bizthreads.net: Business Information for Entrepreneurs by an Entrepreneur

“If I have seen further, it is by standing on the shoulders of giants.” -Isaac Newton

http://www.bartleby.com/66/18/41418.html

Isaac Newton may have been talking about other scientists when he said that, but it's great advice we should take to heart as business owners.

New business owners may feel like they are alone against the world when they first start out. But we're not alone. I believe what can make a business owner successful is his or her insistence on surrounding themselves with people who know what to do:

• Experts in the industry
• Encouraging friends and families
• Other entrepreneurs who are peers

Having groups of people you can turn to can help… whether it's a phone call to a friend who's a great marketer to ask them a question about your next advertising campaign, or to an encouraging family member who can lift up your spirits when they are down.

In a recent roundtable discussion I had with some entrepreneurs about their successes (and sometimes their failures), the conversation headed down an interesting path. As I do with a lot of entrepreneurs, we started to talk about what the hardest part of being a business owner was. As usual, everyone had a different idea about what was difficult.

The ones I hear often, which I heard again around the table were…

• Sales
• Cold calling
• Administrative work
• Dealing with customers who complain
• Pricing my products
• Time management
• People management

But then the conversation took an interesting twist: someone asked, “So what do you do about it?”

People shuffled around a bit. Some said they avoided it (whatever “it” was for them) as long as they could, others said they just gritted their teeth and bore through because business depended on it.

But maybe there's another way. I've been looking at a lot of outsourcing lately and I really think it's a trend that's picking up steam. What surprised me as I thought about it was that the problems mentioned above — and the more I think about it, the more I think that just about ANY business problem — can be solved through outsourcing.

I'm not suggesting that you start outsourcing everything to lose control of your business… but I think that our business should excite us (in fact, I think that's a major factor in entrepreneurial success) so if you can avoid doing the things you don't like to do, you should!

Business plans can be difficult to write. I'm not just talking about the potential workload of putting one together, I'm talking about the difficulty of forecasting and goal setting. In our business planning, I suspect that we easily make 3 mistakes when developing goals:

1. Aiming too high. This is probably the area I have the biggest challenge in. As an optimist with a passion for business and a healthy dose of experience, I may set my goals unrealistically high and never achieve them. High goals are good… after all, even if we miss them, we'll still likely do very well. But goals that are TOO high may not be as good. We need to see some success at some point.
2. Aiming too low. Alternatively, aiming too low could be a challenge that some people face. We need to have goals that we achieve only by working hard at them. If a goal becomes too easy, we don't work at our full capacity.
3. Non measurables. Sometimes we may end up creating goals that are not measurable, such as, “be successful” or “make a lot of money.” In these examples, what is success? Or what is a lot of money? Your ability to measure your goals is the only way to determine the success of your goals.

When I was growing up, my best friend's father owned the first computer store in town. Although they would be antiques (or even artifacts) by today's standards, those computers were cutting edge at the time.

A couple years went by and another computer store moved into the same town. One day, while visiting my friend's house, I was shocked to discover that the owner of the competing computer store was having coffee in the living room! I was even more shocked to discover that my friend's father had helped his competitor set up shop. Later, I asked him why he had helped his competitor… wouldn't that drive away business?

His exact words to me were, “Competition makes us better.”

I have never forgotten those words but for a few years after, the reason eluded me. It wasn't until college — in which I engaged in a friendly (but very serious) competition with my roommate for who could achieve a better GPA — did I first start to understand the value of competition.

I see a lot of companies spending a lot of money on the design and infrastructure of their site. They want to have a pretty site so that when people click on it, they have an experience that makes them want to come back. Lately, I've read a few books on how Web 2.0 sites are different than Web 1.0 sites.

But then there's this site that runs contrary to the norm:

www.craigslist.org

Without insulting anyone, this site is about as ugly as they come. It is somewhat user friendly in its categorization, but overall the initial view of the site is somewhat overwhelming.

And yet, by charging for just some of its ads, this site makes millions of dollars in revenue.

It's proof to me of two things:

1. You can be successful going against the grain.
2. Flash may be nice (pun intended), but substance wins out.

I've blogged about this before, but I think it's time to mention it again: there is nothing that helps your productivity like a break. Have you taken a break lately?

Don't just take a break, but take some time to go for a walk, go for a bike ride, or spend some time on a treadmill. The exercise will loosen you up a little, help to reduce stress, improve your outlook on life, and improve how well you sleep at night.

A break gets your mind off of work for a little while and lets you focus on something else. If you're like me and your passion IS your business, then you need to find something else to do. I read; I know others who paint or go to the park with their dog.

While the temptation for successful business owners is to spend 24/7 in front of the computer, you will actually be MORE effective if you take some time away from the computer and return to it refreshed.

If you want to read THE book on memory by THE expert on the topic, this is the book to read. I've never really paid attention to the “who's who” of memory before but apparently this guy is one of the best.

What I like about this book is that he takes you through all kinds of different memory techniques but does it in a way that demonstrates the benefits to you of remembering that thing, such as…

“It pays to remember names and faces”
“It pays to remember telephone numbers”
“It pays to remember appointments and schedules”

… are three of the 26 chapters in the book.

The value of a good memory is immediately clear as you read the book: instant recall of names and important facts when dealing with customers and vendors, or being able to speak with great authority on a topic at a Chamber of Commerce meeting.

My criticism? It really seems a little selfish, but the system he teaches in the book is a little odd at first… it seems somewhat cumbersome for some items (like remembering long numbers). I did learn a lot and came away with some improved memory skills in some area (particularly in the face and name recognition topic) but I won't be throwing out my planner any time soon!

I opened up the newspaper that came in my mailbox today… and a flyer's bold headlines leapt out: Back to School Sale!

In my area, school doesn't start until September, so why are we advertising this so early? My guess is that we want to get a jump on the competition… sort of a “first-to-market” idea on a marketing level.

But is it wise? As summer winds down, there is an anticipation of school for school children AND parents (and even for reluctant students, too). But personally, I think it's too early. Sure, you might get some of the eager students shopping there, but it seems to me that back to school specials are one of the things that mark the end of summer. Putting them out too early could turn off shoppers who don't yet want to admit that summer is more than half over.

What's worse, I know that as soon as September gets here and the students go back to school, I'll stop seeing back to school specials and start seeing Halloween candy. I'm not thrilled about that either — partly because of the same reason, but also because I need to avoid too many sweets.

Recently I was talking to a business owner who was unhappy about a steady decline in his business over the past couple years. I asked him basic questions like, how has his advertising been? And how has his customer service been? His marketing has been fairly effective — no problems there — and his customer service is rated by a third party company and has come back quite high. His prices are reasonable and the service he provides is actually a little better than his competitors. So why is his business declining?

I believe it's because he closes his shops at 6 pm. He works in the aftermarket auto parts industry. As he and I spoke, I asked him when his busiest times were. He said early morning and very late in the day. It's fairly quiet throughout the day and that is when he gets his work done.

That reminded me of another store where I was shopping recently… they didn't accept credit cards or debit cards; cash only. Unfortunately, for those of us who only carry plastic, they didn't offer an ATM. I was forced to leave and haven't been back.

It got me thinking… do we plan our business around our customers or ourselves? Do we close up shop just when our customers are getting off of work and heading to our store? Do we expect them to pay a certain way but make it hard for them to do so?

Ask your customers about your hours, your policies, your payment methods, and the convenience of your locations.

From: Louise

Thanks for your blogs, Buzz.

Where do you see the biggest opportunity for growth in business right now?

Response:

Hi Louise!

The business world is so integrated that a development in one area will mean trickle-down developments in other areas… making it very difficult to answer your question!

I think that manufacturing is on the decline right now: the economy is strong but consumers are wary… an early sign of a slowdown. As well, many manufacturers are looking to trim costs and move jobs out of urban centers… making it difficult for the “small guys” (or women) to compete.

The online world is huge and growing as people find new ways of transferring money and shipping goods. But software and information products are beginning to peak… unless it's a completely new topic, you're seeing increasing competition on the bigger topics (diet, making money, etc.)

I think the biggest opportunity for people right now is in services, either services performed online or in person. People are busy and getting busier; they are stressed and becoming more stressed; they are tired and in danger of becoming more tired… they want someone else to do the things they don't want to do (or don't have time to do) because there's only a sliver of personal time left and they don't want to give it up. So services like concierge services or planners are good. But so are twists on old jobs… like mobile car repair or dentists who do house calls… generally, businesses that will meet people where they are at.

Good luck in your business!

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