Small Business Information Insights and Ideas

What do Running a Marathon and Small Business have in Common?

June 12, 2011

I am raising funds for Leukemia and Lymphoma Society (LLS) by running the Chicago Marathon on October 9, 2011. The money raised will help with the research and support for Leukemia patients. You can find my fund raising page here, where you can also contribute money for Leukemia patients.
My conversations with the running coach and fellow runners have made me think about the similarities between running a marathon and operating a small business. Based on my past experience with owning and operating multi-unit franchise, I can see that there are number of things in common between the two. Both require significant up-front planning, both need persistence along the way and both need support group to cheer you to the finish line.
Let’s look at each of these similarities in detail.
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Filed Under: Buyers, Management, Operations Tagged With: Business-Start, Cost-Management

15 Practical Ideas to Generate Buzz for Your Business

June 5, 2011

In the last post we talked about how buzz marketing can help small business owners stand out in the crowd and enable them to compete with large companies. Buzz marketing also helps lower marketing cost for small business owners because it costs less compared to traditional marketing avenues such as newspaper, radio or television.
The primary ingredients required to create buzz are buzz-worthy products, suspense, conversation and scarcity. In this post we provide you with practical tips you can use to generate buzz about your business. As you will see the key theme in each of these tips is doing something expected or even outrageous.
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Filed Under: Customers, Employees, Marketing, Sales Tagged With: Advertising, Community, Social-Media

How to Generate Buzz for Your Business

June 1, 2011

Buzz marketing, also known as viral marketing or work-of-mouth marketing has been the buzzword talked about in marketing circles for the last decade. Simply put, buzz marketing is about getting people to talk about your business by using unconventional marketing tactics. These days consumers’ ears and eyes are so inundated with marketing messages that it is difficult for small businesses to stand out and get noticed unless they do “something different.” This is where buzz marketing helps.
Buzz marketing not only helps businesses stand out from the crowd; but it does so by businesses having to spend less money than traditional marketing techniques such as newspaper ads or television and radio commercials.
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Filed Under: Customers, Marketing Tagged With: Advertising, Community

Every Customer Contact is an Opportunity to Sell

May 29, 2011

I simply find it amazing and annoying to see how many companies make their customers wait on the phone when they call them for customer service. Customers could be calling them with a question on the product or make a suggestion for improvement or even place an order! Yet they have to wait listening to the repetitive message that reminds them how important their phone call is to them. Oh Really!!! Just imagine what is going on in customer’s mind, your mind during this time – “God save me from this misery. Bring some human soul I can talk to.”
Many businesses have sacrificed customer service in the name of efficiency and automation in the last 5 years. The so called advances in voice recognition have made matters even worse. Now it’s not just a matter of punching numbers on the phone keypad. The machine will interact with you as if it understands, or at least pretends to, all your questions – “Hello. I can help you find anything you are looking for today. What can I do for you?” My answer – “how about finding a human being somewhere in your company?”
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Filed Under: Customers, Employees, Marketing, Operations, Sales Tagged With: Customer-Complaint

How many Lifetime Customers does Your Business have?

May 25, 2011

Companies like Verizon and AT&T have millions of customers who have been with them for many years. These companies spend a lot of money in acquiring new customers. For example, they give new customers subsidized phones in return for them signing a 2-year contract. Many customers continue to remain with the company after the initial 2-year contract term is over. The reason they can spend money to acquire new customers is because they have guaranteed return for at least the initial contract term. This is what Seth Godin is referring to when he talks about embracing this concept of lifetime customer value.
Most small businesses, however, do not have luxury of asking customers to sign up for a contract. They have to do hand-to-hand combat with their competitors one customer at a time every day. For proof, download a report from your POS system showing how many customers have not ordered in the last 90 days. You may be surprised to find that more than 70% of your total customers have not come back to your business in the last 90 days. And you are not alone. Most small businesses have far less repeat customers than what their owners would like to think.
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Filed Under: Customers, Employees, Operations Tagged With: Customer-Complaint

7 Steps to a Great Customer Service

May 22, 2011

A business cannot sustain competitive advantage for long time based on product and price alone. Competition eventually will find a way to beat you on that game. Competitive advantage built on customer service, however, cannot easily be copied. For proof look no further than Zappos.com. Here is an E-commerce company that sells shoes, of all the items, on the Internet. However, with a laser like focus on customer service it is selling a billion dollar worth of them annually!
After consulting with number of small business owners over past several years we have come up with a 7-step process that companies need to adopt to achieve the success enjoyed by Zappos. It will not be easy to follow these principles all the time and success will not come overnight. However, when you do master them you will have a lasting success that your competitors will find difficult to beat.
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Filed Under: Customers, Employees, Management, Sales Tagged With: Customer-Complaint, Hiring, Social-Media, Training

Lendio helps small business owners find lenders

May 18, 2011

We have discussed in the past how challenging the last 2 years have been for small business owners who want to borrow money to start or expand their business. The Great Recession of the century has made banks jittery about taking on risk and lending money to small businesses. We have also mentioned some creative ways you can use to start business with little money.
Recently we came across a new startup that aims to help small business owners find lenders who are willing to give them money. The startup is called Lendio The goal of this web start up is to “help small business owners find right business loans in a matter of minutes.” According to their web site they can do this with a simple 3-step process – 1) Business owners answer simple questions about themselves and their business. 2) Lendio looks for a match between your loan needs and over 3,000 banks and other lenders. 3) Business owners apply to multiple lenders on the web site and get status updates.
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Filed Under: Buyers, Finance, Management Tagged With: Broker, Business-Start, Franchise, Loan

List of Documents to Prepare for Business Sale

May 15, 2011

Opportunity favors those who are prepared to take advantage of it. This has been the consistent theme in the last several posts we have written on how to prepare your business for sale. We mentioned that you need to start planning for business at least one year in advance. In addition there are additional items you need to take care of as the time to list your business for sale approaches.
Your primary goal as a seller is to allay potential buyer’s biggest financial fears as well as other FUDs related to the operation of the business. It is only through proper planning and careful preparation that you can dispel buyer FUDs and make your business sale go faster and smoother. After all the longer it takes for the sale to go through the more chances of something going wrong and the sale falling through.
One of the most important aspect of getting prepared for the sale is compiling all the documents related to the business finances and operations.
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Filed Under: Buyers, Employees, Finance, Marketing, Operations, Sellers Tagged With: Advertising, Business-Start, Franchise

How do you overcome Buyer FUDs when selling your business

May 12, 2011

In the previous post we discussed two biggest fears your potential buyers have when they are considering purchase of your business. We showed how you can help buyers overcome these fears and make the sale of your small business go through quickly and smoothly.
In addition to the two fears related to business finances, there are other operational FUD (Fear, Uncertainty, Doubt) factors that buyers, particularly those who have not owned small business before, are likely to have. With proper planning you can help alleviate these FUDs and make the selling process go faster. After all, it is in your best interest to shorten the sale process as much as possible. The longer it takes for sale to complete the more chances of something going wrong and the sales falling through.
Based on our experience with both buying and selling business, we have come up with several questions that are likely to surface in buyer’s head when he is going through due diligence. The sections below document those questions along with our advice on how you can deal with them.
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Filed Under: Buyers, Employees, Management, Operations, Sellers Tagged With: Business-Start, Franchise, Hiring

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