Tag: Business

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Before you leave your day job to build a business from your new product or service idea sharpen your skills and learn to sell

bunt, Farben, Geschäft, Verkauf, Ware, multico...
bunt, Farben, Geschäft, Verkauf, Ware, multicolored, colors, business, sales, commodity (Photo credit: Wikipedia)

The owner of a small business who sells accounting services gives this advice: before you leave your job at a large company know your profession well, sharpen your skills and learn how to sell services to clients. If you can’t sell 1000 hours with the resources and reputation of an established company behind you, he says, you will probably fail to do so on your own.

This is good advice for any rookie start-up business owner who has taken their brilliant idea for a new product or service, developed and tested it and now wants to build a business from it. For a product business you may need to sell at least your first, for example, 100 units part-time or on the side before you take the leap and go out on your own. Continue reading “Before you leave your day job to build a business from your new product or service idea sharpen your skills and learn to sell”

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5 overlooked opportunities for your small business in this sick economy

Shipyard_Crane
Shipyard_Crane (Photo credit: shoebappa)

I heard this story once about a shipbuilder who would wait for an economic recession to build new ships. He could get labour, steel and services far cheaper when times were bad. By the time the economy mended itself and was growing again, the shipbuilder would sell his ships. Demand for ships was stronger again. That’s how he made big money.

This economic downturn has been running for five years. In South Africa, although we experienced 0.9 percent GDP growth in the first quarter (not unlike Mexico, at 0.8 GDP growth, mind you) we still haven’t gotten into negative territory. Some sectors have but here we are talking overall.

Look what the sick economy has brought: high administered prices, shocking energy spikes (electricity and petrol), tightening of cash and weak demand. As costs have risen so has inflation and wage demands. Small business has experience increased theft, stock loss and armed robberies.

Yet while many things are going south in this rocky economy, smart-thinking small business owners have been fine-tuning their costs, negotiating harder and sweeping out the dead wood.

Here are five overlooked opportunities for your small business in this sick economy: Continue reading “5 overlooked opportunities for your small business in this sick economy”

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5 ways your small business needs to tackle inflation – unless you’re the Great Gatsby

MV5BMTkxNTk1ODcxNl5BMl5BanBnXkFtZTcwMDI1OTMzOQ@@._V1_SX214_The Great Gatsby, or Jay Gatsby, the lead character in F Scott-Fitzgerald‘s novel, was a bootlegger. The new movie shows the millionaire protagonist living a lavish lifestyle but behind-the-scenes he made his wealth from selling illegal liquor during the Prohibition period.

Jay Gatsby would have made even more money in our present inflationary times. But commentators who have examined his criminal past say that bootlegging was a fairly low-margin business. The reason: he had to pay for bribes, lawyers and mob protection. It is also doubtful that he would have raised prices above all his many competitors.

Warnings of high inflation are coming from economists, business owners and consumer unions as the Rand got beaten to smithereens by the US dollar. It’s difficult always to make predictions about how fast inflation will grow but it’s best to take precautionary measures now than wait until your small business gets a kick in the stomach from inflation. Continue reading “5 ways your small business needs to tackle inflation – unless you’re the Great Gatsby”

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Why you need an effective idea-to-launch system

Feedback (song)
Feedback (song) (Photo credit: Wikipedia)

Coming up with ideas is often said to be the easy part.

Do you really believe this?

How many ideas that you come up with in the normal course of your everyday experience have legs?

The new business idea process focuses on idea generation. Why is this? It’s because you need a large number of ideas to ultimately find a winner. Continue reading “Why you need an effective idea-to-launch system”

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Discover the four things you must know before you create a new product or service

"enthusiasm"
“Enthusiasm” (Photo credit: TheAlieness GiselaGiardino²³)

Small business owners wanting to expand their product or service range may come up with a new business idea, rush into it without much thought because they are swept on a wave of enthusiasm and then discover that there is little or no demand.

I’ve made this mistake and I’ve seen first-hand as others have done the same. It’s almost as if we think that our enthusiasm will make up for everything. Our reasoning and gut feeling are shoved aside in the white-hot act of creation and product development. We may be blinded by the “darn it, just do it” mantras spouted by celebrity entrepreneurs. Continue reading “Discover the four things you must know before you create a new product or service”
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Time to tune up your sustainability skills at a fraction of the usual cost

I was looking at the cost of a basic university course in risk management and was shocked to see how much it costs. Basic three-year degrees cost as much as a top-of-the-range sedan. Not too long ago my son started a finance degree (he’s completed it) at a university and the rector in his opening address to parents remarked that the university had place for 22,000 students and had to turn away 12,000.

What a business to be in. Demand is strong despite the economy. Fees are so high that you are unable to pay for them unless you take out an education policy on the day your child is born or save for years for an amount that could buy you an apartment in a reasonably good area.

Education towards sustainability is even more expensive. At the high end, a basic one-day seminar on sustainability risk management costs up to R10,000.

For the start-up or small business, the costs of tuning up your skills in the area of sustainability can seriously challenge your non-existent training budget. Okay, that’s not to say that small businesses don’t invest in training. In fact, I was just looking at some information that showed small- to medium-size businesses invest the most money in skills.

How then do you find out the latest information, advice and techniques to take advantage of sustainability in your business? You’d be lucky to find any so-called “free” course on the market, and if you did, you will find that the information is heavily laced with sales messages for the service provider and their partners. Not only that but information is also often skewed towards forcing sustainability down suppliers’ throats. The materials have scant value to help a start-up or small business secure competitive advantage from sustainability practices.

Not all advice needs to come at a shockingly high price. One medium-size business reduced their energy consumption by 10% using a no-cost method that is so obvious but something that you won’t find on any sustainability course.

Another entrepreneurial business person in a dyed-in-the-wool business made one simple change to his process and his profits shot up.

For the costs of taking less than 30 seconds of your time, you can put your name down below and receive valuable regular tips, techniques, advice, suggestions that will help you tune-up your sustainability skills for a stronger competitive edge at a time when just that small difference can keep the wolf from the door and bring you improved profits.

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Last laugh

The bartender says “What’ll ya have?”

The climate scientist says, “I’ll have a beer.”

Turning his thumb towards the climate denier, he adds, “This jerk will have an extra strong hurricane. And no ice.”

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A dangerous word to mention in the wrong company


“The illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn, unlearn, and relearn.” ? Alvin Toffler

I was talking to a young sustainability practitioner this week who told me his biggest challenge: he’s trying to introduce a recycling program but managers have stopped him because they say they won’t pay for the cost.

You’d think managers in an industrial research company would be forward thinking.

I wondered what this organisation’s shareholders would say about this resistance to change, to halt progress.

The word “sustainability” is often looked upon as a nice-to-have but is attacked when its proponents recommend changes, especially changes to the status quo that might inconvenience people or require some small initial capital outlay.

Research carried out for the ultra-conservative and over-sensitive, recommends that the “S” word is not to be mentioned in business circles or in companies. Forbidden words are “zero waste”. Instead, one must use “lean production”. Another word that requires censorship is “greenhouse gas emissions”. Rather use the term “reduce energy spend”, they say.

It makes sense to couch language in terms that will be understood an appeal to end users or customers as any effective salesperson will know. But to tip-toe around words that have to do with sustainability is perhaps taking things too far.

Sustainability, the term by the way has been around for almost 40 years, is not supposed to be familiar to start-ups and small businesses. The word is seem to be mainly used by large corporate enterprises and public organisations. However, while the term “sustainability” points to an ideal future state, the practice of sustainability is something that small businesses do all the time. Not all of them, mind you, but a large number.

  • Why is then that small businesses buy second-hand office furniture rather than new?
  • How come they are the first to support local community charity drives?
  • Why is it that they look at every way possible to save energy costs?
  • How come they substitute existing raw materials with more eco-friendly raw materials?
  • What motivates them to provide entry-level jobs to young people in local communities?

Yes, start-ups and small businesses could do more when it comes to sustainability but I don’t buy the argument that they are doing nothing or very little.

In this economy lean and green make business sense.

Smaller companies are much more expert at saving costs, reusing materials such as stationery and packaging and buying new only when they absolutely have to than giant businesses.

Sustainability is not only about resource reduction, using less to do more (although this is very important) but it’s also about helping reduce poverty and inequality (as many small businesses help do) and responding to a new economy that increasingly requires new and innovative thinking.

This includes opportunities for sharp ecopreneurs, start-ups and on-line entrepreneurs to take advantage and seize the opportunities that green consumer buying is making available and will increasingly make present in the future.


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How to generate embarrassingly low-cost ideas to promote your business

Activate your thinking with these seven low-cost, no cost ideas relevant to your marketplace whether you run your business from home, retail on a main street or shopping mall or trade online. Learn how to position your products and services in a price-driven environment.

In tough, competitive markets, businesses need to come up with fresh ways to promote their products and services. Promotions attract attention to your products and services, help make them stand out from your competitors and give your sales a much-needed boost when customers are looking for strong reasons why they should buy from you.

Rethink your positioning

Some entrepreneurs think promotions mean discounts. They baulk at offering discounts when sales are down more than a third on the previous year, and larger chains are offering incredibly low-priced deals. Promotion doesn’t have to equal discounts. Assess the value of your offer, the quality of your service and guarantee. Think low costs, high impact.

How can you change your offer to a market that is cautious about spending? If you have been selling expensive products and services in the good times, you’ll need to rethink your strategy in a price-driven environment. Your marketing materials also need to reflect and reinforce your cost-value proposition.

Think through your positioning strategy carefully because positioning moves are like those you make on a chessboard. Your move may prompt your competitors to make counter moves. So you need to think about not only your next move but the one you’ll need to make after your competitors have responded to your repositioning.

Quick promotional ideas brainstorm

Use idea generation tools and techniques to come up with new ideas to promote your business. Brainstorm ideas and keep them in a notebook, a journal or on record cards (3 x 5 cards). Choose your best three and try one out.

Check what other businesses are doing by reading magazines, dropping in on stores unrelated to your business and speaking to business people you trust. Listen to customers because they can be your best source of promotional idea.

Gold in mailing lists

Do you have a customer mailing list with both postal and e-mail addresses? How quickly can you mail out a special offer to your customers? A physical sales letter is personalised and can stand out in a crowded market.

Consider acquiring marketing “assets” from businesses that are closing down. Perhaps they have a customer mailing list that you can purchase for a fraction of the cost it took the original business to acquire. Such a list is valuable because it represents people who have bought products before — and may need your products or service.

Social media strategy

Social media such as FaceBook, Twitter and other Internet-based social networking offer low-cost promotional opportunities. But you need to know what you are doing. You must know how to promote your business without turning off prospects. You need to devote time to keep your content fresh. Will your social media marketing provide any follow through for conversion? A FaceBook page may not convert any new business but customers may ask why you don’t have one.

Professionalise your communications

Poorly written and designed marketing materials are a recipe for disaster. Getting in well-meaning family members, friends and secretaries to write with no knowledge of business or marketing is just plain short-sighted. Even blogs for small businesses can be better handled by a professional copywriter or ghostwriter. You may especially need such services if you are in your store or business the whole day and can’t find the time to write blog posts and publish them. You also need to learn how to promote your blog because there are gazillions of then out there (get a number for how many blogs there are).

Network face to face

Networking with your customers at your local chamber or commerce or business organisation is often the last thing on the entrepreneur’s mind. But it provides a strong opportunity to promote your business face to face. Think carefully about driving customers to your business through FaceBook, Twitter or LinkedIn when you aren’t even doing some direct selling by calling on businesses in your town or city.

A low-cost prospecting idea

While everyone is blasting out e-mails, FaceBook posts and Tweets, track down names that you spot in newspapers, magazines and even advertising flyers if you think those people will make good prospects. Call them or pay them a visit — personal contact will stand out from the electronic blizzard.

Arrange a promotional ideas swop meet

Share your promotional ideas with your fellow business people. Perhaps organise an idea swap meet group which involves meeting like-minded business people once a month to share new sales and promotional ideas that have worked.

Promotion helps your products and services jump out in a competitive, tight marketplace. By generating your own promotional ideas, you may not only save costs but you will breath life into your sales when your business needs it most.


Sources:

“Marketing on a Shoestring: Low-cost Tips for Marketing your Products or Services”, Jeffrey Davidson, Wiley Small Business

“Positioning: The Battle for Your Mind”, Al Ries and Jack Trout, Warner Books

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The power of generating low-cost promotional ideas: a fight-back strategy

Come up with your own free, easy and low-cost promotion ideas that can help you to lift sales in a difficult economy

In this rough and tumble economy, some business people sit, like frogs in a pot immobilised with the water temperature rising. Even when the temperature hits boiling point, they remain in the pot. If the frogs suddenly stumbled into the pot of boiling water, they wouldn’t hesitate to jump right out. Why then don’t small business people react quickly when they recognize warning signs?  

Many business people seem to stubbornly believe that they can rough it through the difficult economy doing business in the same familiar way, despite turnovers in some cases plummeting by a third or more. Small business has such a high mortality rate in “normal” economic conditions but when economic activity declines, the mortality rate rises.

Riding high and spending less

During the good times small business owners were riding high. They spent less on their marketing as customers walked in and bought whatever they wanted. Small business owners were spoilt as they had to do little personal selling or advertising.

Now, when times are tough and small business owners and entrepreneurs are more concerned with meeting personnel expenses and covering overheads they are even more reluctant to spend money on promotion. Yet clients and customers are holding onto their cash, waiting for times improve, hanging onto their homes, cars, computers, household appliances for longer, repairing them instead of replacing them.What should store owners and small service businesses do?

Ignore selling and promotion at your peril

Even though small business owners have seen turnovers drop many are wary of spending money on promotion. Some are trying to play it cheap by bringing in well meaning family and friends to help them promote their products and services. Other owners knuckle down on the technical areas and processes in their business, ignoring selling and promotion at their peril.Promotional ideas need to work

Little do those businesses who use retail space or have high visibility and walk-in customers realise that if they don’t do something to promote their business and lift sales, they will be forced into operating the business from home to chop overhead. Running a business from home ironically means needing to acquire a whole set of new marketing skills.

How do you go about promoting your business in a stormy economy where every cent counts? Small businesses and entrepreneurial enterprises cannot pour vast sums on vague institutional (image) advertising with no way to measure sales. Entrepreneurs need to generate sales — even when advertising in traditional print media, adverts have to be “keyed” and have special phone numbers specific to adverts. This way they can measure their advertising conversion. A small travel agent told me recently that she had a separate phone number for each advert to measure response. If the newspaper, magazine, radio or television advertising didn’t pull, it had to go.

Test, test, test

Promotional ideas that work are specific to each business and the mind or emotional triggers of their customers. Small business owners need to brainstorm ideas that they think will work for their business. Try some no-cost, low-cost ideas out first and see how they work. Remember to test, test, test. As Claude Hopkins said, “Almost any question can be answered, cheaply, quickly and finally, by a test campaign.”

To get fighting fit in this economy small business owners and entrepreneurs need to focus their attention on attracting customers to their business through a variety of low-cost, no-cost promotional ideas. Idea generation techniques can be effective as can meeting with fellow business people to share and swop ideas. In the next article on www.ideaaccelerator.co.za we’ll look at tips, strategies and other ideas to promote your business. In the meantime, take a look at what your competitors are doing as well try to spot other businesses that seem to be doing well no matter how hard the harsh economic winds blow.

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Finding time to create #4 Ignite your creativity

How do we inject more creativity into our business – conceptualising, planning, implementing — and find the time to do so? Working in fixed time slots is seemingly impossible with today’s demands on our time. Tablet computers, smart phones, e-mails and the Internet are all meant to save time but our e-mail boxes are brimming every day and continuous disruptions from associates in company cubicle land have become the norm. Finding time to create before the workday begins has its merits but it’s not always easy to do with morning traffic, urgent and “unforseen” crises and cell phone calls. Continue reading “Finding time to create #4 Ignite your creativity”