their time. When the 30 seconds are up, ask their permission to continue.
Also, script how you'll respond to the different possible responses you're likely to receive from the prospect. For example, if the prospect says they're not sure they want to meet with you, what will you say?
If the prospect allows you to continue past 30 seconds, tell them you'll be in their area on a certain day and ask if you could meet with them for 20 minutes to continue the conversation.
Remember that if you're calling targeted prospects, it's just a numbers game. Call enough people and you'll make some appointments. Make enough appointments and you'll close some sales. Calculating the call to appointments to sales ratio is important in determining if cold calling is working for you.
Warm Calling
You probably have a database of customers and a network of other professionals. Put a simple request out to your database telling them that you have some exciting information, pertinent articles or new products or services and you need to connect with, for example, operations managers in mid-level companies. Ask if anyone knows someone that they could connect you with that fits that category. Offer them a reward, gift certificate or coupon if you feel they need an incentive. If possible, see if they will arrange an introduction by calling or e-mailing this person to let them know about you. Then contact these "warm" leads. They'll be much more likely to respond to your communication. To make this work, you must be very clear about what type of person you need to meet. Saying that you need to meet corporate managers, for example, is much too broad. Those in your database also need to feel that you will not make them look bad or take advantage of their contact, so you need to be clear about why you want to meet these types of people.
Focused Networking
If you were an operations or mid-level manager, where would you hang out in your free time? What business and social organizations would you join? What speakers or topics would you motivate you to attend a meeting?
If you can answer these questions, you can plan to attend the same meetings or socialize in the same places. There are many swim and golf clubs, for example, that are frequented by corporate executives. Even telling people at church about what you do and who you'd like to meet can yield results. Every industry has it's own professional organization and most of them welcome guests.
Volunteer to work on a committee.
Offer to speak to one of these groups on a relevant topic.
Offer gift certificates to be used in a drawing at an organizational meeting.
Focused networking means using your networking time in places where you can connect with your target customer or others who can connect you with your target customer. Before you attend even one focused networking meeting, be sure to have a one or two sentence description of what you do and what problems you solve. Make it intriguing, so people want to know more. Is focused networking a quick fix? Nope. It takes time to build relationships. But once you get started, if you gain a few happy customers in the group, chances are they'll be a ripple effect and you'll find your business being recommended to others regularly. In addition, you may connect with some people who can become sources for your warm calling campaign.
As a small business owner, it's important to develop a network of other business owners so you can support each other and share contacts. Consider developing a six month strategy that includes all of these approaches. Be very, very specific about the type of prospect you're looking for. Track your results so you learn how your time is best spent. I guarantee that six months from now you'll be looking at some very positive results!
Small Business Spoiler - Procrastination
One of the most common issues that comes up for business owners is procrastination -wasting time, putting obstacles in the way of taking action towards goals, making excuses for delays, creating confusion/busyness etc. Procrastination is a self-defeating behavior.
I believe that as human beings, we are adept in creating convincing language that allows us to rationalize an action or non-action to ourselves and others. We become masterful in presenting a logical sounding viewpoint that successfully defends our position to procrastinate. In this way, we give ourselves permission to step into avoidance, despite the results we say we want!
Having a game plan with action steps can foster procrastination. Over time we develop an automatic patterned response to change, convinced that what we are doing is moving us forward. In reality, we're just playing the same old game, creating the illusion of moving forward. Bottom line - get real, get honest with yourself.
As a small business owner do you:
1. Keep saying you're going to do something and don't follow through? Saying one thing and doing something else? The intended action continues to exist in the future as a goal, always out of reach without being fully actualized. The dangling carrot.
2. Prioritize other things first before you can get to what you say you really want? Somehow the starting time keeps getting pushed back. Are you a yesbutter? Yes, I want this but.. Yes I'm excited to get going on this, but? yes but?, yes but
3. Overextend (over commit) so much of your time you never quite get to some things because you're too busy? Some people think scheduling is just a time management problem. In actuality, it's about making better decisions in how you allocate your time. What do you always manage to fit in despite all the busyness?
I could go on citing examples.
Working with more than 1500 people over the last 17 years, I have often found fear at the root of procrastination. Fear of failure/success, change, unknown, can be power-full drivers to avoid taking action. The first hurdle to address may be in recognizing patterns of procrastination. People can become so proficient in rationalizing avoidance they lack the clarity to see the creative forms of this behavior. Furthermore; self-defeating behavior is caused by self-defeating attitudes. Identifying internal attitudes and assumptions is a key element in fully dismantling self-defeating behavior.
Common objections to justify procrastination:
1. I can't! I'm too fearful! I'm not strong enough! Is that really true? (Or is this your drama?) Can't??? Try won't - life is about making choices.
2. I can't afford to! How often do you use money as an excuse to deny having something you need? Is there a cost to you to NOT take action? If there is a cost, at what point is the cost too high a price to pay? Consider short/long term value for a questionable investment.
3. I don't have time! How much time is needed to take one step? What changes can you make to open up some time?
4. Now is not a good time! It's not the right time! When is? What would the right time look like?
5. I'm not ready! What needs to change for you to become ready? What does being ready look like?
6. It's too hard/too big! What smaller steps or ways of looking at it will make it more manageable/attainable? What support/help is available?
Procrastination means you never have to commit to an action, make a mistake, fail/succeed, take a stand on reaching a goal (take responsibility to make things happen) change your life or yourself. You may make some progress, but continue to hold yourself back. Progress occurs at a controlled, manageable pace, enough to keep you interested and wanting more - but always short of reaching your heart's full desire. Like eating fast food vs. sitting down to a feast.
Are you a procrastinator? How is procrastination impacting your business success?
Consider the following questions:
What are the mechanisms/reasons/excuses you use to block your success? - i.e. overpromising/underdelivering, time management, poor marketing, negative self-talk?
What do you tell myself (and others) to make your procrastinating behavior, okay?
Have you really made the decision to be successful?
What beliefs do you have about success? Are they true?
How will your life change if you change this behavior?
Who will you become if you change this behavior?
In the book, Get Out Of Your Own Way, the authors, Mark Goulston, MD., and Philip Goldberg say " There are, of course, many reasons why people procrastinate: self-doubt, boredom, fear of failure, the feeling of being unready or unprepared and so on. But these feelings by themselves don't necessarily lead to procrastination. Often, what tips the scales is going through them alone, with no one to help you, bolster you, or cheer you on."
How to stop procrastinating?
1. The first step is to make a decision to have the success you want. Say "yes!"
2. Then create the vision you want in detail - paint a picture that excites you to move towards achieving that result. You must have a good marketing/business plan!!!! This is your road map to success.
3. Begin identifying your action steps and break them down into small steps with timelines.
4. Design a defensive strategy to deal with your procrastination. Define concrete actions. ie. You have warm business leads but don't make the calls. One suggestion - make it a game so that making calls might be fun. Be creative.
5. If you're a solo-entrepreneur, being a part of a network is critical so you don't become isolated.
6. Join a mastermind group or form one.
7. Need more help to stay motivated and on track? HIRE A COACH!
One thing I've come to know is that people put time and energy into what they love - what's most important to them. I've watched people move mountains, jump over hurdles for something they love - total buy-in. I know when I'm working with a procrastinator or with someone who really wants to move by what they are willing to do and unwilling to accept to get what they want. People who are ready to take action are too excited to wait and are willing to commit to whatever action is needed to reach their goals. If you keep pushing your dreams away by continuing you love affair with procrastination?..it's your life, it's your choice.
I believe that as human beings, we are adept in creating convincing language that allows us to rationalize an action or non-action to ourselves and others. We become masterful in presenting a logical sounding viewpoint that successfully defends our position to procrastinate. In this way, we give ourselves permission to step into avoidance, despite the results we say we want!
Having a game plan with action steps can foster procrastination. Over time we develop an automatic patterned response to change, convinced that what we are doing is moving us forward. In reality, we're just playing the same old game, creating the illusion of moving forward. Bottom line - get real, get honest with yourself.
As a small business owner do you:
1. Keep saying you're going to do something and don't follow through? Saying one thing and doing something else? The intended action continues to exist in the future as a goal, always out of reach without being fully actualized. The dangling carrot.
2. Prioritize other things first before you can get to what you say you really want? Somehow the starting time keeps getting pushed back. Are you a yesbutter? Yes, I want this but.. Yes I'm excited to get going on this, but? yes but?, yes but
3. Overextend (over commit) so much of your time you never quite get to some things because you're too busy? Some people think scheduling is just a time management problem. In actuality, it's about making better decisions in how you allocate your time. What do you always manage to fit in despite all the busyness?
I could go on citing examples.
Working with more than 1500 people over the last 17 years, I have often found fear at the root of procrastination. Fear of failure/success, change, unknown, can be power-full drivers to avoid taking action. The first hurdle to address may be in recognizing patterns of procrastination. People can become so proficient in rationalizing avoidance they lack the clarity to see the creative forms of this behavior. Furthermore; self-defeating behavior is caused by self-defeating attitudes. Identifying internal attitudes and assumptions is a key element in fully dismantling self-defeating behavior.
Common objections to justify procrastination:
1. I can't! I'm too fearful! I'm not strong enough! Is that really true? (Or is this your drama?) Can't??? Try won't - life is about making choices.
2. I can't afford to! How often do you use money as an excuse to deny having something you need? Is there a cost to you to NOT take action? If there is a cost, at what point is the cost too high a price to pay? Consider short/long term value for a questionable investment.
3. I don't have time! How much time is needed to take one step? What changes can you make to open up some time?
4. Now is not a good time! It's not the right time! When is? What would the right time look like?
5. I'm not ready! What needs to change for you to become ready? What does being ready look like?
6. It's too hard/too big! What smaller steps or ways of looking at it will make it more manageable/attainable? What support/help is available?
Procrastination means you never have to commit to an action, make a mistake, fail/succeed, take a stand on reaching a goal (take responsibility to make things happen) change your life or yourself. You may make some progress, but continue to hold yourself back. Progress occurs at a controlled, manageable pace, enough to keep you interested and wanting more - but always short of reaching your heart's full desire. Like eating fast food vs. sitting down to a feast.
Are you a procrastinator? How is procrastination impacting your business success?
Consider the following questions:
What are the mechanisms/reasons/excuses you use to block your success? - i.e. overpromising/underdelivering, time management, poor marketing, negative self-talk?
What do you tell myself (and others) to make your procrastinating behavior, okay?
Have you really made the decision to be successful?
What beliefs do you have about success? Are they true?
How will your life change if you change this behavior?
Who will you become if you change this behavior?
In the book, Get Out Of Your Own Way, the authors, Mark Goulston, MD., and Philip Goldberg say " There are, of course, many reasons why people procrastinate: self-doubt, boredom, fear of failure, the feeling of being unready or unprepared and so on. But these feelings by themselves don't necessarily lead to procrastination. Often, what tips the scales is going through them alone, with no one to help you, bolster you, or cheer you on."
How to stop procrastinating?
1. The first step is to make a decision to have the success you want. Say "yes!"
2. Then create the vision you want in detail - paint a picture that excites you to move towards achieving that result. You must have a good marketing/business plan!!!! This is your road map to success.
3. Begin identifying your action steps and break them down into small steps with timelines.
4. Design a defensive strategy to deal with your procrastination. Define concrete actions. ie. You have warm business leads but don't make the calls. One suggestion - make it a game so that making calls might be fun. Be creative.
5. If you're a solo-entrepreneur, being a part of a network is critical so you don't become isolated.
6. Join a mastermind group or form one.
7. Need more help to stay motivated and on track? HIRE A COACH!
One thing I've come to know is that people put time and energy into what they love - what's most important to them. I've watched people move mountains, jump over hurdles for something they love - total buy-in. I know when I'm working with a procrastinator or with someone who really wants to move by what they are willing to do and unwilling to accept to get what they want. People who are ready to take action are too excited to wait and are willing to commit to whatever action is needed to reach their goals. If you keep pushing your dreams away by continuing you love affair with procrastination?..it's your life, it's your choice.
Small Business Mistakes: Are You Making Enough of Them?
That's right are you making enough mistakes in your business? Some of you are probably annoyed at my question; others are thinking "Geez, Rose! If I made any more mistakes I'd have to run screaming back to a day job!"
If you went to school in the public school system in America, you were culturally trained to avoid and hide mistakes, after all; your teachers and professors didn't give you a great grade for your efforts unless those efforts produced great results. So, too, if you were an employee in corporate America you were rewarded for chasing perfection and penalized for making mistakes.
But now you're self-employed.
And it's a necessity that you rethink the whole issue of mistakes. One of the most important mental shifts we all need to make as self-employed business owners is from hiding and avoiding our mistakes to embracing them! And to making lots of little ones frequently! (It's those big mistakes that happen "once in a while" that will kill your business not the little mistakes you make daily.)
Here's an example of one of those business-killing mistakes:
Sam had been doing subcontracting work for Fred off and on over the past 5 years. Initially, Sam had a full workload for his business between the work he got directly from clients himself and the work that Fred hired him to do. Sam had a non-compete agreement with Fred. Essentially Sam agreed not to solicit work directly from any of Fred's clients for at least a year after having worked for Fred, but things are tough out here in the real world this year.
Sam knew, from Fred, that Fred was actively marketing his business to a new department in a very large local corporation for whom Fred had worked for many years. In fact, Fred had brought Sam onto several past projects for this client. However, when Sam was approached by a local job-shopping temporary employment agency about the same gig, Sam agreed to allow the agency to submit him for the job.
Sam didn't tell Fred that he was violating their non-compete agreement. Sam interviewed for the job and got it. Then he told Fred.
This was a big mistake (to say nothing of the violation of several of my Client-Savvy Proficiencies for Successful Solopreneurs!) You can bet that Sam has just eliminated any further work coming into his business via Fred.
Here are some examples of embraceable, little mistakes:
Emailed my first status report to my client and assumed she received it. She hadn't received it, which I discovered in the next on-site project meeting. After that I both emailed and faxed her my weekly status reports.
Bought an indicia from the Postal Office with the intent to save money in my direct mail campaigns through reduced postage costs. Didn't check it out enough to learn that the PO won't return undeliverable items when they are stamped with an indicia. Sent out several mailings to a bad mailing list that I couldn't update because I didn't know how many of the addresses were defunct. When I learned how this really worked, I switched to using first-class postage for my mailings. Now my mailing lists are cleaned and updated after each mailing...saving me more money than I saved with the indicia.
Started a new health program than included walking a couple of times each day. I checked my schedule, phone messages, and email messages before I went out for each walk, and carried my cell phone with me during the walk. But I hadn't started the habit of checking my phone for messages upon re-entry to my office. I missed a call from a lovely prospective client and didn't return it for 3 hours. Not a great way to begin a relationship in business. Now I forward my office phone to my cell phone during my walks.
As a self-employed professional, you grow and mature by making, and then, correcting mistakes. The key is not only to make the right type of mistakes, but also to correct them yourself and, hence, turn them into a non-repeating event.
Your processes, systems, and expertise develop one mistake at a time. This is an on-going process, not a one-time thing. So you need to be doing this each and every day as a normal and consistent part of how you operate your businesses. You won't stay in business long if you hide your mistakes or blame them on your systems, processes, or others.
If you went to school in the public school system in America, you were culturally trained to avoid and hide mistakes, after all; your teachers and professors didn't give you a great grade for your efforts unless those efforts produced great results. So, too, if you were an employee in corporate America you were rewarded for chasing perfection and penalized for making mistakes.
But now you're self-employed.
And it's a necessity that you rethink the whole issue of mistakes. One of the most important mental shifts we all need to make as self-employed business owners is from hiding and avoiding our mistakes to embracing them! And to making lots of little ones frequently! (It's those big mistakes that happen "once in a while" that will kill your business not the little mistakes you make daily.)
Here's an example of one of those business-killing mistakes:
Sam had been doing subcontracting work for Fred off and on over the past 5 years. Initially, Sam had a full workload for his business between the work he got directly from clients himself and the work that Fred hired him to do. Sam had a non-compete agreement with Fred. Essentially Sam agreed not to solicit work directly from any of Fred's clients for at least a year after having worked for Fred, but things are tough out here in the real world this year.
Sam knew, from Fred, that Fred was actively marketing his business to a new department in a very large local corporation for whom Fred had worked for many years. In fact, Fred had brought Sam onto several past projects for this client. However, when Sam was approached by a local job-shopping temporary employment agency about the same gig, Sam agreed to allow the agency to submit him for the job.
Sam didn't tell Fred that he was violating their non-compete agreement. Sam interviewed for the job and got it. Then he told Fred.
This was a big mistake (to say nothing of the violation of several of my Client-Savvy Proficiencies for Successful Solopreneurs!) You can bet that Sam has just eliminated any further work coming into his business via Fred.
Here are some examples of embraceable, little mistakes:
Emailed my first status report to my client and assumed she received it. She hadn't received it, which I discovered in the next on-site project meeting. After that I both emailed and faxed her my weekly status reports.
Bought an indicia from the Postal Office with the intent to save money in my direct mail campaigns through reduced postage costs. Didn't check it out enough to learn that the PO won't return undeliverable items when they are stamped with an indicia. Sent out several mailings to a bad mailing list that I couldn't update because I didn't know how many of the addresses were defunct. When I learned how this really worked, I switched to using first-class postage for my mailings. Now my mailing lists are cleaned and updated after each mailing...saving me more money than I saved with the indicia.
Started a new health program than included walking a couple of times each day. I checked my schedule, phone messages, and email messages before I went out for each walk, and carried my cell phone with me during the walk. But I hadn't started the habit of checking my phone for messages upon re-entry to my office. I missed a call from a lovely prospective client and didn't return it for 3 hours. Not a great way to begin a relationship in business. Now I forward my office phone to my cell phone during my walks.
As a self-employed professional, you grow and mature by making, and then, correcting mistakes. The key is not only to make the right type of mistakes, but also to correct them yourself and, hence, turn them into a non-repeating event.
Your processes, systems, and expertise develop one mistake at a time. This is an on-going process, not a one-time thing. So you need to be doing this each and every day as a normal and consistent part of how you operate your businesses. You won't stay in business long if you hide your mistakes or blame them on your systems, processes, or others.
Sunday, August 12, 2007
Business Checks are an Added Cost to Your Small Business - Try Making Them Yourself!
Starting and managing a small business is no fun chore, especially when it comes to the accounting. There are a few common sense ways that you can help that bottom line.
Business checks can be quite expensive when you use a third party to manage your payroll and payments. Your small business can save money by printing your payments from your desktop.
This option may not be best for all businesses. But if you have the time to manage it yourself, it may be very beneficial. The check blanks can be found at many office stores, and there are some good ones online. Many of them don't need a special software program to manage the process.
There are some pretty high tech programs out there as well. You may decide to check them out as they are needed. Usually, you can download a sample of the program to use for a while, testing it out to see if it is good for your applications.
Printing your own checks will also allow you to create your own design or place your logo on the checks which can serve as a reminder to potential customers.
It will be worth your time to at least check out some of the options that are available. If you haven't looked because you thought they would be too expensive, you might be happily surprised.
Business checks can be quite expensive when you use a third party to manage your payroll and payments. Your small business can save money by printing your payments from your desktop.
This option may not be best for all businesses. But if you have the time to manage it yourself, it may be very beneficial. The check blanks can be found at many office stores, and there are some good ones online. Many of them don't need a special software program to manage the process.
There are some pretty high tech programs out there as well. You may decide to check them out as they are needed. Usually, you can download a sample of the program to use for a while, testing it out to see if it is good for your applications.
Printing your own checks will also allow you to create your own design or place your logo on the checks which can serve as a reminder to potential customers.
It will be worth your time to at least check out some of the options that are available. If you haven't looked because you thought they would be too expensive, you might be happily surprised.
Small Business Planning -- Three Myths
Are you -- like 70 percent of small business owners -- working without a plan?
Here are three myths that need to be dispelled about strategic planning for small business.
1. It has to be formal -- Not so.
The value of a strategic plan for your small business is in putting the ideas on paper, creating action steps that will get you where you want to go and implementing those action steps.
2. I'm too small -- Not so.
Even a one-person business can benefit from a strategic plan. A strategic plan can help you make decisions about time management and budget. You can use your strategic plan to help you determine whether to attend an event or advertise in a publication. It's a check and balance tool.
3. A strategic plan is like a ball and chain -- Not so.
It's your plan. Too many small business owners feel like once it's on paper, it can't be changed. Wrong! Your plan should be an active document that gets reviewed and updated at least monthly, if not weekly. You're the business owner, you wrote it, you know what's happening in your market -- adjust as necessary.
Here are three myths that need to be dispelled about strategic planning for small business.
1. It has to be formal -- Not so.
The value of a strategic plan for your small business is in putting the ideas on paper, creating action steps that will get you where you want to go and implementing those action steps.
2. I'm too small -- Not so.
Even a one-person business can benefit from a strategic plan. A strategic plan can help you make decisions about time management and budget. You can use your strategic plan to help you determine whether to attend an event or advertise in a publication. It's a check and balance tool.
3. A strategic plan is like a ball and chain -- Not so.
It's your plan. Too many small business owners feel like once it's on paper, it can't be changed. Wrong! Your plan should be an active document that gets reviewed and updated at least monthly, if not weekly. You're the business owner, you wrote it, you know what's happening in your market -- adjust as necessary.
Small Business Newsletter Dilemma: Which Day Do I Send?
If you're just ramping up your small business email newsletter, you might be wondering what day you should send it to your opt-in list. After all, you want it to get opened and read and you know your prospects may be weeding through a ton of email clutter. What to do?
There is no magic bullet to figure out the science behind when your small business prospects will open your email. But you can help yourself along by doing some up front legwork. And the answer is right in front of you.
Don't do what I see so many other small business owners do. They ask their friends and colleagues what day is best and then move forward on that advice. Bzzzzzzzt -- wrong answer. Unless those friends and colleagues fit your target market, you will be wasting a lot of time with this approach.
One of the best ways to determine the day to send your newsletters is to think about the details of your target market. Do you get emails from them on a regular basis? What time of day are their emails written? What day of the week? Do you feel comfortable asking your current subscribers? By assessing the habits of your market, you can figure the best day and time to send.
Test it out though. The decision is yours and it's not cast in concrete. That's the beauty of owning your own business. It's in your control.
There is no magic bullet to figure out the science behind when your small business prospects will open your email. But you can help yourself along by doing some up front legwork. And the answer is right in front of you.
Don't do what I see so many other small business owners do. They ask their friends and colleagues what day is best and then move forward on that advice. Bzzzzzzzt -- wrong answer. Unless those friends and colleagues fit your target market, you will be wasting a lot of time with this approach.
One of the best ways to determine the day to send your newsletters is to think about the details of your target market. Do you get emails from them on a regular basis? What time of day are their emails written? What day of the week? Do you feel comfortable asking your current subscribers? By assessing the habits of your market, you can figure the best day and time to send.
Test it out though. The decision is yours and it's not cast in concrete. That's the beauty of owning your own business. It's in your control.
Top 7 Small Business Tax Tips
Here are seven ways for owners of small businesses to save money on their taxes.
1. Incorporate Yourself: If you`re still a proprietor or partner of a business, it`s time to incorporate yourself. Not only will you limit your liability, but you may enjoy lower tax rates on small business income and other tax advantages as well.
2. Be Home Based: If possible, continue (or switch to) being a home based business. Not only will you keep your overhead down, but you will be able to write-off (or deduct) the business use of your home.
3. Income Split: Pay reasonable wages to your spouse and children. In this way, you can legally divert income taxed at your higher rate to your family members that are in a lower tax bracket.
4. Rearrange Your Affairs For Maximum Tax Savings: Can you make some changes to turn your hobby into a moneymaking business? Can you use that extra room in your house as a home office for your business? Can you arrange to use your car more for business purposes? Can you arrange for more of your entertainment expenses to be business related?
5. Document Your Expenses Well: Do you document your expenses well so that they would survive a tax audit? Have you kept a mileage log so that you can prove the percentage business use you claim for your vehicle? Have you kept receipts for all your entertainment expenses and listed the business purpose on the back of each receipt?
6. Be Punctual: File all returns and pay all taxes due (income, payroll, sales, et cetera) on time. This way, you avoid expensive late filing (and payment) penalties and interest.
7. Develop a Tax Planning Mindset: Some people only worry about their taxes during tax season. However, you will save a fortune in taxes, legally, if you make tax planning your year-round concern. Do you make business and personal purchases, investments, and other expenditures with tax savings in mind?
1. Incorporate Yourself: If you`re still a proprietor or partner of a business, it`s time to incorporate yourself. Not only will you limit your liability, but you may enjoy lower tax rates on small business income and other tax advantages as well.
2. Be Home Based: If possible, continue (or switch to) being a home based business. Not only will you keep your overhead down, but you will be able to write-off (or deduct) the business use of your home.
3. Income Split: Pay reasonable wages to your spouse and children. In this way, you can legally divert income taxed at your higher rate to your family members that are in a lower tax bracket.
4. Rearrange Your Affairs For Maximum Tax Savings: Can you make some changes to turn your hobby into a moneymaking business? Can you use that extra room in your house as a home office for your business? Can you arrange to use your car more for business purposes? Can you arrange for more of your entertainment expenses to be business related?
5. Document Your Expenses Well: Do you document your expenses well so that they would survive a tax audit? Have you kept a mileage log so that you can prove the percentage business use you claim for your vehicle? Have you kept receipts for all your entertainment expenses and listed the business purpose on the back of each receipt?
6. Be Punctual: File all returns and pay all taxes due (income, payroll, sales, et cetera) on time. This way, you avoid expensive late filing (and payment) penalties and interest.
7. Develop a Tax Planning Mindset: Some people only worry about their taxes during tax season. However, you will save a fortune in taxes, legally, if you make tax planning your year-round concern. Do you make business and personal purchases, investments, and other expenditures with tax savings in mind?
Growing Your Small Business Through Alliances and Joint Ventures
-- Beyond Cold Calling, "Warm" Calling and Sending E-mails --
Many Solo Entrepreneurs work from a home office. Our only connections to the outside world are the internet / e-mail and the telephone. Cold calling, "warm" calling and sending e-mails may seem like the most obvious way to let people know about us and to generate sales. But, there's another way that works even better.
An alliance is usually an agreement between two businesses whose services or products compliment each other. Each agrees to recommend the other's services to their respective clients and to pay a percentage to the other if the referral results in paying work. Let's say you're a marketing expert, but you don't do public relations. However, sometimes your clients require public relations as part of their marketing strategy. You meet with several public relations experts who specialize in different fields, but who don't offer your type of marketing services, and you form 3 alliances. A 10% commission is what you agree on for mutual referrals that result in work. Now, both you and your alliance partners are more "full service" providers. You can offer PR services to your clients and your partners can offer marketing services to theirs through you. In addition you could add them as "partners" on your website, giving your company the advantage and versatility of an expert team. It's a win - win situation.
A joint venture is formed when you not only have an alliance but you come up with a strategy to find customers together. Suppose you make custom window treatments. You decide to speak to a local fabric shop that specializes in upholstery and window fabric. If you could be their exclusive referral for customers that need someone to make their fabric into beautiful draperies, and you are willing to pay them a commission for each referral, what happens? They can say they now offer a new value-added service to their customers, which may mean a customer chooses their store above another. You have a steady source of customers. You may even get them to display some of your draperies made with their fabric in your store. They agree to allow you to advertise in their store, perhaps even offer a workshop, and you'll recommend them exclusively to your clients. You may even advertise together. The possibilities are limitless.
There are numerous ways to put together alliances and joint ventures. Thinking outside the box and being clear about what benefits both parties would receive are essential. As always, getting the agreement in writing is a good idea, as is being sure the person you're dealing with is honorable and reliable. And try to discover ALL the alliance possibilities that exist for your business. Our custom window treatment business owner above could also contact interior designers, furniture stores, residential real estate agents, home builders sales offices and even paint stores. So, what are you waiting for? Start today by:
-- Making a list of at least 5 prospective alliance partners.
-- Making a list of 5 ways the alliance would benefit them and you.
-- Making a list of 5 ways you could implement the alliance. start making contact!
One Final Note - some people have asked whether or not to disclose the partnership to the client. Sometimes it's obvious that you are referring a client to your alliance partner, as in the case of the drapery maker and the fabric store. If it's not so apparent, you may want to simply inform your client that you will be working with your alliance partner who is an expert in their field. For the sake of consistency, how much to explain to a client is something that you and your partner should agree upon up front.
Many Solo Entrepreneurs work from a home office. Our only connections to the outside world are the internet / e-mail and the telephone. Cold calling, "warm" calling and sending e-mails may seem like the most obvious way to let people know about us and to generate sales. But, there's another way that works even better.
An alliance is usually an agreement between two businesses whose services or products compliment each other. Each agrees to recommend the other's services to their respective clients and to pay a percentage to the other if the referral results in paying work. Let's say you're a marketing expert, but you don't do public relations. However, sometimes your clients require public relations as part of their marketing strategy. You meet with several public relations experts who specialize in different fields, but who don't offer your type of marketing services, and you form 3 alliances. A 10% commission is what you agree on for mutual referrals that result in work. Now, both you and your alliance partners are more "full service" providers. You can offer PR services to your clients and your partners can offer marketing services to theirs through you. In addition you could add them as "partners" on your website, giving your company the advantage and versatility of an expert team. It's a win - win situation.
A joint venture is formed when you not only have an alliance but you come up with a strategy to find customers together. Suppose you make custom window treatments. You decide to speak to a local fabric shop that specializes in upholstery and window fabric. If you could be their exclusive referral for customers that need someone to make their fabric into beautiful draperies, and you are willing to pay them a commission for each referral, what happens? They can say they now offer a new value-added service to their customers, which may mean a customer chooses their store above another. You have a steady source of customers. You may even get them to display some of your draperies made with their fabric in your store. They agree to allow you to advertise in their store, perhaps even offer a workshop, and you'll recommend them exclusively to your clients. You may even advertise together. The possibilities are limitless.
There are numerous ways to put together alliances and joint ventures. Thinking outside the box and being clear about what benefits both parties would receive are essential. As always, getting the agreement in writing is a good idea, as is being sure the person you're dealing with is honorable and reliable. And try to discover ALL the alliance possibilities that exist for your business. Our custom window treatment business owner above could also contact interior designers, furniture stores, residential real estate agents, home builders sales offices and even paint stores. So, what are you waiting for? Start today by:
-- Making a list of at least 5 prospective alliance partners.
-- Making a list of 5 ways the alliance would benefit them and you.
-- Making a list of 5 ways you could implement the alliance. start making contact!
One Final Note - some people have asked whether or not to disclose the partnership to the client. Sometimes it's obvious that you are referring a client to your alliance partner, as in the case of the drapery maker and the fabric store. If it's not so apparent, you may want to simply inform your client that you will be working with your alliance partner who is an expert in their field. For the sake of consistency, how much to explain to a client is something that you and your partner should agree upon up front.
Marketing Your Small Business with Success Stories
-- The One Pager Shortcut Series --
An effective and compelling way to market your business is through the use of success stories. What exactly is a success story? How does it market my business? How can I get started with my own success stories?
Consider the following:
What exactly is a success story? A success story briefly describes how your business served a client/customer and what results the client/customer achieved. Think of this as a real life example of how your product or service helps customers achieve their goals or solve a problem.
How does it market my business? A compelling success story will include the original client problem or goal, the specific product or service used with the client, and some tangible results that occurred. Prospective customers can better understand what your product or service does and most importantly, see some actual results. This will make it even easier for them to make the "buy" decision.
How can I get started with my own success stories? 3 simple steps will get you started:
1. Write a brief description of your best success story. Include a. Problem or goal b. Solution implemented c. Client testimonial. This can be a few paragraphs at the most.
2. Get permission from the customer to use the success story and testimonial in your promotional materials along with actual company names and contact information. If you don't have permission, use generic industry categories to describe the company and position names to describe any people that may be involved.
3. Use the success story in the following ways a. Your website b. Your brochure c. Press/News release d. ezine or newsletter e. Article for publication f. Face-to-face exchanges and speeches.
Remember to ask for testimonials with all your clients/customers! Over time you will add new success stories to your portfolio as your business grows and the list of satisfied customers increases. Most satisfied clients are very willing to help in this way. Take a few minutes and add success stories to your marketing toolkit today!
An effective and compelling way to market your business is through the use of success stories. What exactly is a success story? How does it market my business? How can I get started with my own success stories?
Consider the following:
What exactly is a success story? A success story briefly describes how your business served a client/customer and what results the client/customer achieved. Think of this as a real life example of how your product or service helps customers achieve their goals or solve a problem.
How does it market my business? A compelling success story will include the original client problem or goal, the specific product or service used with the client, and some tangible results that occurred. Prospective customers can better understand what your product or service does and most importantly, see some actual results. This will make it even easier for them to make the "buy" decision.
How can I get started with my own success stories? 3 simple steps will get you started:
1. Write a brief description of your best success story. Include a. Problem or goal b. Solution implemented c. Client testimonial. This can be a few paragraphs at the most.
2. Get permission from the customer to use the success story and testimonial in your promotional materials along with actual company names and contact information. If you don't have permission, use generic industry categories to describe the company and position names to describe any people that may be involved.
3. Use the success story in the following ways a. Your website b. Your brochure c. Press/News release d. ezine or newsletter e. Article for publication f. Face-to-face exchanges and speeches.
Remember to ask for testimonials with all your clients/customers! Over time you will add new success stories to your portfolio as your business grows and the list of satisfied customers increases. Most satisfied clients are very willing to help in this way. Take a few minutes and add success stories to your marketing toolkit today!
Blowing Your Own Horn - A Key Marketing Strategy for Small Business
-- Building Credibility Through Success Stories --
Successful solo entrepreneurs spend quite a bit of time building and expanding their networks. These networks can cover a broad spectrum - professional associations, community service, school or alumni networks, virtual communities, athletic groups, neighborhood associations. There are a variety of choices when creating our support system.
What they all have in common is this: we engage in the same activity - relationship building. We may meet face to face, over the telephone or online. We exchange pleasantries, information, referrals or resources and in doing so, strengthen the bonds with individuals and the whole organization. What is not quite as common in our exchanges is the use of a personal or business success story. A success story has a double message: it highlights a specific activity that we accomplished or service that we do AND it communicates a distinguishing level of achievement. Both messages serve to build credibility with the listener, which in turn builds trust.
Success stories need not be complicated or lengthy. Here are a few considerations when preparing your own.
Be Proud About It - A good success story translates as truly genuine when you feel proud to share it. "I am so thrilled that I was able to save my client $5,000." -a Financial Services Representative
Be Prepared - Think through your list of recent business achievements, honors, awards or professional certifications that represents something you are proud of and demonstrates an achievement. Then select one or two to share with your contacts at an appropriate time.
Be Specific - Describe exactly what product or service that you delivered or the type of honor or certification that you received. "I recently completed the requirements for the Master Certified Coach designation." - a Business and Personal Coach
Make It Current - Be careful to use situations or events that occurred within the past six months. This keeps it in the category of "news" that your listener may be interested to know.
Keep It Brief - A few good sentences about the award or business achievement is all it takes. No need to dominate an exchange.
The next time that you interact with a client, colleague, friend or family member, try blowing your own horn. Humorist Will Rogers said, "It ain't bragging if you done it."
Successful solo entrepreneurs spend quite a bit of time building and expanding their networks. These networks can cover a broad spectrum - professional associations, community service, school or alumni networks, virtual communities, athletic groups, neighborhood associations. There are a variety of choices when creating our support system.
What they all have in common is this: we engage in the same activity - relationship building. We may meet face to face, over the telephone or online. We exchange pleasantries, information, referrals or resources and in doing so, strengthen the bonds with individuals and the whole organization. What is not quite as common in our exchanges is the use of a personal or business success story. A success story has a double message: it highlights a specific activity that we accomplished or service that we do AND it communicates a distinguishing level of achievement. Both messages serve to build credibility with the listener, which in turn builds trust.
Success stories need not be complicated or lengthy. Here are a few considerations when preparing your own.
Be Proud About It - A good success story translates as truly genuine when you feel proud to share it. "I am so thrilled that I was able to save my client $5,000." -a Financial Services Representative
Be Prepared - Think through your list of recent business achievements, honors, awards or professional certifications that represents something you are proud of and demonstrates an achievement. Then select one or two to share with your contacts at an appropriate time.
Be Specific - Describe exactly what product or service that you delivered or the type of honor or certification that you received. "I recently completed the requirements for the Master Certified Coach designation." - a Business and Personal Coach
Make It Current - Be careful to use situations or events that occurred within the past six months. This keeps it in the category of "news" that your listener may be interested to know.
Keep It Brief - A few good sentences about the award or business achievement is all it takes. No need to dominate an exchange.
The next time that you interact with a client, colleague, friend or family member, try blowing your own horn. Humorist Will Rogers said, "It ain't bragging if you done it."
Friday, August 10, 2007
Build Your Small Business by Building Relationships
-- The One Pager Shortcut Series --
People do business with people that they know and trust. As a solo entrepreneur, your goals will be to make yourself known to your target market and then elevate the relationship to the trust level. This process of building relationships can take many forms. Take a few minutes to review what is working for you in this area. Then consider these ideas to add to your relationship building toolkit.
30 Second Introduction
Have you upgraded your 30 second introduction lately? If you haven't revised it in the past year chances are the impact may be stale. A new introduction can spark your own energy which will show when you introduce yourself. Consider the use of powerful action words such as create, design, compose, organize, generate, solve, produce, and supply. Deliver it in front of a mirror and see what others see.
What Do You Have to Give?
We often think of what we want to get from relationships. Things like a request for proposal, a new resource, a potential alliance, or a business contact or sale. Flip this over and consider what you are willing to GIVE to your network of potential customers. Do you offer sample products or trial services? Do you have free information that your target market can use? Can you provide a free evaluation of your client's current service provider? Keep in mind that building relationships is a two way flow that begins with you. Approaching these relationships in a giving, proactive mode is a terrific beginning.
Follow up, Follow up
The simple act of following up with individuals that you meet for the first time will make you stand out. Very few people use a consistent follow up method over a period of time. You must have contact information in order to implement this step. Successful follow up actions include handwritten notes (they stand out), e-zines, newsletters, holiday or birthday cards, an article of interest, and invitations to an event. Choose several actions that fit your personal style and do them consistently. Watch your network grow as you demonstrate an interest in building the relationship.
Tracking System
Consistency in building relationships will be difficult to maintain without a method to capture and maintain contact information in a practical way. This means being accessible and easily updated for changes. Contact software such as ACT, Goldmine, and Outlook were created for this purpose. Other options include business card files, Rolodex, Palm Pilots, and planner systems such as Day-timer or Franklin. Choose the system that fits your work style and schedule time for communication with your contacts and maintenance of the database. This nut and bolts step is an important part of building relationships over time.
Plant a Seed
Think of building relationships in the same way as planting seeds. In order for the seeds to grow, they need water, food, and sunlight over time. For relationships to grow, you provide opportunities for your network to get to know you, what you provide, and ultimately trust you with their business
People do business with people that they know and trust. As a solo entrepreneur, your goals will be to make yourself known to your target market and then elevate the relationship to the trust level. This process of building relationships can take many forms. Take a few minutes to review what is working for you in this area. Then consider these ideas to add to your relationship building toolkit.
30 Second Introduction
Have you upgraded your 30 second introduction lately? If you haven't revised it in the past year chances are the impact may be stale. A new introduction can spark your own energy which will show when you introduce yourself. Consider the use of powerful action words such as create, design, compose, organize, generate, solve, produce, and supply. Deliver it in front of a mirror and see what others see.
What Do You Have to Give?
We often think of what we want to get from relationships. Things like a request for proposal, a new resource, a potential alliance, or a business contact or sale. Flip this over and consider what you are willing to GIVE to your network of potential customers. Do you offer sample products or trial services? Do you have free information that your target market can use? Can you provide a free evaluation of your client's current service provider? Keep in mind that building relationships is a two way flow that begins with you. Approaching these relationships in a giving, proactive mode is a terrific beginning.
Follow up, Follow up
The simple act of following up with individuals that you meet for the first time will make you stand out. Very few people use a consistent follow up method over a period of time. You must have contact information in order to implement this step. Successful follow up actions include handwritten notes (they stand out), e-zines, newsletters, holiday or birthday cards, an article of interest, and invitations to an event. Choose several actions that fit your personal style and do them consistently. Watch your network grow as you demonstrate an interest in building the relationship.
Tracking System
Consistency in building relationships will be difficult to maintain without a method to capture and maintain contact information in a practical way. This means being accessible and easily updated for changes. Contact software such as ACT, Goldmine, and Outlook were created for this purpose. Other options include business card files, Rolodex, Palm Pilots, and planner systems such as Day-timer or Franklin. Choose the system that fits your work style and schedule time for communication with your contacts and maintenance of the database. This nut and bolts step is an important part of building relationships over time.
Plant a Seed
Think of building relationships in the same way as planting seeds. In order for the seeds to grow, they need water, food, and sunlight over time. For relationships to grow, you provide opportunities for your network to get to know you, what you provide, and ultimately trust you with their business
7 Cash Flow Secrets Your Accountant Never Told You
Looking for ways to boost your cash flow? As a small business consultant, I make these recommendations to my cash strapped small business clients:
1. Shoeboxes are for shoes, not business records.
Pardon my candor but, you will never have a successful business if you don't systematically track your income and expenses, who owes you money, and who you owe money to. This is absolutely crucial. You don't have to have a big expensive computerized system, although a computer program like QuickBooks certainly does a beautiful job. You can keep track of everything with a pencil and paper if you like. But, you've got to track basic information in a systematic manner. Without this vital information your business cannot flourish and your cash flow will always keep you up at night.
2. Getting your customers to "show you the money".
The best way to get your customers to pay what is owed is to remove every possible excuse for nonpayment. Don't extend credit unless it's absolutely necessary. Establish credit policies to help determine who will get credit. Get an invoice into the bill payer's hand as quickly as possible after the work is done or the product is delivered. Don't be afraid to send a letter or statement or make a phone call reminding your customer his bill is due. Never be rude. Always be firm. Focus on preserving the relationship. If a customer has a legitimate gripe about your business do whatever you can to fix the problem.
3. Budget is not a four letter word.
Repeat after me, "Budgets are our friends." Seriously! A budget is a plan. It helps you stay focused on what you need to achieve. For example, you can use your budget to help you achieve sales goals, determine how much you need to spend on advertising, how much you'll need for materials, and if you can afford to pay overtime. Having a budget for your business is the difference between piloting a plane with instruments or flying blind in a fog.
4. A customer in the hand is worth two in the bush.
My very first customer is still with me. Over the life time of our relationship, she will be worth at least tens of thousands of dollars. Actually, she's worth far more than that because she refers business to me regularly. It's easy to get caught up in the search for new customers. But, never forget the ones you already have. What other services or products can you offer to them? How can you get them to refer their friends and colleagues to you? You can build a successful business around a small number of customers by providing them with excellent customer care and a range of solutions. Loyal customers are money in the bank, they're easier to work with, and it's less expensive to keep them happy than it is to find new customers.
5. The most powerful number in your business.
If you know only one number in your business it ought to be your Breakeven Point. Your breakeven point is the moment in time when your income equals your expenses. If your income is higher than your expenses, you have a profit. If your expenses are higher than your income you have a loss.
Why is this such a critical number? First of all, to find your breakeven point you need to know what all of your expenses are. How much does it cost you to produce your product or deliver your service? That includes how much you need to pay yourself. If your business isn't able to support you, you're not breaking even. Once you have your total expenses, you have a place to start. What do you need to do to achieve a level of sales high enough to cover your expenses? How many customers do you need to serve? How many products do you need to sell? If you can't reach that income level, what can you do to cut your expenses?
Your whole business plan can flow from that one number. You can use your break even point as a powerful business tool to make decisions about marketing, strategy, plans for expansion, hiring a new employee, etc.
6. How to make friends and influence check cutters.
Once upon a time, I worked for a corporation-yes, me, the quintessential entrepreneur. One of my jobs was working in Accounts Payable. All day long I got calls from vendors. Not friendly social calls, mind you. Angry calls. Irritable calls. Annoying calls. Vicious calls.
And then there were the friendly vendors. The ones who took a moment to treat me like a human being. Guess who I knocked myself out for? Guess whose checks made it through the labyrinth of bureaucracy and out the door? Uh huh. The vendors who treated me with respect. Is that fair? Not at all. But, it is human nature.
Take the time to get to know the folks that cut the checks. Don't be afraid to build bridges and establish relationships. You meet lots of interesting people and your cash flow will improve. One of my friendly vendors hired me away from the Cubicle City. I spent the next three years improving his cash flow from the other side. You just never know.
7. Why paying taxes is a cause for rejoicing.
The strategic approach of many small business owners is to have as little profit as possible at the end of the year. Otherwise, you'll have to pay taxes. So year after year, small business owners make decisions in their businesses based on intentional lack of profitability.
Now, for the majority of small business owners, what the IRS considers to be profit is in actuality your paycheck. Are you working to lower your paycheck? Would you put up with that from an employer? By putting up with it from your own business, you condemn yourself to a life of poverty just to avoid having to pay taxes.
I won't tell you that writing checks to the IRS is my favorite thing to do and I make sure I take every legal deduction I can, but if I'm paying taxes, it means I'm making money. I like making money. The bottom line is this: If you're paying taxes, it means your business is making money. Go out and make more! Don't let the thought of taxes hold you back. Think about it this way, even if you're paying fifty cents of every dollar to the government, that's fifty cents more in your own pocket. That's a good thing!
A word of caution: don't boost your earnings and spend it all. Make sure you plan ahead for the tax bill!
1. Shoeboxes are for shoes, not business records.
Pardon my candor but, you will never have a successful business if you don't systematically track your income and expenses, who owes you money, and who you owe money to. This is absolutely crucial. You don't have to have a big expensive computerized system, although a computer program like QuickBooks certainly does a beautiful job. You can keep track of everything with a pencil and paper if you like. But, you've got to track basic information in a systematic manner. Without this vital information your business cannot flourish and your cash flow will always keep you up at night.
2. Getting your customers to "show you the money".
The best way to get your customers to pay what is owed is to remove every possible excuse for nonpayment. Don't extend credit unless it's absolutely necessary. Establish credit policies to help determine who will get credit. Get an invoice into the bill payer's hand as quickly as possible after the work is done or the product is delivered. Don't be afraid to send a letter or statement or make a phone call reminding your customer his bill is due. Never be rude. Always be firm. Focus on preserving the relationship. If a customer has a legitimate gripe about your business do whatever you can to fix the problem.
3. Budget is not a four letter word.
Repeat after me, "Budgets are our friends." Seriously! A budget is a plan. It helps you stay focused on what you need to achieve. For example, you can use your budget to help you achieve sales goals, determine how much you need to spend on advertising, how much you'll need for materials, and if you can afford to pay overtime. Having a budget for your business is the difference between piloting a plane with instruments or flying blind in a fog.
4. A customer in the hand is worth two in the bush.
My very first customer is still with me. Over the life time of our relationship, she will be worth at least tens of thousands of dollars. Actually, she's worth far more than that because she refers business to me regularly. It's easy to get caught up in the search for new customers. But, never forget the ones you already have. What other services or products can you offer to them? How can you get them to refer their friends and colleagues to you? You can build a successful business around a small number of customers by providing them with excellent customer care and a range of solutions. Loyal customers are money in the bank, they're easier to work with, and it's less expensive to keep them happy than it is to find new customers.
5. The most powerful number in your business.
If you know only one number in your business it ought to be your Breakeven Point. Your breakeven point is the moment in time when your income equals your expenses. If your income is higher than your expenses, you have a profit. If your expenses are higher than your income you have a loss.
Why is this such a critical number? First of all, to find your breakeven point you need to know what all of your expenses are. How much does it cost you to produce your product or deliver your service? That includes how much you need to pay yourself. If your business isn't able to support you, you're not breaking even. Once you have your total expenses, you have a place to start. What do you need to do to achieve a level of sales high enough to cover your expenses? How many customers do you need to serve? How many products do you need to sell? If you can't reach that income level, what can you do to cut your expenses?
Your whole business plan can flow from that one number. You can use your break even point as a powerful business tool to make decisions about marketing, strategy, plans for expansion, hiring a new employee, etc.
6. How to make friends and influence check cutters.
Once upon a time, I worked for a corporation-yes, me, the quintessential entrepreneur. One of my jobs was working in Accounts Payable. All day long I got calls from vendors. Not friendly social calls, mind you. Angry calls. Irritable calls. Annoying calls. Vicious calls.
And then there were the friendly vendors. The ones who took a moment to treat me like a human being. Guess who I knocked myself out for? Guess whose checks made it through the labyrinth of bureaucracy and out the door? Uh huh. The vendors who treated me with respect. Is that fair? Not at all. But, it is human nature.
Take the time to get to know the folks that cut the checks. Don't be afraid to build bridges and establish relationships. You meet lots of interesting people and your cash flow will improve. One of my friendly vendors hired me away from the Cubicle City. I spent the next three years improving his cash flow from the other side. You just never know.
7. Why paying taxes is a cause for rejoicing.
The strategic approach of many small business owners is to have as little profit as possible at the end of the year. Otherwise, you'll have to pay taxes. So year after year, small business owners make decisions in their businesses based on intentional lack of profitability.
Now, for the majority of small business owners, what the IRS considers to be profit is in actuality your paycheck. Are you working to lower your paycheck? Would you put up with that from an employer? By putting up with it from your own business, you condemn yourself to a life of poverty just to avoid having to pay taxes.
I won't tell you that writing checks to the IRS is my favorite thing to do and I make sure I take every legal deduction I can, but if I'm paying taxes, it means I'm making money. I like making money. The bottom line is this: If you're paying taxes, it means your business is making money. Go out and make more! Don't let the thought of taxes hold you back. Think about it this way, even if you're paying fifty cents of every dollar to the government, that's fifty cents more in your own pocket. That's a good thing!
A word of caution: don't boost your earnings and spend it all. Make sure you plan ahead for the tax bill!
5 Small Business Management Questions to Help Choose Marketing Program
As small business managers, we juggle limited resources in a quest for success. To an extent, when we focus on success in one area we forego attention elsewhere. Limited money and time mean we must choose from seemingly endless -- and often conflicting -- advice and recommendations from marketing service providers; management and marketing consultants; and internal experts. This creates a dilemma. How do you choose which recommendations to embrace and which to pass by?
Consultants, marketing service providers, and/or other departments within your company will eagerly give advice from their viewpoints. You will hear the benefits of focusing on "___" (fill in the blank with appropriate specialty). This is not a bad thing; it is their job to sell you on the advantages of their specialties. It is your job to probe for the downsides and tradeoffs.
Different Perspectives
Back in my brand management days, it was sometimes frustrating when individual departments could not grasp The Big Picture. The graphics department and the outside ad agency wanted to focus strictly on graphical elements when other aspects of a campaign were just as critical. Manufacturing was worried about throughput and efficiency, never mind what the customer wanted. Each department was doing what it could to optimize its own function, but this did not always work in The Big Picture. A catch 22 of small business management is if all functions are "optimized," it could be to the detriment of the business. When resources are spread too thin and timelines expand, implementation suffers.
In the online world the same Big Picture problems occur. Each specialist knows much about her or his own specialty, but often little about how it affects other areas. Most of the advice makes perfect sense. Toss in a dose of reality, however, and you may stretch your resources too thin if you simultaneously try for perfection in all areas.
The Big Picture
When reality hits, you find it is simply impossible to optimize all areas of your business. The obligations associated with small business management do not allow you to stop ongoing activities while trying to obtain detailed perfection. God may be in the details, but profit is in the implementation. As small business manager or "chief cook and bottle washer," it is your job to make it work by bundling the advice into a profitable implementation package.
Once you accept that some areas are going to be initially less than perfect (providing you with opportunities to improve over time), the challenge is to figure out what makes sense for your business and site. When is it critical to optimize and when is less than perfect acceptable? When considering advice from a marketing consultant or other expert, ask yourself these five questions:
1) Does it solve a problem? One of the best ways to comprehend the importance of an action is to relate it to a problem. If you think strategically - first identifying your major problems, then designing solutions to solve those problems - your business is more likely to thrive.
2) What are my alternatives? There is always more than one solution to a problem. If you evaluate different approaches, you will ultimately make better decisions.
3) What are the downsides? Perfection and optimization are in the eyes of the beholder. What you see as a disadvantage may seem trivial to the specialists. Ask questions and do some research on your own to uncover the downsides.
4) Is it likely to be profitable for me? Larger companies can afford programs that smaller companies and individuals cannot. If you have to go into debt or dramatically reduce other critical activities to implement a program, your cost increases dramatically. In these cases, carefully weigh the resources required against the potential gain.
5) What happens if I do not do this? Some activities are "niceties" and some are necessities. Know the difference. If you are losing customers to other sites or businesses, for example, taking action is critical. Some activities - those you want to do but do not help solve a significant problem - can be pushed to the back burner.
Incorporating The Big Picture into your decision-making is critical. When you ask yourself these five questions, you are in a better position to make the right decision. Your small business depends on it.
Consultants, marketing service providers, and/or other departments within your company will eagerly give advice from their viewpoints. You will hear the benefits of focusing on "___" (fill in the blank with appropriate specialty). This is not a bad thing; it is their job to sell you on the advantages of their specialties. It is your job to probe for the downsides and tradeoffs.
Different Perspectives
Back in my brand management days, it was sometimes frustrating when individual departments could not grasp The Big Picture. The graphics department and the outside ad agency wanted to focus strictly on graphical elements when other aspects of a campaign were just as critical. Manufacturing was worried about throughput and efficiency, never mind what the customer wanted. Each department was doing what it could to optimize its own function, but this did not always work in The Big Picture. A catch 22 of small business management is if all functions are "optimized," it could be to the detriment of the business. When resources are spread too thin and timelines expand, implementation suffers.
In the online world the same Big Picture problems occur. Each specialist knows much about her or his own specialty, but often little about how it affects other areas. Most of the advice makes perfect sense. Toss in a dose of reality, however, and you may stretch your resources too thin if you simultaneously try for perfection in all areas.
The Big Picture
When reality hits, you find it is simply impossible to optimize all areas of your business. The obligations associated with small business management do not allow you to stop ongoing activities while trying to obtain detailed perfection. God may be in the details, but profit is in the implementation. As small business manager or "chief cook and bottle washer," it is your job to make it work by bundling the advice into a profitable implementation package.
Once you accept that some areas are going to be initially less than perfect (providing you with opportunities to improve over time), the challenge is to figure out what makes sense for your business and site. When is it critical to optimize and when is less than perfect acceptable? When considering advice from a marketing consultant or other expert, ask yourself these five questions:
1) Does it solve a problem? One of the best ways to comprehend the importance of an action is to relate it to a problem. If you think strategically - first identifying your major problems, then designing solutions to solve those problems - your business is more likely to thrive.
2) What are my alternatives? There is always more than one solution to a problem. If you evaluate different approaches, you will ultimately make better decisions.
3) What are the downsides? Perfection and optimization are in the eyes of the beholder. What you see as a disadvantage may seem trivial to the specialists. Ask questions and do some research on your own to uncover the downsides.
4) Is it likely to be profitable for me? Larger companies can afford programs that smaller companies and individuals cannot. If you have to go into debt or dramatically reduce other critical activities to implement a program, your cost increases dramatically. In these cases, carefully weigh the resources required against the potential gain.
5) What happens if I do not do this? Some activities are "niceties" and some are necessities. Know the difference. If you are losing customers to other sites or businesses, for example, taking action is critical. Some activities - those you want to do but do not help solve a significant problem - can be pushed to the back burner.
Incorporating The Big Picture into your decision-making is critical. When you ask yourself these five questions, you are in a better position to make the right decision. Your small business depends on it.
Operating Your Small Business - Everything Really Is a Project
Do you operate your business as a series of projects, using project management tools and skills to advance your projects from conception to completion? Or perhaps you're new to project management tools and skills and haven't considered applying them to your own business? Most of us fall somewhere in between.
Running a productive and efficient business, whether for one person or for 500, is a series of projects of various sizes and complexity.
For example, here are some projects a typical solopreneur may have:
-- Creating/upgrading your business identity (logo, stationery, biz cards, etc)
-- Creating/upgrading your web site
-- Setting up or upgrading your computer equipment
-- Setting up or reorganizing your filing system(s) whether computer-based or paper-based
-- Doing your tax reports
-- Creating your marketing referral engine
-- Creating passive-income revenue streams (teleclasses, ebooks, e-classes, white papers, reports, etc)
If you aren't using project management tools and skills to run your business, your productivity is suffering.
Now, if you don't have a full client/work load, then perhaps you don't think this is an issue you need to be concerned with right now. May I offer to you the suggestion that the time to increase your efficiency and productivity with new tools and skills is precisely when you don't have all the clients or work you want or need?
Learning something new like this helps keep your enthusiasim charged, which spills over into your marketing activities, which helps engage your prospects in your business. It's all good.
So where do you start?
I recommend that my clients start by using TraxTime, a little PC computer program available inexpensively at www.spudcity.com.
TraxTime allows you to setup projects or clients and then track the amount of time you are spending on that project or for that client. You can run reports (which are great for attaching to your invoices) of how much time you've spent by day or by week.
TraxTime functions like a little time clock you just punch in and punch out of the various projects and clients as you move from project to project throughout your day. When you get in the habit of using TraxTime, you'll find you can then analyze how/where you are spending your time quite the eye-opener for many solopreneurs. (Where you actually are spending your time can be quite different from where you think you are spending your time. And in the soloprenuering business, time is our most critical resource.)
Then what?
Once you get the hang of tracking your time, you next use this history of how much time it takes for you to perform certain tasks and projects to begin forcasting the time you will spend on upcoming projects and tasks.
For forcasting, task dependency identification, and scheduling, I use an Excel spreadsheet in its most basic text-only format. I identify all the tasks in a project and enter them into the spreadsheet in column 1 in the order (from top to bottom) of how they must be completed. Then I use the cells across each row to specify the due dates (via time allocated). I reserve the last column of the spreadsheet for recording notes of special circumstances or decisions that have or will affect that task. And I use color to highlight those cells where tasks are critical (yellow) or off-schedule (red). Works great for most solopreneuring projects.
I've used this method for projects as complex as requiring me to track the work of 12 subcontractors, so I know it works. (Yes, I've used Microsoft Project. I find it too cumbersome to setup and manage for most projects performed by solopreneurs. But if you already know/use it, please continue.)
No matter which project management tools you use in your business, do start thinking like a project manager and setting up, tracking, and running your business as the series of projects it really is.
Running a productive and efficient business, whether for one person or for 500, is a series of projects of various sizes and complexity.
For example, here are some projects a typical solopreneur may have:
-- Creating/upgrading your business identity (logo, stationery, biz cards, etc)
-- Creating/upgrading your web site
-- Setting up or upgrading your computer equipment
-- Setting up or reorganizing your filing system(s) whether computer-based or paper-based
-- Doing your tax reports
-- Creating your marketing referral engine
-- Creating passive-income revenue streams (teleclasses, ebooks, e-classes, white papers, reports, etc)
If you aren't using project management tools and skills to run your business, your productivity is suffering.
Now, if you don't have a full client/work load, then perhaps you don't think this is an issue you need to be concerned with right now. May I offer to you the suggestion that the time to increase your efficiency and productivity with new tools and skills is precisely when you don't have all the clients or work you want or need?
Learning something new like this helps keep your enthusiasim charged, which spills over into your marketing activities, which helps engage your prospects in your business. It's all good.
So where do you start?
I recommend that my clients start by using TraxTime, a little PC computer program available inexpensively at www.spudcity.com.
TraxTime allows you to setup projects or clients and then track the amount of time you are spending on that project or for that client. You can run reports (which are great for attaching to your invoices) of how much time you've spent by day or by week.
TraxTime functions like a little time clock you just punch in and punch out of the various projects and clients as you move from project to project throughout your day. When you get in the habit of using TraxTime, you'll find you can then analyze how/where you are spending your time quite the eye-opener for many solopreneurs. (Where you actually are spending your time can be quite different from where you think you are spending your time. And in the soloprenuering business, time is our most critical resource.)
Then what?
Once you get the hang of tracking your time, you next use this history of how much time it takes for you to perform certain tasks and projects to begin forcasting the time you will spend on upcoming projects and tasks.
For forcasting, task dependency identification, and scheduling, I use an Excel spreadsheet in its most basic text-only format. I identify all the tasks in a project and enter them into the spreadsheet in column 1 in the order (from top to bottom) of how they must be completed. Then I use the cells across each row to specify the due dates (via time allocated). I reserve the last column of the spreadsheet for recording notes of special circumstances or decisions that have or will affect that task. And I use color to highlight those cells where tasks are critical (yellow) or off-schedule (red). Works great for most solopreneuring projects.
I've used this method for projects as complex as requiring me to track the work of 12 subcontractors, so I know it works. (Yes, I've used Microsoft Project. I find it too cumbersome to setup and manage for most projects performed by solopreneurs. But if you already know/use it, please continue.)
No matter which project management tools you use in your business, do start thinking like a project manager and setting up, tracking, and running your business as the series of projects it really is.
Avoiding the Small Business Cash Flow Roller Coaster
A solopreneur I know disappears from my radar screen for weeks on end when she's actively engaged on a project for a client. During this time she is heads down, totally focused, and immersed in delivering her service to her current client. She works long hours each week, sacrificing her personal life, relationships, and self-care to meet her commitments to her client.
Laudable, but a destructive way to run her business.
After working all hours of the day and night to complete her project, she'll hand in the final deliverables and suddenly find she doesn't have another client lined up. Then she panics. That's when she starts returning phone calls and getting in touch her network, her former clients, and any prospects she might have ignored during her "work period."
She rides the feast-or-famine revenue roller coaster continuously. During her "work periods" she has cash coming in; during her "marketing periods" she has cash flowing out. And she has no idea how long her "marketing periods" will last or how much of her revenue she'll need to live on before she gets her next client signed up.
Does this sound familiar?
Here are the 5 biggest ways to avoid the feast-or-famine roller coaster:
1. Make time to consistently promote your business. Don't be like the solopreneur above and only participate in marketing activities when you are between jobs.
2. Build effective strategic alliances that leverage your marketing resources and enhance your visibility in the marketplace.
3. Get referrals from your current clients. (And that doesn't mean that you ask your client "Do you know anyone else who's hiring right now?" as you pass each other in the hallway! It does mean that you systematically build a referral engine for your business.)
4. Create project-oriented teams to level the workload, leverage your marketing resources, and expand the types of jobs you can get.
5. Work for multiple clients at the same time. Running a business on the feast-or-famine roller coaster is hard on the cash flow aspect of your business and harder still on your nerves. With diligence and determination you can break this cycle.
Laudable, but a destructive way to run her business.
After working all hours of the day and night to complete her project, she'll hand in the final deliverables and suddenly find she doesn't have another client lined up. Then she panics. That's when she starts returning phone calls and getting in touch her network, her former clients, and any prospects she might have ignored during her "work period."
She rides the feast-or-famine revenue roller coaster continuously. During her "work periods" she has cash coming in; during her "marketing periods" she has cash flowing out. And she has no idea how long her "marketing periods" will last or how much of her revenue she'll need to live on before she gets her next client signed up.
Does this sound familiar?
Here are the 5 biggest ways to avoid the feast-or-famine roller coaster:
1. Make time to consistently promote your business. Don't be like the solopreneur above and only participate in marketing activities when you are between jobs.
2. Build effective strategic alliances that leverage your marketing resources and enhance your visibility in the marketplace.
3. Get referrals from your current clients. (And that doesn't mean that you ask your client "Do you know anyone else who's hiring right now?" as you pass each other in the hallway! It does mean that you systematically build a referral engine for your business.)
4. Create project-oriented teams to level the workload, leverage your marketing resources, and expand the types of jobs you can get.
5. Work for multiple clients at the same time. Running a business on the feast-or-famine roller coaster is hard on the cash flow aspect of your business and harder still on your nerves. With diligence and determination you can break this cycle.
How Your Habits Control Your Small Business Success
Habit: A consistent behavior you perform so frequently that it is automatic.
For example, if you learned to drive a car with a standard transmission, the first few lessons were pretty jerky while you learned to synchronize the clutch with the accelerator pedal. If you released the clutch too fast, the car would stall. If you pressed the accelerator too fast without releasing the clutch, you raced the engine but you and the car were still sitting there! However, with practice, practice, and more practice, you learned to synchronize control of the clutch with control of the accelerator so that you don't even think about it any more. It is now a habit.
All habits consist of knowledge combined with skill from practice. What all this means is that you can learn new habits to replace those that are no longer working for you. You have to change what you're doing, how you're doing it, and the choices you make in order to change your business results.
If you keep doing what you've always done, you'll keep getting what you've always gotten.
That means that if your business is not headed in the direction you desire right now, you must make new choices and start new habits to ensure you ultimately get the results you want.
Your choices of habits, determine your success.
That may seem harsh to you. Especially if you'd like credit for having "Good Intentions." The fact is that your intentions, however good, are immaterial until they are supported by your behaviors. In fact, good intentions that are not actualized will drain you of the energy necessary to take effective action. Remember, the only question of significance is "What's working and What's not?"
Every habit has its consequences. Habits that are working for you create positive consequences; habits that are not working for you create negative consequences every time. You may not like that your habits create consequences but you'll still receive those consequences just the same. Whether or not you like it isn't a factor. The fact is that as you keep on repeating a behavior you will get repeatable, predictable results.
Up to 90 percent of your current behavior is based on habits.
By and large, these habits work for you. They save you from the tedium of having to make new decisions each day. Wouldn't it be boring and a waste of energy if each day you decided to brush your teeth, but then had to decide where, with what toothbrush, with what of the 100's of toothpastes now available, for how long, with what type of action on the toothbrush, and so forth. It's much easier to go into automatic and let your neural net take charge freeing you to plan for that important meeting with your big client at 2 PM.
Habits are part of being human; we all have them. We use them to conserve energy and effort; to provide familiarity/security; to free up energy for other things; to improve and fine-tune our skills; and to assist in avoiding physical and/or mental pain. Often, a particular habit can lose its usefulness. Yet, because we are human we tend to continue the habit, knowingly or unknowingly. Only with awareness and a strong reason or motivation to change can we initiate and sustain change.
Habits tap into the nearly human obsession to be (and to appear) consistent with what we have already done. Once we have made a choice or taken a stand, we encounter personal and interpersonal pressures to behave consistently with that commitment. For good or for ill, the drive to be (and to look) consistent constitutes a highly potent weapon of change.
To understand why consistency is so powerful a motive, it is important to recognize that in most circumstances consistency is valued and adaptive. Inconsistency is commonly thought to be an undersirable personality trait. The person whose beliefs, words, and actions don't match may be seen as indecisive, confused, two-faced, or worse.
On the other side, a high degree of consistency is normally associated with personal and intellectual strength. Certainly, then, the personal consistency brought by habits is highly valued because it provides us with a reasonable and gainful orientation to the world. Most of the time we are well served by habits... without them our lives and our businesses are difficult, erratic, and disjointed.
By superimposing a new habit on top of an existing habit, you can create a new way of doing things. In other words, you start replacing old negative habits with new positive habits.
For example, if you always show up late for meetings, your stress levels are probably high and you feel unprepared. To improve this you might decide to develop a new habit of arriving five minutes early for every appointment, including meetings. If you take on this challenge you might notice:
- The first month or so of the new behavior is tough. In fact, you'll find yourself reverting to the old behavior during times of stress or unawareness this is normal because it is in compliance with our need to be consistent with our prior behavior. However, don't resort to self-recriminations for the backsliding. Just pick yourself up and recommit to the desired new behavior!
- The more you activate the desired new behavior, the easier it becomes. Eventually, it will be become just as strong as the old habit you are replacing then it will supersede the old behavior. Employ the principle of consistency to help you build your new habit.
By systematically replacing your negative habits with new positive habits one at a time you can dramatically change all aspects of your business.
For example, if you learned to drive a car with a standard transmission, the first few lessons were pretty jerky while you learned to synchronize the clutch with the accelerator pedal. If you released the clutch too fast, the car would stall. If you pressed the accelerator too fast without releasing the clutch, you raced the engine but you and the car were still sitting there! However, with practice, practice, and more practice, you learned to synchronize control of the clutch with control of the accelerator so that you don't even think about it any more. It is now a habit.
All habits consist of knowledge combined with skill from practice. What all this means is that you can learn new habits to replace those that are no longer working for you. You have to change what you're doing, how you're doing it, and the choices you make in order to change your business results.
If you keep doing what you've always done, you'll keep getting what you've always gotten.
That means that if your business is not headed in the direction you desire right now, you must make new choices and start new habits to ensure you ultimately get the results you want.
Your choices of habits, determine your success.
That may seem harsh to you. Especially if you'd like credit for having "Good Intentions." The fact is that your intentions, however good, are immaterial until they are supported by your behaviors. In fact, good intentions that are not actualized will drain you of the energy necessary to take effective action. Remember, the only question of significance is "What's working and What's not?"
Every habit has its consequences. Habits that are working for you create positive consequences; habits that are not working for you create negative consequences every time. You may not like that your habits create consequences but you'll still receive those consequences just the same. Whether or not you like it isn't a factor. The fact is that as you keep on repeating a behavior you will get repeatable, predictable results.
Up to 90 percent of your current behavior is based on habits.
By and large, these habits work for you. They save you from the tedium of having to make new decisions each day. Wouldn't it be boring and a waste of energy if each day you decided to brush your teeth, but then had to decide where, with what toothbrush, with what of the 100's of toothpastes now available, for how long, with what type of action on the toothbrush, and so forth. It's much easier to go into automatic and let your neural net take charge freeing you to plan for that important meeting with your big client at 2 PM.
Habits are part of being human; we all have them. We use them to conserve energy and effort; to provide familiarity/security; to free up energy for other things; to improve and fine-tune our skills; and to assist in avoiding physical and/or mental pain. Often, a particular habit can lose its usefulness. Yet, because we are human we tend to continue the habit, knowingly or unknowingly. Only with awareness and a strong reason or motivation to change can we initiate and sustain change.
Habits tap into the nearly human obsession to be (and to appear) consistent with what we have already done. Once we have made a choice or taken a stand, we encounter personal and interpersonal pressures to behave consistently with that commitment. For good or for ill, the drive to be (and to look) consistent constitutes a highly potent weapon of change.
To understand why consistency is so powerful a motive, it is important to recognize that in most circumstances consistency is valued and adaptive. Inconsistency is commonly thought to be an undersirable personality trait. The person whose beliefs, words, and actions don't match may be seen as indecisive, confused, two-faced, or worse.
On the other side, a high degree of consistency is normally associated with personal and intellectual strength. Certainly, then, the personal consistency brought by habits is highly valued because it provides us with a reasonable and gainful orientation to the world. Most of the time we are well served by habits... without them our lives and our businesses are difficult, erratic, and disjointed.
By superimposing a new habit on top of an existing habit, you can create a new way of doing things. In other words, you start replacing old negative habits with new positive habits.
For example, if you always show up late for meetings, your stress levels are probably high and you feel unprepared. To improve this you might decide to develop a new habit of arriving five minutes early for every appointment, including meetings. If you take on this challenge you might notice:
- The first month or so of the new behavior is tough. In fact, you'll find yourself reverting to the old behavior during times of stress or unawareness this is normal because it is in compliance with our need to be consistent with our prior behavior. However, don't resort to self-recriminations for the backsliding. Just pick yourself up and recommit to the desired new behavior!
- The more you activate the desired new behavior, the easier it becomes. Eventually, it will be become just as strong as the old habit you are replacing then it will supersede the old behavior. Employ the principle of consistency to help you build your new habit.
By systematically replacing your negative habits with new positive habits one at a time you can dramatically change all aspects of your business.
The Inside-Out Business Plan? -- Your Small Business Plan in 10 Easy Questions
Writing a business plan for your Solo Entrepreneur business doesn't have to be a daunting project. If you can answer 10 straightforward questions about your business, you can be ready to go.
The key to success is to answer all of the questions in enough depth that if a friend asked you to invest in this business, you'd say yes. Most importantly, make sure you record your business plan somehow...whether you write it by hand, type it into your computer, or put it on stickie notes on your wall. Keep it someplace handy where you can refer to it when you are making important business decisions. And, make sure you review it monthly--or, even better, weekly--and update it at least annually.
1. Your Dreams: What do you want your business to provide for you? (think time, money, freedom, who you work with) Be specific--how much money, how many hours, when do you want to "retire".
2. Customers: Who are your customers and what do they want/need?
3. Products and Services: What products/services will you provide to meet customer's needs?
4. Markets: Where are your customers and what do you know about them as a group? "Where" might be geographic, it might be what kind of places they hang out, or where they go to find products or services like yours. What is their age, income, gender, hobbies, family structure, etc.
5. Your Style: How will you reach customers and what will you say? Your methods of reaching customers needs to match with where your customers are--and with a message that they can relate to.
6. Competitors: Where else are your customers likely to get this need met? Find out all you can about how your competitors price, market, and provide service.
7. Your Uniqueness: How will your product/service meet customer's needs differently than your competitors? Consider how your personal uniqueness impacts that.
8. Your Abilities: Of the skills necessary to run your business, what do you do well, and what do you need help with?
9. External Resources: What people/technology/services will support you in the skills you need help with?
10. Fulfilling your Dreams: How will your business provide the kind of working environment you desire, both in how much time you spend, how you perform your work, and how much money you make? Here's where the rubber meets the road--make sure you can show how you will sell X amount of product or service at Y price, cover your expenses, and reach the goals you set in 1. above.
Once you can answer all these questions, have it reviewed by some trusted, experienced professionals who will give you objective feedback. Consider a business coach, as one such resource!
The key to success is to answer all of the questions in enough depth that if a friend asked you to invest in this business, you'd say yes. Most importantly, make sure you record your business plan somehow...whether you write it by hand, type it into your computer, or put it on stickie notes on your wall. Keep it someplace handy where you can refer to it when you are making important business decisions. And, make sure you review it monthly--or, even better, weekly--and update it at least annually.
1. Your Dreams: What do you want your business to provide for you? (think time, money, freedom, who you work with) Be specific--how much money, how many hours, when do you want to "retire".
2. Customers: Who are your customers and what do they want/need?
3. Products and Services: What products/services will you provide to meet customer's needs?
4. Markets: Where are your customers and what do you know about them as a group? "Where" might be geographic, it might be what kind of places they hang out, or where they go to find products or services like yours. What is their age, income, gender, hobbies, family structure, etc.
5. Your Style: How will you reach customers and what will you say? Your methods of reaching customers needs to match with where your customers are--and with a message that they can relate to.
6. Competitors: Where else are your customers likely to get this need met? Find out all you can about how your competitors price, market, and provide service.
7. Your Uniqueness: How will your product/service meet customer's needs differently than your competitors? Consider how your personal uniqueness impacts that.
8. Your Abilities: Of the skills necessary to run your business, what do you do well, and what do you need help with?
9. External Resources: What people/technology/services will support you in the skills you need help with?
10. Fulfilling your Dreams: How will your business provide the kind of working environment you desire, both in how much time you spend, how you perform your work, and how much money you make? Here's where the rubber meets the road--make sure you can show how you will sell X amount of product or service at Y price, cover your expenses, and reach the goals you set in 1. above.
Once you can answer all these questions, have it reviewed by some trusted, experienced professionals who will give you objective feedback. Consider a business coach, as one such resource!
Thursday, August 9, 2007
Your Ideal Client - A Key Concept for Solo and Small Business Marketing
"I don't know the key to success, but the key to failure is trying to please everybody."--Bill Cosby
Have you ever had clients that were more trouble than they were worth? Maybe they were always late to pay, or didn't do what they said they'd do. Maybe you just had a personality clash, or they expected more than you were able to offer. Whatever the situation, chances are you had an inkling when you first met that client...a tiny voice that you didn't listen to, that was probably overshadowed by the bigger voice that said, "Hey, it's business; I'll take it!"
Drawing The Line
Learn to say no to those clients, before they start draining your energy! The key to being able to do this is to understand Your Ideal Client. Once you know how to recognize who is ideal and who is not, you can practice turning down business from the latter. If you have trouble saying no, you'll need to learn this critical business skill, and what to do to get rid of problem clients you already have; see the resources at the bottom of this article. If you have a coach, ask them to help you complete the Ideal Client exercise, or to role-play those "saying no" conversations.
How to Discover YOUR Ideal Client
There are many ways to approach the Ideal Client/Customer Profile. You can sit down and imagine the best, most wonderful client you could have--whether that is an abstract entity, a celebrity (what writer wouldn't want Oprah as a customer, for example), or a specific demographic profile. If your customers are more likely to be companies, you could look at your current client list, and pick the company that gives you the most business, the most joy, the least heartburn.
The Ideal Client Profile
Whoever you pick, start a profile matrix with two columns: "My Ideal Client Is:" on the left; "My Ideal Client is Not:", on the right. In the column on the left, list all the characteristics of that type of person or company. Use the questions below as prompts to get you thinking about all the different aspects of each client.
Then, either think of the opposite of all those aspects, or pick the "client from hell" and fill in corresponding traits in the right-hand column. Be really honest with this exercise! If you'd rather only have clients who make over $500,000, put that down! Your clients who don't fit your Ideal characteristics, whether you write them down or not, will eventually know it. May as well get that over with early!
Prompts: Consider these aspects of your Ideal Customer or Client:
-- What career or business are they in?
-- What demographics do they fit? (age, sex, race, religion, income, marital status, etc.)
-- What do they think is important in business? In life?
-- What do they like most about you and your business, products and services?
-- What is the nature of their relationship with you? (transactional, long-time customer, acquaintance, friend, refers others to you, etc.)
-- How do they do business with you? (by phone, in person, on the Web; quick transactions, takes time to negotiate; pays early, on-time, at 30 days; etc.)
-- What personality characteristics do they have?
-- What do you get from them (besides payment)?
Now What?
Compare your current client list to the two columns in The Ideal Client Profile. How many have the characteristics of your Ideal Client? If the answer is "not many," you may need to work on firing some of your clients! Check out some resources below on how to do this.
Next, post your Ideal Client Profile somewhere you will see it often. Every time a new potential client comes along, start looking for those Ideal characteristics...and beware the non-ideal! If that little voice starts to tell you something might be wrong, check in with the non-ideal list--and be ready with some ways to turn away non-ideal clients. Offer them other options--refer them to someone else who is a better fit, and make two people happier!
Ideal Clients--For Life
There are many ways to leverage the work you have just done with the Ideal Client Profile. Here are some ideas:
-- Audit your marketing materials. Do your business cards, brochures, ads and website appeal to your Ideal Client? Are you sending the right message, to the right potential clients? Hone your materials, and start seeing better-qualified potential clients walk in the door.
-- Consider your marketing channels. Based on your Ideal Client profile, where would you expect to find these clients? Is that where your marketing efforts are focused? If not, figure out a way to get in front of them!
-- Review your contracts, policies, terms and conditions. Are they set up to be friendly to your Ideal Clients? Do they give you clear avenues for dealing with non-ideal clients? If not, update them, and you might see non-ideal clients take care of themselves.
Have you ever had clients that were more trouble than they were worth? Maybe they were always late to pay, or didn't do what they said they'd do. Maybe you just had a personality clash, or they expected more than you were able to offer. Whatever the situation, chances are you had an inkling when you first met that client...a tiny voice that you didn't listen to, that was probably overshadowed by the bigger voice that said, "Hey, it's business; I'll take it!"
Drawing The Line
Learn to say no to those clients, before they start draining your energy! The key to being able to do this is to understand Your Ideal Client. Once you know how to recognize who is ideal and who is not, you can practice turning down business from the latter. If you have trouble saying no, you'll need to learn this critical business skill, and what to do to get rid of problem clients you already have; see the resources at the bottom of this article. If you have a coach, ask them to help you complete the Ideal Client exercise, or to role-play those "saying no" conversations.
How to Discover YOUR Ideal Client
There are many ways to approach the Ideal Client/Customer Profile. You can sit down and imagine the best, most wonderful client you could have--whether that is an abstract entity, a celebrity (what writer wouldn't want Oprah as a customer, for example), or a specific demographic profile. If your customers are more likely to be companies, you could look at your current client list, and pick the company that gives you the most business, the most joy, the least heartburn.
The Ideal Client Profile
Whoever you pick, start a profile matrix with two columns: "My Ideal Client Is:" on the left; "My Ideal Client is Not:", on the right. In the column on the left, list all the characteristics of that type of person or company. Use the questions below as prompts to get you thinking about all the different aspects of each client.
Then, either think of the opposite of all those aspects, or pick the "client from hell" and fill in corresponding traits in the right-hand column. Be really honest with this exercise! If you'd rather only have clients who make over $500,000, put that down! Your clients who don't fit your Ideal characteristics, whether you write them down or not, will eventually know it. May as well get that over with early!
Prompts: Consider these aspects of your Ideal Customer or Client:
-- What career or business are they in?
-- What demographics do they fit? (age, sex, race, religion, income, marital status, etc.)
-- What do they think is important in business? In life?
-- What do they like most about you and your business, products and services?
-- What is the nature of their relationship with you? (transactional, long-time customer, acquaintance, friend, refers others to you, etc.)
-- How do they do business with you? (by phone, in person, on the Web; quick transactions, takes time to negotiate; pays early, on-time, at 30 days; etc.)
-- What personality characteristics do they have?
-- What do you get from them (besides payment)?
Now What?
Compare your current client list to the two columns in The Ideal Client Profile. How many have the characteristics of your Ideal Client? If the answer is "not many," you may need to work on firing some of your clients! Check out some resources below on how to do this.
Next, post your Ideal Client Profile somewhere you will see it often. Every time a new potential client comes along, start looking for those Ideal characteristics...and beware the non-ideal! If that little voice starts to tell you something might be wrong, check in with the non-ideal list--and be ready with some ways to turn away non-ideal clients. Offer them other options--refer them to someone else who is a better fit, and make two people happier!
Ideal Clients--For Life
There are many ways to leverage the work you have just done with the Ideal Client Profile. Here are some ideas:
-- Audit your marketing materials. Do your business cards, brochures, ads and website appeal to your Ideal Client? Are you sending the right message, to the right potential clients? Hone your materials, and start seeing better-qualified potential clients walk in the door.
-- Consider your marketing channels. Based on your Ideal Client profile, where would you expect to find these clients? Is that where your marketing efforts are focused? If not, figure out a way to get in front of them!
-- Review your contracts, policies, terms and conditions. Are they set up to be friendly to your Ideal Clients? Do they give you clear avenues for dealing with non-ideal clients? If not, update them, and you might see non-ideal clients take care of themselves.
How Small Business And Nonprofits Can Afford Multimedia For The Web
Multimedia is everywhere on the Internet, whether in the form of floating ads at major websites, streaming video or animated presentations. Of course, there is a good reason why multimedia has become such an integral part of the web experience: it's an effective tool for capturing attention or provoking visitors to buy or contact the site owner. For these reasons, many educational institutions, businesses, and other organizations desire multimedia presentations. Unfortunately, at first glance multimedia, often appears prohibitively expensive for small businesses and non-profits. The following represent a number of ways to control the high cost that typically accompanies multimedia production without losing quality. We believe these suggestions will ensure that you save money but still feel good about your investment.
Let's begin by understanding the components of professional multimedia production, which include creative development, actual production, and various stages for revisions.
The lion's share of multimedia production costs typically stems from creative development. This is often the most controversial line item for frugal business owners, who may ask, "shouldn't the cost of the creative be part of the design or production costs?" As with fine clothing, where the choice of designer adds to the cost of your product more so than the actual material or sewing, multimedia design costs depend on the creative input as well. For example, if you hire a designer with more experience or with a track record of creating unique, catchy concepts, your creative development costs may be higher. Of course, the final product may result in having a stronger impact as well. The solution isn't to pick the least expensive creative professional, but rather to understand their process in order to help speed production (thus reducing cost).
The second component of multimedia production, the design and production of the piece itself, typically requires less guesswork in terms of defining cost. The cost per minute of production depends on a limited number of specific parameters, such as the complexity of the animation and the overall quality of the design agency selected. Generally speaking, there are three types of firms - from a cost perspective - you can choose to work with: a purely on-shore, purely off-shore, or a hybrid off-shore/on-shore firm. The type of organization you choose will have a strong correlation with the quality and the price you pay.
The third component, client revisions, is an area controlled most easily and typically is the cause of inflating or deflating multimedia development costs beyond a designer's original estimate, or your expectations. The most basic revisions consist of three rounds: changes to creative concepts, changes to a draft version of the final product, and a final review. Often, more revisions may be needed when a designer is provided with inconsistent or incomplete information. This invariably results in a higher cost than expected.
With the extensive time that some multimedia presentations call for, requiring the efforts of creative professionals and skilled developers, it's not surprising that multimedia presentations and ads can be expensive. Why, then, consider them? Are they effective?
Multimedia presentations are very successful at grabbing people's attention. Multimedia results in higher retention of marketing information by viewers, or more enthusiasm for an offer. When compared to static text, graphics, or even audio, multimedia is simply more compelling due to its ability to trigger multiple senses at the same time..
According to DoubleClick (quoted in ZDNet.com, Joseph, 2002) multimedia ads have a 71 percent higher impact than their static counterparts. Similarly, in 1997, the California Community College system, "implemented a test design to assess the efficacy of multimedia technology as a non-traditional form of instruction" (Luna & McKenzie, 1997). Surveys take after the test determined, "40% of the students felt multimedia improved understanding and 73% found it a positive addition to the course." Finally, a study published in the Journal of Management Information Systems (Benbasat & Lim, 2002) determined that multimedia "facilitat [es] the retention and subsequent recall of explanative information?" The study consisted of two test groups. One group processed information through a "text-based system" and the other a "multimedia system." The subjects who were tested on the basis of a "multimedia system" received a higher mean test score of 2.70 compared to the 2.10 of the text based group (p.114); clearly demonstrating that higher retention is possible with multimedia. The case for implementing multimedia into your marketing, sales or advertising is clear. What can your business or non-profit do to cut its costs?
The first method involves separating the development of the creative (the message, concepts, and storyboards) from the production (design, animation, and sound production), or at least finding ways to control it.
An article by Mark Frits for EMedia Professional (1997) discussing a fax survey taken of 100 different multimedia production specialists determined, "the creative time spent by designers and project managers, as the most expensive factor of production." Therefore, if a business has already developed a detailed creative concept, storyboard, schematics, or other documentation of what needs to be done, it can reduce the total cost of producing multimedia by utilizing a small design firm or freelancer. Costs are cut because the time and skill spent on one creative is replaced by an in-house team. Of course, to ensure success, only those small businesses who believe they possess strong creative assets (with professional advertising or marketing expertise) should attempt this approach.
Remember, if you do ask your designer or design firm to handle the creative, that the route of working directly with a designer (rather than a firm with a creative team) may cut costs and also quality. Firms with full time creative professionals that are not involved in day to day design are often able to craft unique storyboards that describe and explain products, services, or company mission in memorable ways. Freelancers are a poor choice for strong creative since they often work alone and have limited means to brainstorm and perfect concepts with other creative professionals - a principal differentiating factor and benefit of working with a firm.
If you do select a firm for your creative and production, make sure that the creative team understands the message you need to convey. Is a creative firm with a great portfolio and appealing style really able to promote effectively your product and/or service? Only client testimonials, references, case studies with solid results, or market research can tell you this. Even when obtaining the creative from a top line firm, if you do your homework, you can still keep costs down. Prepare as much information about your target audience, goals, customers, products and services as possible. Develop a few rough concepts of your own, in-house, to help orient the creative team. Finally, discuss these endeavors with your chosen firm up front and negotiate a reduction in fees if you both agree that the information you provide is helpful.
A second way to cut cots is to ask for fixed price development. This direction can mean losing some flexibility in the design of your site. However, the tradeoff can be worthwhile if you are able to exert self-discipline. For that reason, when choosing fixed price development, be limited with revisions, as you only get a few as part of a fixed price. Avoid common mistakes such as being unsure of what design direction you desire or being unsure of your marketing message. Carefully consider each deliverable in order to provide all your comments in as few phases as possible - take a couple of days, at least, to do this.
Finally, when working with a firm, make sure that you provide them with only one point of contact so they don't spend additional time coordinating between people in your company - although seemingly amusing, that mistake is quite common, especially so with growing businesses. Requiring your designer to handle internal coordination of ideas leads to dramatic extensions in project timelines, so be sure that you appoint someone internally to act as a point of contact and clearinghouse of internal discussion. Another way to save on multimedia costs is by concentrating on developing powerful ideas while keeping implementation simple. When too much time is spent on design and not enough on concept, you will waste production money and effort. To make this strategy effective interview firms that may front load the creative, but also display portfolio pieces that focus on conveying ideas rather than showing off lots of special effects. Work with the designer to simplify the production process by brainstorming easier ways to animate key concepts, and be open to using less labor intensive "vector" animation rather than 3D animations or video production. When it comes to sound, seek out talented and "undiscovered" freelance musicians or voiceover actors working from home who can provide original audio that will cut licensing costs..
As a final point, the operational structure of your chosen design firm can impact cost and quality as well. Off-shoring software development is well established, but outsourcing design work abroad is less common and can lead to interesting results due to cultural differences or lack of marketing knowledge. At the same time, larger multimedia projects often benefit from repetitive production taking place off-shore. Depending on your needs, a "full" off-shore firm with just a sales presence in the US may not be able to provide you with the customer service needed. On the other hand, a fully US firm will likely double your production costs.
The best choice for small businesses is a design firm employing a hybrid approach, where creative development and high level design is handled by professionals that you can meet and build rapport with, but where larger production is handled costs effectively by a well managed offshore team.
By controlling the costs of multimedia your business can afford a highly effective communication tool that can pique site visitors' or ad viewers' interest. Remember these key points:
- Think "simple" when it comes to producing animations - focus on strong ideas instead.
- Be disciplined with your revisions to avoid charges for many rounds of changes.
- Take over creative development and let your designers simply produce your vision when your in-house creative is strong. Otherwise seek out a trustworthy design agency with a track record of strong creative development.
- Work with firms that employ an optimal mix of US and off-shore development.
One never needs to cut out quality while cutting costs. Strong concepts and ideas will make the biggest difference in your presentation's success at the end of the day.
Let's begin by understanding the components of professional multimedia production, which include creative development, actual production, and various stages for revisions.
The lion's share of multimedia production costs typically stems from creative development. This is often the most controversial line item for frugal business owners, who may ask, "shouldn't the cost of the creative be part of the design or production costs?" As with fine clothing, where the choice of designer adds to the cost of your product more so than the actual material or sewing, multimedia design costs depend on the creative input as well. For example, if you hire a designer with more experience or with a track record of creating unique, catchy concepts, your creative development costs may be higher. Of course, the final product may result in having a stronger impact as well. The solution isn't to pick the least expensive creative professional, but rather to understand their process in order to help speed production (thus reducing cost).
The second component of multimedia production, the design and production of the piece itself, typically requires less guesswork in terms of defining cost. The cost per minute of production depends on a limited number of specific parameters, such as the complexity of the animation and the overall quality of the design agency selected. Generally speaking, there are three types of firms - from a cost perspective - you can choose to work with: a purely on-shore, purely off-shore, or a hybrid off-shore/on-shore firm. The type of organization you choose will have a strong correlation with the quality and the price you pay.
The third component, client revisions, is an area controlled most easily and typically is the cause of inflating or deflating multimedia development costs beyond a designer's original estimate, or your expectations. The most basic revisions consist of three rounds: changes to creative concepts, changes to a draft version of the final product, and a final review. Often, more revisions may be needed when a designer is provided with inconsistent or incomplete information. This invariably results in a higher cost than expected.
With the extensive time that some multimedia presentations call for, requiring the efforts of creative professionals and skilled developers, it's not surprising that multimedia presentations and ads can be expensive. Why, then, consider them? Are they effective?
Multimedia presentations are very successful at grabbing people's attention. Multimedia results in higher retention of marketing information by viewers, or more enthusiasm for an offer. When compared to static text, graphics, or even audio, multimedia is simply more compelling due to its ability to trigger multiple senses at the same time..
According to DoubleClick (quoted in ZDNet.com, Joseph, 2002) multimedia ads have a 71 percent higher impact than their static counterparts. Similarly, in 1997, the California Community College system, "implemented a test design to assess the efficacy of multimedia technology as a non-traditional form of instruction" (Luna & McKenzie, 1997). Surveys take after the test determined, "40% of the students felt multimedia improved understanding and 73% found it a positive addition to the course." Finally, a study published in the Journal of Management Information Systems (Benbasat & Lim, 2002) determined that multimedia "facilitat [es] the retention and subsequent recall of explanative information?" The study consisted of two test groups. One group processed information through a "text-based system" and the other a "multimedia system." The subjects who were tested on the basis of a "multimedia system" received a higher mean test score of 2.70 compared to the 2.10 of the text based group (p.114); clearly demonstrating that higher retention is possible with multimedia. The case for implementing multimedia into your marketing, sales or advertising is clear. What can your business or non-profit do to cut its costs?
The first method involves separating the development of the creative (the message, concepts, and storyboards) from the production (design, animation, and sound production), or at least finding ways to control it.
An article by Mark Frits for EMedia Professional (1997) discussing a fax survey taken of 100 different multimedia production specialists determined, "the creative time spent by designers and project managers, as the most expensive factor of production." Therefore, if a business has already developed a detailed creative concept, storyboard, schematics, or other documentation of what needs to be done, it can reduce the total cost of producing multimedia by utilizing a small design firm or freelancer. Costs are cut because the time and skill spent on one creative is replaced by an in-house team. Of course, to ensure success, only those small businesses who believe they possess strong creative assets (with professional advertising or marketing expertise) should attempt this approach.
Remember, if you do ask your designer or design firm to handle the creative, that the route of working directly with a designer (rather than a firm with a creative team) may cut costs and also quality. Firms with full time creative professionals that are not involved in day to day design are often able to craft unique storyboards that describe and explain products, services, or company mission in memorable ways. Freelancers are a poor choice for strong creative since they often work alone and have limited means to brainstorm and perfect concepts with other creative professionals - a principal differentiating factor and benefit of working with a firm.
If you do select a firm for your creative and production, make sure that the creative team understands the message you need to convey. Is a creative firm with a great portfolio and appealing style really able to promote effectively your product and/or service? Only client testimonials, references, case studies with solid results, or market research can tell you this. Even when obtaining the creative from a top line firm, if you do your homework, you can still keep costs down. Prepare as much information about your target audience, goals, customers, products and services as possible. Develop a few rough concepts of your own, in-house, to help orient the creative team. Finally, discuss these endeavors with your chosen firm up front and negotiate a reduction in fees if you both agree that the information you provide is helpful.
A second way to cut cots is to ask for fixed price development. This direction can mean losing some flexibility in the design of your site. However, the tradeoff can be worthwhile if you are able to exert self-discipline. For that reason, when choosing fixed price development, be limited with revisions, as you only get a few as part of a fixed price. Avoid common mistakes such as being unsure of what design direction you desire or being unsure of your marketing message. Carefully consider each deliverable in order to provide all your comments in as few phases as possible - take a couple of days, at least, to do this.
Finally, when working with a firm, make sure that you provide them with only one point of contact so they don't spend additional time coordinating between people in your company - although seemingly amusing, that mistake is quite common, especially so with growing businesses. Requiring your designer to handle internal coordination of ideas leads to dramatic extensions in project timelines, so be sure that you appoint someone internally to act as a point of contact and clearinghouse of internal discussion. Another way to save on multimedia costs is by concentrating on developing powerful ideas while keeping implementation simple. When too much time is spent on design and not enough on concept, you will waste production money and effort. To make this strategy effective interview firms that may front load the creative, but also display portfolio pieces that focus on conveying ideas rather than showing off lots of special effects. Work with the designer to simplify the production process by brainstorming easier ways to animate key concepts, and be open to using less labor intensive "vector" animation rather than 3D animations or video production. When it comes to sound, seek out talented and "undiscovered" freelance musicians or voiceover actors working from home who can provide original audio that will cut licensing costs..
As a final point, the operational structure of your chosen design firm can impact cost and quality as well. Off-shoring software development is well established, but outsourcing design work abroad is less common and can lead to interesting results due to cultural differences or lack of marketing knowledge. At the same time, larger multimedia projects often benefit from repetitive production taking place off-shore. Depending on your needs, a "full" off-shore firm with just a sales presence in the US may not be able to provide you with the customer service needed. On the other hand, a fully US firm will likely double your production costs.
The best choice for small businesses is a design firm employing a hybrid approach, where creative development and high level design is handled by professionals that you can meet and build rapport with, but where larger production is handled costs effectively by a well managed offshore team.
By controlling the costs of multimedia your business can afford a highly effective communication tool that can pique site visitors' or ad viewers' interest. Remember these key points:
- Think "simple" when it comes to producing animations - focus on strong ideas instead.
- Be disciplined with your revisions to avoid charges for many rounds of changes.
- Take over creative development and let your designers simply produce your vision when your in-house creative is strong. Otherwise seek out a trustworthy design agency with a track record of strong creative development.
- Work with firms that employ an optimal mix of US and off-shore development.
One never needs to cut out quality while cutting costs. Strong concepts and ideas will make the biggest difference in your presentation's success at the end of the day.
Dig Deep for Small Business Ideas Before You Start the Wrong Business
If you're serious about wanting to start a business, the first thing you want to do is take the time to understand what really makes you tick. Where do you get your drive? What gets you in a "zone?"
However, there's a lot more to figuring out the BEST business idea that will make you more money and give you more freedom to enjoy more success in your life.
And success to you may be different than success to someone else. It may not be all about money at all. It may not be about finding something you are completely passionate about. It may not be about having a "cool" business -- the latest fad or a unique niche.
Success is how you define it.
Finding the right idea to bring you that success takes a willingness to be patient, good timing, and a lot of research.
And there's nothing wrong with taking your time, being careful trying to figure out which small business ideas are best.
If you rush this process, you're bound to come up with a business that doesn't excite you at all.
You'll be bored.
You won't reach goals and it will become more like a job ... maybe even harder!
You'll feel like you would working for someone else. (You don't want that again, do you?)
First, Figure Out What You Really Want
Starting off, you really have to force yourself to relax. I know what it's like being very, very unhappy at a job. And I can tell you from first-hand experience that walking away from a well-paying job and jumping into your own business is stressful.
But if you carefully plan your "escape," it will make it that much better!
Set Your Short-Term Goals
Maybe you want to make a ton of money and drive around in a BMW.
Or maybe you just want the freedom to enjoy your family or friends. Or perhaps it's just a matter of being in control of your life -- being able to do whatever you want, whenever you want.
Whatever your long-term goals are, first you have to concentrate on the shorter term goals before you can begin to see that "big picture."
It's up to you.
But understand that the type of business you start will play a roll in whether or not you meet your goals -- both short and long-term.
If you're trying to startup a part-time venture while working full-time for someone else, you're going to have to set daily goals to try and squeeze in a few hours of work every day, often before and after work! (I used to get up at 4:30 in the morning, go to my full-time job at 8:30, come home at 5 or 6 and get right back to work on my new business ... and I loved it!)
But if it's a small business idea you came up with on the ride home and it doesn't really "drive" you, it'll make reaching your short term goals -- often the hard part -- a heck of a lot more difficult.
What are Your Long-Term Plans?
That big picture includes, more than anything, something you can see yourself doing every day. Something that -- even on weekends -- you love to do.
And even though it is something you love to do, make sure it will feed your long-term plan. And you won't know that until you know what your long term plan actually is!
For instance, if your plan is indeed to make a lot of money and retire at a young age, you'll obviously have to look at small business ideas that are highly profitable.
This would include mostly business-to-business models. There is typically more profit selling to businesses (a product or service) unless you make it big in the consumer market.
Why would the business-to-business market be more profitable? Because a business would be more willing to invest in a product or service (that may even be a write-off) versus the consumer market which is more "luxury" driven. Meaning, consumers base a lot of their buying decisions on want instead of needs.
It's also a financial issue.
A larger business can pay a $300 invoice without thinking about it whereas a consumer getting a $300 bill may sweat a little more.
This is just an example of understanding your long-term goals so you can look closer at a finite number of business ideas to get you closer to where you want to be.
And if you go ahead and hang your "open for business" sign and then realize, "Oh, I can't make that much money doing this!", you'll only be taking one step forward and two steps back.
Grab a Pad ... Ideas Will Come and Go
Because -- like all entrepreneurs -- you're a thinker, you've always got ideas popping into your head. Probably more than you can handle (the brain only has so much room, right?).
That's why you should always keep a notebook by your side.
Sure, some of the best ideas get written on a cocktail napkin. But you're better off trying to give these ideas more permanence. And having a notebook dedicated to your small business ideas will give you a growing and buildable "diary" to use when you're good and ready to go for it!
And once you start putting your ideas in writing, you'll find yourself getting into the habit of using your notebook more and more. It's like anything else that takes practice.
The more you do it, the better you get at finding the best small business ideas. And each idea will help you grow more specific or "niche" ideas.
Become a Private Investigator!
What you want to do is really learn how to research. You've got to dig -- and dig deep -- to determine what business really could work best for your success.
Not only do you have to know who you are and what's going to drive your personality the most, but you also need to think about what sells.
What type of business can be profitable?
Too many people make the mistake of looking at only one aspect of starting a small business. If you love parakeets and you're passionate about them, it doesn't mean you'll be able to open up a store in your town without knowing if anyone else likes them!
As a side note, starting an internet business allows you a greater opportunity to build a business around something you're passionate about. If it's parakeets you love, you'll find more people on the internet with your same passion than you would in your own backyard. For some great information about finding your passion on the internet, click here
You research should include looking at what other businesses are doing (successfully and not so successfully) in your city or town.
Look at small businesses and even what the "big guys" are doing.
Maybe you could create a smaller business with a personal touch that the "big guys" are typically missing out on (no matter how hard they try.)
Figure out more about what makes you tick ...
What kind of hobbies do you have, if any?
What kind of magazines do you enjoy?
What do you like to do most in your "free" time?
What was the best job you ever held? Even if it's one you had when you were a kid, you may find a business in something you know and love -- but don't even realize it yet!
Business Ideas Are Everywhere
Start to think about needs in your town or city. Is there something missing? Is there a need or a product or some type of service people would use that they "want?"
What is the majority age population in your city or town? Is it mostly seniors? (a huge market because they are more active and living longer than ever.) Or is your community made up of younger families?
Check out the local sections in your paper. Read the Lifestyle and Arts section. (I always find articles about local business people who have started businesses.)
Look at local and state businesses. Look at consumer trends and what people "want."
Is there something other businesses in your area need? Don't be afraid to go around and ask!
Think about concerns we all have in the world today.
There are so many opportunities out there, waiting for like you to step up and get started with a new business!
Don't be afraid to ask!
This is where your friends, family and neighbors come in. Ask them to give you their number-one need. A product or service that's "hard-to-find." A complaint about what's missing from their lives.
How many times have you looked for something -- a product or service -- and had to travel a long distance to get it?
Answering questions will give you plenty to think about and some good material for your notebook.
And if you're interested in the business-to-business market, you could always put together a survey and mail it out to local businesses. Give them an incentive (a low-cost, high value gift) and find out what they really need to help them improve their business.
You may find that all of the local businesses in your area need someone to take care of local deliveries. Or someone to help them type or use their computer more effectively..
Just remember, starting a small business is a process and it takes time. The more planning and research you do up front, the better chance you'll have to success and have a little bit of fun, too.
However, there's a lot more to figuring out the BEST business idea that will make you more money and give you more freedom to enjoy more success in your life.
And success to you may be different than success to someone else. It may not be all about money at all. It may not be about finding something you are completely passionate about. It may not be about having a "cool" business -- the latest fad or a unique niche.
Success is how you define it.
Finding the right idea to bring you that success takes a willingness to be patient, good timing, and a lot of research.
And there's nothing wrong with taking your time, being careful trying to figure out which small business ideas are best.
If you rush this process, you're bound to come up with a business that doesn't excite you at all.
You'll be bored.
You won't reach goals and it will become more like a job ... maybe even harder!
You'll feel like you would working for someone else. (You don't want that again, do you?)
First, Figure Out What You Really Want
Starting off, you really have to force yourself to relax. I know what it's like being very, very unhappy at a job. And I can tell you from first-hand experience that walking away from a well-paying job and jumping into your own business is stressful.
But if you carefully plan your "escape," it will make it that much better!
Set Your Short-Term Goals
Maybe you want to make a ton of money and drive around in a BMW.
Or maybe you just want the freedom to enjoy your family or friends. Or perhaps it's just a matter of being in control of your life -- being able to do whatever you want, whenever you want.
Whatever your long-term goals are, first you have to concentrate on the shorter term goals before you can begin to see that "big picture."
It's up to you.
But understand that the type of business you start will play a roll in whether or not you meet your goals -- both short and long-term.
If you're trying to startup a part-time venture while working full-time for someone else, you're going to have to set daily goals to try and squeeze in a few hours of work every day, often before and after work! (I used to get up at 4:30 in the morning, go to my full-time job at 8:30, come home at 5 or 6 and get right back to work on my new business ... and I loved it!)
But if it's a small business idea you came up with on the ride home and it doesn't really "drive" you, it'll make reaching your short term goals -- often the hard part -- a heck of a lot more difficult.
What are Your Long-Term Plans?
That big picture includes, more than anything, something you can see yourself doing every day. Something that -- even on weekends -- you love to do.
And even though it is something you love to do, make sure it will feed your long-term plan. And you won't know that until you know what your long term plan actually is!
For instance, if your plan is indeed to make a lot of money and retire at a young age, you'll obviously have to look at small business ideas that are highly profitable.
This would include mostly business-to-business models. There is typically more profit selling to businesses (a product or service) unless you make it big in the consumer market.
Why would the business-to-business market be more profitable? Because a business would be more willing to invest in a product or service (that may even be a write-off) versus the consumer market which is more "luxury" driven. Meaning, consumers base a lot of their buying decisions on want instead of needs.
It's also a financial issue.
A larger business can pay a $300 invoice without thinking about it whereas a consumer getting a $300 bill may sweat a little more.
This is just an example of understanding your long-term goals so you can look closer at a finite number of business ideas to get you closer to where you want to be.
And if you go ahead and hang your "open for business" sign and then realize, "Oh, I can't make that much money doing this!", you'll only be taking one step forward and two steps back.
Grab a Pad ... Ideas Will Come and Go
Because -- like all entrepreneurs -- you're a thinker, you've always got ideas popping into your head. Probably more than you can handle (the brain only has so much room, right?).
That's why you should always keep a notebook by your side.
Sure, some of the best ideas get written on a cocktail napkin. But you're better off trying to give these ideas more permanence. And having a notebook dedicated to your small business ideas will give you a growing and buildable "diary" to use when you're good and ready to go for it!
And once you start putting your ideas in writing, you'll find yourself getting into the habit of using your notebook more and more. It's like anything else that takes practice.
The more you do it, the better you get at finding the best small business ideas. And each idea will help you grow more specific or "niche" ideas.
Become a Private Investigator!
What you want to do is really learn how to research. You've got to dig -- and dig deep -- to determine what business really could work best for your success.
Not only do you have to know who you are and what's going to drive your personality the most, but you also need to think about what sells.
What type of business can be profitable?
Too many people make the mistake of looking at only one aspect of starting a small business. If you love parakeets and you're passionate about them, it doesn't mean you'll be able to open up a store in your town without knowing if anyone else likes them!
As a side note, starting an internet business allows you a greater opportunity to build a business around something you're passionate about. If it's parakeets you love, you'll find more people on the internet with your same passion than you would in your own backyard. For some great information about finding your passion on the internet, click here
You research should include looking at what other businesses are doing (successfully and not so successfully) in your city or town.
Look at small businesses and even what the "big guys" are doing.
Maybe you could create a smaller business with a personal touch that the "big guys" are typically missing out on (no matter how hard they try.)
Figure out more about what makes you tick ...
What kind of hobbies do you have, if any?
What kind of magazines do you enjoy?
What do you like to do most in your "free" time?
What was the best job you ever held? Even if it's one you had when you were a kid, you may find a business in something you know and love -- but don't even realize it yet!
Business Ideas Are Everywhere
Start to think about needs in your town or city. Is there something missing? Is there a need or a product or some type of service people would use that they "want?"
What is the majority age population in your city or town? Is it mostly seniors? (a huge market because they are more active and living longer than ever.) Or is your community made up of younger families?
Check out the local sections in your paper. Read the Lifestyle and Arts section. (I always find articles about local business people who have started businesses.)
Look at local and state businesses. Look at consumer trends and what people "want."
Is there something other businesses in your area need? Don't be afraid to go around and ask!
Think about concerns we all have in the world today.
There are so many opportunities out there, waiting for like you to step up and get started with a new business!
Don't be afraid to ask!
This is where your friends, family and neighbors come in. Ask them to give you their number-one need. A product or service that's "hard-to-find." A complaint about what's missing from their lives.
How many times have you looked for something -- a product or service -- and had to travel a long distance to get it?
Answering questions will give you plenty to think about and some good material for your notebook.
And if you're interested in the business-to-business market, you could always put together a survey and mail it out to local businesses. Give them an incentive (a low-cost, high value gift) and find out what they really need to help them improve their business.
You may find that all of the local businesses in your area need someone to take care of local deliveries. Or someone to help them type or use their computer more effectively..
Just remember, starting a small business is a process and it takes time. The more planning and research you do up front, the better chance you'll have to success and have a little bit of fun, too.
Subscribe to:
Posts (Atom)