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small business news
December 2020
Volume #22 Issue #1

22 years and a New Year resolution

Today starts the twenty-second year of our sending the Small Business News on the first day of every month. As we started this in 1999, we are in our fourth decade of writing to you in an effort to share ideas, inspiration and information that we believe can help you in your business. Thank you for taking the time to join us for a few minutes each month.

Just like clock work, you can expect the news media will begin to run articles quoting various experts about how you should implement New Year resolutions for 2021.

We have one we want to share with you. We know it can make a big difference in your business.

It starts with a pair of questions to which the answers are both in excess of 80%. The first question asked what percentage of people shop online. The second question asked what percentage of people want to shop in a brick and mortar location.

So, if that many people want to shop in person, why are they shopping online? We see the possibility of multiple answers to this single question.

1 The store does not have what the customer wants. Definitely that can happen, however we are not seeing salespeople asking the customer why they selected a particular brand or item. Asking this question would allow a knowledgeable salesperson to make the suggestion of a substitute.

2 The customer can shop anytime they want. Another definite possibility, however we are reminded of the bike shop that told us they closed at 5pm because the other shops in their small town closed at 5pm. We aren't sure about the connection between the two. Our observation was that the bike shop sold expensive bikes that the target customer most likely was working until 5pm. We also see a lot of people riding bikes in early mornings and after the traditional workday. Why isn't the shop open at these times?

3 The price is higher in the store. Always a possibility, but we also see prices higher online and a difference in the quality of the product. Manufacturers frequently create a version of a product that is offered online and a different version that is for the local business. The product for the local business is a higher quality but there are two issues; the employees don't know there is a difference or they don't know how to explain it.

4 The Internet follows up. Granted it is all electronic but the online business frequently uses software that makes repeated contact with the customer. This is where we see the biggest downfall of the local business and the one item the Internet cannot match.

The situations where we see this with local businesses are countless. When we have been at trade shows, we frequently hear business owners expressing a concern over customer loyalty.

My experience has been that customer loyalty has to begin with our demonstrating loyalty toward the customer. Last week I used this story as an example; in a business where the owner has more square footage than they need, we frequently see some sloppiness as to how fixtures and merchandise is arranged. When space is tight, there is more attention paid to how things are displayed.

Perhaps the problem is that we look at it from the perspective of their being plenty of people who can become our customer. If we don't keep this customer we can get another with our next promotion.

Maybe it occurs with the person reading books about sales funnels. The problem with any scenario of a sales funnel is there is an opening at the bottom.

We don't need an opening at the bottom when it comes to our customers. We need there to be a stopper to keep all of them.

The New Year resolution? Develop your stopper. Adopt the mentality that once they become your customer, they are yours to keep and no other business can have that customer.

We have heard for too long the concern of all the advantages an online business has over a brick and mortar business. This is the one of the biggest advantages the brick and mortar business has over the online competition.

 

Who is visiting Small Business Converations this month? - Harold Havard

Our December guest, Harold Havard, is a fascinating small business owner. We met him several years ago at a trade show and his comment to a statement I made told me this would be a business owner I would want to know. And we know you will find him to be full of information and ideas that you can use in your business.

We will have an announcement in a few days for the Thursday night program. Join us as we visit with Harold. It will definitely be a wise investment of your time.

Article of the Month - Ten things to do for a profitable year

Staying on the theme of a New Year resolution, the article of the month for December offers 10 suggestions for areas of your business that can make the biggest difference in 2021. Regardless of a pandemic, we have observed multiple businesses that have been creative in the ways that have made changes to their business.

It is far more than just a difference of attitude; it is adapting and implementing.

 

 

 

 

 

 

 

MAY 2024
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Small Business

AdvisorieS

The May Small Business Advisory is titled "Planning for a successful accountant" and is appropriate for many with the April 15 tax deadline having passed.

 

Did you work with your accountant? Or, did you just give them a bunch of papers and wait to receive a completed tax return?

 

Successfully working with an accountant requires a partnership. This month's Small Business Advisory gives suggestions of how to make this happen in 2024.

Small Business

News

Top Story

We see that many small business owners have too much of a focus on the "top line" of their income statement.

 

Increasing revenue is great, but it is not a cure all for any challenges your business is facing. And sometimes, incresing revenue can create a challenge.

Article of the Month

Who is your customer? Some small businesses have no focus. Their customer is whoever calls or walks in the door.

 

And some small businesses have determined which customers, in sufficient numbers, they should spend their efforts to attract.

 

The article of the month shares an old Southern rhyming couplet about business; "The bertter you niche, the more you get rich."


Book of the Month

Lean Startup by Eric Reis is our suggested book for May.

 

As the title suggests, the reader of the book would be someone that is starting their business. However, we see more value than just that.

 

Perhaps you have been in business for many years. We think this book could give insight to items, and methods, that a small business owner should think about with their business today.

BOOK US

With over 25 years of frontline experience Tom Shay is America's leading Small Business Management Expert. He's a "Must Have" for your next event.

Small Business

Advisories

The May Small Business Advisory is titled "Planning for a successful accountant" and is appropriate for many with the April 15 tax deadline having passed.

 

Did you work with your accountant? Or, did you just give them a bunch of papers and wait to receive a completed tax return?

 

Successfully working with an accountant requires a partnership. This month's Small Business Advisory gives suggestions of how to make this happen in 2024.

Small Business

News

 

Top Story

We see that many small business owners have too much of a focus on the "top line" of their income statement.

 

Increasing revenue is great, but it is not a cure all for any challenges your business is facing. And sometimes, incresing revenue can create a challenge.


Article of the Month

Who is your customer? Some small businesses have no focus. Their customer is whoever calls or walks in the door.

 

And some small businesses have determined which customers, in sufficient numbers, they should spend their efforts to attract.

 

The article of the month shares an old Southern rhyming couplet about business; "The bertter you niche, the more you get rich."


Book of the Month

Lean Startup by Eric Reis is our suggested book for May.

 

As the title suggests, the reader of the book would be someone that is starting their business. However, we see more value than just that.

 

Perhaps you have been in business for many years. We think this book could give insight to items, and methods, that a small business owner should think about with their business today.