Posts Tagged ‘SMBs’


How David Can Win Against Goliath Competition

Many communities argue against big companies like Wal-Mart moving into their areas because they believe that these big corporations will eradicate local mom and pop stores. Granted, big, burly businesses can intimidate their smaller counterparts. But David brought a slingshot and a bag of stones to the battle. Then, he found a hole in Goliath’s armor and brought him down with a single stone. The “David’s” in the small business world are small but limber. By recognizing the holes in large competitors’ armor, you can turn your business into an effective slingshot that earns its own piece of the pie.

Smaller Can Be Better

????????????????????????????By necessity, most large companies require vast amounts of red tape to do anything out of the norm (and often, things within the norm too). They may have more employees, but each one performs a specific task, following the company rules every step of the way. In other words, procedures, overhead and red tape all mark major holes in the big business armor.

Your small business is nimble. It can turn on a dime to respond to unique customer needs. You can shuffle your priority list to place a last-minute rush consulting project at the top of your list. You can even personally drive an emergency widget order after receiving a call to your cell phone from a frantic customer on Sunday. You are in complete control of the level of service that you provide. Your hands are not bound by red tape and that allows you to provide superior service.

Offer Value Over Low Prices

Small businesses can recognize and embrace the difference between low price and value in your customers’ eyes. Behemoth competitors like the big box stores and large banks may offer better prices, but low cost is not the best way to compete, especially for attracting loyal customers who aren’t swayed to switch companies based on the latest and greatest discount.

Customers will pay more for superior service and products. For example, you can provide additional value by offering products made in the US, beautifully packaged products, services with enhanced customer service support and more.  You, as a small business owner, are uniquely able to compete on value.

Own Your Special Niche

Why would anyone want to open a coffee shop that competes with Starbucks, a company that clearly does no wrong anywhere in the world? Not so fast: in 2000, Starbucks closed 61 of the 84 stores they opened in Australia because they failed to compete with the small independent shops! They could not adjust to local market demand.

Starbucks may offer everything related to coffee, but their in-store drinks and atmosphere currently do not match the experience of the smaller shops. Like the Italian model (a country that boasts no Starbuck stores, by the way), the Australian independents offer quality over quantity — a niche that local customers want.

As a small business owner, you have the luxury of getting to know what your customers really want. Whether you provide green products or services, custom-fit the clothes sold in your store or even drive customers home on a rainy day, you can craft a differentiated selling point. Make sure that potential customers know the qualities that make your business unique and that existing customers love those points of differentiation so that they can spread the word.

Form Alliances with Other Small Businesses

Goliath competitors may have the resources to offer a full range of goods or services that you find hard to match, but you don’t have to go it alone. Networking is a powerful tool that can address the convenient, cost-effective solutions that busy customers need.

Your print shop may offer high-quality, reasonably-priced services, but perhaps it does not sport the excess real estate that allows big bruiser shops to warehouse customer brochures — often for a hefty price. But you can negotiate storage discounts with a local facility so that you can handle your customer’s printing and storage needs at a lower combined price than the competition offers.

Alliances definitely help you give customers the full services that they need. But they can also expand your customer base through referrals from your small business network. One call to your local Chamber of Commerce is a great way to set out on the road to valuable alliances.

There’s Room for Everyone

As a small business owner, you don’t need to fear major competitors. There’s plenty of room in the marketplace to provide business opportunities for businesses of all sizes. By identifying the holes in their armor and taking advantage of your unique strengths, you can carve out your own business success, even if Goliath & Associates is right across the street.


What Is the Ice Bucket Challenge for Small Business Owners?

Doing_the_ALS_Ice_Bucket_Challenge_(14927191426)Have you taken the “Ice Bucket Challenge”? It challenges friends to put a bucket of ice over their head or donate $100 to the ALS Association. The rules state that within 24 hours of being challenged, participants need to video record themselves by accepting the challenge followed by pouring a bucket of ice over their head. The participant then challenges others on that video. As a result of this viral phenomenon, the ALS Association has received $31.5 million in donations during the past month. 

What would the small business version of the Ice Bucket Challenge? Consider these for yourself:

“The Cash Flow” Challenge: You only have $1000 in the bank on Monday to keep running your business until Friday. Help to beat this challenge: Learn how to read a cash flow statement every month so there are no surprises.  If cash is low, isolate the expenses that need to absolutely be paid or it will drive you out of business. Be direct to vendors and employees about when they can expect to be paid.

“The Customer Satisfaction” Challenge: Your top customer is dissatisfied and is threatening to leave your business. Help to beat this challenge: Listen fully to what the customer has to say. Ask them what the best solution to the problem is. Follow through to a resolution and report back to them on the results.

“The Key Employee Left” Challenge: A key employee just quit and now you have to replace them in 24 hours. Where do you look to replace them? Help to beat this challenge: Always ensure that your employees are cross trained so if one leaves, another can do that job for at least a short time.

“The New Version of Your Product Doesn’t Work” Challenge: You announced a new product, but the latest test show it does not work. You have thousands on backorder. Help to beat this challenge: Isolate what is wrong with the product and what can it be fixed in a reasonable amount of time. Take any other functionality out and notify backorder customers when a product can be shipped.

“The 16 Hours of Work Needs to Get Done in 24 Hours” Challenge: You have a huge pile of work to get done today that will take a lot longer than you have. Help to beat this challenge: First decide what not to do. How will it really affect the business if the work was done tomorrow instead of today? What two things must get done today that are critical to the company?

What would your small business challenge be?


How to Define & Refine Your Elevator Pitch

Stocksy_txpb08fd375357000_Small_170332First impressions really do matter. Think back to the last time you attended a networking mixer. Did you have a quick and smooth response to the question, “What do you do?” Or did you stutter and stumble over your words, finding it difficult to explain your business? If it was the latter, it’s time to define or refine your elevator pitch.

First, What Is an Elevator Pitch?

Consider it your verbal commercial; it’s how you explain what your business does and how it can benefit the person you’re talking to. Typically you can get it all out in 30 to 60 seconds. Any longer, and you will bore your audience.

What’s Wrong With Your Current Pitch

Think about the response you get with your current elevator pitch. Do people look confounded when you try to explain what your business does? Do they look around the room, bored and ready to escape? These are clues that can help you understand what needs to be fixed with your current spiel.

Your audience doesn’t care what you think is great about your company. They care about how it can help them. So if your current pitch is focused on the features of your business and not the benefits to your audience, you’re not succeeding in connecting with your audience the way you need to.

Perfecting Your Pitch

Now that you know what’s wrong with your old pitch, toss it aside and start brainstorming on your new one. Essentially, your elevator pitch should have these three components;

  1. The problem you solve for people
  2. How you solve it
  3. What makes you unique

Now, that doesn’t mean you have to be boring in addressing each point. Some of the most successful elevator pitches begin with a thought-provoking question, like:

Could you stand to make more money?

Tip: make the question an automatic yes to get your audience in a receptive frame of mind. Make it an obvious question to answer; who would answer no to the question above?

Next, look at where your audience is coming from. If you’re at a small business networking meeting, probably every small business owner is there to find potential customers.  Knowing this, you can move on to that pain point:

I’m Melinda Emerson, the “SmallBizLady,” and I help small businesses like yours bring in more money.

Now you’ve really got their attention. You’ve latched on to a problem they have, and now you’ve told them you can fix it. Now they want to know how.

I do that by looking at what’s not working in your business, helping you fix it, and guiding you to find new customers.

Now, I could have said that I offer marketing consultation services, product development, and marketing analysis, but I didn’t want my audience’s eyes to glaze over. They want the big picture: I can help them make money. How I do it is a conversation we can have one-on-one if they’re interested.

If you’re speaking to a crowd, you can also tell people how to find you. Typically mentioning your website is sufficient.

Don’t be afraid to have several versions of your elevator speech, especially if you meet with different groups. Tailor it to fit your audience.

How to Find Out if It’s Working

The best way to measure the success of your elevator speech is to gauge reactions. If people are engaged when you speak, you’re doing a good job. If they come up afterward to ask questions, even better. You want your elevator speech to be a teaser that makes people want to exchange business cards and learn more about what you do.

Armed with your new elevator speech, you’ll be ready to knock ‘em dead at your next networking event!


Nextiva Customer Success Story: Fanology Social

The vibrant team at Fanology Social spends their days helping their clients form one-to-one relationships with fans across social media platforms. The award-winning digital content agency works with celebrities and big brands across the country including Toyota, Mini Cooper, Ashley Tisdale, Waka Flocka Flame, and Shay Mitchell.

We met with Richard Janes, CEO of Fanology Social in Los Angeles, to learn about how his company uses their phone system on a day-to-day basis.

“We’re in social media, so the biggest thing for us is talking to people and having those conversations,” explained Richard. “So if your phones don’t work and they’re crackly…we’re in trouble.”

Once a small team of only 3 employees, their only work phones were their mobile devices. Now at 16 employees and growing, they knew they had to transition to a more reliable communications solution.

When searching for new VoIP service, Richard’s first priority was to find a provider who could provide great customer service. After reading reviews and narrowing down his choices with a few phone calls, he chose Nextiva.

When asking Richard why he picked Nextiva out of all the VoIP providers available, he explained: “They took an interest in our business and about how we could best utilize their toolset. And obviously there were some things that we’re applicable to us, but there were some things that I hadn’t thought about that immediately made total sense when it was explained, because they had the expertise.”

Find out why telephones are not something that Richard has to worry about anymore:


Best Business Book to Read This Summer

I get business books in the mail every day. I sift through hundreds of them each year in an effort to  search for the best ones for small business owners to read. Here is my list every business owner should read this summer:

Duct Tape Selling - John Jantsch
Most small business owners stink at sales and marketing. From the author of the popular book, Duct Tape Marketing, comes a new book that shows how the job of the sales person has changed. Instead of ABC meaning “always be closing”, John’s ABC’s are “always be connecting”. Information on the Internet has shifted the very foundation of the sales process. Sales people no longer have to just close, but need to teach, serve and develop trust. They have to create their own expert platform, stay connected before and after the sale by curating value content for their clients.

Profit First – Mike Michalowicz
Making a profit is a huge problem for many small business owners. They don’t know how to use financial statements and pay themselves last. Mike shares a money management system that is more intuitive and beneficial than traditional GAAP accounting. Instead of focusing on sales and revenue, he focuses on profit. A must read for every entrepreneur who wants to make money.

Do/Lead-  Les McKeown
Alpha leaders are dead. There are no longer bosses and employees. In a small business, each person has the ability (and obligation) to step up and lead. Les tackles four myths that have paralyzed modern leadership and provides the tools needed to be an impactful leader including the mindset, the techniques, and how to get started.

The Etiquette Advantage in Business – Peter Post et al.
The business world is becoming too casual. Manners still have an important place. Peter and his family provide timeless “Emily Post” type advice for any business situation from dinner with the boss to the first meeting with a new client. He shows how to write persuasive emails to choosing the appropriate dress for the office.

When The Buyer Says No - Tom Hopkins and Benn Katt
Sales legend Tom Hopkins focuses on the biggest problem for most small businesses; what to do when the customer says no. In this book of strategy, the reader learns a new approach to selling called the Circle of Persuasion. Tom and Benn simplify the tricky sales process by providing a step-by-step guide with real-world examples to ultimately show how a “no” can turn into a “heck yes”.

Haunted Empire - Yukari Iwatani Kane
Want to know what Apple is like after Steve Jobs? Former Wall Street Journal reporter Yukari, a former Wall Street Journal reporter, asks “Can a great company stay great without its visionary leader?” She examines Apple in the two years since the death of Steve Jobs and provides insight into the future of this iconic company. A very fascinating read which will change your view of Apple.

Pitch Perfect – Bill McGowan
Words still matter. The right ones can make the difference between sealing the deal or losing the customer. Media professional Bill McGowan shares how to use the perfect tone to convey the right message. In the world of media, there is only one shot and Bill shows the reader how to get it right!

Start Me Up!- Ebong Eka
I have made a lot of mistakes. I wish I read this book years ago. Start Me Up! shows how many causes of new businesses failure are 100% preventable by providing strategies to avoid the four major pitfalls that they experience.

Hacking H(app)iness - John Havens
With Pharrell Williams hit, “Happy” sweeping the globe, it seems like that is the new goal of every small business professional. Hacking H(app)iness describes how to leverage personal data that is being produced by tracking activities on smart phones and computers as a way to understand what brings people happiness. He shows how the Information Age can improve our personal lives as well as our companies

Freaks Shall Inherit the Earth – Chris Brogan
Growing up, I always felt different. In his latest book, Chris makes all of us freaks feel at home. He targets those who believe they may be too different or “not the business type” and shows them how to turn it into a revolutionary business. After you read this book, sign up for his daily newsletter.

Execution IS the Strategy: How Leaders Achieve Maximum Results in Minimum Time - Laura Stack
Laura emphasizes the importance of having an organization that is fast on its feet; one that can easily adjust its strategy to changing realities. Her L-E-A-D formula outlines the four keys to execution to give companies the agility they need to succeed.

And you may want to pick up my new book….

How to Get Unstuck

 


Work Your Biz Wednesday: Google Analytics

Google Analytics gives you a comprehensive look at your company's website. Learn how to use this tool to assess how your online marketing is working from the Small Biz Lady, Melinda Emerson.


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.


How to Take Advantage of Small Business Saturday

small-business-saturday1-e1320932175381Black Friday is always a difficult day for small business owners to compete with the hoopla around early morning discounts at big box retailers. The day after Black Friday has become a day to focus on shopping at small businesses. American Express started Small Business Saturday in 2010.

Here is how to take advantage this year on November 30, 2013 to drive customers to your company:

  1. Give $10 gift to each customer. Promote that American Express is offering a $10 credit to card members who register and use their card to shop at small businesses on that Saturday. Multiply this $10 when they use it at your company.
  2. Build a specific campaign leveraging this day and American Express’ brand. There are few times when a small business can tie their company directly to a national brand and promotion. This gives them the leverage of a large big box retailer. Build marketing offer specifically for this day. This can be exclusive pricing, bundles, free add ons or availability.
  3. Customized marketing material. Use free customized online ad cards, logos and other recognizable images provided by American Express.
  4. Social media starters. Use Twitter and Facebook templates available to help spread the word about your company leading up to this day. Use the #SmallBusinessSaturday hashtag on Twitter. If your business has never used social media, these templates are an excellent way to easily get started.
  5. Welcome mats. Free Small Business Saturday Welcome mats (literally) are available from American Express.  If you do not have a physical retail location, use the mats in creative pictures on Facebook or Pinterest.    
  6. Join a neighborhood circle. Get involved with local merchants to drive traffic to each others retail locations (or online sites). American Express will help you form this relationships. This is an excellent way to work with other local businesses that can extend well beyond this promotional day.
  7. Get on the map. American Express has built an interactive map to help their cardholders find and shop at small businesses. They are also giving their members an exclusive offer redeemable only at merchants that appear on the Small Business Saturday Map. Get found!

How will your business be promoting Small Business Saturday? 


Are You Ready for That Second Location?

UWNoffice109_1Bigger is a mantra many small business owners repeat. For retail based businesses, this means adding more locations. However, this is not always the best expansion strategy. In fact, if done incorrectly, it can kill a business. This happens because when a company starts a second location, the owner moves their attention to growing that new entity. Because they are no longer totally focused on the original location, that part of the business can falter. As the most profitable part of the enterprise, this can endanger the entire company.

For many owners, a single location is a perfectly profitable business. They can either work to expand the size of that location or make it more profitable. 

Only add a second location when:

•   The company has been profitable at one location for several years. Positive cash flow to finance company expansion is critical. There needs to be enough profit from the first location to support the second location until that unit reaches profitability. This typically takes at least one year.

•   Demand does not support growing the single location bigger.  Getting larger at one location is always the first way to increase profits. Alternately, the small business owner can focus on increasing gross margin or reducing expenses there.

•   Processes have been carefully documented so they are repeatable  at other locations. A winning operating formula is required to train employees in the same procedures at other locations. This is the key behind some of the most successful location businesses like McDonalds and Starbucks.

•   Managers that can be trusted when the owner isn't there. Remember, even entrepreneurs have not perfected being in two places at once! The founder can no longer personally oversee all locations simultaneously. As the business gets larger, they also can't be the "in person" face of the business.

•   It's about scale, not ego. Expand because economies of scale will lead to higher profitability, not to feed an ego. Running two or three locations are exponentially more difficult. The second location is always the most difficult to add.

•   Implement a unified communication solution. Customers see all locations ultimately as one so employees must be able to easily communication across all business units.

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Barry Moltz gets small businesses unstuck. He is a speaker, author and small business consultant. He can be found at www.barrymoltz.com




 
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