Is your Business Prepared to Sell to these 5 Customer Types?

June 12, 2012


Many small business owners fail to understand the customer base they serve and end up not being prepared to sell to those customers. How many times have you thought about various types of customers that you are selling to? Is your business ready to serve those different types of customers? Do you have marketing programs in place to attract those customers in the first place? Important questions to think about, isn’t it?
Different customers have varying types of needs. Some are looking for bargains, while others will pay premium for the quality product. By understanding the needs of customers your business can determine which customers are right for your business. You can take this approach one step further and develop customer personas based on the customer needs and purchasing habits. Personas are helpful in not only identifying the customer types, but also tailoring your marketing and operations to serve their needs. Below we have identified 5 such customer personas. Think about which ones are usually doing business with you and whether your business is prepared to serve their needs.
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Filed Under: Customers, Management, Strategy Tagged With: , , ,

What can Subway Teach you about Growing the Business

June 9, 2012


Trivia question: Name the franchise with most number of locations in the world. If you answered McDonald’s you are wrong. The new king of the franchise world is Subway. It surpassed McDonald’s in 2011 with 33,949 worldwide locations compared to Mickey D’s 32,737. The franchise that started with mere $1,000 by Fred DeLuca in 1965 has seen phenomenal growth in the last 10 years.
Subway has been able to grow consistently year after year by following principles that can be applied to any small business. We have studied and analyzed those principles and present them below for small business owners to apply to grow their business in a similar fashion.
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Filed Under: Management, Marketing, Sales, Strategy Tagged With: , , ,

What can Small Business Owners learn from Greek Crisis

June 6, 2012


Unless you have been hiding in a cave for the last couple of years you know Greece is on the verge of economic collapse on the scale not seen before. The unemployment rate is a staggering 22% and they are expected to default on their loans unless they receive yet another round of financial help from their neighbors and EU partners.
While it may be tempting to think of Greek situation as unique, it is not far-fetched to think of an analogous scenario for small businesses. After all, as we show below the reasons behind Greek crisis are prevalent in many of the businesses – both large and small. That’s why Greek crisis holds important lessons for business owners in how not to get into the financial disaster. Below is our attempt to explore reasons behind Greece’s failure and how they apply to small business owners.
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Filed Under: Finance, Management, Strategy Tagged With: , , ,

7 Reasons you are Losing your Best Employees

May 29, 2012

It is estimated that best employees contribute 30-50% more than average employees for a typical business. Their contribution is not only in the form of higher productivity, but it also comes from new ideas and better customer service. These are the employees who can take your business to new heights provided you are able to hold onto them.
Employee turnover in general is harmful for small business. When it comes to turnover of star employees it could damage your business beyond repair. That is why it is paramount to treat your star employees well and ensure they are happy to work with you.
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Filed Under: Employees, Management Tagged With: ,

Do not Make these 7 Mistakes in Business Negotiations

May 22, 2012


Negotiation is more art than science. Just as some people have natural ability for art, I believe there are people born with “negotiation” genes. They already possess virtues required to succeed at negotiations. However, not all is lost for those who do not have these natural skills. By understanding your limitations and making plans to overcome them anyone can improve their success rates in the negotiation process.
Earlier we discussed 5 fundamental rules to keep in mind during negotiation. In addition to not having good understanding these rules, many business owners make certain mistakes common to naïve negotiators. While these mistakes will not put you out of business (at least not right away!) they can do substantial financial harm to you. Here is the description of 7 most common mistakes:
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Filed Under: Management, Strategy Tagged With: ,

5 Must-have Virtues to Succeed in Business Negotiations

May 19, 2012


You cannot be successful in small business without having good negotiation skills. You are required to negotiate at each and every step while operating the business – with vendors, customers, employees, franchisors and so on.
Some people are natural born negotiators and they even enjoy the experience. Many others, however, think of negotiation as necessary evil they have to deal with and dread dealing with it. No matter which camp you belong to learning good negotiation skills and understanding the rules of negotiation will help you becoming successful small business owner.
I discussed 5 fundamental rules of negotiation for small business in the earlier post. In this article, I would like to elaborate more on what virtues are necessary to help you become successful negotiator. Not everyone is born with these virtues, however, with little practice and understanding you can learn and improve your winning odds at the game of negotiation.
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Filed Under: Buyers, Management Tagged With:

5 Fundamental Rules of Negotiation for Small Business Owners

May 16, 2012


Small business owners who do not have good negotiation skills risk losing big (or at least not earn what they deserve). Many business owners find negotiation very stressful and try to avoid it as much as possible. They think of negotiation as a long, drawn-out process where one party wins at the expense of other, and when it’s over the “loser” hates the winner for not giving enough. It doesn’t have to be this way. Professional negotiators tell us negotiation is a skill where it is possible for both parties to come out winners and still be “friends” at the end.
To clear the misconceptions about negotiation we have come up with 5 fundamental rules that you should keep in mind. Once you accept these rules and arm yourself with the tactics to use them effectively you can not only “win” the negotiation, but also feel good about it at the end, and make the other party feel the same. Here they are:
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Filed Under: Buyers, Management, Strategy Tagged With: ,

Things You must do within 30 Days of buying a business

May 9, 2012


The first 30 days after you buy a business is the most critical time in owning a new business. Done right it will take your business to new heights, but done wrong you will be paying the price for a long time.
Buying a business can be exciting as well as nerve-racking for both, veteran as well as first-time, business owners. On one hand, you are eager to implement all the new ideas you have thought about during homework done at the time of due diligence. On the other hand, you could be losing sleep from the thought of all the things that could go wrong right after you step in.
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Filed Under: Buyers, Management Tagged With: ,

Creative Perks that Keep Employees Motivated

March 4, 2012


For many employees, the lines between work and their personal lives are blurring. They’re seeking balance between the two, and are finding value in the ability to choose the specific benefits that best meet their needs at this point in their lives. And employers are learning that, when chosen and implemented effectively, benefits can demonstrate leadership’s concern for the well-being of employees, reinforce cultural values, and foster deeper employee engagement.
According to James Berkeley, Director of Berkeley Burke International, however, there’s still a disconnect. “The decisions made regarding what benefits to offer are often based on subjective viewpoints, viewpoints that are far removed from the actual needs of employees.” Rather than assuming you know what your employees want, Berkeley suggests you ask them. Though answers will vary, many people are interested in more benefits in these areas:
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Filed Under: Employees, Management Tagged With: ,

50 Interesting Online courses for Small Business Owners

February 25, 2012

Continuous learning and improvement is essential for small business owners. However, for many of us going to college or getting an MBA degree is not an option. After all, there are only 24 hours in a day! Online courses can help overcome this barrier by enabling us to learn at our own pace and convenience.
I came across this list of online courses offered by well-known universities and other private institutions that I wanted to pass along. Many of these courses are targeted to help you learn or improve specific skill set, which would be helpful for anyone who doesn’t want to go through the entire coursework of university degree.
Here is the link to the course listing.
Let us know which courses you like the most for the benefit of other readers. Happy Learning!

Filed Under: Finance, Management, Marketing, Operations, Strategy, Technology Tagged With: ,