Why Do Small Businesses Fail?

Small Business Owners, Entrepreneurs and Self-Employed folks; if you haven’t taken the time yet to review your 2010 business results; and plan for 2011 – the time is now.

Before planning for the future; we need to take stock of the present.  This blog from The New York Times Business page is  a handy check-list of reasons why small businesses fail.  Make sure your business isn’t plagued with any of the 10 points.

http://boss.blogs.nytimes.com/2011/01/05/top-10-reasons-small-businesses-fail/

Most of us (myself included) don’t have the objective overview of our own performance; so call in your  board of directors, team of advisors or business coach to review this with you.  However, when reviewing your own businesses against this list; switch the perspective and ask if your business DOES possess the opposite of each of these traits.  If it doesn’t; add building that key ingredient in your business into your list of 2011 goals.

2011 is looking to be a year of more risk taking in the business world; hopefully a year where the lessons of the last 3 years with a struggling economy will be integrated into business plans for success in the future!

Suzanne Andrew is a Small Business Consultant and Entrepreneur’s Coach.  If you need some help reviewing your current business results or planning for the future; contact her directly to schedule a session.  SuzanneMAndrew@gmail.com or 727-641-6941.

What’s Your Mantra?

As an Entrepreneur or Business Leader with days full of distractions, juggling too many problems and not enough hours in the day, buckets of challenges & worries; one powerful tool to keep yourself on track is a mantra.

Traditionally mantras were used by Hindus and Buddhists to train the mind to stay focused during spiritual practice.  Mantras work to shift focus out of the regret about the past or the worries about tomorrow; mantras bring us back to right now.  Today, we’ve seen mantras evolve into affirmations, positive thoughts and for some businesses, mission statements.  Regardless of what we call these power phrases; mantra practice is an extraordinarily effective way to keep on track when distractions arrive.

As an owner  of a small business myself, during most of 2010, I used the Business Mantra: “What Have You Done to Market Yourself Today?”  When I caught myself worrying about the economy, beating myself up over negative comments,  anxious about the future, or trying to do too much; I would simply ask myself: “What Have You Done to Market Yourself Today?”.  Invariably, asking myself that question (repeating that mantra) would shift my focus out of worry, procrastination or anxiety and into actively working on improving my own business performance right now.  My current Business Mantra is: “Is this the best use of my time?”.

Some other ideas for  business mantras include:

• How have we delighted the customers today?
• Who else needs to know about what I do?
• How can we improve our main product?
• Who do I need to thank today?
• How can we simplify the operation today?

Generally, you’ll want to choose a mantra that reflects the main area of your business needing attention whether it is products & services, marketing, customer relationships, operations & admin or your overall mission.

Repetition of a mantra; using a power question or inspiring statement to replace worries, fear and anxieties can be a strong way to keep yourself, as a leader, on track during the inevitable stresses and strains of leading a business in these times.

Suzanne Andrew is an Entrepreneur’s Coach, Small Business Consultant and Thai Yoga Massage Therapist who often borrows the wisdom of yoga and applies it to the harsh realities of the business world.  Contact her to schedule an initial consultation: SuzanneMAndrew@gmail.com or 727-641-6941.

“Do People Exist to Serve the Economy; or Should the Economy Exist to Serve People?”

“Do People Exist to Serve the Economy; or Should the Economy Exist to Serve People?” – David Korten-

In 2010, it seems many people are feeling like the ‘economy’ as it is structured does not work for the vast majority of people; both in this country and around the world.  Perhaps it is time to start envisioning a new way of keeping score, a new system of allocating resources, a new platform for interacting with each other and the world.

Business and community leaders of all stripes; and anyone concerned about the future should watch this excellent program from PBS: “Fixing the Future”.

http://www.pbs.org/now/fixing-the-future/index.html

Looking at a variety of innovative organizations from all around the U.S. who are dedicated to developing more jobs and create lasting prosperity;   this documentary shows us there is a different way, and some of our fellow citizens are engaged in creating the new future right now!

Worth every minute of your time; I even watched it twice!  Here are my key ‘take-aways’:

• It is time for a ‘relationship’ economy; instead of the ‘one-night-stand’ economy we currently have.
• The way the US measures prosperity, GDP, completely ignores health, happiness, community, time and natural resources.
• Does capitalism get us where we want to go as a society and as human beings?
• Time banks can be used instead of “Money” banks
• Personally, I will attempt to spend every single dollar I can locally; in my community, hopefully with friends, family and others I know

Overall, this is a documentary of alternatives; perhaps we can build a world that is more fair for more people; perhaps combining the best principles of the past with the technology of today, we can create a better world tomorow.  In the words of Steve Beckett, from the film: “Community is more like something we’re remembering rather than something we’re inventing”.

So as you embark on planning for 2011, whether for your business, your organization or personally; this film offers excellent fodder for your planning process. 

 

Suzanne Andrew is a Business Consultant, Trainer and Bloviator About Town.  If you’d like some help with your 2011 business planning process, contact her directly at 727-641-6941 or SuzanneMAndrew@gmail.com

Is it an Event, or a Way of Being??

As a business leader,  before trying to find a solution for any problem, it is essential  to decide whether this problem is an EVENT or  a WAY OF BEING?

An EVENT requires an entirely different process of working to solution, than a WAY OF BEING.  Think of an EVENT as, say, a heart attack.  A heart attack requires an initial panic, then a frantic call to triage experts, an ambulance, some hasty CPR applied, maybe a dose of emergency medicine; all delievered rapidly without second chances or room to improve over time.   The heart attack demands a quick response by some highly trained individuals to rescue an otherwise bleak situation.  

Think of the WAY OF BEING like having high blood pressure.  High blood pressure requires an entirely different set of solutions than the heart attack.  High blood pressure requires new long-term behaviors, changing structures, building new habits or foundations, integrating knowledge and continuous application of different behavior.  Incremental improvement over time will yield great results when treating high blood pressure; and paramedics are generally ineffective in helping out with high blood pressure.

So when managing a business, project or even your own life; before jumping in to solve any problem first figure out if it is an EVENT or a WAY OF BEING.

EVENTS respond well to quick decisions, lots of resources applied in the short-term, bursts of energy, training before the event and ‘good enough’ results.

WAYS OF BEING require planning and strategy, thorough assessment of the situation, consistent effort, sustained resources and continuous improvement.

Resist the temptation to change policy as a result of a heart  attack; but do develop new policies to support an environment of creating lower blood pressure.   Resist the temptation to bring in hired guns to manage blood pressure when diligent, incrimental action will yield the best long-term results.

If you could use some assistance determining if your business is having a heart attack or suffering from high blood pressure, arrange a one-on-one session with me.

Suzanne Andrew, owner of SMASolutions,  is a Small Business Consultant, Entreprenurial Coach and Bloviator About Town.  Contact her directly to arrange your first session: 727-641-6941 or SuzanneMAndrew@gmail.com.

Can the Wrong Name Kill Your Business?

Talking with a colleague over coffee this morning, we started listing all the downtown restaurants that had recently closed their doors or were hanging on by a thread.  It wasn’t long before we landed upon the restaurant named “Yummy Mama” for further discussion.  The Yummy Mama restaurant had been in a great downtown location; a huge converted old house with lots of elegant spaces, outside dining areas and good parking.  The food reviews of their Eastern European menu were always positive, the staff helpful and professional, the offerings seasonal and appealing; yet somehow the restaurant never caught on. 

We think it is the name.  How do you, without feeling awkward, invite your business partners to meet you for dinner at “Yummy Mama”?  How do you explain to your spouse (or worse yet, your corporate accounting department) the $100 charge on your credit card to “Yummy Mama”?   How do you invite your whole family for a birthday party to “Yummy Mama”? 

Unless you’re a huge corporation with a big marketing budget where you afford the amount of advertising, marketing and branding it is going to take to create brand awareness, recognition and affection; sticking with a traditional name is probably going to serve your start-up small business better.  If you’re a new small business; try to make your business name a descriptor of what you do; like, “Tampa Chiropractic Clinic” or “All Service Electric.”  Adding in the location is a bonus for a small, store-front business; as is any identification of the types of clients you’re seeking.  Examples are “We Cater To Cowards Dental Group” and “West Florida Commercial Tree Service”.

Yes, these names may lack the sparkle and pizzaz of a high concept name like… remember the airline they named “Ted”.  Really? 

The age of mass marketing emulation for small businesses is over; small businesses simply don’t have the time and money available to launch into showy advertising, promotional and branding campaigns to compete with the big guys; and the really good news is that as a small business owner, you don’t have to.  Figure out who your niche is, and name your business so it is easy to find you. 

Perhaps if “Yummy Mama” had named themselves “Downtown Eastern European Diner”  they’d still be open for business!

Suzanne Andrew, owner of SMASolutions,  is a Small Business Management Coach & Consultant.  Contact her today to set up an initial discussion about how we can make managing your thriving business easier!  SuzanneMAndrew@gmail.com or 727-641-6941

How Do You Score? 5/10? 10/10?

Pretty useful list of 10 reasons for Entrepreneurial Success; this New York Times article outlines another look at what it takes to succeed as an entreprenurial business leader.

After working with so many businesses through this recession, I’d move number 7 to number 1; especially in light of the economic challenges of our times. And if your ‘Money Plan’ hasn’t been updated since the recession began in 2007; it is time for a review and update!

http://boss.blogs.nytimes.com/2010/08/31/top-10-reasons-for-entrepreneurial-success/

Suzanne Andrew is a Business Consultant, Corporate Trainer, Yoga Teacher and Entrepreneur.  Contact her today to schedule your business “Money Review” session, or other consultation session: SuzanneMAndrew@gmail.com or 727-641-6941.

Show Me The Love!

What have you done for your customers lately?  I mean other than provide an outstanding product or service at a fair price, when and where they want it with knowledgeable, courteous service; other than that, what have you done for them lately?

If you don’t know, or the answer is ‘nothing’; maybe it is time to thank your customers simply for being your customers. 

Here’s the example the started me thinking about this topic:  at the end of my block there are two deli/convenience stores.  The  Convenience Store on the Left has been in the same location for over 20 years, and has gained a city-wide reputation as having the a largest selection of microbrews in the area.  They also have a sizable wine selection, limited deli and a few convenience store items.  The owners work the counter daily, and are pretty well-known around the neighborhood; they advertise in all the local papers and have been part of the community for years.  However, this Convenience Store on the Left, has not updated their interior or offerings in years;  their prices are remarkably higher than the competition; and they aren’t open either early or late.

The Convenience Store on the Right is brand-spanking new; and arguably it is a ‘Cadillac of Convenience Stores’; architecture to match the neighborhood charm, a coffee bar, 24 hour freshly made deli food, courteous & knowledgeable staff; plus a good selection of wine and beer.  During construction of Convenience Store on the Right; the neighborhood was inconvenienced for months with construction vehicles, noise & dust, closed streets.  However, the owner of Convenience Store on the Right hand delivered (with an apology) to every homeowner in the area a bottle of wine.

In the words of my next door neighbor: “I’ve been spending at least $25 a week at Convenience Store on the Left for the last 10 years; and they’ve never given me a bottle of wine!”   So today, the parking lot at Convenience Store on the Right is always packed, they’re happy to special order anything requested, the staff is friendly and I always see my neighbors in there – probably spending much more than $25 per week on food, drinks, coffee, etc.  And the old Convenience Store on the Left is usually empty.  The owners are always at the counter now after laying off several long-time employees; the parking lot usually empty, the prices are still too high, the interior sadly out of date and it feels awkward just being in there.

People don’t have as much money to spend today as they had just a few years ago; and if you and your business are lucky enough to get some of their hard-earned dollars, an extra word of thanks might just be in order.

A few free bottles of wine, or their equivalent, to apologize for an inconvenience; a free service to say thanks for the loyalty; a special concession or product offering might make all the difference between a vibrant future for your business and a bewildering struggle.  The rules of the game have changed, especially for small and medium-sized businesses.  Those that thrive in the future will have built, over time, the most loyal & loving relationships possible with their clients.  Show ‘em the Love!

Suzanne Andrew, founder of SMA Solutions,  is a Business Leadership Consultant, Corporate Trainer and Health Zealot!  Contact her today for an exploratory discussion about how she could help your business with planning, strategy, marketing or client relationships.   SuzanneMAndrew@gmail.com

5 Keys to Entrepreneurial Success in The New Economy

Whatever you want to call this economic period of time: The Great Recession, A Big Economic Downturn, Economy on The Skids…. regardless of the name of these times, succeeding as a business leader requires a few new skills that you may not have needed just 5 years ago.

Perhaps the most challenging aspect of running a business today is keeping a positive, hopeful attitude in the midst of the constant assault of bad news.  Every day turning on the TV or opening the paper means hearing about more layoffs, higher unemployment rates, slower consumer spending, more businesses failing, more government cutbacks and just general hard times everywhere.  As business leaders, we first have to manage ourselves; and a big part of self-management is looking for hope and success, even in these tough times.

There are some businesses that are not just surviving, but thriving.  As a small business owner myself, I’ve spent the last few years studying the businesses that are thriving and trying to distill down some indicators of success that I’ve noticed in those successful businesses.  Additionally, I’ve tapped in the genius of my network of  thought leaders, entrepreneurs and other wise-folk.  What follows is a list of 5 traits we’ve noticed most small businesses that are thriving have in common.

1.  Commit to Strategy -  But Don’t Marry It.    It is essential that every single small business, entrepreneur, solo-preneur and organization have a very clear strategy and mission.  As a small business leader, the key questions you need to answer are: What do we do, what do we do better than anyone else in our niche? Why do we do it?  How do we do it?  That’s really all there is to it; but without a clear strategy and mission, it is easy to spend time and financial resources on activities that don’t directly contribute to the success of your business.

2.  Travel Light – But Do Take Several Suitcases.  Review your entire operation; every product or service you sell, every program, process, piece of infrastructure or employee needs to be analyzed.  Then release every single thing in your business that does not directly contribute to the success of your business.  Tough economic conditions are not the times to compromising your overall businesses success to allocate resources to anything non-essential.  This is not the time to add programs, products or services that are not your core expertise. Instead, diversify by figuring out how to up-sell or offer add-ons to your current customers.  It is much easier to sell 10% more to your existing customers than find, land and nurture 10% more new customers.

3.   Listening is The New Marketing – We’re in the Age of Sharing Experiences instead of the Age of Shared Experiences.  Mass marketing is over for all but a few giant corporations.  We’ve emerged into the age of customized marketing, targeting your exact clients and building a loyal tribe.   Businesses that build an interactive, loyal experience with their customers are those that are succeeding today. Take advantage of the ease of social marketing, the plethora of information on the internet and the enthusiasm of your loyal customers!

4.  Get Out of The Middle of The Road – That’s where you get run over!  It used to be common wisdom that the best path to success entailed creating middle of the road products and services, marketing them to middle of the road consumers and reaping the benefits of being average – but – good -enough.  That’s no longer true.  Today’s savvy consumers expect each purchase to either be low-cost, great value or a customized, unique solution to their specific needs.  Figure out where you’re going to compete and go after it, but stay out of the middle.

5.  Constant Questioning and Review – Pretend You’re a Two Year Old.  Ask ‘Why’ about every single process, program, product, service, customer, employee, transaction you have.  Some key questions for canoodling might include: “what if you last your top 5 customers tomorrow?”. “What if your biggest competitor called you offering to sell her business this week?”. “What if your suppliers raise prices 50%?”  Use the answers to your constant questioning to develop multiple scenario planning. 

These topics will all be explored in more detail in blog posts over the following weeks ahead; but this overview should get you started on reviewing your own business to see if you’re set up for success in this “New Economy”.

Suzanne Andrew is a Business Consultant, Trainer who specializes in helping small and medium-sized organizations thrive through change.  Contact her directly to schedule an initial consultation about your business.  SuzanneMAndrew@gmail.com or 727-641-6941.

What’s Your Plan B? And C? And D?

Undeniably, the underlying economy in which we all do business today is uncertain, at best.  For the last year, it seems each time there was a glimmer of hope the economy was picking up; something shifted and we bounced back to uncertainty.  The reality we’re working with is that this uncertain economy has been with us several years and may be with us several years more.  So what an entrepreneur or small business leader to do?

During periods of uncertainty, it is essential to have a whole spectrum of plans to meet with a whole spectrum of potential realities.  While our business strategic plan should aim for a ‘middle of the road’ approach to forecasting; because the economy is uncertain, we need to plan for multiple scenarios.  Grab your master strategic plan, a cup of coffee and half an hour of time to think.  Then ask yourself some of these questions:

• What if my largest customer (or largest 5 customers) quit doing business with me? 
• What if my key employees found other jobs and left without notice?
• What if a natural disaster hits my city?
• What if sales of my key product unexpectedly double projections next quarter?
• What if we landed that large contract next week that immediately triples sales?
• What if my biggest competitor wants to merge operations?

The secret here is to take each mission critical aspect of your business; every key product, service, employee or function and do a general ‘worst-case’ and general ‘best-case’ scenario plan.  Your plans don’t need to be pretty; they don’t need to be on letterhead, published on the website, or even shared with the stakeholders.   What is important is that you, as a business leader,  continually ask yourself these types of questions and have a few ideas in your hip pocket for the times these scenarios do unfold.

Suzanne Andrew is a Change Management Consultant focusing on helping small and medium-sized businesses grow and thrive in the new economy.  Contact her now to set up an initial discussion: SuzanneMAndrew@gmail.com

Who is Your Board of Directors?

As a small business owner/entrepreneur; it isn’t likely you have an official Board of Directors for your business; but you definitely need one.

Traditionally, organizations of a certain size establish a Board of Directors to provide top-level guidance and oversight of the organization.  Typically, the key purpose of the Board of Directors is to provide an outsiders’ leadership perspective for an organization.  While the Chief Executive, Senior Staff and the rest of the employees run daily matters; it is critical for any organization to get the expert guidance and ideas from leaders who are outside the company, or at least outside the day-to-day operations of the organization.

So again, Who is Your Board of Directors?

Looking at the role of the Board of Directors as detached leadership expertise; every business, regardless of size needs a Board of Directors.  Whether you’re an Entrepreneur, Small Business Owner or Mid-Size organizational leader; it is critical to the success of your business to have outside ideas coming into the company.  Even if you’re too small for a formal Board of Directors, (even if you’re too small for employees)  it is essential to start building an informal board.

Sit down for a few minutes and ask the following questions:

• What other business leaders do I talk with on a regular basis?
• Who are the top professionals in my field?
• Who are some business people I know with interesting perspectives?
• What are my weaknesses as a business leader; and who do I know who possesses those traits as strengths?
• Who are some extremely creative people with great ideas?

By analyzing the  answers to all those questions, begin to build your informal board of directors.  Establish or strengthen professional relationships with 5-7 thought leaders with whom you can talk regularly.  Then set up a rotation to talk with at least one of those people every week; share ideas, bat around solutions, work through scenarios; keep the information flowing. 

Establish a system for recording the ideas and solutions you develop in your discussions; sticky notes, voice memos or wiki – all work.  Then the next time you’re at a loss on how to handle an issue; you have a team of advisors and a reference library of ideas.

You’ll be a more effective leader, and your business will continue to grow and thrive if you establish and tap into the wisdom of your Board of Directors.

Suzanne Andrew is a Business Consultant, Trainer and Coach who focuses on helping entrepreneurial organizations thrive in the new economy.  Contact her directly at: SuzanneMAndrew@gmail.com or 727-641-6941