2009 January | Small Biz Bee

Jan

Twitter Fest Friday – January 16, 2009

I was lamenting yesterday about how tough economic times doesn’t mean that us small business owners fold up shop, or put our head in the sand and hide. In fact my point was quite the opposite. It’s time to do more, not less, and capitalize on the opportunities still being presented to us.

The thought was still on my mind this morning when I pinged the Twitterverse to see what their take was. I’m glad to see there are others out there using this downturn as a time to get their businesses mean and lean, and looking for ways to prosper.

Friday January 16, 2009

Are you fearing the recession or capitalizing on it?

Dane_Disimino: capitalizing http://www.iviioo.com/

toptomato: Capitalizing: I’m a freelance, so can’t be fired across the board. In-house design shops close, opportunities abound. http://www.tomatographics.com/

jilliebfree: I’m not fearing the recession. It’s here. To move fwd my goal is to work thru it & help collleagues and customers do the same. http://www.roarcorps.com/

zheller: there r so many reasons to fear it, but those who keep an open mind n see the big picture can capitalize on small opportunities http://www.zachheller.com/

life_enthusiast: definitely capitalize! Downtime? Gear up! Need clients? Run a special! Acknowledge truth & create w/ compassion & passion. http://www.kristenbeireis.com/

SmallBizExpert: Capitalize on it! There are wonderful opportunities all around, if you are not overcome by fear..Stop listening to the news! http://thesmallbizexpert.blogspot.com/

the_gman: What recession? http://sem-group.net/search-engine-optimization-blog/

smallbiztrends: Capitalizing on recession by staying focused and setting goals for growth. Plan quiet launch of new business, too. http://www.smallbiztrends.com/

smbzen: - Capitalizing of course. There are opportunities even in a recession as severe as this one. http://bizjournal.smbzen.com/

GRIPCOMMPR: a little of both

bccreative: I’m just “not participating” in the recession, but hope to capitalize on it. http://www.colthart.com/

GemAffair: We don’t fear it, but know it makes buying difficult. So, we do giveaways and promos to give back. http://www.gemaffair.com

Robadler: Both. You need to respect the macro events. But use the fear as motivation to capitalize. There will be opportunities. http://www.pr-vantage.com/

rainmanesq: recessions provide great opportunities for those who seize them

joerawlinson: Capitalize on recession: Buffett’s wisdom applies: “Be fearful when others are greedy, and be greedy when others are fearful” http://returncustomer.com/

mandreano: capitalize on it.. http://www.geteconow.com/

sweetsue: Neither. Look for opportunities to improve, serve, help. This is “leader” thinking and tactics suitable for the long haul. http://resilienceatwork.blogspot.com/

SMCuter: fearing something only gives it power, no matter what that something is. You don’t fear, you adjust, and continue full speed http://lightninglikeheseemed.blogspot.com/

inquirystu: Respectful fear, but capitalizing on the number of start-ups needing biz services! http://inquirystudios.net/os

lifeldrshpcoach: A little of both! When I feel myself slipping into fear, I refocus on what I CAN create and what IS here, vs. what isn’t. http://www.moreinyou.com/

cindyhartman:Capitalize on it. Made us look at our business and see what new target markets are out there that we aren’t marketing to. http://www.hartmaninventoryblog.com/

freelock: Recession? What recession? When people are concerned for their wallets, what better than free software? We’re booming. http://freelock.com/

mariaschneider: Capitalize. Small startups can be smarter and faster when the big corporations are over-leveraged and running for cover. http://editorunleashed.com/

JoyMontgomery: I’m spending to address it – on PR and Sales people. http://www.structural-integrity.com/

Thanks to all who took part in this weeks Twitter Fest Friday, we’ll see you next week!

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Jan

Treating Them Like They’re Broke is Breaking You!

Everybody’s broke! That seems to be the battle cry these days. From credit crunch, to consumer tightening word on the street is there’s no money left. And guess what? Many business owners are buying that and treating their customers like they’re broke. I got news, and maybe you heard it hear first, people still have money…just not as much as they used to.

Why Treating them Like They’re Broke is Breaking You

The general idea among businesses is to reign in and hunker down on the long road to economic recovery. While ensuring your business is operating efficiently and cutting excess is always a sound business practice you need to be careful you aren’t cutting back in areas which are affecting your ability to sell. For example if you’re drastically cutting your ad spend because you think nobody is buying, you’re shooting yourself in the foot.

Reset Your Mindset

Consumers are still buying what you’re selling; they’re just buying less of it or being more selective. Think this through for a moment. If you’re approaching your customers with the assumption they are broke, cutting advertising or reducing sales people may seem like a good idea. But what happens in an environment where consumers are being more selective with their money, and when they look around there is nothing there to tell them your business exists? What would you be doing right now if you thought your customers were flush with cash?

More Not Less Equals Success

Now’s the time to grab customers and convert them. Make more sales calls, not less. Get more efficient with your advertising, don’t cut it. Invest in yourself so you are serving your customer more effectively. Operate under the assumption that there are still consumers for your products and figure out creative, cost effective, ways to reach them.

That’s right folks; it’s the perfect time to do more. Be as prudent with your capital as your consumers are being with theirs, but find ways to get their attention. Get creative, and quit thinking less is the answer.

Better is the answer.

Adding the most value for the money is the answer. Becoming a lean, mean, lead generating machine is the answer. Creating customer relationships and loyalty is the answer. Getting out there and killing it is the answer.

Considering everyone broke is the problem, and hopefully not part of your solution.

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Jan

My Misconceptions of Self Employment

Working for yourself is great, if you can stand the boss! I thought I’d share some common misconceptions I had when I started my own business. These are purely my observations of what I thought life would be like as my own boss versus what it turned out to be.

Have More Free Time

Yes, self employment…my time is mine again. I’ll log a few hours of work everyday and then spend the rest of the day in a state of blissful leisure. Uh, yeah not exactly. I work more now than I ever have. Without the parameters of a “normal day” it becomes very easy to work all the time. I know find myself scheduling free time, just to make sure I get some.

No More Sucky Assignments

Once I started a business I thought that was the end of doing anything I didn’t want to do. Wrong again! Even when you are running the show there will be things that have to get done that are less than desireable. That’s just life, and I’m learning to live with it.

I Make All the Rules

“Hey this will be great”, I thought, “I make the rules now and everyone else will have to follow them!”. Not so fast. What I found is that I make some of the rules, but there are still plenty of rules I need to adhere by. Customers, suppliers, manufacturers, governing bodies, all have rules and if you don’t play by them you won’t stay in business long.

Won’t Have to Answer to Anyone

Couldn’t be farther from the truth. I think I answer to more people now than I ever did in a corporate job. Instead of having a couple bosses, I now have 1000′s of people I feel responisble to, and answer to. First and foremost customers, but again supppliers, manufacturers, and business partners are all people I’ve had to learn to answer to if not all the time, on occasion.

See Friends and Family More

This kind of went along with my thinking that I would have more free time. I thought I’d be able to take that extra day off and spend it with family, or stay up late into the night hanging out with good friends. Not only do I not have as much time to see them…they are all still Mon-Fri 8a-5p individuals. So if I find myself with a free Tuesday afternoon, everybody I know is at work!

Make a Bunch of Money

I make more now that I used to, but I work harder. The nice part of self employment is that relationship between working harder and making more. But without dedication to success and perserveance the money isn’t just going to roll in. Expect it to take time.

Everyone Will Be Supportive

I thought everyone would be in love with the idea of me starting a business, I mean I was excited how could they not be. What I found was that most were supportive. Some people thought I was crazy. Others thought I was “throwing it all away”. The bottom line is that not all of your friends or family will be supporitve of you idea of business ownership. Do what is right for you, follow your gut and don’t be discouraged if your mom threatens to disown you…she’ll come back around.

For those of you who own your own business, what missconceptions did you have about what life would be like?

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Photo Credit: coccu

Jan

7 Steps to Effective Partnerships

I‘ve heard that business partnerships are like marriages. They require constant development, and a prenup. As someone who’s had business partners I can tell you that’s not far from the truth.

Once you’ve found that special someone the following 7 steps should have you on your way to starting the relationship on solid ground, give you room to develop, and provide the security you need to thrive.

Pick the “Right” Person, Not the “Like” Person

It’s not uncommon to see partnerships built around friendships, and sometimes those partnerships are wildly successful. This unfortunately is the exception.

Partnerships built around friendships can turn into huge disasters when you begin mixing personal friendships with the best interests of your business. Most people don’t want to loose a best friend and a business, but with “buddy” partnerships it’s likely you’ll loose both.

Picking the right person for the job should come first. If they are not personal friends it will be much easier to have those difficult conversations in the future if things aren’t going in the direction you’d hoped.

Define Roles Immediately

Defining roles early in a partnership is crucial for continued success of the partners. Early in a business venture it may seem okay to define roles vaguely (“Jim is taking on operations, and I’m taking strategic design”), but quickly you will find that if too much falls into the gray area you’re going to have problems when one of you feels the other isn’t meeting expectations.

Be clear, concise, and detailed in your role definitions. And be sure you are planning for what your roles will look like now, and in the future when your business is (hopefully) much larger.

Have a Written Agreement

This may seem overly “official” for some, or that it shows a lack of trust, but having a written agreement between partners is imperative.

Not only does it clearly state what is expected by each partner, having a written agreement gives you something to fall back on when there are questions months or years down the road about what was agreed upon.

Think of it less as a legal contract among partners, and more of a resource to ensure everyone stays on track as the years go by and memory fades.

Communicate Often and Effectively

The number one killer of partnerships is lack of communication. When you pick a business partner, make sure you feel that person is someone you can communicate openly and honestly with. If there are barriers to your communication your chance of success is not likely.

Many a partnership has gone the way of the Dodo bird because the partners either stop communicating, or are communicating ineffectively. Open lines of communication are a must.

Evaluate the Situation

There needs to be consistent and systematic review of how the partnership is operating. At least once a year you should go over what is working well, where there are opportunities, and what needs improvement…not only with the business, but between the relationships of the partners as well.

Don’t Fear a Restructure

Don’t be afraid to restructure if something isn’t working. This doesn’t mean that the partners go their separate ways, it could just mean redefining roles, or resetting expectations.

Play to the strengths of each person, and as long their isn’t a feeling that one partner is being abused, there is nothing wrong with restructuring to match business needs with each person’s strength. And over time you may find strengths change.

Plan for an Exit

Make sure you have a plan in place for the discontinuation, or drastic change of the partnership. There are many reasons partnerships cease to exist that have nothing to do with failure, and they need to be planned for.

Think of it as a back up plan for life’s little changes. If “Jim” wins the lottery and moves to Mexico, you should know exactly what will happen to the business, partnership, and operations because of such an event.

Summary

Partnerships can be an extremely rewarding, and value adding experience for your business. A well run partnership can help your business achieve levels of success often unattainable by only one person. But, like any relationship, be sure you begin your partnership with a solid foundation and a plan for development and future growth.

Photo Credit: ralphbijker

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Jan

Featured Entrepreneur – Jason “Biz Kid” O’Neill – Pencil Bugs

Our latest Featured Entrepreneur has built a booming retail business over the last three years, is in the early stages of finding a manufacturer to mass produce his product for national distribution, started his company with little to no debt, has been in the black since day one, uses his free time to help kids in need, donates a portion of his profits to good causes, and is working on his first book which chronicles the experiences he’s had with his business so far.

Impressed?

I was certainly was after reading a resume like that.

Now what if I were to tell you he started his company when he was 10 years old, and has accomplished all the above by the ripe old age of 13!

In a word, remarkable.

Jason O’Neill is not only is a remarkable person, he is a model of extremely sound business practices. As you’ll read in his interview below, his advice on starting a business and running it successfully is grounded in fundamentals and best practices for any startup. Let him serve as an example to anyone out there who still thinks they have too many obstacles in front of them to actually start their own business. If Jason can start his biz at 10, I’m sure you’ll figure out a way to start yours!

Call to Action

I feel as entrepreneurs we get what we give. Give Jason a little bit of your business.

Go to Jason’s website and order a couple sets of Pencil Bugs. Get some for your kids, or grandkids. Grab a set to donate to the local school, or community center…heck, just get a set for yourself and let the people at the office talk.

I’m a firm believer in supporting entrepreneurs such as Jason. By the time you read this, my Pencil Bugs order will have been placed!

Special Offer: When you order your set of Pencil Bugs before Jan. 31, 2009 enter promotion code BIZ BEE and you will get a FREE set of Pencil Bug bookmarks!

What is Pencil Bugs?

Pencil Bugs are colorful, bug-like pencil toppers that I handmake, with the help of my parents of course. They come in eight different colors on top of a standard #2 pencil along with a Certificate of Authenticity which includes their birth date, given name, and care and training instructions. They are removable from the pencil so you can put them on another pencil when that one runs out or they also fit on pens, markers, or crayons.

When did you start the business?

In 2005 right before I turned 10 years old.

How did you get the idea?

My mom was painting some wooden doorstoppers for a craft fair. I figured if I would help her paint them, then I could get half the money from the sales. She didn’t want to share her profits so told me I had to come up with my own idea. I knew I wanted to make something for kids that could be used for school or homework so after drawing a few designs on paper and then making a couple of prototypes, Pencil Bugs were born.

What sources did you use to fund your biz?

Because I started out with a small quantity to sell at the craft fair and wasn’t really thinking about making it a real business at that point, I didn’t need any funding. My initial expense was only $10. I made enough money from the craft fair to be, as I like to say, “in the black” and have been profitable ever since. The good thing about being a kid with a business is that you don’t have to make a living yet from it so you can afford to go slowly. We are trying to find a manufacturer to mass produce the Pencil Bugs and then I’ll probably need to get a loan for that but it will be from my parents. They don’t charge interest like the banks do.

What was the biggest startup challenges?

I’ve been lucky and didn’t really have any startup challenges mostly because my idea became a business kind of by accident. Starting out slowly made it much easier to manage things especially since we handmake the products.

How did you overcome those challenges?

My parents have always taught me to be organized, plan ahead, and not expand too quickly which has kept everything going without getting overwhelmed.

What has been the response/reaction?

In the beginning when friends at school found out that I had a business, many teased me saying it was a dumb idea or things like that. They also didn’t think it would last but here I am, three years later and have done more things than many grown-ups never get to do. There was one kid from school that offered to buy my business in the beginning. He brought two $50 bills to school and offered them to me. I could see already that I was going to make more money than that from my business so I turned him down.

Since about 6 months after I started my business, I’ve been speaking at schools, libraries, and community organizations encouraging kids to try their own ideas. Now I think they look at me differently because I’ve been successful for three years but I’m sure there are still people out there that think it’s a dumb idea. It doesn’t matter to me because the guy that created the pet rock made tons of money and people probably thought that was dumb too.

Adults have been very supportive of me and have said I’m an inspiration to people no matter what age. That makes me feel really good. Lots of people are also glad to see I give part of my money to help other kids.

Best advice you can give to a new startup?

Use common sense. Do your homework and see if there’s a market for your product first. Listen to people who know more than you to help because it’s very hard to do it alone, even if you are an adult. Don’t expand too quickly.

Of course, I didn’t figure out these things myself. Luckily, my mom and dad have lots of business and marketing experience and were willing to support my ideas and teach me what they know.

Biggest lesson you’ve learned from all of this?

Have patience because it’s not always fun and easy. There were many times I wanted to quit especially during the first two years when we were doing many, many sidewalk sales outside stores like Wal-Mart and Albertson’s grocery (with permission, of course). My mom would say, “find that extra 10% and try just a little more.” Sure enough, it usually worked even though I didn’t always like it. But now that my business has gotten to this point and I’ve had some really terrific opportunities, I’m so glad my parents didn’t let me give up.

What’s the future look like for Pencil Bugs?

We’ve been trying to find the right manufacturer to mass produce my Pencil Bugs so they can be in retail stores around the country. That will get me to a whole new level. I also have the first book done in an early chapter book series about my Pencil Bugs that I collaborated on with my mom. We’re starting to send the manuscript out to publishers. I have a working prototype for a board game and designs for a video game plus I’d like to have a plush toy version of Pencil Bugs for babies.

One of the things I enjoy a lot is public speaking and giving interviews. I’ve been speaking at schools, libraries, and community organizations but I’m getting the opportunity to speak with Mark Victor Hansen on stage to help promote his new book about young entrepreneurs which I’m featured in. I’m working on my own book about the experiences I’ve had so far with my business and I can see myself going around promoting that too.

In one word, what’s the key to success?

Persistence

What inspires you to do what you do?

I want to earn enough money while I’m young so that I don’t have to work when I’m older. I will still probably work but will be able to work for fun. Plus I know the more I earn, the more I can donate to help other kids.

Jason O’Neill- 13 years old

7th grade – “A” student

Lives in Temecula, CA with parents, Don and Nancy O’Neill

Likes playing video games, golfing with dad, swimming

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Jan

They Said What?

As business owners most of us would like to think we have a good idea what our customers think of us, our products, and our services. But do we?

How well do we really know what our customers think of what we are doing? Sure, some will verbally tell us if we are doing a great job, and others may tell us just exactly what we are doing wrong, but unless we have a systematic way to capture feedback we could be letting opportunity slip through our hands.

The Need for Anonymous Feedback

For most people telling someone what they are doing right comes fairly easily. We are naturally quick with praise, and if someone has met or exceeded our needs it’s satisfying to tell them so.

However, when the feedback is critical, or improvement focused, that conversation becomes a little more uncomfortable face to face. Don’t think you’re doing everything right just because your customers aren’t complaining. The ones who are dissatisfied are probably “keeping mum” and just not coming back, and never say anything because it is uncomfortable. Thus the need for a way to capture their feedback anonymously.

Why Solicit Customer Feedback

Customer feedback plays an integral role in filling holes in your service model. It not only reinforces what you are doing well, but if collected and used appropriately can help you identify areas of opportunity that you may be missing. Many of our interactions with customers can come across as noise, and if we get feedback on an ad-hoc basis can get lost in the shuffle. We aren’t able to spot trends this way. Having a systematic way to collect the feedback, and cut through the noise is the best way to spot trends in what our customers are saying and then address those trends.

Four Types of Customer Feedback

1. Middle of the Roaders – Most of your customers will be generally happy with your service, they will give you a “B” so to speak.

2. The Evangels - A smaller percentage will think you walk on water, and it will be “A+” all the way with them.

3. We’re all Going to Hell – A very small percentage will use the opportunity to unload pent up aggression they have against the world and will damn you to a life in purgatory, think “F-“ here.

4. The Magical Few - This is where the magic happens. Think of these folks as giving you anywhere from a “D” to a “B-“. Nowhere in the customer feedback spectrum can you make more headway than with this group. They generally like your products and services. They want to shop with you more. They want to give you more money, and they are telling you exactly what you need to do in order to get it.

Focus on the Magical Few

These customers are the absolutely key to growing your business. Spend the majority of your time analyzingwhat they are saying and taking to heart their feedback. They are giving you a gift, don’t let it get away. Do your best to spot trends in their comments, and address those issues in your processes or procedures. You can very easily move somebody whose given you a “C-“ in the “B+” category just by making some small changes, and those changes could result in years of revenue from those customers who may have given up on you if you couldn’t get it together.

How to Get Feedback

If you want good feedback, and lots of it, the mechanism you use to get it will be important. The more automated you can make it, the quicker for the customer to give it, and the more relevant what you are surveying the better. There are numerous ways to get feedback. Not the least of which are online surveys, in store questionnaires, mailed surveys, website voting/surveying, etc.

The survey choice you choose should be the one that fits your business model the best while adhering these four keys the closest

Four Keys to Successfully Getting Customer Feedback

1. Anonymous

For feedback to get from the customer to you, an anonymous system needs to be in place. As stated above, many people will not feel comfortable telling you face to face what you need to improve on. Have a system that captures feedback, without being confrontational for the customer.

2. Easy

The easier the mechanism is to get the feedback, the more you will get. To get the most feedback possible from your customers you’ll need it to be quick and easy on their end. Anything that takes them longer than 5 minutes to complete will lower your collected responses considerably.

3. Timely

Feedback needs to be collected from your customer in a timely fashion. Don’t send them a survey in the mail three months after they made a purchase. The closer to the time of service the more accurate the responses will be.

4. Relevant

You want your survey questions to be as short and relevant as possible. Spend time thinking about what you want to know from your customers. How you will craft the questions will play a part in the responses you get. Seek consultation in the writing of the survey if need be, it’s important that your phrasing and format be suitable to your customer base and what you are trying to query them on.

Final Words

Feedback is imperative for business owners to receive. Sometimes you’ll get face to face feedback, but that is the tip of the iceberg compared to what you will find out by giving your customers an avenue to tell you what they think in an anonymous fashion. Knowing what feedback to pay the most attention too, and then addressing those issues can be a huge revenue booster for your business for years to come. However as you build your own format of collecting customer feedback, keep in mind you need to be ready to hear what they have to say and then act on it.

Photo Credits:bfelice

Jan

5 Dangerous Trends Facing Small Business in 2009

The following presentation based on research by the Empire Research Team looks at what they perceive to be the 5 most dangerous trends facing small business in 2009.

I agree with the overall theme of the presentation, but also look at it with an objective eye. Overall I think they do a good job here at identifying risk areas for all business that we should keep on our radar.

What Are The Five Dangers?

Fighting the clutter factor
Customers leaving you for perceived indifference
Lagging behind in technology
Increasing marketing cost with decreased effectiveness
Increasing competition

What do you think the biggest dangers are for small business in 2009?

5 Most Dangerous Trends Facing Small Businesses in 2009

View SlideShare presentation or Upload your own. (tags: shifts development)

Jan

Twitter Fest Friday – Jan 09, 2009

We’ve been talking a bit lately on this website about differentating your business as a way to compete, and about building your personal brand, and thought I would see what the Twiiterverse thought about the subject. As usual I got some very good replies!

Friday January 09, 2009

What differentiates you? What makes you different?

childsi: @SmallBizBee we’re a brand new charity and a community, we are looking for open dialogue with our supporters not a one-way conversation http://www.childsifoundation.org/

keylimecreative: @SmallBizBee I’m not just here to do design – I’m here to help you succeed. Clients often marvel at the fact that I have given them so many Ideas and spent a great deal of time with them to figure out what they really need. what they want and what they need to succeed is usually 2 very different things. http://www.keylimecreative.ca/

AlignedDeb: RT @SmallBizBee: Question: What differentiates you? What makes you different? My site is orange. and … I speak easy speak not UX s … http://www.alignedstructures.com/

CFOwise: @SmallBizBee what if what makes you different is impossible to replicate into a sustainable business model? http://www.cfowise.com/

blukentucky: @SmallBizBee guess I’m pretty ordinary … not too spectacular http://www.blukentucky.com/

andrawatkins: @smallbizbee I take natural right brained creativity and combine it with trained left brain analytical skills to help small biz clients grow http://www.positusonline.com/

pinkbrickroad: @SmallBizBee – Always wanting to know more, learn more and try more. http://www.creatingabuzz.ca/

toptomato: @smallbizbee I value quality over quantity and speed in both my design work and my personal life. http://www.tomatographics.com/

YML: @SmallBizBee A: We are a network of some of the best mkt. firms in the US. So, we can offer options that are truly client based. http://www.yourmarketinglab.com/

giazzpet: @SmallBizBee I play jazz flute and Renaissance music – hmm ren jazz? jazzren? not sure oh wait, plus I’m cute http://www.giazzworld.blogspot.com/

purplepopple: @SmallBizBee Scope. Statistics. Size. Rules. That is what makeshttp://www.fanhistory.com/ different. http://fanhistory.com/wiki/User:Laura

zheller: @SmallBizBee a never ending desire to learn and try new things http://www.zachheller.com/

Thanks to all who took part in this weeks Twitter Fest Friday, we’ll see you next week!

Jan

Just Give Them The Pickle!

A couple days ago I found myself in a situation where I was forced to watch one of those cheesy, poorly lit, low budget videos on customer service.

The “star” was a guy who appeared to be in his 70’s and needless to say I was not looking forward to the presentation.

Only one thing surprised me, the video was great!

If you ever get a chance to watch the film featuring Bob Farrell called “Give’em the Pickle”, it will get you thinking about how you are giving customer service. Last I looked the DVD sold for $895, but you’re in luck that you can get the Cliff Note version here, absolutely free.

Pre-Pickle

Bob is an entrepreneur who started a chain of ice cream parlors in the 1960’s, the first of which being in Portland, OR and was a raving success. Customers were lining up for Bob’s ice cream and hamburgers. He was becoming known as the place for a great meal, and word quickly spread and Bob’s empire grew.

Within five years Bob had six stores, all going great guns, and he began to franchise operations, eventually selling out to the Marriot Corporation in 1973 when he had 55 ice cream parlors total.

The Pickle Incident

As a young entrepreneur, with only one store open at the time, something happened to Bob that forever changed the way he approached customer service, and became the bedrock to all of his success.

He received a letter from a customer that went something like this:

Dear Mr. Farrell

I love your restaurant and have eaten there many times. Your hamburgers are the best, the ice cream is top notch, and the fact that you sang Happy Birthday to my kid made a memory he won’t forget. However, I have to tell you of an incident that happened last time we were in your restaurant. I asked for an extra pickle on my hamburger, which I’ve gotten many times before, and was told there would an additional fee of .50 for another pickle. I was shocked an appalled that you could no longer just put an extra slice of pickle on my sandwich, and you were going to nickel and dime me. I hate to say it, but if this is how you are going to treat your loyal customers I will not be back!!

Mr. Unhappy Customer

The Aftermath

It didn’t take Bob but a second to figure out that he may have lost a customer for life because a waitress wanted to charge .50 for a pickle that cost Bob next to nothing.

He quickly trained the staff to not quibble over things as trivial as a pickle, that making the customer happy was the priority. And soon thereafter whenever a worker at Bob’s restaurant was not wanting to do something a customer requested the mantra became “Just give them the pickle!”

Not only that, but this incident shaped the way Bob approached customer service, adding value, and crafting an experience that stayed with him throughout his career.

He learned his customer’s names. He sang to kids on their birthday and gave them free sundaes. He righted every wrong immediately. He treated every customer like his first customer.

And most importantly:

He didn’t treat people how he would like to be treated, he treated people how they liked to be treated.

Who Are Your Customers, Really?

Bob’s opinion on who a customer is struck me as well. Your customer is your boss!

They pay your mortgage, buy the boat in your driveway, put your kids through college, and ensure you have a comfortable retirement. Your customers pay for all of those niceties in your life. They are in charge, not you. You are there to serve them, they are not there to serve you.

The Takeaway

We all have “pickles” we can give our customers. Some of the things we can give them to make them feel valued may not cost a dime. Other “pickles” may cost the business owner something, but as Bob found out he would rather have the customer come back over and over again by giving them a .50 pickle than never coming back at all.

Take a few minutes to think about what pickles you can give your customers. And do you think of your customers as a means to your end, or as the person you are reporting too? For the sake of your future business success I hope you start giving out pickles, and keeping the boss happy.

Have you given out any pickles recently?

Photo credits: StormySleep, KB35

Jan

The Only Piece of Advice You’ll Ever Need

When I was 15 years old I worked in a shoe store. My boss at the time may not have been the most astute businessperson, but he gave me a piece of advice that I’ve never forgotten, and one that may be the only thing I’ve needed to know to get ahead in business.

“Keep doing what you’ve always done and you’ll keep getting what you’ve always got”.

That one phrase has stuck with me through the years, and has proved a reminder whenever I feel myself getting a little complacent, that if I’m not getting the results I want it’s most likely because I’m “doing what I’ve always done”, yet expecting more than “what I’ve always gotten”.

For those of you who want more from your business, or who want to startup your first business, think about this phrase. In my opinion in it lies the reason many people never obtain the level of success they want, or never take that all important first step to start the business they’ve always dreamed of.

It’s not only easy, but comfortable, doing what you’ve always done. Yet if your business isn’t growing at the rate you wish it would, or you just can’t seem to bring yourself to start your own business, think about if it’s because you’re currently doing what you’ve always done. I’d bet for a lot of you that is exactly the case.

Getting outside your comfort zone is something you will have to do often and consistently to make it as an entrepreneur. In fact, if you are ever going to get “comfortable” with something in your life, make it being outside your comfort zone.

Neil Patel recently said on his blog:

Learn to not be comfortable – staying inside of your comfort zone will stop you from experiencing new things. I know it gets scary when you get out of your comfort zone, so just take baby steps by doing something small every month that you would normally be terrified to do. After a few months, start doing bigger things until you learn to fully get out of your comfort zone.

And there couldn’t be more valuable advice to an entrepreneur, or would be entrepreneur. Consistently pushing yourself out of a comfort zone will lead to growth, in business, and as a person that will propel you towards success like no other tool or piece of advice I can offer you.

Quit being okay with doing what you’ve always done, and getting what you’ve always gotten. The magic happens on the fringe, so step out there and take a look around.

Photo credit: chelseagirl

Jan

Competitive Game Changing with Social Media

A couple days ago we talked about a main ingredient to your success as a business being differentiation from your competition. Breaking away from the crowd, and standing out in the minds of your customer can be a real driver in taking your business to the next level. Today Steven Reeves offers up his suggestions and take on how businesses can use social media to help differentiate and separate themselves from their competitors.

For those of us in “me too” markets differentiation can be a real problem.This is particularly true in the business services sector, where the majority of start-ups are, but it’s also true of any product or service which moulds to fit individual client requirements.

Competitive Advantage

Our competitive advantage isn’t that we help people buy property, or broker mortgages, or design/build web sites. It’s in the way we do it. The ways we help the client understand what’s important, and what isn’t. The ways we use our expertise to minimize client costs, and risks. The ways we commit to client satisfaction, in order to build those on-going relationships that bring us repeat orders and referrals.

When our competitive advantage resides in our ability to add value, it’s awful hard to stand out from the crowd. Everybody claims to do the same. Using our marketing pages to describe it just positions us alongside everybody else. Explaining how we do it in that little Adwords box is close to impossible.

Marketing sites and paid search advertising do nothing to help us stand out from the crowd.

Changing The Game

But the Social Media sites are an entirely different proposition. They provide us with a platform for really demonstrating profiles, personalities and expertise that doesn’t exist in the traditional marketing media, and for the moment at least they’re free of charge.

These Social Media sites (there are thousands) give us the opportunity to meet lots of new people, some of whom will be prospective customers/clients and others who will know people who are looking for what we offer. They probably aren’t looking to buy right now, but when they do, we can be established as a credited, and differentiated, provider. That’s a whole lot better than being just another Ad in Google’s paid search results.

However, that isn’t the point of this particular post. For the moment we’re talking about credibility and differentiation.

Linked In Example

For the purposes of the article we can limit the discussion to Linked In, but depending on our business there are other sites offering the same kind of opportunities, including Xing, Facebook, and literally 1,000s of Ning and Collective X sites. The really advanced thinkers can add Twitter to the list, but that’s a different subject we’ll get to later.

As people who have accounts with Linked In will know, joining is as simple as registering with an email address and password.

The site immediately offers to search existing accounts for people we already know (via our address book) and invite those it finds to “connect” with us. It also offers to email invitations to our contacts who aren’t already registered, asking them to join.

Next we create our “profile” summarizing our career, education and interests. We can add our blog addresses and Linked In automatically fetches and displays our recent posts. Then we can ask our contacts to write recommendations on our profile and publish the testimonials we want visitors to see.

Within a few minutes, our entire profile is up and running, and our network starts to build. We have our value proposition summarized on one page for anybody to visit, and we can direct others we meet to find out about us, sending them the link to our public profile. Check mine out at http://www.linkedin.com/in/stevensreeves

This differentiates us from the competition, demonstrates our expertise and confirms our capabilities. We’re somebody – not just another three line Ad.

More than Just Networking

Moving on, we can join groups of like minded individuals, ask other members questions and answer others requests for help. We meet new people and spread our sphere of influence this way.

But for the purposes of this post at least, most importantly we can demonstrate our value add. This isn’t like a few “me too” lines – it’s real answers to real questions and lets the real “me” show through.

Even if we don’t meet new contacts to work with we still have somewhere to send people who are interested in knowing more about us.

We no longer need to “sell” ourselves, just invite people to find out about us.

A well thought out and presented profile on Social Media sites illustrates who and what we are, as individuals, and the business offer comes along for the ride.It creates a whole new competitive advantage and changes the rules of the game.

Steve has spent 30+ years in sales and marketing, in Software, Consulting, Outsourcing, Hardware and even Agricultural machinery.

Together with his son, Gareth, he’s built Front Office Box, the Web 2.0 answer to a salesman’s prayers. Gareth, based in Chicago, is an expert in Extreme Programing, Agile Development, Ruby on Rails and a lot more. The pair decided to combine their skills in software with understanding of how sales people work and create something special – software that just does, and stays out of your way. Front Office Box is the Web 2.0 response to old generation software – simple, elegant, functional, intuitive.

Now, with a team comprising the best designers and developers on the web, Front Office Box is leading the way for business applications combining the best of best business practice with social media tools and techniques.

http://frontofficebox.com

Twitter: @Frontofficebox

photo credit: www.lumaxart.com

Jan

Featured Entrepreneur: Romy Taormina of PSI Bands

Sometimes in business we can make things too difficult. Our latest featured entrepreneur should demonstrate to us all that successful businesses boil down to seeing a need and filling it. Romy Taormin of Psi Bands has done just that. Finding a solution for symptoms affecting 1/2 of all women during pregnancy is not just good for your health and wellness, it’s good for business too.

Extremely generous offer: Romy has agreed to give away one pair of Psi bands to a lucky Smallbizbee.com reader…keep reading to find out how you can win some FREE product!

What are Psi Bands?

Psi Bands are acupressure wrist bands for the relief of nausea due to morning sickness (pregnancy), motion sickness/travel, anesthesia, and chemotherapy. They are drug free, waterproof (no more soggy wrist bands), adjustable around the wrist and at the acupressure point for personalized comfort, reusable, affordable, and stylish!