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