Archive for the ‘Startup’ Category


What Color Should Your Logo Be?

Small business owners fret over what their logo looks like. They want it to be clean, cool or fancy. What they should really focus on is how it makes a customer feel since logos play a large role in their purchasing decisions. Researchers at the University of Amsterdam found that children as young as two years old could recall a logo and its product 67% of the time. By eight, 100 percent of children tested could associate the logo with the product.

???????????????????????????Brand logos are valuable property because they evoke emotions connected with buying. For the first time in the history of Interbrand’s Best Global Brands report, Apple was the top brand. Google jumped to number 2 and Coca-Cola, the brand that held the number one position for 13 years was number three. The total value of all 100 Best Global Brands was $1.5 trillion with the Google brand logo being worth over $100 billion alone.

According to a new research at Financesonline.com, colors evoke a specific emotional response from a customer. This is important since 75% of all buying decision are emotional.

Here are what specific colors mean:

Red means active, passionate, trustful, love, and intensity. Think Coca-Cola and Target. Red Bull wants customers to see their brand as intense and active.

Yellow means energy and joy. Think Ferrari, Shell and Best Buy. McDonalds wants customers to associate their brand with happiness.

Orange means creative, determined, joyful and the beach. It can stimulate mental activity. Think Fanta and Firefox. The Home Depot wants to help its customers be creative in the Do-It-Yourself market of home construction and repair.

Pink is often associated with feminine brands. It means love, warm, sexuality and nurturing. Think Barbie and T-Mobile. Oprah’s Oxygen network is aimed at women.

Blue means depth, stability, calm, trust, comfort, and reliability. Think Samsung, IBM, Intel, GE and Ford. When a customer buys from Nextiva, they know that their office communications will always be reliably delivered.

Green means relax, peaceful, hopeful and natural. Think Starbucks and BP. Heineken beer wants their customers to feel exactly this way.

Brown is associated with the Earth. It means reliability, support, dependability and grounded. Think Godiva Chocolate and M&Ms (at least the brown ones). UPS has become synonymous with this type of consistent reliability.

Black means formal, mystery, bold, luxurious and serious. Think Blackberry. Customers shop at Tiffany’s for that special occasion.

A logo should not just be “pretty or cool”. Determine what feeling do you want your brand to evoke? Choose your colors wisely.

Barry Moltz helps get small businesses unstuck. His new book, “How to Get Unstuck: 25 Ways to Get Your Business Growing Again” is now available. 


Are You Keeping Score?

Stocksy_txp79d51f4dtW4000_Small_126195Some business people want to prevent losing by not keeping score, by ignoring the results, or by constantly moving the targets.

When my sons were introduced to baseball as small boys, the league prohibited officials from keeping score because they did not want the children to become too competitive at such an early age. League leaders wanted to emphasize the spirit of playing the game and having fun over winning or losing.

This did not work out the way the league planned. All the children on the team who knew how to count were keeping their own score. They knew who was winning! More importantly, they understood that a key part of the game is knowing how to win and to lose.

In winning, you can celebrate with your team members. You are elated because your hard work achieved the goal. In losing, you console yourself along with the team. The next steps are to learn what to do better, shake it off, and vow to return the next time to try again.

It’s important to know the score and declare winners and losers. A recent Ohio High School Hockey championship game was halted after seven overtimes and a 1-1 tie. State officials declared co-champions which angered a lot of players and fans. There was no postgame trophy ceremony because there was only one set of championship hardware. The players took turns posing for pictures with the lone trophy. In ended in a totally unsatisfying experience for both teams.

Many small business owners move their stated targets and goals so they don’t have to admit defeat. This happens during the budgeting process. The company will set a financial goal for the year, but when they start to miss this target, they change the budget. They hate to be wrong so they move the goal to a place they can make it. Similar, objectives are established for employee bonus pay, but when the target is missed, some companies award them anyways because of effort.

Both these examples defeat the purpose of setting a budget or establishing a bonus. Business people learn quickly that winning is a lot more fun and profitable. Learning what it feels like to lose is critical because that will incent everyone involved not to repeat it.

If your company never loses, how can they really appreciate winning?


Work Your Biz Wednesday: 4 Ways to Kickstart Your Marketing Efforts

Marketing your small business doesn't have to be difficult! Here are 4 ways to jump start your marketing plan and boost your revenue from the Small Biz Lady, Melinda Emerson.


The Small Business Advantage to Snagging the Best Employees

One of my contacts worked for a young, growing company that paid top dollar for software engineers in preparation for the day that they would be needed to meet client demand.  When she expressed concern about the overspending, one partner told her that if she was in charge, the company would be defunct in a year.  Six months later, their doors closed forever.

That partner was not wrong in recognizing the need for exceptionally-skilled workers.  The error was in seeing spending as the only way to attract and keep the best talent.  Large corporations may have ready cash to pay top wages and benefits, but small business owners can attract and keep the finest employees through their entrepreneurial spirit.  Here are some great ways to get your workers involved in your business vision and develop a relationship that few big businesses can match.

Offer Creative Compensation

Economic downturns may create a buyer’s market for hiring, but that doesn’t mean that the most skilled applicants will agree to take a position that offers substandard incentives.  You may not have the funds to pay a top salary when making an offer — or even when it’s time for an annual review.  But as a small business, your company can offer achievement-based bonuses that can really motivate your employees while increasing your revenues.  So, when certain sales reps are responsible for accelerated sales or when engineers enhance a product to make it more attractive to the marketplace, make sure that they receive their fair share of the profits.

Encourage Active Involvement in the Company

Choosing to work for a small company carries certain inherent risks, but it also offers benefits that cannot be matched by working for a huge organization.  When you welcome and act on employee ideas and suggestions, your employees become partners who recognize their unique value to the company as they work alongside you to realize shared goals.

Make sure to listen to their feedback and acknowledge them too- the value of these soft incentives is highly underrated—not to mention easy for small business owners to embrace.

Give Employees the Power to Spread Their Wings

I know a writer who worked for many small software businesses, enlisting her full creativity to develop low-cost, but award-winning manuals.  When she moved to a large company, she vehemently complained that she no longer wrote documentation, so much as manufactured it in accordance with strict, detailed procedures.  She didn’t last long in this position.

Big businesses need to put their employees in specific boxes and keep them there to get their allotted portion of the job done.  As a business owner, you know that one of the greatest rewards comes with seeing a project through from beginning to final results.  Employees can feel that same sense of satisfaction and accomplishment — if you empower them to take on this type of challenge.  As they stretch their abilities, be available to provide upfront and ongoing guidance as needed, but give them latitude to do it their way.  As their abilities grow from new experiences, their investment in the company’s interests will grow as well.

Praise in Public

??????????????????????????????????????A job well done deserves praise and your employees never mind being called to your office to receive your personal kudos.  But when employees receive your commendations at a company meeting or in front of a customer who benefitted from their hard work, they clearly see their true value.  Naturally, public praise helps inspire all employees, but it also lets your customers recognize how the depth of your products and services helps them get the attention and consideration they deserve.

Promote from Within

When a key position opens up in your company, always look first to the members of the team that work hard for you every day.  Granted, some positions require very specific educational requirements not available in your organization, such as a degree in accounting.  But remember that your staff members already have a solid foundation and a deeper understanding of your company culture and how things work.  You probably have to spend time and effort training employees in new concepts and procedures.  Or, they may need to take a class or two to obtain additional knowledge.  But you can’t teach loyalty and dedication, and these traits grow even more when you reward them with advancement.

No large company can match the excitement employees experience going in to a job where they know that they make a vital difference every day.  As their efforts help grow your business, make sure you help them continue to grow as well.  


Where Small Businesses Are Stuck in 2014

During the course of their career, every small business owner gets stuck. The key is to know where and how to get unstuck.

My annual survey of 5,000 small business owners identifies the problem areas. Here are a few excerpts:

  1. Treating their company like a job. The Survey: Over 40% of owners do whatever customers need in order to earn money for their business. This does not allow them to strategically ramp up a profitable business. The Solution: Don’t take every piece of work offered by a customer. Focus on what the company is good at and get more of that profitable business.
  2. The daily plan gets interrupted when entering the office. The Survey: 53% don’t have a plan for their day or it gets destroyed when the start work. The Solution: Before opening email, voice mail or social media, do two important tasks that will make the day productive.
  3. Stocksy_txpe7f75a0ezH4000_Small_41935They never take a break. The Survey: Over 50% said they are too busy to take a break and always have their phone near them. This is because they have a fear of getting left behind. The Solution: Find a daily place without a smartphone where personal batteries can be recharged and let creativity flow.
  4. They fear failure. The Survey: Over 40% said that failure is not an option. They fear it so much that they stop taking risks in their business. The Solution: Accept failure. Learn something. Let go of that failure and take another action to get to another success.
  5. They are afraid of selling. The Survey: 41% are either afraid of rejection or not sure how to build a relationship with a prospect. 59% said that they are too busy servicing existing customer to find new ones. The Solution: A company can’t really sell anything to anyone. They need to be there when customers are ready to buy by executing a daily systematic marketing plan.
  6. They stop marketing as soon as they have sales. The Survey: 58% only market their products when they do not have sales. They also believe their products are so superior that they do not need to market them at all! The Solution: Execute a systematic marketing plan through content marketing on a weekly basis.
  7. They don’t know how to use or have stopped with social media. The Survey: 54% either do not have a social media strategy or have stopped using it. The Solution: Social media is part of promotion. Use it to form relationships by providing help to customers, prospects and connectors.
  8. They let poor performing employees stay. The Survey: 53% never fire employees since it is too uncomfortable or they are too loyal. The Solution: Be slow to hire and quick to fire. Find the team that makes the company profitable. Fire anyone that does not add productively to the company.
  9. They don’t ask for help. The Survey: 44% never ask for help because they believe they have to figure it out on their own. Many others are unsure of who to ask for help. The Solution: Find a formal or informal group of advisors and mentors to answer pressing questions. Do not go it alone!
  10. They allow personal smartphone usage at work. The Survey: 74% do not monitor personal use of smartphones which can destroy company productivity. The Solution: Have a written policy that personal smartphones are not to be used during work except in emergencies.

Bonus: They rarely review their financial statements. The Survey: Over 20% never look at their financial statements because they are hard to understand. The Solution: Get trained to understand every line of the company’s financial statement. Review them monthly.

Tell me where you are stuck!


How to Get In Bed with Your Banker

Stocksy_txpf799c772Ea3000_Small_104560Most small businesses still need banks. They provide valuable financial services daily for companies. Banks can still be a major source of capital for the promising business. How do you make sure that they are there when you need them? Get your business in bed with your banker! While this many not conjure up a pleasant image, it must be part of the strategy. Getting the banker to know your company’s capital requirements must be established far in advance of when you may need them. Here is what to do and why it works:

Establish yourself as a customer. Open checking and money market accounts at the bank. Use their merchant, ACH and wire services. Pay fees to use their services. Why it works: Bank employees are trained to help customers and you want to part of that group as soon as possible.

Go into the bank weekly. Be seen at the bank and get to know the branch manager and key staff. Visit at least a few times a month. Talk to them about the bank, their family and your business. Why it works: People do business with other people they know, like, and trust.

Participate in common community events. Go to the events that the banks sponsors locally. Show support for their causes. Get on joint committees. Why it works: You can demonstrate what it is like to work with you and share a common goal.

Share the progress of your company. Sit down with loan officers before capital is needed. Show them your sales and profit projections. Impress them with your knowledge of the financial statements. Revisit them when you make progress toward your goals. Why it works: Numbers are power. They are easy to take to a loan committee. Bankers trust business people that understand them.

Get a small loan. This may be a home equity loan (or similar secured asset) to be used by your company. Pay the loan back on time and then try to increase it. Why it works: This builds a reputable track record the bank can reference.

Keep your personal credit score high (as well and Dunn and Bradstreet number). Bankers like numbers that increase. Why it works: A high credit score will show that you can be trusted to borrow money. They believe that past performance predicts the future.

Bring more customers to the bank. Everyone loves referrals. Be responsible in helping the bank grow their business. Why it works: If you help them, they are more likely to help you.

Go for the big ask: It’s time to apply for the bigger loan for your company. This can be a term note or line of credit. Why it works: Because the bank now trusts you and your company.

How have you got a banker in bed with you to get a loan?


Work Your Biz Wednesday: Resources for Women

Whether you're a woman just starting out in a new business or you're established and looking to grow, it's important to educate yourself about any resources that can help your small business.


3 Ways to Sink the Sale of Your Company

??????????????????????????????????????Many small business owners dream of selling their company for a huge profit. After many years of hard work, they finally found the right buyer to acquire their company. After negotiating business terms, they signed the letter of intent (LOI). Now comes the tough part: collecting all the due diligence information and having the lawyers on both sides negotiate a final purchase agreement.

Here are the three ways that sink the sale of any company:

1. Pressure from external parties. This can be from overly aggressive lawyers arguing over largely irrelevant legal terms on the purchase agreement. One lawyer in a deal I was involved wanted to know what the seller’s responsibility would be if “the sun exploded”. Remember, in the sale of most small businesses, the only terms that really matter are the upfront sale price, sale payment schedule, representations and warranties. Many times, the seller’s accountant insists on charging added fees to give financial statements to the perspective buyer. One accountant even wanted a lump sum “research fee” for the client to collect all their historical records. It is common for the landlord to approve the transfer of any leases. They sometimes charge a steep “transfer fee” for their approval. Regulatory agencies with licensing requirements can also mean a delay of months. The remedy: Make sure that to have a lawyer that is familiar with small sale transactions. Collect all the information from the accountant up front for due diligence. Seek outside regulatory agency approval far in advance of the completion of any transaction.

2. Inconsistent financial numbers or other changing “facts”. All financial statements tell the company’s story. If during due diligence, this story changes, and then it will raise questions from the buyer.  Weaker numbers (specifically profitability) that differ from those provided in the LOI will always result in a price reduction. Additionally, changing “facts” may get the buyer nervous. This can be in the form of profiles of customer concentrations, revenue trends or employee status. The remedy: The small business owner always needs to know what story they are telling with every fact disclosed and explain any difference in the narrative.

3. Sellers or Buyers changing their mind. This happens very often. The seller decides that they don’t want to sell their company. The reason they give now is the sale is not enough money. More than likely, they are afraid what they will do with their time a day after the sale. The buyer sometimes has a change of heart on how the new business will fit into their company or “what they thought was true now isn’t”. The remedy: As a seller, the small business owner must determine what they will do the day after the sale of the company before they decide to sell it.

Barry Moltz helps small businesses get unstuck. His new book, “How to Get Unstuck: 25 Ways to Get Your Business Growing Again” is available in March. Barry can be found at www.barrymoltz.com


Work Your Biz Wednesday: 5 Things I’ve Learned

Happy 15th Anniversary to the Small Biz Lady, Melinda Emerson! Check out her list of the top 5 things she has learned over the years, and follow her on Twitter at @SmallBizLady.

From March 5-25, Melinda is giving away a prize every business day to help support your small business venture! Apply to the "15 Days of Giveaways" contest today at www.succeedasyourownboss.com!

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