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business

But We Already Have A Web Site, What Do We Need A New One For?

The small business owners just don’t get it. We, the technical types, can hype ourselves about HTML5, Flash, patterns, interactivity, social features, geolocation and other cool buzzwords, but regular small shop owner couldn’t care less. They have enough on their hands to worry about, so why should they care about brand new web site if they already have “a web site”? Just because you want their money it doesn’t mean they are willing to give it to you.

Here’s what you can you, as a small business owner, should know about the web site and his business. First of all – even though you may not realize it, people are talking about your business. With the proliferation of the web sites like Yelp, Kirtsy and omnipresent Craigslist, there’s always somebody talking. As an example, let me tell you a little story of one of my remote relatives who owns a shoe repair business in Williamsburg.

One day he came back from work and told his family that one of his clients told him that someone somewhere on the internet posted that his business has closed. Family council have decided to take immediate measures and my number was dialed. I was told to fix the internet or whatever was saying that his business is closed. As you can imagine – I was thrilled at the task of fixing the whole internet on such a short notice. As it turned out – it was nothing more than some weird check box on Yelp’s web site that anyone can tick signifying that business has closed. Of course, there’s no way for Yelp to verify that, so they have just gladly accepted it – just like they did accept my correction of this. In just a click of the mouse the internet was repaired and continued to go on as usual.

As I have read, with much amusement, the business already had quite a few reviews. Most of them discussed the pricing structure – or rather a lack of one. A few more things here and there that I thought my relative should have known about – and I was ready to bring the happy news back to him.

What this boils down to is this – now matter how small your business are, in this day and age, there’s something online about your business. If it’s not your web site – then it’s someone else’s rant about your business (not necessarily a happy one). If, after such a rant, your potential client will see a web site that was designed by an 8-year old, that potential client will never become a real one. A few years ago you only competed for customers’ attention amongst your competition, but you always were. Now you’re competing against a number of sites that hold numerous reviews and ratings, people’s blogs and tweets and whatever else. Keeping up with all that flow of information with old and antiquated web site is just impossible.

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business

A Five Dollar Problem Or When Was The Last Time You Thought About Your Business Trifles?

A 5 Dollar Problem Or When Was The Last Time You Thought About Business Trifles? - Small Business Blog Today in college (I do this two nights every week, remember?) we had a guest speaker. She was telling us about a failed 20-year old family business that served big-name clients. There was a CEO, his niece – a brilliant sales person who worked there for 10 years and CEO’s 20-something son with MBA and lots of ambitions. The niece was asked for Excel spreadsheets with her sales numbers, but she wasn’t too bright about that. Her specialty was selling – not spreasheeting. Eventually, the pressure from stiff CFO, the MBA-flaunting kid and her CEO uncle for those damn spreadsheets and numbers got so heavy that she left the company and took half of their clients with her. Rule number one – don’t mess with your sales people.

I call this a Five Dollar Problem, and here’s why. I happen to know just this type of sales person – bright, ambitious and persuasive. As I say – she can sell you snow in a winter and you gonna come back with your whole family asking for more. But she’s not good with anything that has to do with numbers, including computers. In fact – she doesn’t know how to use one. Trust me on this one for I tried so many times – and as many times I’ve failed. Her usual response is: “I don’t need to know computers, I have my husband for that” (yes, I’m talking about my wife). So when she was working in one elaborate place she (along with other workers) had to punch in her time sheets, how much time did she spent with each clients and what procedure she performed, what product she sold and so on. The regular spreadsheeting, you know. While being the most computer illiterate lady in New York save Statue of Liberty, she immediately figured out the solution to her problem. She was paying 5 dollars every week to their receptionist – a really nice college girl, who did my wife’s time sheet in less than 5 minutes.

Business owner was happy – she got the numbers she needed. My wife was happy – she didn’t have to struggle with those “complicated computers” every weekend and could get home earlier. And the receptionist girl was happy – she got every Saturday lunch for free. All it took to solve this problem is 5 dollars. Thus a name – a Five Dollar Problem. Meaning – the cost of solving this problem is exactly five dollars.

It is exactly the same problem as our guest speaker had presented. The problem that delivered one of the major cracks in the foundation of a 20-year old business. But rather than being demotivated, as we all get when we ask to submit to spreadsheeting, she solved the problem in a classic win-win scenario. It definitely didn’t break a business, it didn’t cost the business half of the clients, it was just that – a Five Dollar Problem.

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business

Small Business Issues – Part III

This is a third part of the series, first part is HERE and second part is HERE.

Issue 3: Executive Management
You may have already derived this issue from the previous two (Issue 1: Human Resourced, Issue 2: Sales and Marketing). This, however, covers more than just inability to trust own employees. The issue with executive management is that they both are unable – and unwilling – to admit that they don’t really know how to run this specific business. Once they get over their own oversized egos, they will start seeing the light at the end of the tunnel the issues they themselves create and, hopefully, will do something about it. They have big plans of opening same kind of salon (with the same business model) in more expensive neighborhoods. Of course, it won’t work: more affluent people are used to certain level of service and once they won’t see it – they will never come back. Again, it’s not that the owners are making the mistake of having only low prices their competitive advantage and their value proposition, it’s the inability to have a basic understanding of how markets work.

Another issue with management is that they are cheap – in a bad sense of that word. There’s nothing wrong with being conscious about your spending. However, there’s a pretty thick line. Unwillingness to afford paper towels for clients being covered in creme at every procedure, or provide bare minimum to cover sanitary needs, or cheaping out on cover for hundred thousand dollar worth of equipment is not smart spending. Any requests by employees fall on owners’ deaf years, however.

To add injury to the insult, management tend to blame employees for low income. The rationale goes as there are money being spent on advertising, but the outcome is very low, not many appointment are booked and not much of income is generated. Obviously, employees that are motivated in such manner do little – if anything – to help the business grow in a right direction.

They say at least 50% of start up businesses are failing within the first year and 90% – within two years. Here’s another one bites the dust.