Posts Tagged ‘smallbiz’

10 Things Entrepreneurs Can Learn From Politicians

Monday, February 13th, 2012

‘Tis the season. Not for giving gifts or reflecting on peace on earth. This is the silly season where we have to opportunity to elect our next President of the United States. Every four years, our country engages in a ritual which will impact the course of our economy, our social policy, and our governmental priorities. More importantly, this quadrennial exercise will determine the content of our newspapers, blogs, TV newscasts, and radio editorials. Writers will fulminate, pundits will issue declarations, and talking heads will revel in the traditional aspects of the sport known as Presidential Politics.

What can entrepreneurs learn from politicians? Historically, the political industry has pioneered strategies for marketing, partnering, business development, social media use, and audience engagement. Brand-building is key to successful political campaigns as it is for businesses, and politicians build their own personal brands using tactics that all of us use everyday. In short, small businesses and startups can draw many valuable lessons from politics, politicians, and political campaigns. In previous posts i have written about how we can learn from kidsdogsmusicians, chefs, and athletes.

As we speak there are still four candidates actively competing for the Republican Party nomination for President, and while we find ourselves by turns, laughing at them, swearing back at them on television, or nodding in agreement with their ideas, we do have to admire them for their passion, their dedication, and their persistence as they each create a distinct brand and pursue their share of the elector market. So, let’s take a look at the politicians and see what they have to teach us!

1. Politicians compete. Politics is a cut-throat industry, rife with cheating, back-stabbing, and intrigue. Not that those are necessarily ‘bad’ things, right? While i do not espouse the use of dirty tricks or underhanded strategies to gain advantage in business, we do stand to learn from successful politicians and their ability to put themselves forward in the best possible light, while painting the most unflattering picture possible of their opponents. In politics at its best, this competition takes the form of a debate about ideas and convictions and, at its worst, it can get viciously personal and destructive. While rejecting the negative approach we see so often in politics, entrepreneurs can and should learn from those politicians who compete by emphasizing the values they represent, the superiority of their ideas, and the benefits that come with their service.

2. Politicians market actively. Politics requires constant and active marketing. During campaign season, this is obvious – just ask anyone in Florida about the recent inundation f television commercials, mailers, robo-calls, door hangers, yard signage, and wall-to-wall billboards. But between elections good politicians continue to energetically market their ideas, their legislative priorities, and their brands. This usually takes the form of public relations – news conferences, press releases, public appearances are leveraged to keep the person or the issue in the public eye and push the priorities and ideas of the politician into the public conscience. Entrepreneurs can draw clear connections to their own businesses, products, and services and can leverage many of the same techniques politicians use to increase awareness, build brand loyalty, and keep themselves top-of-mind with their own audience.

3. Politicians differentiate. One of the keys to a strong political campaign is the candidate’s ability to draw a strong distinction between herself and her opponent. Voters take a risk when electing a candidate – after all, we don’t really know what a candidate will do once they become an incumbent – so it is critical for a politician to show how they are different and to give voters a clear choice. Small business can take a similar approach in the marketplace: by communicating how our offering differs from the competition, our customer can better understand the choices they have and the benefits they can derive by choosing us over the competition.

4. Politicians build audiences. In social media one measure of results is the size of our audience: followers, likes, re-tweets are ways we determine our success. In politics audiences are not just important, they are critical in determining whether an incumbent keeps his job or whether his opponent takes it over. So, needless to say, a politicians ability to build a faithful audience can make or break a career and determine whether their ideas and programs prevail. Our ventures, too, thrive with the support of a loyal audience; ensuring customer satisfaction, creating great word of mouth, and building a fanatical fan base can allow our own businesses to prevail in the marketplace.

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Small Biz and Startup Tips: 5 Ideas to Prepare for an Economic Recovery

Monday, February 6th, 2012

While economists (as usual) refuse to agree on the specifics, there is a general consensus that the recovery may (finally) be underway. Last week the Labor Department announced that in January over 240,000 new jobs were created and that the unemployment rate was at its lowest level in three years. In addition, tax revenues are increasing as is consumer spending, and exports have grown across many industries.

For small business this is great news. Not just because it means that other companies are hiring, but it means that other companies are spending. One of the most corrosive effects of the weak economy has been the impact on how, when, and where businesses have spent; small business in particular took a hit because of reduced spending. When customers choose to defer spending on services and goods which might not be 100% necessary to their business, many other businesses are impacted. And when companies can be confident enough to start spending again, the trickle effect can have a positive impact on many other companies, too.

Small businesses can and should plan for an improving economy, just as they have for a downturn. In a bad economy we plan and execute tactics to cut back on discretionary spending, reduce labor costs, postpone expansion, defer marketing efforts, reduce inventories, and minimize all extras and perks. In an improving economy, small business in particular can look for ways to leverage the upswing and to strategically benefit from some of the opportunities created when bad times start to get better. Here then are 5 thoughts on ways small business and startups can get a jump on the growth!

1. Look for new talent. In the last few years, layoffs have taken a toll – hundreds of thousands of workers are still on the search for that new job and the pool of available talent is probably the richest it has been in decades. Consider filling any positions you might have left vacant during the downturn, or even creating new ones to take advantage of an uptick. Many positions require training and many new employees can take months to get fully up to speed, so start planning ahead for the growth that may be in store.

2. Invest in equipment. Capital expenditures were among the most commonly deferred costs for many businesses over the past few years, and manufacturers felt the sting. But now factories are gearing up again, with job growth in the manufacturing sector among the strongest last month. Inventories are also on the increase and together these act as a leading indicator and a strong sign of recovery. While credit remains tight, interest rates are at a historical low and government incentives are available making investment in equipment, furniture, and fixtures an attractive proposition. (more…)

DIY Branding, Self-published Fame, and Romantic Trolls

Monday, January 30th, 2012

Amanda Hocking is a star of the publishing world. Last year she signed a 4-book, $2 million dollar deal with St. Martin’s Press, one of the largest publishing houses in the world. While in itself, this is not unusual – authors become best-sellers every day, and publishing houses announce contracts with authors just as often, what is unusual is the road Hocking chose for her journey from high school-loner and Star Wars geek to group home worker to self-publishing royalty. Less than a year after she uploaded her first novel to Amazon, Hocking had uploaded 8 more of her novels and collectively they had sold more then a million copies and earned over $2 million in royalties. Hocking’s story is a classic tale of identifying a market need, strategically occupying a niche, and quickly building a strong brand field by a rapidly growing base of fans and word-of-mouth marketing.

Though she had been writing stories from the time she was 9 years old, and had already written full-length novels, Hocking tells of seeing a YouTube video of Mark Hoppus from Blink-182  talking with Pete Wentz of Fallout Boy. In the video, Hoppus encourages kids to follow their dreams and make them come true. It spurred her to take a passion for writing and approach it as a job instead of a hobby and to devote herself full time to the pursuit. Over the next year she made a serious study of the literary landscape, focusing on the teen paranormal-romance genre, and the market opportunity for series like the Twilight Saga and The Vampire Diaries series. Hocking settled down to work and within a year she had written 5 more novels all of which she started selling on Amazon, Barnes and Noble, and other e-book platforms.

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Crowdsourcing: a 7+7 Primer (Pt. 2)

Monday, January 23rd, 2012

Last week I posted the first part of this article on crowdsourcing strategies. In the post, I discussed some of the big-picture issues that I believe should be considered carefully when planning a crowdsourced project. Best practices for crowdsourcing require managers to first determine the best venue for their project, effective management of the process, careful quality control, executing a well-planned recruiting strategy, active engagement of the intended audience, express ’training’ of the participants, and the anticipation that pushback may be encountered.

Today I’ll discuss 7 practical measures which managers should take to ensure a successful outcome to their crowdsourced project. These steps, when well executed, will significantly increase the probability of success, will increase the value derived from the project, will save a meaningful amount of time, and will help to assure a high quality work product.

1. Determine project goals and strategy: One of the key tenets of a lean approach to management, is the definition stage; determining a project’s goal is the first and most important step in the process. Specify exactly what you are trying to accomplish with the project and let the specific strategies and tactics flow from that objective. It is important that managers devote the time, energy, and necessary resources to the definition process as every man-hour dedicated will pay off in the end. Pull the team together, clean the whiteboard, and start brainstorming to clarify your intent and to set forth your specific objectives.

2. Define the process and the steps: Once your larger goal have been defined for your crowdsourced project, it is time to plan specific strategy and tactics to achieve it. Ask and answer for yourself these questions: Where will you host the project? Who will you recruit to participate? How will you reward or compensate the participants? Will the process be an open, transport effort or do you need some degree of privacy? There are literally dozens of considerations and contingencies to plan for when crowdsourcing and this planning process will force you to account for all of these.

3. Select the platform: By its very nature, modern crowdsourcing has a technological underpinning; it is the Internet, after all, that enables businesses to reach the large audiences needed for a successful result. Whether building your own site for the project or hosting it on one of the established crowdsourcing platforms, the choice of technology is key. Carefully evaluate the tools and features your project will require; consider the skill sets needed for the participants; and review your goals to make sure the choices you make during this part of the process are serving the ultimate aim of the project.

4. Create a strong project brief: A well-written brief will contain information not just about the project and the deliverables, but also about the goals for the project, the company sponsoring it, and the intended audience for the end-product. On crowdSPRING designers like to say, “We can’t work in a vacuum” (and, no, they are not referring to working in deep space or at the Dyson factory). The participants in your project need information: specific requirements, clearly established scope of work, defined expectations on deliverables, well-explained schedule, and established awards for participation are not just expected, but are required for success. Without overwhelming the potential participants with reams of data or pages of descriptive prose describe what you need, how it will be used, who you are, and who it is for. Provide examples of similar projects or products; provide appropriate links to other businesses, websites, designs, or samples that you like. In other words, the better job you can do with your brief, the faster you will start to receive submissions and the closer they will be to what your requirements specify.

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Small Businesses Spending More And More On Social Media

Tuesday, January 10th, 2012

According to a newly released study from Borrell Associates, small businesses are spending more of their budgets on social media. In fact, small and medium size businesses expect to spend nearly as much on social media as they do on search engine marketing (see table below).

This is not surprising and confirmed by other recent survey data, including a survey from StrongMail on 2012 marketing trends). Although the survey data is inconclusive and often conflicting, most surveys report that 40 to 70 percent of small and medium size businesses are using social media. Non-survey data tends to support those results (58.2 percent of SMBs have a presence on social media networks, according to Palore – but these numbers are not clear-cut because between 40 and 50 percent of the businesses who self-identify as using social media on Facebook, for example, have little or no activity there).

Perhaps the most important piece of data (other than adoption) concerns the methods businesses use to measure success in social media. Although it’s not clear how most businesses track this – many use customer acquisition as the key success metric. Fans/friends/followers are also an important metric (see graph below).

How active is your small business on social networks and how do you measure success? We’d love to hear from you in the comments.

10 things entrepreneurs can learn from chefs

Monday, January 9th, 2012

Who among us doesn’t love a great meal? Whether we choose eat at home or in a restaurant, all of us appreciate and respect the work that goes into preparing and presenting our food. We love the humble diner which serves up a phenomenal burger and fries and marvel over the lavish cuisine served up at a 4-star establishment. The proprietors of these two distinctly different types of business have a great deal in common – with each other as well as with the community of entrepreneurs in general. They understand their market, work hard to satisfy their customers, and create a high-quality product and service to compete effectively against each other as well as the thousands and thousands of other restaurants at hand. This is the latest in a series of posts I have been working on that discusses how we can draw lessons for our own ventures from the world around us – specifically from unexpected quarters. Last year, I wrote about how much we can learn from kids, about what dogs  and musicians can teach us, and how we can draw inspiration from athletes. Today the great chefs of the world get their turn; these artists are are often wonderful business people and genuinely entrepreneurial, but are admired for their unending creativity and dedication to their craft. Great chefs work everyday to achieve perfection, and we can each learn from their example and their pursuit of the consummate creme brûlée (or burgér, if that should be your personal preference).

1. Chefs live by their creativity. There are not many businesses that are completely dependent on a continuous flow of creativity. Entertainment, advertising, and fine art are among the few industries built completely on a creative output. Fine dining stands among these as an example of pure creativity as a service and a product and the best chefs live and die purely on their ability to create. The chef who loses this ability can no longer compete and can no longer serve their customers or their market.

2. Chefs develop skills over time. Like a great musician a chef develops their skills and technique over many years of practice and refinement. Cooking is not just an art form, but also a craft and the tools, methods, and skills can take years to master. Whether classically trained, or self-taught the great chefs have worked hard to develop their expertise and these abilities are what set them apart and make them unique.

3. Chefs perfect. We speak and write often about the importance of iteration and constant improvement and the best chefs are masters of this. Developing great recipes is a time consuming process and the analogy to developing our own products or services is apt: take the time to develop yours by a process of refinement and repetition until it is as delicious as can be.

4. Chefs listen to their customers. Can you think of another profession where your customer is more critical to the process? Seriously, if they don’t like your product they will leave. They won’t come back and they won’t send their friends to eat the food either. In other industries, the entrepreneur can survive if their product is OK, or even of they have a fail or two. If you are to compete in the world of the chef, you had better pay close attention to that customer and their happiness with your food or you will not have a customer left.

5. Chefs work in teams. Great food is often, though not always, a team endeavor and the skills if the team are crucial. Chefs compete for talent on their staffs just the way you compete for talent in your business. And, as with any team, chef’s teams are an aggregate of the necessary skills and abilities needed to get the job done: sous chefs, line cooks, prep cooks, wait staff, mixologists all contribute to the overall experience of the customer and each of these folks come with their own talents and abilities. (more…)

Small Businesses and Startups: Worst. Advice. Ever.

Tuesday, January 3rd, 2012

A few weeks ago I wrote about New Year ‘s resolutions for small businesses, but the other day I realized I had left one out. This one is not an action item, nor an intellectual exercise. It is at once very simple, but also incredibly difficult, especially when under pressure to get a new business off the ground to improve performance in an existing one. It is this: learn to differentiate between good advice and bad. And once you have mastered the skill of identifying bad advice, develop a second skill: the ability to discount and reject it.

Everyone who has ever launched a business has been subjected to the clamor that arises from well intentioned investors, family, friends, and casual cocktail-party-type acquaintances. Each of them has a pearl of wisdom, a relevant anecdote, or a driving reason why you should do this or should not do that. Each of them is absolutely certain that, if you follow their sage advice, your business will rocket to the stars, Google will acquire it for $1.7 billion, and your success will be forever assured. While some of their advice may actually be of interest, you will assuredly reject the majority of it as coming from someone who doesn’t understand your business, your market, and your customers.

We have all been on the receiving end of this advice, so in this article I am going to share with you some of the worst business advice ever given. Here then, are 5 pieces of bad advice I have been given, and my reasons for rejecting each:

1. Your Idea Won’t WorkEveryone has an opinion, and it is incredible how often you wil be told that your idea for a new business simply won’t work. People seem to love sharing this feedback, perhaps because it helps them to feel smarter or more powerful. In startups you need to trust your own opinion, and you need to back it up with research. Do your homework, provide your own skepticism, question your own biases, but trust yourself and the homework you do to answer that question for yourself.

2. Faster Is Always BetterSpeed to market is critical for many startups, and many of us tout our ability to iterate quickly, our flexibility in managing our business, and our potential to pivot when the market demands it. But speed is not always of the essence, and business owners need to understand that often it is best to take the time to ponder a decision, sleep on a proposal, or throughly debate an issue. Everything has its place, speed included, but faster is definitely not always better.

3. If you want it done right, then do it yourself. The most valuable commodity that an entrepreneur has is time. Time to think, time to act, time to execute. Managing your time is critical to the success of your business and one of the best ways to do this is to delegate. Hire talented people, train them well, then launch them into the world by delegating to them work which your personal capacity constraints simply does not allow you to perform. To grow your business, you will inevitably have to grow your team and that inescapable fact means that you will have to trust others to do the work. The best advice I have seen on this topic was in a post Ross wrote last year: don’t be afraid to delegate, but make sure that you get your own hands dirty before handing off that task.

4. I Can Teach You Everything. One trap that many entrepreneurs fall into is the mentor-snare. We meet someone who seems wise, experienced, and thoughtful. Someone who exudes confidence and tells us that they can teach us everything we need to know. While there is great value in having trusted mentors and teachers, be wary that you don’t become enmeshed in the ideas and advice offered by someone whose experience may not be appropriate, whose wisdom may run thin, and whose confidence could be misplaced. Trust yourself, trust your instincts, and trust your hard work to answer the question of whether another person’s advice is worthy of acting upon. My advice? Learn from lots of people, but take care that you don’t become overly dependent on just one.

5. Play it safe. By its very nature entrepreneurism is risky and I believe the risk should be embraced, not avoided. The trick it to do everything you can to mitigate the risk and to improve your odds of success. Do your homework, hire the best talent you can find, keep expenses as low as possible, and keep it simple. The lean startup movement has taught us a great deal about how to limit our risk while bringing a product to market, and the unstated message is to never play it safe.

Photo: Gregory Taylor

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Five Tips To Improve Employee Performance Reviews

Wednesday, December 21st, 2011

Dilbert.com

Last week, Mike wrote about Small Business and Startups: End-of-Year Mishegoss, 2011 Version. In that post, he briefly mentioned that the end of the calendar year is a good time to conduct employee reviews.

I’m not a fan of end-of-year employee reviews. If you waited until the end of the year to give feedback to your employees, you failed. But, when done properly, year-end employee reviews can serve an important purpose.

Here are five tips to help you improve your employee performance reviews.

1. Never wait until the end of the year – provide constructive feedback regularly. You should be providing regular constructive feedback to your team – and each employee you supervise throughout the year – on a daily, weekly and monthly basis. I am not suggesting you set up regular meetings for such reviews. Make your reviews and constructive feedback informal, low key, and regular. The measure I use for myself: does each person on my team know how I feel about their work during the prior week? If I can’t answer that question, I failed.

If an employee isn’t contributing, fire them after giving them an opportunity to improve. Don’t wait until the end-of-year reviews – you’ll only make yourself and your team miserable.

2. Take time to prepare for each review and require each employee to prepare. If you’re going to invest your own time and your employee’s time for an end-of-year review, make sure you both prepare. Take the time to identify three to four strengths and three to four areas for improvement. Make sure you’ve identified concrete examples for each so that you can go into more detail when appropriate.

Also make sure your employees know in advance that you’ll ask them to talk about strengths and areas for improvement. No employee is perfect. No person is perfect. We all can improve – and it’s your job to help your employees identify areas for improvement.

3. Be brutally honest. I’ve seen too many people afraid to speak their mind at review time. That’s not surprising – we’re typically not even honest with ourselves – how can we be honest with others. But when it comes to reviews, candor is critical – and should work both ways.

But be careful not to make the review only about mistakes. You want each employee to walk away more motivated and excited about their job – talking only about mistakes and problem areas will not accomplish that goal.

4. Stay human. Fight the temptation to spend the time reviewing graphs filled with data or reading from a form. Review time is a time to talk. If you want people on your team to feel like human beings, treat them as human beings.

5. Listen more than you talk. Far too many people think review time is a time to talk. It’s not. Review time is a time to listen. The conversation should always be two-way. Invite your employees to talk about their accomplishments and struggles. Invite them to talk about their work and personal goals for the coming year. Ask them if they’re happy with the work they’re doing and the people around them (you’d be surprised how many people are afraid to ask this question). Ask them how you can do better.

What other tips can you add that can help improve employee performance reviews?

10 New Years Resolutions For Small Businesses and Startups

Monday, December 19th, 2011

 The new year is fast upon us and it is time for that ritual known as resolution-time! I am not talking about a new resolve to eat lighter and get to the gym 4 days a week. I am talking about business resolutions – specific actions and efforts you should take over the course of the next few months to strengthen your business, improve your customer’s experience, and strengthen your team in the year ahead.

Some of these suggestions are specific things to do to help increase business activity, other undertakings are meant to help you learn more about the current state of your business. Not all of these are for every company, but I hope that you find a few on the list that make sense for you. Here then are 10 new-year-business-resolutions for 2012!

1. Review your strategic plan. It is a good idea to dust off your strategic plan at east once a year, and what better time then now? Business strategy needs to be ever changing and ever evolving if you hope to compete effectively, and an audit of your strategy is definitely in order. Schedule a brainstorming session, look hard at what your competition is doing, consider your marketing tactics and come away with a fresh approach to your business for the upcoming year.

2. Audit your social media strategyA SM assessment is an easy resolution to start the year, and Facebook is a natural starting point. Simple to use and critically important, FB is a key portal to your business, a point of entry for many of your potential customers. If you haven’t been attentive to this in 2011, start in 2012. Twitter is another channel that you should appraise and consider whether your efforts there are adequate or if they can stand improvement.

3. Attack your budgetWe do this at the end of each year, and it is critical that you look closely at your budget as soon as possible. Track last year’s expenses and compare actual expenditures with budgeted amounts. Do a reality check and see where there is fat to be cut or where you are underestimating the true costs. An focused look at your costs will help you to keep them under control in the new year.

4. Try some experimentation. Resolve in the new year to set specific goals for your business, define strategies to achieve those, and then develop a short list of experimental tactics to execute. Perhaps you haven’t tried email marketing, social media, public relations, special events, or other marketing  methods and some or all of these may prove effective if you try. Be sure that you are able to effectively measure the results of any new tactic you engage in and be ready to quickly kill those that are not working and increase your efforts with those that are.

5. Gather your data. The new year is the perfect time to reconsider the business data you gather and whether you are measuring what is truly important. Resolve to measure effectively, develop useful reporting, just be careful that you don’t waste your time or the team’s on measurements which will not move your company forward.

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Small Business and Startups: End-of-Year Mishegoss, 2011 Version

Monday, December 12th, 2011

For those of you unfamiliar with Yiddish, the word ‘mishegoss’ is defined as craziness or senseless activity, and as small business-people we can certainly relate to that concept, particularly as the holidays loom and the year comes to an end. Of course, every small business is unique and every business owner has their own priorities for operating their venture, but there are many things that each has in common and the scramble at the end of the year is one of those. Bonuses and raises to consider for the new year, tax prep to accomplish for the accountants, gifts and cards for your best clients – these are the little chores that every business owner carries out during these waning days of autumn.

Some of us may already have these tasks checked these off the list, and others among us will no doubt procrastinate and not carry through until in the grip of a post-New Years-champagn-hangover, but sooner or later you will have to deal with the drudgery. I had planned a list of 12 tasks, one for each of the 12 days of Christmas, but could only come up with 8. So, in honor of the the 8 nights of Hanukkah (and in the spirit of Yiddishisms), I have put together a list of the 8 things you should be doing (or at least thinking about) over the next couple of weeks as the holidays approach.

1. Plan ahead. A new year is the perfect metaphor for a strategic assessment and a great opportunity to rethink your approach to the business. Make some time this month to review your current goals, strategies, and tactics. Look hard at the data and be ready to discontinue the efforts that are not paying off, renew the ones that are, and come up with some great ideas for new efforts for next year. Holiday time is also a great time to do some reading and there are a ton of great business books out there which will surely get your juices flowing and help you to generate some new ideas for your own business.

2. Review the team. Most companies use the evaluation process to determine bonuses and salary increases and December is the perfect time to sit with each member of the team and spend some time discussing their performance, contribution to the company, and personal/professional development. There are numerous methods to use for your employee review and each has it’s advantages, but on a practical level, most small companies approach this process as a simple conversation. My best advice is to take some time beforehand to prepare; for each member of the team write a list of the things they did well and the things they did poorly. Reflect on the employee’s overall contribution, their growth in terms of skills and abilities, and how they work with the rest of the team. Be honest in your feedback and identify areas for improvement and goals for the coming year. Be sure to write these down as they will serve as a guide for next year’s evaluation.

3. Arrange for time off. Holiday time is friends and family time and many folks at work will want to take some extra time to spend with theirs. Be as flexible with work schedules as you can and be prepared to give your people some extra time to enjoy the season. While our office is typically open the week between Christmas and New Years, we tend to encourage people to work from home that week, or otherwise limit their time in the office. This is a wonderful ‘gift’ in itself and the goodwill will mre than make up for the lost hours for that one week of the year. Not to mention that people come back after the holidays with batteries fully recharged and their attitudes happily mellowed.

4. Prep for the accountant. Well tax tie is here again! Not really, but it is just around the corner and now is a great time to get organized for the hand off that will happen early next year. Make sure your accounts are up to date, that your reconciliations are done through November, and that your income and expenses are correctly booked. It is a smart practice to send your Quickbooks, Freshbooks, or other financial file to the accountant this month and let her have a look. This way she can give you any notes,ask any questions, or make any changes ahead of time and eliminate the scramble that often accompanies the April 15th rush.

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