Voice mail

It seems that every other call I make gets answere by voice mail, or more rarely, an answering machine. The messages range from the curt “Leave a message and I’ll call you back”, to the silly, to very long messages. Seldom do I hear a message like: “This is John Adams of Adams Photography where we make everyone look great. I really would like to talk with you, so leave a message and I will return your call before the end of day”. This  conveys a strong confident message along with a commitment as to when a call will be returned.

Yesterday a friend made another great voice mail suggestion. If you will be out of the office for more than a day, record a voice mail message saying when you will return. He says that when he is gone several days he not only says when he will return, but why he is out of the office. Great idea – especially if the reason for your absence is to attend a business-related conference or seminar.

Right-Sizing

As 2008 winds down there are daily reports of layoffs from local, regional, and national companies. This is a tough economic climate for large and small businesses alike. If you have been following my blogs you know that I am and remain optimistic for owners of small businesses. Those who are adjusting their business model to efficiently provide services and goods that people need at reasonable prices will surely thrive. There are over 300 million people in the US who need every conceivable type of products and services.

But, back to layoffs. What are you doing to right-size your company? Are you staffed appropriately for present and projected sales and profit? Are the right people on your staff? With many talented people losing their jobs, now may be an excellent time to pick up the talent you need, and to fill the skills-gaps in your business.

This may be the perfect time to use zero-based budgeting principles in looking at your staff. Examine each person, his or her job description, and the work performed. Is it needed work? Can it be done more efficiently? Is the individual performing to your expectations? Is there work to be done for which you do not have the proper talent?

In order for your firm to survive and to keep paying a workforce, you may need to take the painful steps of letting go redundant or poor performing people, while hiring talented folks who will help you grow and prosper.

Innovation

How innovative are you? Now, more than ever, businesses need to innovate – find new markets, develop new products, find more efficient methods of production and delivery.

With belt-tightening, there is less disposable income and people are spending less for luxury items. If you have been selling to a luxury market, think of ways to innovate to add necessities to your line of luxury items. What can you sell that people need rather than just want? Can you satisfy needs and wants at a lower cost?

With innovative thought, the core competencies, skills, and talent that lie within your firm can be redirected to produce goods and provide services that may be in more in demand than products that have faltering sales. If your bicycle shop sells high-end mountain and racing bikes, add a line of low-cost bicycles and advertise them as low-cost, low-carbon, transportation alternatives. If you design, sell, and install high-end kitchens, consider adding capabilities of doing less-expensive cabinet refacing.

Whatever your industry or business, innovation can carry the day and may mean the difference between keeping your folks employed or closing the doors.

Customer Complaints

On my November 14 blog I wrote about an experience I had with the broken promises and lack of follow-through from a tree service I had contracted with (they have since fulfilled their contract). But my experience in making a complaint to them has made me think some more about handling customer complaints.

Every business has customers who complain – all complaints are legitimate, in the eyes of the customer – and thus need to be taken seriously by the business. How do you handle complaints? Here are some guidelines.

1. Legitimize the complaint by listening to and empathyzing with the customer. Repeat back the what the customer has told you to show that you were listening and that you do understand. Customer says “I’m so mad I could spit! I bought this stove six months ago and I have had to have it repaired four times. I’m ready to throw it out” Your response: “I understand how you must feel. You have had the stove repaired four times since you purchased the stove six months ago. Is this correct?”. Customer: “Yes”.

2. Affirm the complaint by saying: “I’m so sorry you have experienced the problem, and am glad that you have brought it to my attention”.

3. Show that you are an advocate for the customer: “Let me see what I can do to help make this right for you”.

4. Ask what resolution would make the customer happy: “What can we do to resolve the problem and make you happy?”. Let the customer tell you what he/she wants. This will often be less than what you might offer on your own.

5. If the request is truly unreasonable, you my need to negotiate with the customer for a solution that works for both of you.

6. Assure the customer that the request will be honored and, if appropriate, commit to a date and time for the resolution to be complete.

6. Follow up with the customer to make sure the problem was solved to her/his satisfaction.

It is important that, as an employer, you empower and train any employee to whom a customer has made a complaint to deal with the complaint. If the potential resolution is beyond the decision-making authority of the employee, the employee can still exercise the first four steps outline above and promise that the problem will be taken to the proper authority for resolution – and follow up.

Advisory Board

Does your small business have a board of advisors?

Many small businesses perish for lack of expertise and direction. The entrepreneur carries all the weight but does not often have the talent to make the right moves.

As an entrepreneur you can supplement your skills with the expertise of a board of advisors, a mentor, or a business advisor.

Even a one-person home-based business can benefit from an advisory board. You can use the board to provide a sanity check for the direction of your business, and your new ideas and initiatives. One of the key roles of a board is to hold the business owner accountable. If, in a prior life, you worked for someone else or another business, there was someone above you to whom you were accountable. As a sole business owner, you are accountable to no one, so it is easy to slough off tough decisions and jobs that you really don’t want to do. With a board, you will be accountable for the goals that you set and the tasks that you promised to do. You don’t want to walk into a board meeting and say that you did not get done what you promised at the last meeting.

An advisory board should meet regularly and offer you thoughtful input. The burden is then on you to act on input from the board. You need to carefully select your board, making sure that each member is someone you like and trust. Offer to serve on the advisory board of business owners whom you select for your own board.

A board of four or five people is ideal. Such a group may include a trusted business advisor, banker, accountant, lawyer, insurance executive, and a non-competing expert in the same industry as your business. It is important for the board to consist of people from multiple disciplines, and for you to admire and trust them all. Search for people who have expertise in areas in which you are weak. For example, if you lack marketing expertise, include a marketing person on the board.

A quarterly board meeting might be held as a luncheon or breakfast with no cost to you beyond that of the food. As your business grows you may consider the practice of providing advisory board members a stipend for each meeting attended.

Make sure that you provide an advance agenda of each meeting to all of the board members. Topics might include the level of sales during the interim since the prior meeting, tough issues you are dealing with, what you see on the horizon for your business, and actions taken since the preceding meeting. Follow up each meeting with notes from the meeting, including a list of specific action items.

Business Cards

The easiest and quickest marketing tool, and often the first impression a customer may have of you, is about 2” by 3.5”, and is often the most overlooked. Using your business card as a marketing tool takes a little forethought and just a few seconds of your time.

Have your card printed professionally. Avoid using “do-it-yourself” perforated, laser or inkjet printed cards. They simply don’t have the professional edge that a printer and designer can provide. A designer and printer can help create a unique look and suggest a quality card stock. Printers that specialize in business cards, such as www.fullcolorresources.com, can provide double-sided full-color glossy cards at a low price. For example, my friend Mark Hanna at www.fullcolorresources.com offers 1000 cards at just $59.00, including shipping.

Maximize space. It costs little to print on both sides of a card, so consider using the back of your card as well, Include all personal contact information on the front along with your logo (if you have one), and a short tagline that highlights a specialty or strength. Use the reverse side to inform customers about what you do and why they should use your services. 

Hand out two cards, or more. If you’re handing out a card to a contact, why not make it two or three? Ask them to pass your card along to t friend or business acquaintance who my need your services. Give cards to friends and family, business contacts, and associates. The cards will do more for you in the hands of others than they will if they remain in your pocket. When handing out a card, use both hand and have the reverse side up. The recipient will automatically read that side and then turn it over to see the contact information.

Mail cards. With every letter or invoice you mail, include one or two business cards. This will keep your name in the recipient’s hands and gets your name in front of more potential customers.

Business card etiquette. It is considered impolite to write on another person’s business card – particularly in Asia. When receiving a card, it is good form to carefully read the card, then ask permission to write on the card. Having received it, note where and when you met the individual and include information for follow-up. 

Barter

I have been working with a client, a flooring company, that, like many businesses today, has a severe shortage of cash. The company needs my assistance, appreciates my advice and help, but has no immediate cash to pay me. I, on the other hand, have been wanting for some time to install a new hardwood floor, but am reluctant to release hard-earned money for this non-essential expense.

Is this a marriage made in heaven, or what? Barter to the rescue. By bartering my client gets my services and I get a new floor!

Barter is the oldest form of commerce. Yet, I can well imagine that bartering is on the upswing as most businesses are suffering financial battering.

Bartering can either be done one on one between two businesses that need each other’s goods and services. But what if the need for bartering is there, but the specific goods are not needed? There are now several bartering networks, such as the Barter Network (barternetworkonline.com) in which you can accumulate barter dollars for goods and services you provide, and then cash them in for goods and services you want.

If you do barter directly with a supplier or customer, always agree to it in writing so there is no misunderstanding of who gets what when and that there is equal value traded for equal value.

As we are all tightening our belts more of us will need to find creative ways to do commerce in which everyone wins.

Buy Local

The vital core of our economy is comprised of small businesses. Most new jobs are created by small businesses. Small businesses provide personal service with competitive pricing and are there when we need them.There is hardly a product or a service that is not of equal or better quality found in a large chain stores that is not available from a local merchant, warehouse, or manufacturer.

Why then do we insist on shopping at the big-box stores, or even on the Internet? While big box stores pay taxes, profits are sent away to fat cats who care not about our local economy. Internet sites don’t even pay local taxes!

If you own a business, you count on local people to purchase your goods and services. Do you return the favor?

Do you seek out the many wonderful locally owned restaurants in your community, or do you take your family to national chains? Do you retain a far-off consultant instead of finding an equally competent person in your own back yard? Do you purchase hardware or lumber from local merchants or do you go to the big box stores?

My wife and I buy groceries exclusively from local chain markets, notably Heinens. Friends have often commented that this is a luxury as we are paying too much for our groceries. This is a myth perpetuated by the large chains. My wife has comparison shopped on more that one occasion and has found Heinens prices to be competitive, and in some cases lower, than the Giant Eagle chain stores nearby.

In Nothern Ohio COSE is sponsoring a campaign to encourage people to buy locally. I encourage you to visit www.ibuyneo.com to check it out.

It may be convenient to purchase on-line or at a big-box store. But, is it the right thing to do? Is it really helping the local economy? Do the right thing. Support your local businesses.

Who do you talk with?

Owning and running a business is one of the toughest and loneliest jobs around. As a business owner, who holds you accountable for meeting your goals? Every business owner needs an unbiased person to bounce around ideas with, and to vent frustrations, problems, and concerns. A confidant needs to be a good listener, and be able to challenge ideas and provide meaningful advice. While spouses and significant others may be good listeners, they may not be unbiased and often can’t offer sound business advice.

To whom can you turn? Here are some ideas:

1. A friend who owns a non-competing business. Set up periodic meetings – perhaps over long lunches – to talk candidly with each other about your businesses. You will be able to offer mutual guidance and assistance.

2. Join a mindshare group. Operating under various names, mindshare groups have formally structured regular meetings of six to twelve non-competing business owners who offer mutual guidance and hold each other accountable for goals and actions.

3. Join an executive round table forum. These are similar to mind share groups but are generally more structured and meetings are facilitated by an outside individual.

4. Hire a business advisor to meet with you periodically. Such an individual can be used not only to bounce ideas off, but can be a significant help to you in managing your business.

No matter who you talk with, assure that the conversations are confidential – it is advisable to always execute a confidentiality agreement in advance to assure this. Then, be candid, be open, but also be open to constructive criticism and new ideas.