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.