How to Handle Rejections while Running Small Business

August 8, 2011


If you are running small business, chances are you have heard “No” more often than “Yes”. I will be surprised if you have not heard “No” at least one a day. It could come from anyone you are interacting with. Your bank might say “No” to your loan applications. Ninety percent of your prospective customers will say “No” to your sales pitch. Your landlord will say “No” to your request to reduce the rent. The list goes on and on.
It’s not how many times you hear “Yes” that determines your success in small business. It’s how you handle those “No” answers and what you do afterward that makes a successful small business owner. Most of the successful people – small business owners or otherwise – have heard “No” multiple times before they have finally achieved their dreams. Here is a list of 13 well-known business leaders who failed before they succeeded.
So how should you handle “No” to ensure that future questions and requests will result in “Yes”? Here are some suggestions:
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Filed Under: Management, Operations, Sales

10 Signs You will Succeed as Small Business Owner

July 31, 2011


Many people jump into small business without giving much thought to what is required to succeed. There are number of myths out there about small business that influence their decision about getting into small business.
However, not everyone has what it takes to be small business owner. We think there are special personality traits that you need to have to succeed as small business owner. While some people consider joining MBA to gain business knowledge from this resource about online colleges it also helps to have these personality traits for success as small business owner. We are on the lookout for signs that point to success as small business owner. Watch for these signs in to see if you will be successful.
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Filed Under: Buyers, Management, Operations Tagged With:

Small Business Lessons from $100,000 Salt and Pepper Shaker

July 24, 2011


I am reading this fascinating book “The Last Lecture” by Randy Pausch, who used to be a professor in Computer Science at Carnegie Mellon University. The book is a compilation of his thoughts and experiences he delivered as a last lecture to the students after he found out that he had a terminal pancreatic cancer with only few months to live. It describes many of his experiences in life – from childhood to the end. I highly recommend this book for summer reading.
One of the interesting incidents he describes occurred during their family visit to Disney World when he was a 12 year old. In that he and his sister buy a salt and pepper shaker for $10 for their father with all of their pocket money. However, before they can give it to him he drops it on the ground and breaks it. Very disappointed, they go back to the store with little or no hope of getting a replacement. To their amazement and disbelief, however, the store employee happily gives them the replacement without any charge even though he explains that it was all his fault and Disney had nothing to do with it.
When his father hears the story he becomes a devoted fan of Disney. He continues to take not only his kids, but people from his volunteer group to Disneyland for many years, spending approximately $100,000 according to his estimate.
There are two important lessons to be learned for small business owners from this incident. First has to do with customer service and the other with employees.
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5 Must Have Personality Traits for Small Business Owners

June 29, 2011


Small business ownership is not for everyone. It takes a special human being to own a small business and be successful at it. However, many people jump into small business without giving much thought to what is required to succeed. Their decision is based on the myths that exist out there about owning a small business.
Before you start down the path of small business ownership you need to think long and hard to see if you have what it takes to be a small business owner. While Some people consider online MBA programs to gain business knowledge it also helps to have these personality traits for success as small business owner. We regularly talk to number of colleagues and clients who themselves are small business owners to understand what personal traits make a successful small business owner. Based on this as well as our own experience as small business owners we have come up with 5 traits every successful small business owner needs. Here they are:
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What do Running a Marathon and Small Business have in Common?

June 12, 2011


I am raising funds for Leukemia and Lymphoma Society (LLS) by running the Chicago Marathon on October 9, 2011. The money raised will help with the research and support for Leukemia patients. You can find my fund raising page here, where you can also contribute money for Leukemia patients.
My conversations with the running coach and fellow runners have made me think about the similarities between running a marathon and operating a small business. Based on my past experience with owning and operating multi-unit franchise, I can see that there are number of things in common between the two. Both require significant up-front planning, both need persistence along the way and both need support group to cheer you to the finish line.
Let’s look at each of these similarities in detail.
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Filed Under: Buyers, Management, Operations Tagged With: ,

Every Customer Contact is an Opportunity to Sell

May 29, 2011


I simply find it amazing and annoying to see how many companies make their customers wait on the phone when they call them for customer service. Customers could be calling them with a question on the product or make a suggestion for improvement or even place an order! Yet they have to wait listening to the repetitive message that reminds them how important their phone call is to them. Oh Really!!! Just imagine what is going on in customer’s mind, your mind during this time – “God save me from this misery. Bring some human soul I can talk to.”
Many businesses have sacrificed customer service in the name of efficiency and automation in the last 5 years. The so called advances in voice recognition have made matters even worse. Now it’s not just a matter of punching numbers on the phone keypad. The machine will interact with you as if it understands, or at least pretends to, all your questions – “Hello. I can help you find anything you are looking for today. What can I do for you?” My answer – “how about finding a human being somewhere in your company?”
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How many Lifetime Customers does Your Business have?

May 25, 2011


Companies like Verizon and AT&T have millions of customers who have been with them for many years. These companies spend a lot of money in acquiring new customers. For example, they give new customers subsidized phones in return for them signing a 2-year contract. Many customers continue to remain with the company after the initial 2-year contract term is over. The reason they can spend money to acquire new customers is because they have guaranteed return for at least the initial contract term. This is what Seth Godin is referring to when he talks about embracing this concept of lifetime customer value.
Most small businesses, however, do not have luxury of asking customers to sign up for a contract. They have to do hand-to-hand combat with their competitors one customer at a time every day. For proof, download a report from your POS system showing how many customers have not ordered in the last 90 days. You may be surprised to find that more than 70% of your total customers have not come back to your business in the last 90 days. And you are not alone. Most small businesses have far less repeat customers than what their owners would like to think.
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List of Documents to Prepare for Business Sale

May 15, 2011


Opportunity favors those who are prepared to take advantage of it. This has been the consistent theme in the last several posts we have written on how to prepare your business for sale. We mentioned that you need to start planning for business at least one year in advance. In addition there are additional items you need to take care of as the time to list your business for sale approaches.
Your primary goal as a seller is to allay potential buyer’s biggest financial fears as well as other FUDs related to the operation of the business. It is only through proper planning and careful preparation that you can dispel buyer FUDs and make your business sale go faster and smoother. After all the longer it takes for the sale to go through the more chances of something going wrong and the sale falling through.
One of the most important aspect of getting prepared for the sale is compiling all the documents related to the business finances and operations.
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Filed Under: Buyers, Employees, Finance, Marketing, Operations, Sellers Tagged With: , ,

How do you overcome Buyer FUDs when selling your business

May 12, 2011

In the previous post we discussed two biggest fears your potential buyers have when they are considering purchase of your business. We showed how you can help buyers overcome these fears and make the sale of your small business go through quickly and smoothly.
In addition to the two fears related to business finances, there are other operational FUD (Fear, Uncertainty, Doubt) factors that buyers, particularly those who have not owned small business before, are likely to have. With proper planning you can help alleviate these FUDs and make the selling process go faster. After all, it is in your best interest to shorten the sale process as much as possible. The longer it takes for sale to complete the more chances of something going wrong and the sales falling through.
Based on our experience with both buying and selling business, we have come up with several questions that are likely to surface in buyer’s head when he is going through due diligence. The sections below document those questions along with our advice on how you can deal with them.
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What do you need to do 3 months prior to listing your business for sale

May 4, 2011


We mentioned in the previous post that selling a business is a long, arduous process. It is not uncommon to take more than a year to sell the business. In the post we showed items you need to take care of 1 year prior to putting your business for sale.
As the date of putting the business for sale approaches there are additional items you need to start working on. Just like selling your house, you need to get your business ready 3 months prior to listing date. The goal is to spruce up the image, both physical and virtual, of the business so that the buyer will find it attractive and worth paying for. You should also aim to remove the fear and uncertainty in buyers because this is the single most reason why many buyers are reluctant to sign on the dotted line at closing.
So, what actions do you need to take 3 months in advance? Here is a list of items we think are important based on our prior experience.
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