Sunday, November 4, 2012

Small and Steadfast

Rapid growth is often the ultimate goal that businesses aim for, yet, when it arrives the sudden surge can cause a company to struggle or even fail. When a business experiences suddenly success, the entrepreneur is typically operating with limited resources including a lack of capital, lack of management skills, lack of information about what may be propelling the recent growth, poor procedures, lack of a go-forward plan, lack of experience with change management and larger operations, not being able to identify risks, and – nothing new here – lack of time to deal with new issues.


Dramatic increases in sales can also come with dramatic increases in expenditures, bad debt, whittling of profit margin and other distasteful characteristics. Simply put, growth without profit leads to cash shortages and unpaid bills.

To avoid the perils of expansion, your objective should be to find a certain market niche and devise a business plan that propels your business ahead with a healthy and steady growth. Focus on:

• maintaining an appropriate profit margin

• analyzing key performance indicators

• building assets

• controlling debt

• managing cash flow

• standardizing operations

• developing leadership skills

Over-expansion is a leading cause of business failure; be proud of being small for now. Beware repressing growth though, since that means you’re missing opportunities. Establishing high growth as your only measure of success can lead to reckless decisions. Instead, develop a definition of success that includes steadfastness and lifestyle factors. Then, let your success lead you, rather than you forcing it.

Thursday, August 16, 2012

Add Sponsorship to your Marketing Toolbox

As a business owner, you understand that advertising is an investment in your business, not simply an expense that must be paid. Advertising budgets, no matter how robust, do need to stretch a long way – over 52 weeks a year, through a variety of tactics and platforms, and perhaps even across multiple target markets. Small businesses in particular are looking for very efficient uses of their marketing dollars. One of the valuable tactics that I see small businesses regularly overlook is sponsorship.


Sponsorship is often associated with charitable donations. Certainly your business can be a good corporate citizen and support worthy causes in sports, arts and the humanities by becoming a sponsor - in this case, the definition of sponsor really being “donor”. Sponsorship is also associated with big business – for example, McDonald’s sponsoring the London 2012 Olympics. It absolutely works for mega-ventures in the international market, but that doesn’t mean it can’t work in a small business context.

There are appropriate opportunities for small business owners to sponsor activities conducted by organizations with like interests and target markets, for mutual benefit. These are opportunities where your business name/logo will be plastered all over event invitations, signage, programmes etc., essentially advertising your business to all of the (potential) attendees. Many sponsorship opportunities allow you to make a personal appearance at the event with a trade show display, two minutes at the microphone, or simply getting face-to-face to network with their (your soon-to-be) clients. Many offer the flexibility to negotiate terms most suitable to you. Given the right organization, event and target participant, you can build a name for yourself as a business that is a leading expert in your field, personally interested in your customers’ satisfaction, and an active leader in your community. We’re talking here about building your brand. Few paid advertisements can accomplish all that!

Think about the demographics and behaviour of your target market(s). Where do they gather? How can you be in that space? Seek out the organizations that already bring customers together and investigate sponsoring their initiatives. Your industry association, your suppliers, your local networking associations (including The Brampton Board of Trade) etc. will likely have formal or even informal sponsorship opportunities. If they are not blatantly published, pitch your own ideas to those organizations you want to partner with!

If sponsorship is new to you, consider sponsoring SBEC’s “Pledge to Prosper” initiative as a gentle introduction; sponsorships start at the small business price of just $75! Visit www.brampton-business.com for all the details and contact me to discuss.

Wednesday, April 25, 2012

Household Spending Stats

The results of the latest Statistics Canada survey of household spending have just been released. Canadian households spent an average of $53,016 on all types of goods and services in 2010. Of this total, shelter accounted for 28.3% of spending, transportation for 20.7%, and food, 14.0%. Spending on clothing represented 6.5% of the total, health care, 4.1%, and communications, 3.3%. This information might be key to understanding your customers’ buying behaviour. If your business doesn’t sell products or services in any of these “necessities”, you’ll be glad to know that, in Ontario, the spending in these categories tallies to just 71.2%, leaving 28.8% for “miscellaneous”, perhaps including the goods and services you offer.


It is important to note that distribution of spending by income group varies greatly. For example, shelter costs for the lowest income group represent 51.8% of spending (total spending is $28,583.) The group with the highest income spent $139,001, with just 29.5% going to food, shelter and clothing – with this group, “just 29%” is still a robust $41,005 though.

Canadian homeowners spent an average of $17,268 on shelter, but Ontario had the highest share at 30.4% of total spending; costs are related to the size of the population centre, so naturally the GTA’s average would be higher than rural and all other metropolitan areas elsewhere in Canada.

Ontario households spent an average of $11,529 on transportation in 2010, and couples with children spent three times what one-person households spend, not surprisingly.

Canadian households reported spending an average of $7,443 on food in 2010. This total consisted of $5,377 on average spent on food from stores and the remaining $2,066 for restaurant meals. Considering lifestyles, it is not surprising to find that seniors spend more on store purchases, while those under 30 years old have the highest share of spending at restaurants.

Consider your customers and their demographics. How might their consumer spending levels/habits impact your business? Study the newest report on Canadian Household Spending, available at http://www.statcan.gc.ca/daily-quotidien/120425/dq120425a-eng.htm and look at detailed spending by income group and province, to learn more about your customers.

Source:  The Daily, April 25/12  http://www.statcan.gc.ca/daily-quotidien/120425/dq120425a-eng.htm

Thursday, April 19, 2012

Marketing Tips to Rev Up Your Business - Part 2

Make 2012 your year to work smart. In this second part of a two-part column, you’ll find marketing tips that could inject new life into your business despite a stale economy. Pick a few to focus on this year, or try implementing a new one each month.




Start using social media. People are changing the way they want to communicate, so you have to too. Put together a social media plan; start small, adding a new tool every quarter. Consider LinkedIn, Twitter, a blog and YouTube. FaceBook can also be utilized effectively by small business, but separate personal from business.

Leverage traditional media. You are doing ground-breaking things, and are even a hero to some of your customers. Use public relations tools like media advisories, press releases and community TV to get a little free publicity when you have something special taking place.

Review your creative efforts. Do your marketing materials look like you mean business? Spell-checked isn’t enough – they need to look great to command attention. And, your branding needs to be consistent so your messages start to look familiar to potential customers.

Outsource. Marketing is a full-time job essential to your business success. Consider that it might be time to hire a pro and/or another set of hands, particularly for specialty areas like public relations or social media.

Get active in your community. Be a part of your community. Get to know your business neighbours, your customers and local community groups in a personal way. Find volunteer opportunities within scope of the time you have, even just a couple of hours a month.

Corporate Social Responsibility is a serious phrase for something that can be really fun. Join a bowl-a-thon or sponsor a worthy organization. Be smart about it and match your target customers with those of the charity’s. But don’t do it for business, do it out of generosity of spirit.

Take a (refresher) sales workshop. Hone your skills, learn some smart tactics and shortcuts, and set achievable targets. Inspiration needs regular refreshing even for the most motivated sales person.

Consider the impact of your personal branding; in very small businesses, you are your business. The way you dress, walk, shake hands and speak all make a statement. Make sure it’s a positive one for your business.

Use 12-15 marketing tools. Flyers and business cards won’t cut it. You need 12-15 different marketing tools perpetually at work to generate the kind of traffic you need to make a profit.

Boost your budget. Benchmarking says that established businesses need to spend 4-9% of their annual sales target on marketing initiatives. (New businesses: 9-12 %.) When budgets are tight, consider zero-cost tactics like public relations and social media.

Persevere. Perseverance is an absolute must. If you give up too early, you may miss out on the success for which your business was destined.

Sunday, March 25, 2012

Marketing Tips to Rev Up Your Business

You’ve been working hard on your business for a long time. Make 2012 your year to work smart. In this two-part column, you’ll find some marketing tips that could inject new life into your business despite a stale economy. Pick a few to focus on this year, or try implementing a new one each month.

Rethink your product and service line. Is it keeping up with changing client wants? What needs to be added to round out your offering? What will customers want next year? Start working on procuring it now; it will be next year before you know it.


Brainstorm new uses for old products. Develop new target client groups based on new functionality. Are your clients using your products in ways you hadn’t imagined? Use focus groups or online discussion boards to investigate.

Update your industry research. Who are your A and B clients? Have they changed from three years ago? How do they make purchasing decisions and at what time of year? What trends are shaping your industry and are they opportunities or threats?

Ensure your competitive advantage is still competitive. Update your competitive research. Who are the new players in your industry? What are they doing well? Are you losing customers to them? Is what made you special in the past still doing you service? Retool your competitive advantage if needed. Make sure it speaks to customer wants.

Flog your competitive advantage. Whatever it is that makes you great, make sure your customers know about it. Your competitive advantage should be highlighted in all of your marketing tools, not hidden in your marketing strategy document.

Ask customers what they really think. Honest customers will reveal more than a team of consultants, if your skin is thick enough to truly listen.

Measure the effectiveness of the marketing tools you used last year. Repeat what works, eliminate what has been given a fair try without results. Consider dropping what you can’t measure.

Stop measuring website views and hits and measure real changes in revenue. When websites were a new concept, traffic was a reasonable metric to track; but now it’s time to ensure traffic translates to revenue.

Take time to dream. Wake up the creative side of your brain; network with new peers to tap into fresh ideas. Attend events and conferences. Engage in creative pursuits outside of your business.

Part 2 with more tips coming soon!

Wednesday, February 15, 2012

Is Social Media Right for your Business?

Follow along with my University of Waterloo classmates and I as we learn about "Social Media for Business Performance". It's about a lot more than just tweeting company announcements.

Our class blog is located here: http://smbp.uwaterloo.ca/ and contains brief case studies on cutting edge social media strategies by Lush, Xbox and more!

Thursday, February 2, 2012

Brampton Creative Economy Summit - Panel Presentation

It was my pleasure to participate in the February 2nd Brampton Creative Economy Summit, to be part of a panel called "Inspired Thinking, Inspired Leadership", where I discussed the connection between entrepreneurship, in particular young entrepreneurs, and the creative economy.

Below are my speaking notes - quite a bit longer than my usual posts but I hope worth the read!

~~~

The concept of the creative class emerged out of research done by Dr. Richard Florida which defines labour markets by one of three classes - working, service and creative (and its super-creative core). Creative professionals are knowledge-based workers who draw on their higher levels of education to solve specific problems and include individuals working in healthcare, business and finance, the legal sector, and education. The super-creative core includes a wide range of innovative occupations such as science, engineering, education, computer programming, research, arts, design, and media.

756 Small Businesses in Brampton’s Creative Economy = 9.4%

Entrepreneurship has always come from a place of creativity, so true entrepreneurs might be confused by this “new” idea of the creative class. Small business owners were pioneers in the industrial age and in the information age, and will continue to play that pioneering role as the creative sector becomes a foundation of Canada’s economy. Small business goes out there to fight with a stick. Guerrilla style. So the constantly changing battlefield gives them the advantage.

What the assembly line did for the industrial age, and what the personal computer did for the information age, the Internet and social networking is doing for business in the creative age, with a focus in particular on marketing within consumer-based sectors.

And guess who is at the helm? The facebook class, aka Echo Boomers (this name given by old people) Millennium Generation, iGeneration, Google Generation and Generation@

So, the Facebook Class – Is it Really that Big a Deal? YES!
· Facebook: 800 million users
· Twitter pushes out 200 million tweets per day
· You Tube: 200 billion views per day

Facebook in Canada:
· 20 million users in Canada (as of Oct 2010)
· 9.6 million visitors on a daily basis
· Representing one third of the entire population (34.8%)

Furthermore
· Add all 3 of the major Social Networking tools = 82.7% of all internet users in Canada are utilizing at least one form of social media
· Twitter: 3.268 Million Canadians
· LinkedIn: 2.5 million Canadians

TEXTING:
• Adults 18+ 10 Texts/Day and Boys 14-17 30 Texts/Day
• Girls 14-17 100 Texts/Day
• Texting has surpassed email, phone, and face-to-face as the main communication tool for 12-17 year olds

Whether young or young at heart, members of the Facebook class are social media addicts. And they are building habits at a young age that they will be compelled to carry with them into the future. These young people were born into a world where:

· They don’t know how to use a rotary phone or paper version of the yellow pages
· Have never looked up a library book using sliding drawers filled with recipe cards * unless they learned on Jan 18 when Wikipedia was on blackout
· Don’t understand the phrase “be kind, rewind”
· Carry hundreds of songs in something the size of a match box instead of multiple, stackable milk crates
· Don’t know how to fold up paper maps (ok, maybe we didn’t either!)

When we were kids, we thought our parents didn’t know anything; as we grew up, we discovered how smart and wise they actually were. Our kids still think their parents don’t know anything, but maybe this generation is actually right! If you are a parent of young adults like I am, I am sure you are continually amazed by their breadth and depth of knowledge on world issues, business, politics and of course pop culture.
They have grown up in a world with diverse Internet resources, iPods, MySpace and intense multi-tasking — simultaneously chatting on IM (instant messenger), finishing a problem set, watching television and listening to music. These kids are the kids of the Baby Boomers, heavily immersed in a digital world.

In case I haven’t convinced you yet, here are some more little factoids:
· 48% of people check/update their Facebook and/or Twitter after they go to bed
· 18% of people < 25 yrs old can’t go more than a couple of hours w/out checking in on FB
· 61% of people < 25 have to check in on FB at least once per day (55% > 25 yrs)
· Even 11% of people over 25 can’t go more than a few hours without checking
~~
So now that we have a handle on young and young-at-heart consumers, let’s get back to young entrepreneurs, who also share these traits and habits.

“It’s been done before” – doesn’t calculate with the New Gen of Super-Entrepreneurs. Because it hasn’t, not in the way they are thinking. Internet and Social Networking is creating a whole new paradigm for business. Social media has become essential for all businesses, and small businesses lead the way in exploring its possibilities. The catch is that social media is also very time-consuming, which of course is particularly challenging for companies with fewer employees. But savvy young entrepreneurs know a few key things:

1. their business is about their customers, and how their customers behave as consumers
2. business thrives when its connected to community – and social networking is a new, faster, more efficient way to connect to a variety of communities, the local geographical one not necessarily the most important one
3. That social networking is about an ongoing conversation with customers, not a pushed-out statement. People have changed the way they listen, so organizations much change the way they speak
4. It’s about networks of networks – fast, powerful; many-to-many is replacing one-to-one and one-to-many communication techniques

These young entrepreneurs also have the technical skills and curiosity to use the plethora of digital tools now available. Add to that, the New Generation of Super Entrepreneurs knows that the Internet and Social Networking is more than just Marketing/PR.

It is about two way communications, and also about
· Building client databases
· Conducting Polls and surveys to refine and improve their service offering
· Driving attendance at events
· Hiring staff
· Bulk Purchasing

It’s about competing at a super speed, because the present only lasts a nano-second!
They’re using applications such as …
· Social Networks – LinkedIn, Facebook, Google+, Twitter
· Blogs – Wordpress, BlogSpot (corporate, individual, public – Ulitzer)
· Wikis – product/solution enabling
· Forums – Google groups, open knowledge sharing
· Online Video – YouTube, blip.tv, Vimeo
· File Sharing – Scribd, Slideshare, Instagram, Flickr, (my add: YouSendIt) and
· Bookmarking – Digg, Delicious, Reddit, Stumbleupon
...to further their business effectiveness and success

Leading a movement from:
· Restrictions
· Opaqueness
· Censorship
· Risk
· License
· Structure
· Top-Down
To an environment of
· Freedom
· Transparency
· Expression
· Reward
· Obligation
· Organized Chaos
· Bottom-Up
~~
Let’s get to know a few of these young entrepreneurs:
You’ll find them all at http://www.canadastop40under40.com/
An, awards program for outstanding young Canadians in all fields.

Leonard Jason Brody
President
Clarity Digital (Examiner.com)
Leonard Brody is a two time Emmy nominee and President of Clarity Digital Group. He conceives and drives digital strategy at one of the world’s largest sports, entertainment and media companies. CDG is responsible for overseeing one of the largest online news conglomerates in the world, including Examiner.com and NowPublic. Leonard has authored two bestselling books including Everything I Needed to Know about Business I learned from a Canadian. All proceeds from his books are donated to a variety of charities.

Naman Budhdeo
CEO
FlightNetwork.com
Naman Budhdeo immigrated to Canada from Kenya when he was 4. Today he owns the #2 online travel agency in Canada. FlightNetwork.com generates 2.7M unique visitors and 6M searches a month. 85% of FlightNetwork.com’s customers are Canadian. The company has grown from one part-time person in 2006 to over 180 fulltime employees. Naman takes great pride in his highly diversified work force. An early innovator in the age of Internet advertising, Naman leveraged pay-per-click to attract customers and slash marketing budgets, passing on significant savings to customer and driving profitability up 90% since 2009.

Sean Patrick O’Reilly
Chief Executive Officer
Arcana
Sean’s life-long love of comic books has turned into a company that’s one of the world’s largest publishers of graphic novels. He is founder and CEO of Arcana Studio Inc, an innovative leader in developing content for various media including comics, graphic novels, video games, short-form animation, live-action shorts, toys, merchandise and feature-length films. Arcana has published over 150 original comics and books with sales of over a million units. Arcana now employs 40 people in conjunction with their animation studio Luximation, which is producing The Clockwork Girl, an animated feature film based on a graphic novel he wrote and published. His company’s work can be found in 15 different countries and seven languages around the globe and have worked with Disney, Mattel, HBO, KISS, Harper Collins and many more.

Angela Santiago
Chief Executive Officer
The Little Potato Company Ltd.
It’s the potatoes that are small, not the business. Angela Santiago is the President and CEO of The Little Potato Company, a grower, processor and distributor of specialty potatoes in the under 41mm category. She owns the proprietary rights to several unique little potato varieties, and has created a premium niche product used by foodservice and retail customers across Canada and in the U.S. The company, which she founded with her father, has grown from 5 employees to a diverse and dedicated team of over 100 people from 29 countries on 5 continents, utilizing a Web Information System as a key part of efficient operations. Her website is worth checking out as well.

Keith Bilous
President & CEO
ICUC Moderation Services Inc.
· Social networking experts/consultants
Keith Bilous founded ICUC in Winnipeg in 2002. Its team of specialists manages, moderate and monitor millions of social media conversations, comments, photographs and videos inside some of the largest online communities in the world. It allows users to have direct, real-time conversations with industry brands but can also remove inappropriate commentary or posts. The company has grown from 11 to 150 in three years and uses the concept of the virtual office to manage their growth. It is a world leader with clients ranging from Unilever to Rogers to the Government of Canada.

~~ A pretty impressive bunch! ~~

So just a few key points to wrap up with:
· The newest generations have grown up in a digital world.
· Internet and Social Networking creates a whole new paradigm for business.
· Social media has become essential for all businesses because it builds community, which is a key to business success
· This new generation of super-entrepreneurs might be young but they understand that business success is based on knowing and connecting with your customers and being active in your community
· Finally, you’ll have noticed that small businesses leveraging the power of Internet and Social Media don’t stay small for long

· I hope I’ve been able to offer examples and a little insight today into the power that digital resources and social media can put behind your business to further your success. If you are not currently using social media for your business, a great way to test the waters is to dip your toe in on the personal side – not to be mixed with your business side.
· Research, Research, Research, Plan then execute your Social Media Strategy

Wednesday, January 18, 2012

Canadians Believe in Small Business

A recent study conducted by a chartered bank during national Small Business Month (October 2011) finds that Canadian consumers are willing to go the extra mile to support small business. From coast-to-coast, Canadians believe it’s important to support local business, and are willing to do so by telling others about favourite local businesses (85%), walking or driving further to purchase from a small business (63%), and, despite a dragging recession, even pay more (43%) in order to buy local.

These are powerful statements of consumer loyalty, and small business owners should make a conscious effort to tap into this power. If you don’t already, ask your customers regularly to tell their friends and neighbours about your business. To make it even easier for your customers to become your sales force, create a promotion centered around referrals, and put it in the hands of your most loyal customers to share, with benefits to them, their friends, or both.

This study also gathered accolades for the small business community. Canadian consumers recognize and appreciate that small businesses offer improved access to products and services, create local employment opportunities and provide leadership in their community. How can you leverage consumers’ admiration for entrepreneurial ventures in these areas? Focus on communicating the unique products and services you offer. Inspire employees to be champions for your business, not just when they are at work. Participate in good works in your community with similar objectives as yours, and take on a leadership role.

Finally, this survey also had some suggestions for small business owners from the general public: personalize your service to differentiate yourself from chains and franchises; increase advertising so consumers are aware of your offerings and special promotions; and offer competitive prices (note, they said “competitive” not “low”, so think value-for-money, not price point.) Take some time in the next week to assess your customer service strategy, marketing strategy and pricing strategy, if you haven’t done so in the last year. This is where customers want you to be the best you can be; this is what is meaningful to them.

Tap into the respect consumers have for entrepreneurs and the small business sector, and make sure you are leveraging it to propel your business forward.

Preparing your Busines for Harsh Weather

Although Brampton is not in Ontario’s Snow Belt, we will get a few days when bad weather – freezing rain, heavy snowfall, or winds causing power outages – will deter customers, and employees, from coming to your business. Snow storms blow in with safety, logistical and HR challenges for every business owner. A well-thought out “severe weather policy” will balance safety, productivity and customer service issues, and combined with a strong communications plan for both customers and employees, will ensure everyone’s expectations are clear.

Write or update your inclement weather policy to explain what will happen in the event of serious weather emergencies. Are your customers local, so perhaps forgiving of weather interruptions? Does your insurance cover accidents on company property during inclement weather? Will employees struggle to make it in because of long commutes or parenting responsibilities (if schools are closed)? Your policy should include details like who determines the severity of the conditions and how closures (if decided) will be communicated. Are there Employment Standards (Ontario Ministry of Labour) that affect your operations? Address wage payment – is it vacation, lieu time or paid time? The verbiage shouldn’t be so weak that employees take the day off for a few flurries; nor should it risk life and limb.

How do you communicate a decision to close to employees and customers? In small businesses, it might be reasonable to have all employees’ home or mobile phone numbers. Texting, email, tweets or other web-based posts are other options. All employees should know where to look for messaging and must have access. If your business has a retail space or your company deals with clients on a daily basis, you'll want to identify a good way to notify customers that the business is closed. A sign on the door doesn’t help those who have trudged through the snow to get to you. Websites, outgoing phone messaging, tweets, email auto-reply could all help. Prescheduled appointments and deliveries can be contacted – if you take home these lists the night before “in case”.

Of course, working remotely is an option that is becoming more feasible so don’t forget to take home your laptop when severe weather is expected overnight. Tools like Skype and Google Docs can keep everyone connected from their home computers.

A final note - inclement weather is one of those issues that can raise strong feelings; for a small business with just a few employees, a team discussion in advance might be the best approach. Plan now to mitigate the risks and negative effects of harsh weather.