bizthreads.net: Business Information for Entrepreneurs by an Entrepreneur

Motivating Your Staff — It Isn't A Spectator Sport

Your employees are an integral and indispensable component of your business. They are also human — and you need to keep them highly motivated.  If you do, you'll be rewarded with increased performance, productivity and profitability. If you don't…well, you know the consequences.

Effective Communication

Make sure your employees know everything that can affect your business positively and negatively. Over 80% of communication is nonverbal - through body language. As a small business owner, you need to be aware of the nonverbal cues you are giving out. 

By showing positive nonverbal communication, you will help to develop better understanding and mutual trust.

Active Involvement

Merely asking for opinions and advice is not sufficient. You also need to involve your employees right from the initial planning to the final stages of plan execution. This will make them take responsibility and fulfill their roles efficiently. This will also enable you to implement the desired changes in your business environment effectively.

Reward and Appreciate

Appreciating the efforts of your employees is very important in keeping them motivated and progressing on the right track. Highlight their achievements and complement them on their accomplishments.

Design other effective reward methods into your business environment to show your appreciation for their hard work. This will prove to be inspirational and they will probably work harder — not because they have to, but because they want to.

Reprimand Constructively

Just as rewarding an employee is essential, so is reprimanding them for their mistakes. However, be careful not to do so in public and by all means don't embarrass them.  If you must reprimand one of your employees, do it in a subtle manner, adopting a positive approach to the matter. Be careful that it won't demotivate them.

Your employees are only human — and they respond to positive reinforcement.  By following the tips above, you'll be rewarded with a happy and productive team!

Marketing Messages - Don't Confuse Your Customers

Your customers are undoubtedly the most crucial elements of your business. In order to meet sales targets and keep your business profitable, you need to keep in constant touch with customers, keeping them informed about your latest products and services.

However, many small business owners tend to complicate the process a bit, eventually rendering sales methods ineffective. In many cases, the primary reason is because you provide your customers with information that is too much for them to handle.

The key to effective marketing strategy lies in effective communication.

Clear And Simple Messages

The vast majority of people have a limited capacity to deal with information that is greatly influenced by several other factors. They may already have a thousand other different things going on in their mind, which makes it all the more difficult for them to absorb all of your information.

It will help if you convey your message with key points and simple instructions. Research shows that on an average, an individual can handle only seven bits of information at a time.

Another key to effective communication lies in drawing the attention of your customers to what you say. This is essential, as their mind may be pondering over many other things.

One Action At A Time

Besides keeping your messages simple, clear and limited to seven bits of information at a time, it will also prove to be helpful if you are able to make them focus on one action at a time. It is also essential that the action you want them to take be stated in very specific terms. Avoid offering them too many options as this will only confuse them further, and consequently make for ineffective communication and marketing.

When it comes to sales and marketing messages, the name of the game is KISS — Keep it Short and Simple.

Leveraging the Power of Online Surveys

Surveys have been used for decades to find out what customers expect and want. Each one of us has been called by a surveyor at some point in our lives, or received a mailer, which needed to be filled out and mailed in.

But now with the development of technology, surveys have become easier — and your small business can and should take advantage of the benefits that they offer.

1. Less Expensive — The best thing about online surveys is that when compared to traditional surveys, like telephone surveys, they are much cheaper. The cost of online surveys is only a tenth of traditional surveys, and only 20% of the cost of traditional mailer surveys.




Online surveys are great to find out why people prefer your website or product. You can also get details of why people do or do not buy your products and other useful information. Through an online survey, you can also find out who is visiting your website - with this information you can make your website more attractive to prospective customers.




2. Better than website feedback forms — Online surveys are better than website feedback forms, because website feedback forms mostly attract people who are unhappy with the product or service your website is offering. This makes the feedback form nothing more than a grievance or complaint box. An online survey gives you a better perspective on your customers' mindset than feedback forms.




3. Convenience — There are some online survey sites that allow you to conduct online surveys for free as a trial offer. This way you get to ask 100 people 10 questions regarding your product, service or website. Based on the responses, you can decide whether or not online surveys are suitable for your business.

Using online surveys isn't just quick and easy. When it comes to useable information about your market, product or service, it's also smart.

MoreBusiness.com Releases Free Sample Proposals for Small Businesses

Today, our MoreBusiness.com site introduced a free proposal resource center complete with boilerplate text of actual proposals and step-by-step recommendations to help companies write winning proposals and respond to RFP's (request for proposals). Visitors can view the sample proposals in their web browser or download a PDF or Word document that is ready for editing. The initial release features technology-related proposals. Sample proposals for different industries will be released in the near future.

Visit http://www.morebusiness.com/templates_worksheets/proposal/ to check it out!

Read full press release

5 Secrets to Repeat Business

The golden rule that every small business owner has heard ad nauseam is “the customer is king.” No matter what happens, or what is said, the customer has to be treated like royalty. And you always want to see royalty again, don't you?

What you have heard (and keep hearing) is that repeat customers, or loyal customers, are what will make your business grow.

Here are some tips on how to get repeat business:

1. Be a resource for customers — When you tell a customer that you know what they like, you entice them to come back to you for a particular product or service. This is a good way to ensure repeat business.




2. Keep customers informed — If you know that certain items are going to be on sale, or are going to be discounted in a few days, then inform your customers of this. Your customers will know that you care for their needs and will come back to you time and again. This will generate repeat business.




3. Go the extra mile — If a customer does not get what he or she wants from you and if you inform them about a place where they can get their needs met, it proves to them that you care, even if you can't provide the product or service.




4. Be specific — Inform customers of specifics regarding your product or service, even if you can't give them what they want. Customers value details and will appreciate your honesty.




5. Be helpful — Customers like businesses that are helpful. Even if it is a small thing like carrying bags to the car, making a special delivery or making a small price adjustment. These small things matter to most customers and keep them coming back.

Keeping and retaining customers are a small business owner's bread and butter. Treat them like royalty and your business will be king!

Exploding Business Myths

If you run a small business, no doubt you frequently search for advice and information related to running your business. But there's a lot of information out there — and how do you decide what to believe?

There are a number of myths doing rounds in business circles that could prove costly and misleading to your business. Here are a few:

1. Advertising Never Fails

Placing ads without identifying your target market and understanding the specific business niche of your company or product can lead to the failure of your ad campaign.

You must define your customer base and use advertising media that will reach your target market — anything else simply doesn't make sense.

2. Your Product Will Get You All The Customers You Need

Merely placing ads to let people know about your product or service is not going to bring them running to your doorstep. In addition to using scientific marketing techniques, you have to network with business associates and clients as well.

Networking is a way to get clients who will come to you because they know you personally or have heard of you through referrals or word of mouth, not by going through an impersonal advertisement.

3. Make Objective And Value-Based Decisions On Relationships

Oftentimes, small business owners hang on to employees or clients who in fact are a burden on the business merely on account of saving an existing relationship. This is a mistake. It is essential to sever relations with an employee who has not proved their worth or a client who is consistently late in making payments.

If you don't, you may end up regretting it later, when you realize that this relationship is costing your business money.

4. Never Move Locations

Review your office space periodically. Even if it was initially appropriate, it may now be too small for your successful business; conversely, a new location may attract even more customers. It doesn't matter if it is a home office or any other location; do not hesitate to change it if circumstances warrant.

Keeping these 4 myths in mind will definitely change your business — for the better.

Use Focus Groups to Promote and Grow Your Business

Using focus groups for discussions and opinions to formulate appropriate marketing strategies is a favorite tool used by many large companies. As a small business owner, you too can make use of this highly successful technique.

Composition of Focus Groups

Focus groups are usually made up of eight or ten people who are selected on the basis of certain demographic or other characteristics such as specific income range, purchasing behavior or family structure.

Conducting the Discussion

A skilled facilitator usually leads the group in a discussion to draw out preferences, prejudices, apprehensions and passions related to the company and products, without making judgments. Often, a number of similar groups are formed for repeated discussions among different people of similar characteristics. After a few rounds of discussions, you will notice patterns, themes and trends emerging.

A smart consultant can offer advice on how many groups are necessary for the overall exercise.

Your Part during the Discussion

You as a client can sit in another room to listen and watch the interaction through a one way mirror. The participants are made aware of people watching and listening to the discussion, but it is done quickly in a casual manner through a short statement in the midst of the discussion.

The Cost Factor

The costs involved can vary anywhere from a couple of thousand dollars to ten thousand dollars depending on the venue, the agency hired to conduct the discussion and the participants.

Why Focus Groups Are Used

Focus groups can be very useful for both small and large businesses, although the cost factor can sometimes be prohibitive for small business owners. However, by offering a small incentive, small businesses can entice people to take part in a focus group and record the results, leading to valuable information being gathered about their products and services.

Conducting a focus group may seem like an intense exercise, and it is — but the resulting information is well worth the effort.

5 “Must Haves” For Your Business Plan

If you are serious about business, and are thinking of applying for a business loan, you need to have a solid business plan.

A business plan, like any other plan, is a detailed guide for and about your business. A business plan can be as long or as short as you like, but it should be an appropriate length to explain your business sufficiently.

When you're formulating your business plan, don't expect to complete it in one sitting; it may take more than a few drafts to get it right.

Here are some ‘must haves' for your business plan:

1. Mission statement — When you are putting down the reason for starting your business, this reason becomes your business' mission statement. The mission statement does not have to be long; it can be brief, but it should describe your business philosophy and include your target market.




2. Description of business — In this section you describe all aspects of the business. From the business and product USP (unique selling point) to your location (online or brick and mortar). You should also describe in detail your product or service.




3. Goals — In this section, you should describe your long term and short-term goals. Short-term goals are those goals that you want to realize or achieve in the next 12 to 18 months. Long-term goals are those that can take up to 5 years to be achieved. The goals section is especially important when you present your business plan to lenders and investors.




4. Customers — This section requires thorough market research. After you've done your research, you will know who your customers are going to be, what they are looking for, what they expect out of your product. It is very important to do a thorough market survey and research before getting into any business. Potential investors will also want to know what market segment you have targeted and why.




5. Competition — In this section, you need to demonstrate that you understand and have thoroughly analyzed your competition. List all your competitors - these can be based on either geographics or product/service. Understand what your competitors are offering and try and be as different and unique from them as possible. If you have a similar product to those of your competitors, you must explain how you will overcome the competition.

Writing a business plan isn't easy, but by focusing on the 5 sections above, you'll have a good start!

3 Easy Steps To Profitable Business Relationships

Many people with successful businesses say that it is due to the business relationships they maintain. You need to continuously connect with people on both a personal and professional level.

Meeting and knowing influential people will help your small business to succeed. It is only by building and maintaining relationships that you will be able to expand your network. The most successful business owners have a vast network, and it is useful to tap into for advice when making an important decision, or as a referral system to obtain quality hires. They also spend a considerable amount of effort to maintain it. 

Here's how they do it:

Pay Attention to People

You need to pay attention to people when they talk. If at a later date you meet them and you remember things they have said, it will leave a good impression. Try and meet new people every day, regardless of where and when you meet them. If you help people get what they want, they will eventually help you get what you want when you need it.

Don't Be Shy

The most successful business owners love their businesses and are proud of them. More than this, though, they let it be known. Don't be afraid to talk up your business to the people you meet. You must be your business' most outspoken advocate. If you don't do it, who will?

Make Networking a Priority

You must be able to find new ways of meeting people. You can start by moving out of your comfort zone. This way you will be able to do something new and at the same time create a bigger and better network. Try learning a new skill, or commit to attending a business seminar at least twice a month. The key is to seek out new experiences, and you will by extension meet new people who may be able to help you advance the goals of your business.

Business is all about relationship building, but you have to start somewhere. Follow the steps above and you'll have a bigger network in no time.

When you're running a small business, sometimes stress provides a much-needed boost to your life and career. On the other hand, stress can also negatively affect your life and hamper your progress at work, affect your personal relationships and be the cause of various illnesses.

Fortunately, stress at work can be managed, if not outright prevented. Here are a few ways to do just that!

Prevent Misunderstandings

Make it a point to clearly understand what others expect from you and to communicate what you expect from them. This will help avoid misunderstandings.

Effective Communication

Efficient communication skills are vital to success, whether it is your career or personal life. You can prevent misunderstandings and other problems by building effective lines of communication with your colleagues, associates, family and friends.

Focus On What You Are Good At

Sometimes you may feel the urge to do everything yourself in an attempt to achieve perfection. However, this can also add to your anxiety and leave feeling you tired and stressed out at the end. Prevent this by delegating tasks so that you can concentrate on doing your job more efficiently.

Avoid Procrastination

Every now and then, we all have the tendency of postponing tasks with the intention of doing them later — but this is a stressful situation waiting to happen. Rather than delaying, it is better that you delegate the task — so you can stay on track and on schedule.

Take a Break

Taking time off is necessary to rejuvenate your mind and senses. It provides you with much-needed time to relax and let go of things. Everyone needs time off. You may think that you can't afford to. But can you afford not to?

Hint: the answer is no. Take a vacation.

Learn To Say ‘No'

Don't be tempted to give in to taking on projects or jobs that you do not have the time for or those that fall outside your scope. Instead focus only on those that will promote the growth of your business. It is not a crime to say ‘no' — especially when you feel overloaded.

The key to preventing stress is to recognize potentially stressful situations before they arise.