Open Source CIO: February 2011

Monday, February 28, 2011

Top Five Tech Tools You're Probably Not Using - but SHOULD BE: part one

Instant Messaging

If you're like most Small Business owners or operators "of a certain age", your view of Instant Messaging, if you have one, may be similar to one of the following statements:

Instant Messaging is for kids
I have an email account - what do I need messaging for?
It's too complicated
I don't have time for that nonsense
What good could this messaging stuff do for my Small Business?

I'm sure most of you reading this can relate to at least one of the statements above; the last one asks the question which is, in fact, the topic of today's post.

Business, as I've mentioned in the previous series, is about relationships. Relationships, in turn, are about communication. I'm sure it's no secret that email is an essential Small Business tool -- if nothing else, it has allowed Small Businesses to save on postage and shipping costs once required to provide instant communication. Where it once took a special delivery or overnight package delivery (and still took at least a day) to ship critical documents to a business partner, vendor or client, we can now attach a PDF or word processor file to an email, and the relevant party receives it almost instantly.

Thus the "instant" in instant messaging -- "IM", as it is commonly known, combines the quickness of a phone conversation with the permanence of text. This second component is not to be overlooked, or taken lightly. How many times have you spoken with someone about a previous conversation, struggling to recall an important detail that neither of you can remember now, because you weren't recording the call or taking notes?

IM-ing is nothing but taking notes, real-time, as you engage in conversation. Even with a stenographer on hand, you would still probably miss much, and usually only capture your side of the call. With IM, the transcription IS the conversation and, in addition, you have the benefit of:

Including links to relevant websites
Transferring electronic documents and digital images
Copy-and-pasting information from emails and existing documents
Creating a "paper trail" for reference and auditing purposes

In addition to these benefits, IM helps reduce the occurrence of "foot-in-mouth disease": since you type your responses before you transmit them, you have a few seconds before you click "Send" to decide if you want to forward what may amount to an emotional outburst, rather than a well-chosen response.

Google and Yahoo! have standalone chat clients and clients built into their emails; Facebook and MySpace accounts have built-in chat as well. Blackberry, Android and iPhone smartphones all have apps that aggregate all your chat clients into a single location, allowing you to appear online to all your various chat partners.

In addition, there are stand-alone chat tools such as Meebo, Citron and ICQ that do the same thing from your desktop. Being able to communicate with your Small Business clients, partners and vendors as quickly as a phone call, with the permanence of text, the ability to embed web links and transfer files may be a novel concept to you, but you must certainly appreciate the possibilities it presents.

Consider it from the perspective of business objectives, not just technology. The strategic business advantages should be quite obvious -- if you're getting the message.

Friday, February 18, 2011

Top Ten Reasons Small Businesses Fail - part ten

Planning

We find ourselves ending at the start: the Plan.

While many are aware of the need for a well-crafted business plan, few businesses of any size actually have completed one. There are several valid reasons: a thorough business plan is a complex document, requiring much more than expertise in tradecraft and knowledge of the potential market segment.

One- and five-year financial projections, competitor analysis, growth plans, best- and worst-case scenarios, - even an exit plan - are all part of a comprehensive business plan. Many Small Business entrepreneurs, especially in the current economy, have entered into their business ventures more from necessity than desire. Down-sizing and layoffs, it seems, create more Small Business than a burning desire to "go it alone" and brave the rigors of competition.

Yet as the saying goes, "failure to plan is planning to fail". You may never have the time to draft a complete business plan - but then you're probably not seeking a commercial loan or investors at this point. Still, there are steps you can take to give yourself a guide, to ensure that you're operating on more than just "a wing and a prayer".

SWOT analysis

This is a simple document - usually a page or two - though it may take some time to prepare. It is an acronym that stands for "Strengths, Weaknesses, Opportunities and Threats". If you prepare no other document or plan, I urge you to prepare a SWOT analysis. Take a serious look at the business you're in or are planning to start or enter into.

Strengths: What qualifies you? Seriously; it must be more than just "I got laid off", or "I've always wanted to do XXX". Are you REALLY qualified to pursue this line of work right now? If not, how quickly can you get yourself up to speed, and what would it take.??. I don't ask this to discourage you, but ask you to consider the training, advice, mentoring and networking opportunites available that can enable you to answer this question positively.

But whatever you do, don't operate blindly with a false sense of optimism: entering into a business venture without proper qualification can cost you more than you're prepared to pay -- in time, money and reputation -- and even expose you to litigation.

Weaknesses: This is the inverse of your qualifications. I'd actually focus on this first. You're probably more aware of why you should enter into your chosen business than why you shouldn't - after all, noone starts a business expecting to fail. Still, an accurate assessment of your deficiencies and shortcomings automatically maps out a course of action to enhance your skills, increase your knowledge and make up for whatever you determine you lack.

Opportunities: This may seem clear, but think beyond the obvious. If you're creating custom clothing, might you have an opportunity to repair antique items as a side business? What partnership opportunites are there? Could you conduct a free course at a local college or community center, that would allow you to establish a reputation as a valuable local resource, demonstrate your skill... and discover potential clients in the process? Here is where thinking "outside the box" is most important. Look beyond the surface, and think creatively -- try to see things you wouldn't ordinarily consider when dealing with just your core competencies.

Threats: Competitors. Lawsuits from upset customers. Negative online reviews. Disgruntled employees or partners damaging your reputation. Noone wants to dwell on these unpleasant things, but better to consider them in advance and prepare a strategy, than to be blind-sided and have an otherwise profitable business fail because of unanticipated threats to its existence.

There is also the Strategic Business Plan which, as its name implies, is a more focused document than a full-blown business plan. Where a comprehensive business plan is usually drafted when starting a business with, among other things, appealing to a bank or series of investors in mind, the strategic plan is devised for the business owner, and possible partners or employees, to map out the course of action for a few years.

It is everything from a mission statement to a declaration of intent -- it says "this is who we are, why we're here and what we're doing". It's a good exercise to prepare it, and review every six months or so, to either revise it or simply to make sure you're still on track with your original... plan of action.

Plan the work, and work the plan. That's the fundamental key to success... or at least, a good way to avoid outright failure. And that's been the purpose of this series - not to discourage you, but to point out some of the roadblocks, and help you chart a path over, around or through them.

Good luck to you all. And keep reading - there's more good stuff to come, from Your Open Source CIO.

Series inspired by "Top Ten Reasons Why Small Businesses Fail" by: Connie Holt, E.A. cholt@henssler.com
The Henssler Financial Group Position Paper
© 2004 The Henssler Financial Group | www.henssler.com

Thursday, February 17, 2011

Top Ten Reasons Small Businesses Fail - part nine

Closed Mind

It takes a lot of hard work, focus and persistence to launch a Small Business. Starting with an idea, and (perhaps) some skills, a plan is prepared, financing secured, details dealt with... and a business is born.

The problem is, in the time required to travel from concept to reality, too often Small Business enterpreneurs get stuck in the attitudes and assumptions adopted at the beginning of the journey.

Business plans and financial projections are usually developed long before the business is created. But during that time, demographics change, markets shift and economies worsen or improve. Since business plans and financial projections are rarely revisited (or consulted) during this period, Small Business entrepreneurs may find themselves operating based on inaccurate or outdated assumptions.

In addition... there are the basic human traits of pride and stubborness. Being confronted by the need to re-examine a business plan, or recalculate financial projections, there may be a tendency become defensive, resisting these suggestions, rejecting this well-intended advice as unwanted and unwarranted criticism.

It has often been said that success has a thousand parents, and failure is... umm, an orphan. While the expression implies that many people will take credit for a successful venture after the fact, in this case let us take it to mean that a successful Small Business entrepreneur will not hesitate to consult mentors, advisors and other experienced individuals to seek advice and guidance as they develop their venture from concept to reality.

Nearly every one you know may consider themselves experts on all manner of business-related topics, and even the few of them who actually are may be too familiar to you (or with you) for you to feel comfortable seeking their advice... or heeding their (many) unsolicited words of wisdom.

This doesn't mean that you need to, or ought to, go it alone. There are many excellent sources of guidance and counsel - a few good places to start are listed below:

Small Business owners and operators, especially the "solopreneurs" and self-styled mavericks, will have a tendency to "Do it My Way", in the words of the classic tune. While this may seem like a good idea intuitively, if you find yourself struggling to break even after more than a few years, the facts clearly indicate otherwise.

Don't be afraid to seek advice. It doesn't mean you're wrong, or that you've failed. If we each knew all the answers, the economy wouldn't have crashed in '08, and I wouldn't be writing this blog post. The fact is, half of all Small Business startups will fail within their first two years.

You obviously don't want Your Small Business to fall within that statistic. So, as much as it may bruise your pride, remember to keep an open mind... or you may soon be faced with closing shop for the last time...

Wednesday, February 16, 2011

Top Ten Reasons Small Businesses Fail - part eight

Cash flow

It's odd: the purpose of starting, running or working for a Small Business is making money. Yet managing money is almost universally the one thing most neglected, ignored or feared by Small Business owners, operators or employees .

Quite often, you'll hear some variation of the phrase "I'm not really in it for the money" - as if a focus on the financials is dishonorable or morally objectionable. But if you consider it for just a moment, that's like a doctor saying "I'm not really in it to help people". Whether you're a Scrooge-like materialist or a post-modern hippy at heart, the purpose of starting, running or working for a business is profit.

Many people, regardless of their financial status, avoid dealing with their finances. Debt consolidation commercials fill the air, and stories of multi-million dollar celebrity bankruptcies have almost become cliche. But managing Small Business financials doesn't require advanced calculus skills -- just an understanding of basic accounting skills, and a strategic use of technology.

You have to manage your money -- Small Business financial management is more than having a positive bank balance. Cash flow becomes critical when there is a delay between the money you're owed (accounts receivable) and the money you owe (accounts payable). This is where many Small Businesses experience cash flow problems -- they know they've got the money coming in, but they miscalculate and end up overdrawn.

That is, after all, why it's called cash flow -- it's dynamic, and fluid. The informal running total many of us depend on to manage our personal finances doesn't scale effectively, and bouncing a check to a distributor or supplier can affect your credit rating, or worse, the survival of Your Small Business.

Below is a short list of software & websites to help you manage Your Small Business financials:

Mint.com
QuickBooks Simple Start Free Edition 2010
FreeAccountingSoftware.net - (Windows XP only - not for Vista or Windows 7)
DWMBeanCounter.com accounting tutorial

Of course, technology is not a magic bullet. The best accounting program is useless if you don't... use it. This is why I recommend starting by creating a Mint.com account.

Mint.com allows you to reverse-engineer your budget: you provide read-only access to your bank accounts and credit cards, and it automatically categorizes your deposits and expenses. After a few months, you have a graphical breakdown of your cash flow: once you see where your money goes, and what your spending patterns are, you can then properly manage Your Small Business budget going forward.

Mint.com is run by Intuit - the company behind QuickBooks, the de facto standard in bookkeeping software. If you have fewer than twenty active clients (so far), QuickBooks Simple Start Free Edition 2010 allows you to manage your billing and invoicing in the same format used by most accountants.

Using QuickBooks requires an understanding of basic accounting principles, which is why I've included one of the best introduction to accounting tutorials as the final link in the short list, Dave Marshall's Bean Counter website.

The Bean Counter site has been online for eight years, and is the simplest introduction to basic accounting principles you'll find without taking a course or buying a book. As with the software, it's only useful if you actually use it.

Which is a choice only you can make. But your cash will flow, either way. The question is... in which direction?

Tuesday, February 15, 2011

Top Ten Reasons Small Businesses Fail - part seven

Location

You may be familiar with the age-old expression that the three keys to success in Real Estate are "Location, location and location". Clearly building family housing in the middle of an industrial zone is not likely to attract buyers.

Similarly, Your Small Business must be located, well... as close as possible to prospective customers. A tattoo parlor in a retirement village might attract curious onlookers, but probably not enough buyers to keep you in business. A shop specializing in infant and toddler wear in a location populated by childless professionals is likewise doomed to failure.

The strategic importance of location in the physical world may be somewhat obvious, but what about in the virtual world of online business? "Location?" you might ask. "Isn't online everywhere??" Well, yes and no. In the case of launching an online business, location applies to the likelihood of your website being seen and visited by your prospective customer or client.

"If you build it, they will come" applies only to that baseball movie starring Kevin Costner. Many online Small Business owners and operators make the mistake of believing that once they've built their shiny, "Web 2.0" site, their work is done. The stark reality is that merely having a website, however well-designed, simply isn't enough to guarantee a steady stream of paying customers. A website in the forest of the Internet that has no traffic makes no money.

There are more active registered websites than there are human beings walking the planet. That's "billions", with a "B". This means that many websites languish in obscurity, receiving no traffic whatever. Clearly, steps must be taken to increase the likelihood of attracting potential clients to your site.

Here's a short list, by no means exhaustive, of traffic building tips:

Register your site with the major search engines (you can do this yourself - don't wait to be noticed)
Use "meta tags" and keywords properly (click the links for guidance)
Create a Google Places listing (this is the equivalent of a listing in the local phone book white pages)

Just as you cannot take your existing clients or customers for granted, you can't take your potential clients for granted either. Businesses, Small and large, depend on the steady flow of activity from clients old and new to survive.

The Internet, fast, interactive and virtual, allows Small Businesses to compete at a level that may be impossible if they are required to maintain a physical facility. But even a virtual storefront must be properly maintained, or it will soon display the digital equivalent of a "Going out of Business" sign.

Monday, February 14, 2011

Top Ten Reasons Small Businesses Fail - part six

Versatility

Though many Small Businesses are one-person operations, in today's economy, none can afford to be "one-trick ponies".

Even if you can't diversify your staff (especially if you work alone), you'd do well to diversify your skills. Every solopreneur has a specialty, but don't focus exclusively on the thing you do best. What happens if the market shifts, or your existing clients have had their fill of the good or service you specialize in?

Begin by ignoring the voices in your head that say "I can't...", "I don't...", or "I'm only...". You are an entrepreneur - something you may not have imagined being even a few years ago. Whether it was always your dream, or the result of a layoff due to the "Great Recession", here you are! Don't let the challenge of expanding your capabilities defeat you as success draws near.

Next, consider improving your business-critical skills, such as:

Business communications
Planning
Financial management
Networking

There are many courses available, locally and online, designed especially to assist Small Business owners, operators and employees in enhancing their business related skills. Locally (New York City), I highly recommend NYC Business Solutions' FastTrac New Venture course. This is a free, month-long course designed especially to, as their website states:

"...help you perfect your business concept, write a strong business plan and access resources to complete your launch."

If you're in New York City, and are in the first year or two of starting your Small Business, you MUST enroll in this course. The benefits are immeasurable - and how can you beat the price?

Consider also what you are good at that you could do for others, perhaps on an informal or advisory basis? Are you a good writer? Lend a hand to fellow solopreneurs and Small Business owners/operators/employees by proofreading drafts of their business communications.

Better at managing money? Although you may not be an accountant, you might have advice, tips, spreadsheets, or prior budgetary management experience that would prove useful to friends or colleagues struggling to stay on top of their financials.

Success in today's economy requires more than focusing on your core specialty; it increasingly involves thinking beyond direct financial compensation. Lending assistance to those who may benefit from your versatility is an excellent way to gain word-of-mouth recommendations and/or discover referral partners.

It's basic human nature to help those who help us. And unselfish devotion to others, as contrary as it may seem, is an often overlooked component of professional and financial success.

As we've mentioned several times in this series, business is about relationships. As with any relationship, sincerity is a key aspect of forming those which last and flourish.

Friday, February 11, 2011

Top Ten Reasons Small Businesses Fail - part five

Employees

Many Small Businesses are "solopreneurs", so this post won't apply to them... now. Hopefully, many of these one-person enterprises will expand, and gain staff members or working partners. But there are those Small Business which have employees: managing them well can determine the difference between success and failure.

Your employees are the face of your business - usually the first people your customers and clients will have contact with. To most of them, your employees ARE your company. How well your employees understand the mission and focus of your business, and whether these employees treat your clients with courtesy and respect, shapes the reputation and public image of the company and brand you work hard to establish.

Just as you should never take you clients for granted, you cannot afford to overlook the importance of training and managing your employees. Treat them like mere "workers", and they will only be in it for the paycheck, unconcerned with the effect they have on your clients who, without exaggeration, ARE your business. You must treat your employees as the partners they are - enroll them in the dream, the long-term goal, and not just the short-term pay-off.

It has been well established that people will take a job that pays less if they feel they will be treated more respectfully, included in the decision-making and provided greater challenges and opportunity to prove themselves. They'll actually work harder and longer if they feel they have a stake in the ultimate outcome.

Think about it: How many times have you dealt with the rude bank teller, the argumentative customer service representative or the condescending auto mechanic? Is this the type of person you want to be the face of your business? An employee treated as a mere "worker bee" is likely to be frustrated and spend each day watching the clock, feeling miserable and unappreciated. It costs you nothing to treat your employees with respect, courtesy and interest.

Satisfied employees are your ultimate promoters - their enthusiasm will be infectious and have a powerful impact on your customers, face-to-face, over the phone and even in email communication. An involved employee instinctively understands the value of quality customer care, and won't have to be constantly reminded to follow up and follow through.

The return on investing in your employees will be have a measurable effect on your bottom line, your customers' satisfaction and client retention. By contrast, a dismissive attitude of "my way, or the highway" is the surest way to guarantee that both your employees and your clients take you up on your offer... to take their time and money elsewhere.

Thursday, February 10, 2011

Top Ten Reasons Small Businesses Fail - part four

Clients

Every Small Business owner, operator or employee should be aware that it costs much more to acquire a new client than retain existing ones. But old or new, client management is essential to your Small Business economic health.

A key reason Small Businesses fail is that they fail to appreciate the distinction between clients and customers, or they take their clients for granted, chasing after the sale but never following up after the payment clears. Yet there are a few simple, low-cost activities that can help you turn customers into clients, and find new business with your existing clientele, such as:

An informative, interactive website
Customer satisfaction surveys
Email campaigns (and autoresponders)
Cross-promotions and value-add upselling
Favored client discounts
Client loyalty cards, coupons or programs

Business is about relationships - court your clients like a romance. Remember: there is much more to client management than the sale. Otherwise, it's just a customer relationship. A well-established brick and mortar shop can survive on "one and done" customer relationships; a service business, a startup or an online venture must attempt to capture clients - those people (or companies) that will do business with you on an ongoing basis.

Clients will support your business, well beyond spending their money with you once, and moving on to your competition (usually, without notice). To cultivate such a connection, you must get to know your clients' needs. Examine your financial records, invoices and communications to determine:

Who your best clients are
How much business they do with you, on average
What goods or services they purchase most
What related goods or services might appeal to them.

"Customer service", even though we're really talking about clients, is one of the single most important overlooked practices of Small Businesses. We're not just talking about handling complaints, and correcting the occasional error in order fulfillment. This is about developing lasting relationships that can make the difference between prosperity and bankruptcy.

These relationships BEGIN with the sale, but do not end there. If, for you, a successful purchase is the end of your active concern... that may be why your client retention rates are lower than they could be. Just as your relationships with family, friends and loved ones can go cold from neglect, you must put a sincere effort into nurturing your client relationships.

Find new ways to relate to them, but be careful of crossing into the "spam zone". You want them to appreciate the constant contact, not dread and avoid each new phone call or email. Focus on the value you add to their lives and businesses; it's okay if this takes some time and effort.

What have you got to lose -- except opportunity, revenue... and clients?

Related articles

Wednesday, February 09, 2011

Top Ten Reasons Small Businesses Fail - part three

Marketing

A handful of business cards and a no-frills website are no longer a sufficient Small Business marketing strategy.

The word "marketing" typically brings to mind expensive media campaigns, billboards and the services of highly-paid advertising firms. Clearly many Small Businesses have neither the time nor the resources (money, personnel, expertise) to take this approach to marketing, but that doesn't let them off the hook.

Many Small Business owners and operators either have prepared a business plan, or know that they should. But many are completely unaware of the the need to prepare a marketing plan. New clients won't find you just because you want their business, and even existing customers and clients would benefit from an understanding of your full range of goods or services, and a constant reminder that they are available.

Small Business entrepreneurs and "solopreneurs" are quite busy, especially in today's economy. It's easy to consider a marketing strategy a "nice-to-have", rather than a "need-to-have" element of doing business. But consider this: why do well-known, successful corporations spend millions of dollars each year on marketing? Even though we are already familiar with the coffee shops, fast food restaurants and supermarkets we do business with, they still expend a lot of energy reminding us of their brands, their offerings and the overall "feel" of their products and establishments.

Marketing is not advertising, although advertising is a component. Advertising is about what goods or services you offer, price and availability. According to Wikipedia, "Marketing is used to identify the customer, to satisfy the customer, and to keep the customer." While Small Businesses may not have the budgets of large corporations, they have a greater need to focus on acquiring new customers, and retaining existing ones.

McDonald's or Walmart can survive a considerable decrease in clientele (not that they would enjoy it). For a Small Business, losing even a few clients can spell disaster. Since they don't enjoy the regional or national visibility of major firms, they cannot depend on product or brand recognition that brings in customers at random.

Look to as many free or low-cost resources as possible to promote your business and market your offerings. Social media, such as twitter, Facebook, LinkedIn and such are not just for kids: they can provide a range of exposure once available only via television or radio advertisements. Low-cost "real world" techniques, such as focused flyer distribution, bulletin boards and well-designed business cards are not to be overlooked.

Email marketing sites such as ConstantContact.com and MailChimp.com are a hidden treasure: MailChimp allows you to create mailing lists of up to 2,000 addresses, and send up to 6,000 messages each month. With templates, autoresponders and video tutorials available, it's a secret weapon I recommend as an indispensable Small Business marketing resource.

You still need a strategy, which requires more detail than can be provided in a blog post. These tips, however, can help point you in the right direction:

Determine the focus of your offering
Identify the value proposition to the customer
Maintain a consistent message
Develop a memorable catchphrase or tagline

Remember: marketing is about the impression you make in the mind of the existing or potential client or customer. Business is about relationships - marketing is the conversation.

Tuesday, February 08, 2011

Top Ten Reasons Small Businesses Fail - part two

Competition

Are you the best at what you do? Among the best? Anywhere close to the best?

Wherever you rank in comparison to your competition, are your existing or potential customers or clients aware of how you compare? As importantly, how accurate an assessment do you have of where you rank amongst your competitors? Remember: our ideas are like our children - we love them because they are our own.

But as any honest parent will tell you, sometimes we must face some brutal truths about ourselves. Before you can match or exceed the competition, you have to understand who the competion is.

How many competitors do you have? This is not an abstract question about hypothetical competitors "out there, somewhere" in your chosen field: this is about who your potential clients might consider in addition to, or instead of, you? More importantly, it's about who your existing customer or client might consider doing business with instead of you.

To remain competitive, you have to assess the competition: the "business school" term for this is "competitor (or competitive) analysis". Who else is doing what you're doing? How saturated is your market? Even if you don't operate from a physical (brick and mortar) office location, most of your customers/clients are probably local.

Examining the competition is also helpful in determining whether your pricing is too high or low for your market, and is a good source of ideas for new goods or services to offer.

You have probably heard the phrase "there's no loyalty in business anymore". This is usually said in reference to employer loyalty - gone are the days that "noone gets laid off at IBM", and such. There's no such thing as a guaranteed steady job, regardless of trade.

There's also no such thing as automatic customer loyalty. Just because they've "always done business with you" doesn't mean that they'll be back tomorrow, to replace the product or renew the contract.

Business, especially in today's economy, is about relationships. Just as apathy and ignorance of other potential suitors can lose your sweetheart's affection, inattention and unawareness of competitors can lose business. Make no assumptions, and court your clients, existing and potential, as if you were a newlywed on honeymoon.

In many ways, the stakes are even higher...

Monday, February 07, 2011

Top Ten Reasons Small Businesses Fail - part one

Procrastination

You're only as good as your word. Missing deadlines, arriving late for meetings, forgetting to follow up or follow through - these are all symptoms of procrastination, and key factors of Small Business failure.

As a Small Business owner, operator or employee, you cannot afford to slide down procrastination's slippery slope. Since word of mouth is the most effective low cost marketing strategy (and a rich source of revenue and referrals), you must be perceived as someone who:

Keeps their word
Honors their commitments
Values their customers' and clients' time

You may be familiar with the expression "if you fail to plan, you plan to fail". Here is its procrastination-related corrolary: "If you fail to show, you show to fail". Free yourself of the voice in your head, which is telling you some variation of the following: "I work for myself, therefore -

Noone is the boss of me
I set my own schedule
My time is my own
Why must they nag me - I'll get it done (eventually)

The phrase "it's only time" is a complete falsehood: time, to a great extent, is all there is. As an independent entrepreneur, or as an employee, you either bill for time directly, or the time required to perform your task (or make your goods) is a major factor in your compensation. Time is, in many ways, your most valuable asset.

Timeliness is also an aspect of quality, which is a perception in the client's or customer's (or employer's) mind, NOT an objective quality of the work performed or goods created. As a computer service professional, a hard-won lesson is that the job isn't done until the client perceives it as done. I could have fixed it weeks ago, but if I wait for weeks to tell the client, only at that moment is it done as far as they're concerned.

And let's face it -- the person paying for the job, not the one performing it, is the one who must be satisfied. Don't take too long to understand that, if you want to stay in business...

Thursday, February 03, 2011

Put the web to work

In a down economy, Small Businesses need to exploit every possible advantage available to them.

An often overlook and underutilized Small Business asset is the good ol' company website. Websites are nothing new, and nearly everyone has one by now (there are by far more registered websites than human beings on the planet). Most Small Businesses easily have multiple ways to launch a website for free. How many of these websites are effective business assets?

To truly assist Your Small Business, a website must, at a minimum, do three things:

Burnish your brand
Generate leads
Increase revenue

Burnish your brand: in today's economy, a website has to be more than a digital business card. Business cards are cheaper than dirt, and you hand them out like toothpicks. Not much ROI there. Your website is your first, best chance to:

Introduce yourself
Promote your business
Establish your qualifications
Create your online identity
Build a reputation

The old saying "you don't get a second chance to make a first impression" is especially true of websites: the "Back" button is just a click away, and you have about five seconds to convince the site visitor not to... click away.

Generate leads: Does your website have a form for customers to contact Your Small Business? Don't assume the site visitor will actually take the time to pick up the phone, or open their email tool and compose a message. Visiting a website is like an impulse purchase - if you site does capture their attention, you must make it as easy as possible for the potential customer or client to move to the next step, and contact you right NOW!

Increase revenue: Many of your existing clients may not have discovered you by an Internet search, but that doesn't mean you can afford to ignore the power of the web to find new business with old customers. It's a well know fact that it costs more in time and money to acquire a client than to retain one -- what are we doing about it?

Does your website cross-promote goods or services, especially to those currently doing business with you? Do you offer special deals or discounts to favored customers? You could have special content for registered visitors to your website, and create login accounts for your existing clientele - again, don't assume that they will take it upon themselves to sign up on their own. They are just as busy as you are, so you've got to make it almost effortless for them to do more business with you.

This is not the same as spamming them with unwanted messages - they already do business with you. Everyone likes to feel special, and be treated with special regard. Make sure your focus is the added value to their lives and businesses, not your desire for more of their money.

Review your records and invoices -- what goods or services have they already purchased in the past? What else do they want, or need, and how can you let them know that you can provide these quickly, conveniently and affordably?

Remember that a "down" economy is always an opportunity to invent new possibilities - use Your Small Business website to create as many new opportunities as possible, and you'll find undiscovered wealth right inside your web browser.

Open Source CIO