crowded digital marketing space

Stand Out in a Crowded Digital Marketing Space: 3 Ways To Rise Above the Noise of Your Competition

By Chris R. Benjamin, Guest Blogger

Companies are becoming increasingly sophisticated about digital marketing and the need for high-quality communications in the digital space. That means more competition than ever before, in just about every industry.

With your target audience already being reached through sharp content marketing and carefully-cultivated relationships, how can you make room for your messages to be heard? The answer is to make your marketing messages stand out.

Here are 3 strategies that you can employ in order to be heard “above the noise,” even when you can’t seem to get a word in edgewise.

1. Get the timing right

There’s a lot to be said for delivering your marketing messages at the right time. By paying close attention to your target market’s habits—that is, how they use social media, what they do online, and when they search for the solutions you can provide—you can learn the best times to hit “publish” on your blog, or make snappy posts and announcements on social outlets like Facebook and Twitter.

 Some solid research exists on the right time of day to execute content on various platforms:

Belle Beth Cooper of social automation app Buffer reports that the average blog receives the most traffic on Mondays (out of all other days of the week) and at 11am (out of all other times of day. Most comments on blogs are made on Saturdays, and around 9am regardless of day.

Jason Keath, CEO of Social Fresh, reports some interesting data from Shareaholic: Social sharing happens more on Thursday than any other day of the week, followed by Wednesdays, Fridays and Mondays. 27% of content sharing happens between 8am and 12pm.

If you’re just starting to form your content strategy, you might start out by making your blog and social media posts around the times suggested above. Later on, once you have a dedicated following, you can look at your own data to discern the optimal times for content publication.

How to stand out: Using the broad statistical data or your own metrics, construct a content schedule you will stick to, testing and refining as you go along. If you get your content out to your audience when they’re most likely to be looking for, engaging with, and sharing it, you will catch many more eyes than your less time-conscious competitors.

2. Segment your market

One of the defining characteristics of successful companies is that they know their market intimately. The more deeply you understand your customers’ specific wishes, fears, and needs, the better you’ll be able to convince them that your solution is the right one.

First, compose a sketch of your audience. Things to consider include age, sex, location, beliefs, education, and personality. With those factors in mind, visit the forums your ideal users frequent and take note of popular discussion topics. Use tools such as the Google AdWords Keyword Planner and Google Trends to see how often relevant words and phrases come up. You’ll then be able to write blogs and social media posts that instantly arouse interest.

Need some more insight? Conduct a survey. Send out an email to your subscribers asking them what their greatest hurdles are, and then construct content around the answers you get.

How to stand out: Get to know your audience and speak to them directly through your content. Answer their questions. Ask them to share their experiences and stories with you. Become intimately familiar with what drives your followers and respond to their deepest needs, and you’ll gain the coveted access to their trust.

3. Infuse Your Messages with Creativity and Novelty

It’s a fact. Humans are fascinated by items that are “out of the ordinary.” Capturing their attention and redirecting it towards a practical solution is exactly how you’ll make a lasting impression.

First, think about your brand. A strong Unique Selling Proposition, or USP, is one way you can set yourself apart the moment a new prospective customer encounters it. Consider what your brand says that’s different from anything else out there. What remarkable results can you alone (or, your company alone) deliver? Define your USP succinctly, and then build content around it.

Creativity can also involve providing a new perspective. It can mean:

  • Bringing up a hot-button issue in your industry and offering a unique take on how to solve the problem.
  • Being humorous in a way that’s not too abstract, but that connects your brand with a new sense of how your product can enhance lives.
  • Hosting contests on social media to create excitement and buzz surrounding your brand.

How to stand out: Identify the one (or two) things that your company is in a unique position to accomplish for your target market, and develop or refine your USP around those points. With that as a launching pad, think outside of the box to get your audience to see you, and the rest of their own world, in a new light.

Put all of the above together, and you’ll create a complete experience for your target audience—one in which they see you as a thought-leader who’s immediately responsive to their needs, wherever they happen to be in your sales cycle. Engage with your customers at the right times, in their language, and with interactions that intrigue them, and you’ll have no problem rising above the competition—both today and for the foreseeable future.


Chris R. Benjamin is a New York City-based freelance writer who specializes in the topics of digital marketing, small business development, and applied psychology, among others. See more of his work at BennyTheWriter.com.

5 Reasons to Start Your Small Business Right Now

Starting your own business is the iconic American dream. If you have a passion, perhaps it’s time to pursue it in a more serious way and see if you can make a living doing it. The figures are daunting. Approximately 8 out of 10 start-ups fail within the first 18 months, and new entrepreneurs will invariably make mistakes, many of which will be costly. Often there is financial pain along with the uncertainty of how long to keep going if the concept isn’t working. At times, you will feel like you jumped off a cliff, but nevertheless, there are so many reasons to try.

Here are 5 reasons to start your small business right now:

1. Be Your Own Boss

Work Life Balance is the enviable state of successfully managing a career and life. A highly-regarded online medical resource, WebMD, even has a section on how to improve your work life balance, and the pursuit of it is one of the key drivers behind the exponential rise in the freelancing industry. Starting your own business will certainly throw your work life balance off for a while as you build, fund and grow a new venture. Ultimately, the rewards include the ability to manage your own time and be your own boss. You can decide how large to grow your business and who to hire. You can even work from home until such time as you choose to expand your company.

pursuing a passion is good for your health

2. Pursuing a Creative Passion is Good for Your Health

Having a creative outlet is important to your mental well-being. For many people, it takes the form of a hobby that is enjoyed around a structured work week. But why not try to build your hobby into a business. In Six Tips for Turning Your Hobby Into Your Job, Jacquelyn Smith encourages people to figure out if there is an income stream in their hobby and pursue it. Do you like to crochet? Help others learn how to enjoy your hobby by teaching at a local community college or develop a series of classes from home. Doing so can be good for your health. A study in the Journal for Aging and Health found that creative people had lower levels of stress and healthier brains.

SBA Loan Rates

(Effective Loan Rate of SBA Loan Portion from Spedco.com)

3. Interest Rates are at Historic Lows

Whether it’s seed capital or money for day-to-day operations, many aspiring entrepreneurs need funding. One of the primary reasons for small business failure is lack of cash flow, and small businesses are perceived as risky, so they pay much higher interest rates on loans than large corporations. If you are looking to start a new business, the interest rate environment matters. In the United States, the Small Business Association (SBA) has a loan program that will guarantee up to $5 million dollars or 75% of the loan repayment called the 7(a) Loan Program. Typically, interest rates on SBA loans are benchmarked off prime rates and the Federal Funds rate. The Federal Funds rate is at historic lows.

4. Age Discrimination in the Workplace

As workers age, many find it nearly impossible to re-enter the workforce after any lapse in employment, particularly after the age of 50. Age discrimination is well-documented. Not surprisingly, many older Americans apply their skill set to starting their own business. With a lifetime of experience and a wealth of knowledge, olderpreneurs are on the rise. And because older business owners typically have more money than their younger peers, they borrow less and their ventures have a higher rate of survival.

5. Individual Health Insurance under the Affordable Care Act

The landmark healthcare legislation, the Affordable Care Act, made individual healthcare plans available to many Americans who previously did not qualify. One of the main reasons employees hesitated to leave a traditional workplace environment was the ensuing loss of health coverage, but solopreneurs can now purchase individual health plans on the Federal open marketplace. Small businesses can even set-up a defined contribution plan for employees and provide allowances to reimburse employees for their individual health insurance costs, and it is typically cheaper than a group healthcare option.

So, if starting a new business has been on your to-do list, there is no time like the present. From the practicalities of finding funding and getting health coverage to the benefits of achieving employment flexibility and work life balance, it’s a great time to consider pursuing your passion. If you choose to take the leap, contact Resourceful Business and we will create a digital marketing strategy to make your new business soar!

 

 

Why You Must Fix Your Company’s Social Media Imagery and How

When you look at your company Facebook page or Twitter banner, do you feel uninspired? As you scroll down the content, do you see images that convey a totally different feel than what you would like your company’s digital presence to be? Is your content full of free stock images or perhaps lacks images altogether? These problems are just a few signs that it is time to overhaul your company’s social media.

Pictures make a huge difference to the success of your social media strategy. They drive engagement and ultimately referrals back to your website. The problem is that setting up social media accounts is just plain time consuming; and some aspects of it, such as understanding image size requirements, licensing and file types are fairly technical. Social media without great imagery, however, is an opportunity missed. Regardless of the social networks you choose for your business, here’s why you must fix your company’s social media imagery and how.

Images are branding opportunities

Every social media network has different image options and layouts which allow you to customize your company profile page, and these present branding opportunities. There are places for logos, banners and backgrounds, all of which can showcase your brand and great imagery. Pictures can show your company’s products, conjure up thoughts that inspire a consumer to want your services or just be clever and eye-catching. Captivating imagery will reinforce your brand and keep viewers on your page where they can learn more about your company.

For a simple fix, first look up image size requirements for the social network you are using or use a guide such as Hubspot’s Cheat Sheet, and upload custom imagery for your cover photos. Make sure you include your logo in some creative way. If you are not proficient in tools like Photoshop, there are numerous free apps which have social media templates you can use. Hubspot offers a set of  PowerPoint templates, so there is no expensive software required, and you can download your finished cover photo once complete.

Images lead to higher engagement

According to The Social Media Examiner, photos have an 87% engagement rate on Facebook, far more than text posts of any length. Similarly, in What Fuels a Tweet’s Engagement, Media Blog shows that retweets are boosted by 35% when there is a photo attached. Tweets with images take up more visual real estate and are more likely to grab someone’s attention. As the old adage goes, “Pictures are worth a thousand words,” and if your posts lack images, your social media engagement will be lacking too.

social media imagery provokes the imagination

Images provoke the imagination

Powerful marketing utilizes imagery for a reason. Pictures can tease the imagination and make us dream of going somewhere exotic on vacation, winning the lottery or even looking younger. Imagery is far more likely than text to capture someone’s attention and inspire them to click-through to learn more.

As well, colors can affect the decisions we make. For example, blue is often associated with trust, green with wealth and pink with romance. Colors are emotive, and therefore, another powerful tool that can be used with imagery to spark the imagination.

Images drive sales

Not surprisingly, fantastic product pictures can lead to product sales. According to Jeff Bullas, a prominent social media strategist, “In an ecommerce site, 67% of consumers say that the quality of a product image is ‘very important’ in selecting and purchasing a product.” Social media is a perfect platform to post high quality product images and link them directly back to your ecommerce store.

If you are concerned that a product photo shoot is beyond your budget, purchase a portable box kit which includes photo diffusion panels, color backdrops, a camera mount and lights. They are available for around $50 and will give your pictures a professional look.

you can tell stories with social media images

Images can tell a story

People love a good story. Pictures and videos can tell your product, service or company story far more effectively than written content. If you are able to convey a compelling story with images, consumers will want to be a part of it. Plus, pictures are more easily consumed and they are universal, so a critical tool for large global brands.

Not surprisingly, short videos have much higher user engagement than longer ones. In “The optimal length for video marketing content? As short as possible,”  Yoav Hornung explains that the shorter the video, the more likely that someone will hit PLAY. With a number of free editing apps for smartphones and tablets available, it is easy to create and add some product or service videos to your social media.

Free Image Sources

If you’re sold on the leverage that images bring to social media, but not quite sure how to begin, start by bookmarking a few free image websites. Here are three of my favorites: Unsplash, Jay Mantri and Picography. Another option, Google Images, allows you to specify usage restrictions, so you can search for images on the internet that are free to use or share and in the public domain. Also, keep your smartphone with you, and if you see a photo opportunity, take it! Build your own library of images. Then create social media posts with pictures and begin to monitor what types of photos engage your audience best. To customize the pictures, use a simple photo editing app like Canva.

Spending the time and energy adding pictures to your social media will boost engagement and convey your message in a compelling way. If you still need some assistance getting started, the Resourceful Business can help energize your social media with images and guide your social strategy. Contact us.

Lessons for the Small Business

Mexican Train Dominoes Offer Lessons for Small Business

On a recent vacation, my family taught me how to play Mexican Train Dominoes. The game is a variation of dominoes which allows players to add to their own line of dominoes, their private train, or alternatively, add to a line of dominoes open to all, the public train. Players try to get rid of all of their dominoes before their opponents and keep remaining dominoes to low numbers. After several rounds, the winner has the lowest number of points based on the totals of any remaining dominoes from each hand.

As I was new to the game, it took me several rounds to develop my own strategy. After settling on one that seemed to work, it occurred to me that my strategy had similarities to some of the key decision-making inherent in a small business. In addition to being a fun family game, Mexican Train Dominoes offer lessons for the small business.

Lesson One: Focus On What You Control

As I mentioned, in Mexican Train Dominoes, each player has a private train, which consists of a line of dominoes open only to that particular player. None of the other players can put down dominoes on someone’s private train. There is also a public train where all the players can put down a matching domino if they have one. As I organized whatever dominoes I had been dealt, I found myself segregating out the dominoes in my hand which worked on my private train from ones which worked on the public train. I could control the orderly play of my private train dominoes, but I had no control of what the public train opportunities were as the dominoes would change as players put down various combinations.

In fact when running a small business, one of the most important components of any strategy is focusing on what you control. For example, you can’t control whether a competitor opens up a shop next door. However, you can control the decision to expand your own product line once the competitor opens up. You can’t control the consumer trend towards iPads and mobile devices. You can ensure that your website is responsive and mobile-friendly.

Lesson Two: Identify and Minimize the Risks You Can’t Control

Identify and minimize risksAfter I was dealt my starting dominoes at the beginning of the game, I would find myself separating out the dominoes that I could match up and use in my private train into one pile. I would organize them into a line so as to match as many as possible, and I would move them around until I had one orderly line which I could use for my private train.

My second pile would have the dominoes that I could not use in my private train, but rather would have to dispose of in the public train. Since I had no control over the public train, I would always strive to play any dominoes in my public train pile first. In effect, I was minimizing the risk I could not control, the playability of the public train.

Similarly, for a small business owner, it is important to identify and minimize risks to the business that are outside of his or her control. One example might be a business that is a strictly brick and mortar storefront. A particularly precarious winter or nearby road construction can make access to the store difficult and imperil sales. However, in understanding the risk of being a brick and mortar business, the owner could develop an online e-commerce website for popular products or offer deliveries within a certain radius.

Lesson Three: Leverage Your Assets

leverage your assetsOne of the rules in Mexican Train dominoes relates to the double domino, a domino which has the same number on each side of the line. If a player has a double domino, (s)he plays it perpendicular to the line of dominoes, and it must be followed by a regular domino with the matching number on one side.
Double dominoes can be critical to a winning strategy. First, they allow a player to put down two dominoes. In playing a double domino, a player can quickly decrease the point value of the dominoes left in his or her hand. Strategically, the opportunity to play a double domino should not be missed, and if possible, it should be played early.

Similar to playing a double domino, a savvy business owner will leverage the assets of the company to gain a competitive edge. The assets might be personal contacts or an alumni network. Social media is an excellent way to leverage and broaden the audience for marketing campaigns or promotional offers. A small business can also leverage a customer relationship in one business line into another area and grow the overall business with the client.

Clearly, Mexican Train dominoes is not just amusing child’s play. There is some luck of course, but also plenty of strategy. The next time you have an opportunity to enjoy dominoes, remember the small business lessons implicit in the tactical side of this clever game. And if you could use some assistance identifying and focusing on strategic areas for your business, minimizing risks outside your control or just leveraging what you have, contact us. We will help you develop a winning strategy!

Clothespins in a Jar

Clothespins in a Jar: A Childhood Game That Will Improve Your Small Business

Summer is a wonderful time to retool a small company. The dynamics of the business often change, and the less hectic pace can provide the perfect backdrop to contemplate the to-do list. It reminds me of a childhood game, clothespins in a jar. When summer comes around, mothers sometimes ask their children what they want to do in the summer. The child will name a few things like trying the new neighborhood playground or learning to ride a bicycle without training wheels. The idea is written on a clothespin and put in a jar. The jar sits on the kitchen counter and the clothespin is removed from the jar once the activity is done. The goal is to have the jar completely empty before the fall when school begins and busy schedules resume. It is a fun game and a fabulous visual reminder all in one!

This summer, why not put a few clothespins in a jar for your small business. Select projects that you have not had time to focus on and either do them, or contract them out. Here are ten ideas to get you started and improve your small business:

Content Management

  • Produce a quarterly eBlast or newsletter and send it to your clients. The Return on Investment (ROI) is high when you find ways to keep in touch with your current and past customers. They will remember your company when you keep your brand in front of them in creative ways. Don’t succumb to the temptation to do a purely promotional newsletter, but rather develop original content so your clients will enjoy reading the eBlast.

  • Learn your website content management system (CMS). If your website is built on a platform like WordPress, learn how to upload your own pictures and edit the content instead of paying someone else to do it for you. According to WordPress creator Matt Mullenweg, almost 19% of the web now runs on WordPress, so understanding WordPress CMS is well worth the time and effort.

Social Media Strategy

  • Rebrand your social media. Have the banners, profile pictures and backgrounds customized to show your products, services and logo in an eye-catching way. Social media helps you engage with customers, show your brand and market your business too.

  • Integrate social media on your website. If you don’t have clickable, visible links to all of your social media platforms on your website pages, get a developer to add them for you. Once you integrate your social media, make sure to manage it.  See my previous blog: Stop Ruining Your Business with Social Media.

  • Come up with a promotion for your business and post it on social media.  One of my favorite Facebook promotion ideas is to have your customers post a picture of your product and how they are using it. Have them post the picture on your social media company page with a comment about their photo.  Offer a prize for the most creative picture, then ask if you can use it in your marketing!

    hire a quickbooks ProAdvisor

Finances

  • Get your business finances in order. Hire a QuickBooks Proadvisor or bookkeeper to set up a proper chart of accounts for your company and get all your revenue and expenses entered. Create a quarterly management report on QuickBooks and start to look at year-on-year comparisons of your business performance.

  • Keep track of your expense receipts in an organized way so you and your bookkeeper are not scrambling at tax time. Figure out a system to get company receipts to the bookkeeper in a timely fashion throughout the year. In addition to having documents at your fingertips in April, you will run your business more strategically by being on top of expenses.

Blogging

  • Start a blog, and then learn how to properly post it so it is optimized for search. By creating original content and developing a blog, your website traffic will improve. The market will also start to look to you as an expert in your field. Be patient, as sometimes it takes time for original content to produce results.

Website

  • Have your website redesigned so that the pages are fluid-width, responsive and they properly adjust to any screen size or mobile device. Website elements should adjust to accommodate desktop computers, iPads and mobile phones. If you have an e-commerce platform embedded in your website, it should be responsive and work on all devices as well.

Small Business Strategy

  • Allocate time each day to read. It is amazing how much knowledge you will gain by just reading 30 minutes per day in your field of expertise. Order subscriptions, find newspapers or electronic newsletters that have great articles and information in your company’s area of expertise. Set time aside to read them each day and stay informed in your field.

These ideas are just off the top of my head, and there are many more that will be specific to your company. So, this summer, if the pace of your business is a little less frenetic, create your own to-do list. Construct a visual reminder, your very own clothespins in a jar, and get motivated to dust off projects that you have been meaning to do. Need some assistance? At Resourceful Business, we can help with website design and redesign, QuickBooks, content management, blogging, SEO and small business strategy. Contact us.

social media for business

Stop Ruining your Business with Social Media

For many business owners, social media has become part of their marketing strategy. Whether it be Facebook, Pinterest, Instagram, LinkedIn or Google+, small businesses will choose a preferred platform or two, do promotions and advertisements or engage with customers. The ability to upload pictures makes tinkering with social media fun too.

All too often, however, a busy owner sets up a social media account and then uses it haphazardly with limited results. To really see customer engagement, the effort must be consistent and thoughtful, and of course, all of that takes time. So, here are a few telltale signs that you should stop doing social media for your business and utilize a content management firm instead.

You don’t know what a pixel actually is

Social media platforms permit the administrator, often the account owner, to upload graphic images and customize or brand the site to help visually identify the business. There are banners, profile pictures, logos in differing sizes and backgrounds. When you go to upload an image, usually the social media template will tell you the optimal size. When working with a LinkedIn banner, for example, a message displays,

“ PNG, JPEG, or GIF; max size 2 MB. Image must be 646 x 220 pixels or larger.”

A pixel is picture element, or one of the small points on a graphic image. If you upload an image that is too small or of the wrong dimensions, it can be stretched, appear off-center or blurred. Even when the social media templates let you check a box to “resize” the image, the end result is often distorted, cut off or blurry. Logos and images are easily edited with available software and will look crisp and eye-catching when sized correctly. A content management firm can give your social media platform a polished, professional look by creating correctly sized, custom graphics for your social media accounts.

writing a blog

You haven’t written a blog in 3 months

You know that it is helpful to create original content and you started a blog a few months ago. You wrote your first blog and posted it. You keep thinking about the next great topic, but have yet to write your next blog and it’s been three months. You are unfamiliar with terms such as H1 and H2 headings, sometimes written as “Heading 1, Heading 2,” tags, or hashtags which can appear in your website content management system (CMS). So, chances are that even if you are posting your own blogs, you are not taking advantage of the different ways to optimize search for your content.

A content management firm can write your blogs based on topics you provide or ideas they generate themselves. They will agree an editorial calendar with you, so blogs and content are produced consistently You can read drafts, approve them and then the content management company will post the content for you and optimize it for search.

You don’t actually have a social media content strategy

Social media content is sometimes divided into what is referred to as the “Rule of Thirds.” One third of your content can be product and service related, so it can have a promotional element. One third of your content should try to establish a rapport with your target audience. You can write about local events in your community or just your thoughts, and this content may not necessarily be related to your product. One third of your social media content should pull from other sources or articles in your field and try to establish you or your company as an expert in the area of specialization.

Great content also demands a variety of inputs to keep it interesting. There should be slideshares, videos, hyperlinks to interesting articles and lots and lots of pictures. If you don’t have the time or inclination to focus on an individualized content management strategy using a variety of mediums, then it would be better to let a content management firm do it for you. A content management firm can offer your business a monthly plan which may include fresh content, posting of the content, blog writing and monthly metric reports. Simply put, good content demands time, originality and a lot of reading, so know when the time has come to hand the task over.

Do you need a vision for your social media strategy or someone to implement it? Contact Resourceful Business today, and we will help you design and execute an effective, engaging social media strategy. Contact us.

small business strategy

Small Business Strategy: The Importance of Stakeholders

Every business, regardless of size, has a management structure. Even sole proprietors subcontract out work and may find themselves managing the subcontractors. Whether a person is an owner, manager or employee, (s)he plays a role in the success or failure of the enterprise. Sometimes, making employees or managers stakeholders in the business can have dramatic effects that benefit the company. Let me give an example to illustrate a key small business strategy and the importance of stakeholders.

Two retail stores operate down the street from each other. Both are small businesses with an owner, manager and several employees. Business is hectic, and the owner of Business A assigns the manager the task of putting out the work schedule each week and allocating hours amongst the part-time staff. Over the course of several weeks, the manager receives complaints from the staff that they are not getting enough hours. So, she tweaks the schedule and adds a few more hours here and there. Some of the shifts now overlap, but everyone seems happier. The owner notices that the payroll seems to have gone up and wonders why.

In contrast, the owner of Business B, down the street, also assigns the manager the task of putting out the weekly work schedule. For the increased responsibility, the owner also gives the manager a small allocation of the net profit each month should the business beat certain net profit targets. As the weeks go by, the staff complain that they are not getting enough hours in their shifts. The manager could allocate everyone a few more hours. However, the manager knows that if she allocates unnecessary hours to keep the employees happy, the net profit target at the end of the month might be jeopardized due to the extra payroll expense. The manager chooses to keep the schedule intact and instead explains to the staff that the business does not require more shifts.

The difference is striking. In Business B, the owner made the manager a “stakeholder” in the business and, in effect, changed her decision-making process.

small business stakeholders

What is a Stakeholder?

A stakeholder is defined as “a person with an interest or concern in something, especially a business.” By having a financial interest in the success of an entity, stakeholders will intuitively begin to consider the profitability of decisions, even if subconsciously. It is why profit sharing, end-of-year bonuses and stock awards in lieu of cash are often used in the for-profit environment. On a smaller scale, I have seen small businesses distribute a little bit of each month’s profit to their key managers should the business achieve key targets. The managers embrace the business and work to make it better every single day. They start to think about the business’ reputation and how to get clients to become repeat customers.

When The Resourceful Business is asked to advise clients on their current strategy, one of the first things we evaluate is who in the company has the role of stakeholder. It can drive the day-to-day decisions being made in the business.

How Being a Stakeholder Will Change Behavior

In Business A, the owner would eventually sit down with the manager and explain that the work schedule should not be compromised to benefit the staff. Rather, the manager should create a work schedule to benefit the business, although a strong incentive to do so is not really in place. As the staff complain, the manager could still be motivated to add a few extra hours here or there, perhaps just not as many as before.

In Business B, the owner has incentivized the manager to create an efficient work schedule by making the manager a stakeholder. I outline this contrast as a reminder that it is very important for a small business to constantly evaluate who has the role of stakeholder. It may seem counter-intuitive to widen the base of stakeholders in a small, growing business. However, if a business exceeds expectations at the end of a given month, even a small distribution of profits to key staff members is incredibly motivating. Cost-cutting suggestions will start to trickle in and some fabulous new ideas will too.

A small business can thrive by considering how it designates and incentivizes its stakeholders. Need a strategic perspective on the structure of your business?  Contact us.

 

President's Day Lessons for small business

Presidents’ Day Lessons for the Small Business

Presidents’ Day is around the corner, and it is worthwhile for the small business to stop and think about why we remember two of our great Presidents, George Washington and Abraham Lincoln. Their place in history extends far beyond their historic actions and ideas. Rather, their legacies are also defined by moral character, tenacity and tactical skill. As a small business owner, it occurs to me that each of these traits also define a great business. Here’s why.

Moral Character Grows the Client Base

History remembers Abraham Lincoln as a President that perceived slavery to be a fundamental evil; and therefore, he worked tirelessly to abolish it. His morality and view of slavery became the basis for his actions as President. Similarly, a small business must have a strong moral character in all that it does; because without one, it will never build lasting client relationships. A strong sense of morality will guide the major decisions of the business and underpin client relationships.

In fact, one of the most rewarding aspects of my business is interacting with clients. The one-on-one time that I spend with a small business owner establishes a foundation of trust.  Personally, I have found that if I look a client in the eye and give him or her advice, (s)he will usually take it. It is because a business that develops a reputation of integrity combined with a track record of working solely in the interest of the client becomes a very valuable ally.

For example, there are some services that my company helps clients with, and we simply pass through the costs with no markup. Our clients are always pleasantly surprised. But it is not a stretch for us, because our business grows when we represent clients honestly, work solely in their best interest, and build the relationship. Our business is unique in that it offers many different services, and invariably, clients start with us in one product line and then add another. If we can be trusted in one area, then we earn a presumption of trust in another. Perhaps in the case of Abraham Lincoln, the nation’s belief in his moral character earned him the chance to move forward with his difficult domestic agenda.

It is the moral character of the business, in effect, which grows the client base.

lessons for small business

Tenacity, but with Focus

Tenacity is one of my favorite words. It means, “the quality or fact of being very determined.” Particularly when a small business grows quickly, an owner can feel overwhelmed. Leads seem to come in from everywhere, time is sparse, hours are long and simple tasks like paying the bills go out the window. In those times, tenacity is critical, but it must be with focus. Successful small business owners work extremely hard, are determined to pursue their passion which underlies the business and commit the time to doing so. But as the business picks up, time management and the ability to focus on the key goals are critical.

Where should you focus?

  • Cost control and expenses
  • Client relationships and maintaining an on-going dialogue with your customers
  • Follow-up conversations and work on running projects and current initiatives
  • Key strategic objectives that are core to the business

Therefore, continue to pursue important deadlines, client relationships and projects with tenacity, and concentrate on key business objectives if you must do some picking and choosing. If a business is not executing particular aspects very well, it may be prudent to shed them if they are not core to the business. Don’t be afraid to make these types of difficult decisions to retain your focus.

Be Tactical and Smart, or Lose Ground

George Washington is often remembered as the general who crossed the icy, Delaware River on Christmas Eve during the American Revolutionary War. It was a turning point in the morale of the Continental Army and a bold strategic move. He knew that without the element of surprise, his army had no chance against the Hessians.

When I spend time with a new business, I am often caught off guard at how often the team has fallen into a pattern of complacency. The owners have taken a view that it seems to work, or at least it works well enough. Business is humming and no one on the management team has the time to contemplate the next downturn. What revenue streams could be jeopardized?  Should they be bolstering other areas of the business just in case?  On occasion when my company is brought in for strategic planning, I often hear, “Let’s think outside the box.” I always respond, “But, the answer might be in the box.”

Tactical thinking means planning ahead and envisioning scenarios different from the status quo. It means developing initiatives in anticipation of a changing environment often using resources you already have. It does not necessarily mean that the business needs a complete overhaul or change of course.  It does mean that management needs to look at different scenarios and be prepared to act. Let the competition be complacent, like the Hessians, who assumed that the holidays would be a time of rest. Use surprise in your favor and be prepared to move in a different direction even when your competitors do not.

For a great example of the importance of forward, tactical thinking, see the Wall Street Journal article, “Apps are Wrecking Mom-and-Pop Pizza Shops.”

So, this Presidents’ Day, consider whether your business conducts itself with moral character, tenacity and tactical smarts. If you don’t think your company passes the litmus test in any one of these three areas, contact us and we will help realign your strategy.