Small Business Strategies for Success

10 Essential Tips for Starting Entrepreneurs - Ignore these at Your Peril! By Terri Zwierzynski

1. Do What You LOVE: If you’ve chosen your business because you read that this niche was the next hot one, or because your favorite uncle (or your best friend) thinks you’d be well-suited for this business, you may as well pack up now and save yourself some time and money. If you don’t love what you do, it will show…potential customers will know it and will go elsewhere. Is it possible to be successful anyway? Sure — but it won’t be easy and it won’t be fun…and isn’t that why you want to be in business for yourself anyway?

Instead, choose what you love. You’ll know what that is when you find yourself being incredibly productive, forgetting the time passing by, and not being able to wait to get up in the morning to do more! At Solo-E we call that being juiced…but whether you call it being in the flow, or the zone, or whatever, FIND IT!

2. WRITE DOWN Your Business Plan: As a small or solo business owner, you still need a business plan. Even if you aren’t getting a loan! Would you invest thousands of dollars of your own money buying stock in a company that didn’t have a written prospectus? (I hope not!) Then why would you spend thousands of dollars AND hours of your precious time on a business that doesn’t have a written plan?

Write your plan, get it critiqued by professionals, and most important, BE READY TO CHANGE IT. This may seem counterintuitive…why bother writing it down if it’s just going to change? Because writing it down makes it more clear…and helps you get to the next stage of learning and planning and revising. It’s critical–67% of businesses that failed had no written business plan. Want to play the odds?

3. Multiply Your Expected Startup Costs by Two–or Maybe Three: When I started my business, an honors MBA grad with 15 years of solid business experience behind me, I figured I was smart enough to estimate my startup costs accurately. I knew all the things I needed and made conservative estimates and I was still WRONG! That’s right, I was still off by a factor of almost three. Don’t make this mistake! One of the biggest reasons small businesses fail is because of lack of capital. Give yourself the best possible start by saving or acquiring sufficient startup funds NOW. Before you start!

4. Make Your Market Niche as Small as Possible: Again, this is counterintuitive–shouldn’t you try to appeal to as many people as possible? The paradox is that the more you try to appeal to EVERYONE, the less you will appeal to ANYONE. Let’s say you are selling your house…would you rather list it with the agent who operates in 14 counties, sells both commercial and residential real estate, and sells everything from cottages to estates? Or would you pick the agent who specializes in your community, selling only houses in a well-defined price range that she knows extremely well? Ruthlessly define your niche, make it as small as possible, and stay true to it. You’ll thank me later!

5. Do Marketing Your Way: The temptation is to choose all the marketing methods that the competition uses. To stay with tried-and-true marketing channels. To place advertisements that you know nothing about creating, or make cold calls that give you heartburn. Why? Because (all together now) “that’s how it’s always been done.”

It’s difficult to stand out among your competitors when you are doing the same kind of marketing! So instead, look to your strengths. What do you like to do? What are you good at? Then choose three marketing methods that play to those strengths. If you need ideas, check out 136 Ways to Market Your Solo Business, another article at www.Solo-E.com.

6. Remember the Most Important Ingredient in Your Business–YOU: Business-owner: know thyself. Spend some time learning about who you are and how you are unique. Then let that uniqueness shine through in your marketing, in how you run your business, in everything you do. Don’t hide your quirks–celebrate them!

Customers go to small and solo businesses primarily because they are looking for a personalized experience. They want a relationship with you as the owner of your business. If you try to come off as who you think they want, they’ll smell right through that and not come back. Be who you are, and trust that who YOU are is going to be attractive to the right people.

7. Build Your Business by Building Relationships: Being a small or solo business owner isn’t about sitting in the corner alone. Actually it can be–and that isolation is what drives many out of business and back into a “job”. Build relationships to survive! Start with your colleagues–others you know who are at the same stage of business as you, or are farther along and willing to mentor you.

Next, build relationships with potential customers. Ask them what they want! Then create products and services based on their input and come back and show them what you have done. Get feedback, tweak, and maybe make your first sale. Stay in touch with your customers even after they leave you.

Last but not least, build relationships with your competitors. You might be able to do this right at the beginning, simply by asking them for their advice. Surprisingly, many ARE willing to share their secrets if you just ask. Later on, build cross-referral relationships, co-marketing alliances, and other relationships that are win-win for you, your competitors, and your customers.

8. Don’t Accept a Customer Just For the Money: This is probably the hardest advice for new business owners to apply. Especially when there is a job, a project, a potential client, just outside your niche, that could keep your business solvent for the next six months. Don’t do it! Taking on a client outside your niche inevitably results in frustration for you, dissatisfaction on the part of the client, and in the end, usually costs you more than you make. Ask any successful business owner and they’ll tell you this is true!

9. Don’t Do Everything Yourself: It’s so tempting to fall into the self-deception that “it’s cheaper for me to do it myself.” IT”S NOT! If you aren’t good at something, for instance bookkeeping, it will probably take you 2-3 times as long–time you could be spending doing things that are essential for you to be doing personally, like writing your business plan or deciding your marketing strategy. Put sufficient capital into your business upfront so you CAN hire help right from the start. Your business will get off to a quicker start because you aren’t distracted by time-consuming tasks that drain your energy.

10. Assemble Your Support Team: Start with the people who will help you do the things you aren’t good at. Some examples: bookkeeper, marketing writer, web designer. Then add the people who give you professional business advice: a lawyer, an accountant, a business coach. Finally, include the people who support you personally: your family, friends, and colleagues.

Don’t forget to be part of other’s support teams, too. Share your expertise at Solo-E, start a networking group where business owners support each other, share a referral with a colleague. Solo Entrepreneurs supporting other Solo Entrepreneurs is what will make us all successful!

Copyright 2004, Terri Zwierzynski, Accel Innovation, Inc. 

Terri Zwierzynski is dedicated to the success of lifestyle-inspired Solo Entrepreneurs. She is the CEI (Conductor of Extraordinary Ideas) at http://www.Solo-E.com and the author of 136 Ways To Market Your Small or Solo Business. Terri is an MBA honors graduate from UNC-Chapel Hill, and has been working with solo entrepreneurs since 2001. You can reach Terri at http://www.TerriZ.com

Find more articles like this at http://www.Solo-E.com, the lifestyle-inspired online learning and connection community. Visit now to receive a free copy of our special report, The Four Secrets of Solo Entrepreneur Success, plus a complimentary 30-day membership.

The 20 Sins of Leadership - Behaviors Great Leaders Avoid - Phillip Van Hooser

Have you ever wondered why some well-meaning individuals fail so consistently and miserably in their attempts at leading others? They may occupy important positions, and their titles may give rise to great leadership expectations, but somehow they never seem to deliver the goods when it comes to actually inspiring and leading others. Instead, they depend on the power of their position the ability to tell someone what to do and then expect that it will be done to get others to perform as they should. For such people, leadership is essentially a myth.

What is it that stands in the way of otherwise intelligent, motivated people realizing their full leadership potential? To find out, I conducted my own research asking audiences nationwide one simple question. If you could tell your supervisor/manager one practical thing s/he needs to know about leading people, what would it be?

The question itself is harmless enough. Yet, the comments it evokes have far reaching organizational impact for leaders. From the hundreds of responses I have received since initiating this research, have come what I call “The 20 Leadership Sins.” As you review this list, consider your own tendencies and see if your actions are silently sabotaging your leadership growth and development.

1. An Obvious Lack of Self Discipline.

Make no mistake about it. Followers are very attentive to the words and deeds of their leaders. From personal observations, followers determine what the truly important and acceptable behaviors are within the organization. If store cleanliness is a stated priority, does the leader maintain an orderly work area? If punctuality is important, is the leader always where he is supposed to be, when he is supposed to be there?

2. Using Poor Judgment.

Some leaders lose their ability to lead because of temporary lapses in good judgment. They act or speak before they think. They decide before all the facts are in. They allow emotions to control their actions.

3. Being Insensitive to the Needs of Others.

How did you feel the last time a manager came to you and asked for time off for “personal business?” Did you secretly feel that maybe she was trying to take advantage of you? Did you inwardly question her commitment to the corporate mission? Did you wonder, even for a moment, about her personal motivation? More importantly, how did you respond?

Did you say, “Jane, I don’t really see how we can afford to have you out right now, with the trade show bearing down on us? You’d better try to make other plans.” Or was your response just a bit more in line with her needs, “Jane, you know that it’s a busy time, and you know better than anyone else what needs to be done before the trade show. But, if you need some time off, of course you can have it. Just let me know what I can do to help you out on this end.”

You can be sure that Jane will monitor your response just as carefully as she monitors her monthly sales figures. If she senses a since concern on your part, her attitude toward you and ultimately, toward the organization, will be different.

4. Being Too Strict or Too Lenient.

Extremes of any sort can be deadly to aspiring leaders. The wisdom to recognize the appropriate times to “loosen up” or to “tighten down” is key. Too strict and followers perceive you as being heavy handed and authoritarian. Too lenient and they become frustrated with the lack of structure. Work to get input from your employees whenever possible, and then manage the agreed upon structure by holding everyone responsible for their individual behaviors.

5. Being Cold, Aloof or Arrogant.

As any impartial observer would conclude, such attitudes on the part of leaders tend to drive them from, rather than drawing them to, their followers. How can we reasonably expect our employees, our followers, to respond to our leadership if we have not made every effort to let them know that we are there for them?

6. Doing Too Much and Leading Too Little.

Often it is easier to do it yourself! But that’s not the job of a leader. A leader must be able to show her followers that she is willing to do what is necessary to help, while keeping in mind the true responsibility of the position. Remember, the successful leader is not the one who can do the work of ten followers; the successful leader is the one who can get ten followers to work!

7. Promoting the Impression of Favoritism.

If the truth were known, most of us would admit to having favorites. Our favorite employees are usually the ones who consistently make our jobs easier. Yet there is a major difference between having favorites and showing favoritism. Every employee expects to be treated fairly and equitably by their leader. We must be ever so careful to meet those expectations.

8. Betraying Individual Trust.

It’s hard enough to earn the trust of another. It’s harder still to reestablish trust once it has been lost. Be men and women of integrity. Don’t make promises you can’t keep. Maintain confidentiality. And by all means, if you tell someone you will do something ¬do it! These critical tasks are the nucleus of maintaining a high level of trust between leader and follower.

9. Holding Grudges.

A strong argument could be made that grudges are the equivalent of cancer to leadership. Lingering grudges which are not addressed or dismissed in a timely fashion usually destroy the delicate fabric of leadership. Why? Followers are fearful that their mistakes and shortcoming, even those committed years before, are never really forgiven and certainly not forgotten.

10. Micro¬managing.

Leaders do well to remember that there is more than one way to successfully complete most jobs. The process of incessantly probing, questioning, analyzing, criticizing and second-guessing every decision made or action taken by followers can eventually lead to a predictable, “well, why don’t you do it yourself” attitude.

11. The Inability to Think Strategically.

Employees like to know there is an organizational master plan in which they are playing a part. If leaders are unable to communicate that plan to followers, or if followers don’t recognize the significance of their contributions, individual motivation can be lost.

12. Staffing Ineffectively.

The best leaders have learned the importance of surrounding themselves with capable, determined followers. During this period of historically low national unemployment, some argue that it is all but impossible to find good employees. There’s no question that it is a challenge. However, the best organizations recognize that to be successful, you must hire for attitude and train for skills, not the other way around. They dedicate the time and resources necessary to identify and retain the best suited employees.

13. Unwillingness to Adapt.

Let’s face it. Not everyone thinks, acts, reacts or works the same way. People are different, yet we still have to work with them. The leader who makes a special effort to understand the differences in his followers is the one that employees tend to rally around.

14. Reflecting Poor Attitudes toward Organizational Policies and Procedures.

Like it or not, the attitudes and behavior of followers are often a mirror image of the exhibited attitudes and behaviors of their leaders. Leaders should never express their disapproval or contempt for internal decisions, policies or procedures to their followers. If concern needs to be voiced publicly, make sure it is directed toward someone who has both the position and power to adequately address the problem. Complaining opening to followers, or even peers, can unfortunately reduce an otherwise respected leader to the status of whining malcontent.

15. Establishing Unclear or Vague Parameters.

Some of the best leadership advice I ever received was simple and straightforward. A leader may not always be able to predict what their followers will do, or say, or think. However, employees must always be able to predict what their leader will do, or say, or think. As a result, followers will be able to adapt and adjust their behavior to that of the leader. Simple, but effective.

16. Failing To Act When Necessary.

This may be one of the more common stumbling blocks of effective leadership. Most of us dread conflict and confrontation. We avoid it as long as possible, hoping that the problem will simply go away. Does it? Of course not. Usually the problem grows and festers during our period of procrastination. The most effective leaders act when they know they should.

17. Offering Personal Advice.

My advice on personal advice? Don’t give any. Your followers might just take it. If they do, and your advice does not prove to be wise counsel, who do you think they will blame for their new found challenges? There are enough problems associated with being an effective leader without creating unnecessary ones. Encourage followers. Praise followers. Correct followers when necessary, but leave the advice giving to Dear Abby.

18. Being Overly Ambitious.

Our society revels in success stories. The rags to riches, Horatio Alger stories are inspirational for all of us. But being too ambitious can be seen as a negative by your followers. Remember there are two ways to get to the top. First, I am sorry to say, you can get there by climbing over people. Most of us know a few people who have chosen that approach. However, dedicated leaders know that there is an alternative route to the top. They know you can also get there by being lifted up by people. I ask you, which of the two approaches has the firmer foundation?

19. Allowing Performance Problems (Their Own or Others) to Continue.

As Cavett Robert said, “School is never out for the professional.” We cannot and should not be satisfied with average performance. Leaders must demand more of themselves before they can legitimately expect more from their followers. Take the time now to identify performance areas you can and should improve. Then commit to doing it!

20. Allowing Their Position to Go to Their Head.

Power and position can be an awesome combination. When individuals are placed into positions of leadership and responsibility, one of two things normally happens. They either grow or they swell. Growth is normal. Growth is good. Swelling on the other hand is the first step before something bursts and rots. I think you get the picture.

No one said that leading would be easy. Heck, if it were, everyone would do it. But for now, the responsibility falls to those of us willing and able to work to become better leaders.

Phillip Van Hooser is a leadership expert and best selling author. His management training system, The Leadership Journey, have been used by companies all across the U.S. and beyond to help their people become more successful leaders. When his strategies are implemented, organizations and individuals experience lower turnover rates and higher productivity, enjoy improved management/employee relations and understand how to motivate today’s “new breed” of employee. For more information, please visit http://www.vanhooser.com

10 Commitments to Profitability By Janet Boulter

Commitment isn’t as popular today as instant success. But without commitment, short-term success isn’t guaranteed, and without commitment, long-term success is impossible.

To accomplish the strategic direction for your company while building value in your organization there must be a consistent focus on the “shared vision” and an agreement on the mission of your company. Commitment helps produce the focus necessary to generate the resources and time to accomplish goals. Continually communicating to your employees, vendors, clients and shareholders that your management team is committed to accomplishing the corporate goals creates energy, enthusiasm and a spirit of teamwork organized around measurable results. To create and sustain long-term profitability for your company, focus your organization on the “10 Commitments to Profitability.

1. Craft visionary strategies. Every organization has to have a road map to know where they are going and how they plan to get there. When conducting your strategic planning make sure you focus on the short-term but plan for the long-term. Too many companies focus solely on managing the efforts of the short-term revenue goals and they tend to lose their focus on their long-term targets. Strategies are created for the long-term (5- 10 years) and your business plans are implemented for the short-term (1- 3 years).

2. Adhere to Core Values.

Every organization should have well defined core values which serve as their guiding light. These values should be woven into every aspect of your organization and all company policies, procedures, and programs should reflect them. Continually communicating these values with your employees, your customers, vendors, and consultants will help make sure everyone is committed to ethical business practices. Core values are the foundation for your organization and should be integrated into every business strategy.

3. Build a Strong Reputation 

You company’s reputation is your most valuable asset and fortunately you have control of what you create. Reputations are dynamic and everyone in your organization is responsible for maintaining it to the standards that have been defined by your core values. One bad incident can destroy years of good will with your customers and your employees. On average if a person has a bad experience with a company they will tell 10 people and with today’s technology of blogs and message boards that bad experience can reach millions of people in just minutes. The most profitable companies have the highest percentage of repeat customers and those loyal customers are cultivated through a strong reputation.

4. Focus the Spirit of Competition.

We all face competition and if managed properly competition is an excellent motivator for your organization. The key is to use your competition to drive excellence in your own organization. It is always more profitable to focus on your organization’s strengths, products, differentiators, market share, branding, industry position, etc. than trying to react to your competitors strategies or initiatives. Work with your customers to define what they want from your organization, what they value, and what they perceive you could do to improve - and leave your competition to keep up with the standards and services your organization has created.

5. Integrate Quality at every level.

There never has been and there never will be a respectable business model that justifies compromising quality to reduce costs. There are a myriad of companies who have sacrificed the quality of their products and services to improve their short-term profitability, only to lose valuable and often irreplaceable market share. Today’s profitable industry leaders are growing their companies through their customer loyalty programs which are focused on their continuing commitment to improving the quality of their organizations on every level- at every opportunity.

6. Inspire Innovation and creativity.

These two factors are the key drivers of growth in your organization. Many organizations today- still adhere to a very strict silo-type, vertical management structure which severely hampers the ability of your employees to contribute their ideas, suggestions, process improvements, etc. By creating a culture that encourages and respects employee contributions you can continuously outpace your competition and reduce employee turnover.

7. Cultivate Client/Customer Relations.

Your organization would not exist without your customers/clients - and yet most companies treat this valuable asset so poorly it is a wonder they still have business. The word “cultivate” implies - continuing to improve and the word “relations” implies building a connection. A commitment to developing long-term customer relations - should always be a core value for your organization.

Studies show, people who have had a good experience with a business will become repeat customers 70% of the time. People who experienced a problem with a business, but the problem was handled to their satisfaction became repeat customers 90% of the time. Since your most profitable customer is a repeat customer, make sure you have policies in place to keep your customers satisfied.

8. Emphasize the “human” in resources.

Creating a culture where employees feel valued and feel they make a contribution is the number one reason people cite for staying with a company. One of the fastest and most effective ways to erode your profitability is with high employee turnover. The cost of replacing an employee is on average more than 3 times the exiting employee’s salary plus benefits. That figure does not include the value of the intellectual property and relationships that the employee took with them. You also lose valuable time in new-hire training. On average it is a minimum of 6 months before a new hire- is fully engaged in their job and closer to a year before they are making measurable contributions.

9. Manage your technology and infrastructure productively.

We live and work in a fast paced world- and the pace of change will only continue to accelerate. With all the new technologies available today - it is imperative that companies manage their resources more closely than ever before. When considering investments in your technology and infrastructure focus on the long-term productivity savings and benefits rather than the short-term expense. Too many companies lose business by not upgrading when appropriate and too many companies lose money by upgrading more often than necessary.

10. Be Proactive.

Adopting a proactive strategy saves time, energy and creates “goodwill” with employees, customers/clients, vendors and the community. Nine times out of ten being reactive is only prolonging the inevitable - and doing so will result in higher costs, lower productivity and lost valuable customer/clients relations. Building your reputation on “doing right” rather than “being right” will always lead to increased profitability.

Being in business today is fun and challenging. When planning for the future create five to six BHAG’s (big, hairy, audacious goals) and then craft your growth strategies around these goals. The key to long-term, sustainable profitability is to build in flexible milestone to allow for adjustments in the economy, your industry, and changing market conditions. If you align your business strategies based on the ten commitments . . . . . . you will create a company “built to prosper.”

As business reconstructors, Center Consulting Group specializes in working with businesses and organizations focused on improving their business practices. Proven results include increasing profits, reducing employee turnover, increasing client retention, and improving quality and productivity through strategic initiatives. Services offered: consulting, training, seminars, and keynote speeches.

For more information please contact: Janet Boulter (303) 368-9954 or jboulter@centerconsultgroup.com. Website: http://www.centerconsultgroup.com