A dozen considerations to build and protect your small business’ reputation

Among the most important assets a small business can have is its good reputation. In many cases, this reputation is an umbrella that includes the reputation of the business itself, your own professional and personal reputation, and the apparent attitudes and behaviors of your employees. This article was first published in Succeeding in Small Business.

You have probably heard Warren Buffett’s sage words on this topic, but they are relevant here, so we will repeat them:

“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.”

In both good times and bad, your reputation will serve you well. It may win you customers. It will make your day-to-day interactions more often pleasant than not. It also helps assure that you are treated with respect when times are tough and you could use help, advice or even another couple of weeks to pay that invoice sitting on your desk.

Start with just 12 ideas to help you develop and keep a great reputation:

1. Whatever you stand for as a business, make sure it’s well-intentioned. In other words, don’t run a business whose premise is to rip off customers in any way. (And yes, such businesses certainly do exist. Ever heard the phrase “tourist trap,” for example?)

2. Make sure you fulfill your business’ promise in the everyday choices you make. In How Google Works, authors Eric Schmidt and Jonathan Rosenberg describes the meaning of Google’s famous mantra as follows: “Yes, it genuinely expresses a company value and aspiration that is deeply felt by employees. But “Don’t be evil” is mainly another way to empower employees… Googlers do regularly check their moral compass when making decisions.” As a small business, you should do the same.

3. If you feel that business conditions are starting to demand that you relax your ethical standards, it is likely time to change the business, not your standards.

4. Lead by example. Especially if you have employees, recognize that company culture develops top-down. If the CEO is a miserable you-know-what, employees often start to behave the same way. If she is savvy, wise and good-natured, her staff will tend to follow suit. Here is a good article from The CEO Institute on this subject.

5. Off-hours, continue to be that great person. Don’t have temper tantrums in the mall, underpay the babysitter, get drunk and carouse in public (or drive under the influence) and don’t be rude to people. This is always good advice, but as a businessperson with a reputation to maintain, you have one more reason to make it so.

6. Watch your keyboard! In these heady days of social media, that can be easier said than done. Your one rash or inopportune social media post or your one furious letter to the editor can go farther than all the carefully-thought-out communiques you’ve issued all year.

7. Make changes whenever you need to. This includes customer and business direction moves, staffing changes, and other alternations to course, difficult or not, that keep your business healthy. In the long run, doing the right thing for the company is good for your reputation as a savvy business owner. BUT…

8. Whenever possible, don’t burn bridges and don’t make enemies. In most circumstances, you can handle change either the right way or the wrong way. Don’t be nasty when you stop using a vendor. If you must fire an employee, help him maintain his dignity. Be deferential to competitors. BUT…

9. When that’s not feasible, minimize the unpleasantness. It buys you nothing.

10. Get involved in something positive. Pay it forward, share your expertise, give your time. Maybe you’ll coach a team, serve on a board, support a non-profit, or mentor a young person. Do this consistently, not just for your reputation, but also because it feels good and is a good thing to do. (See my post “I gave at the office:” 17 ways to give back that are good for you and your small business in the Succeeding in Small Business blog).

11. If you have employees, make clear to them your expectations for customer service, work performance, decorum, dress, and anything else that is important to your business reputation. What’s more, employees with terrible reputations outside the office will unfortunately reflect poorly on your company as well. Within the bounds of your legal rights as an employer, strive to have respectable, nice people working for you.

12. Give yourself the mental space and sources of relaxation and renewal you need to maintain your own wellbeing. It is a lot easier to maintain the standards described in this article when overall, you are reasonably happy, rested and calm.

A good reputation will be your reward.

Make conscious decisions about growing your small business.

Article originally published in Succeeding in Small Business.

Entertainer Sophie Tucker (and others) famously said, “I’ve been rich and I’ve been poor. Rich is better.”

Some people would make a similar remark about owning a business, with larger being better. But is it always true?

As a small business owner, you may want to grow your company, and you may even have plans to do so. Before you put your foot on the accelerator, take the time to decide whether (and how much) you should grow your company.

What do you really want?

Do you very much want to scale a business? Have more employees to help carry the weight? Have the potential to make more money? Create something that is worth a great deal of money, or that changes the world? You have the entrepreneurial drive to build your small business into a large one.

Do you need to grow to appear competitive in your market? To have the budget to get the word out, make more sales, and become an industry leader?

Can you be successful as a boutique? In some industries, the Davids are giving the Goliaths a run for their money.

Do you want a business that comfortably supports you and also leaves time for you to be with family, pursue other interests or take vacations? You may want to grow but to control the growth so that you can enjoy what some people call a lifestyle business. While this term has been used condescendingly in entrepreneurial circles, there is also an increasing recognition that a solid lifestyle business can indeed be a great business to run. Check out 7 Reasons Most People Should Build Lifestyle Businesses, Not Startups.

Potential

What potential does your business have to grow? Some businesses are like finely tuned sports cars. They aren’t working at full capability unless they are on the track, racing forward. They are built to move fast and make things happen.

Other businesses are engineered for steady travel instead. Carpooling and family vacations, say.

How about your company? And are you happy with that Chevy or Lamborghini your company is today? Or do you want to reengineer your business for a different driving experience?

Responsibilities

In a very small business, you do nearly everything yourself. As your business grows, you will delegate some tasks.

As you grow even more, or scale the business (see a nice explanation of business scaling in Fortune), your responsibilities are likely to change from doing or a blend of doing-and-managing to higher level managing.

Before putting your dreams of growth into practical steps, consider whether you like doing or managing or some blend of the two, and also whether the satisfaction you get from business is from the rush of entrepreneurial growth or from the day-to-day running of the company you have today.

Money

Depending on how you grow and what type of business you have, you have the potential to make more money as the company gets bigger. Generally, this is one major motivation for growing a company.

It should be recognized that there are times when the larger business is not more lucrative for its owner. As you take on more employees, more infrastructure and more risk (see below) you also have more potential areas for poor performance and resulting reduced financial returns. Which brings us to risk.

Risk

Big leases, big loans, shared equity, a larger staff, and other potential demands of a growing business carry with them higher risk alongside  higher prospective reward.

A fast-growing business typically brings some loss of control as well as challenges maintaining quality, assuring profitability, and managing your (potentially also large) competition.

Be aware not only of your best-case scenario but also your worst. Are you ready to deal with risk?

This article from Inc., 5 Risks for a Growing Business, and How to Manage Them is a good primer for companies planning significant growth.

Salability of company

What will you do with your company when you are ready to retire or move on? Will your children run it? Will key employees buy it or take it over? Will you sell it? Will it end when you stop working?

Size is one consideration in this matter. Many small business advisors recommend that you fund your retirement while you are working, in the event that “you are the company” and that the business “dies with you.”

A business that is not overly dependent on you, and that can continue to make money after you move on, is typically a more saleable enterprise.

Unless you have a novel technology in hand, cash is king when it comes to selling a business, so if making a lot of money from the eventual sale of your company is a key consideration in your planning, you may indeed want to grow the business aggressively.

Small businesses that can run without you can be salable, too, since people frequently prefer to buy an existing business rather than starting their own. However, the proceeds are likely to be lower.

So…

As a business owner, you have a unique opportunity to make conscious decisions about growth, based on the market for your services or products, and on balancing pros and cons of large versus small, considering your own management style, and reviewing how you want to blend business and life goals.

Whatever you decide, you have the privilege and the pride that comes with running a business. So many people would like to do what you are doing every day!

After 30 years in business, I'm learning from startups.

We all understand the need for fresh thinking and continuous improvement.

Of course, continuing to generate new ideas and improvements demands that one also seeks sources for inspiration.

I am fortunate in this regard to have found a wellspring of new and original thinking in the principals of entrepreneurial start-ups. In recent years, I’ve become involved in organizations whose mission is to further entrepreneurial success. One great example is Valley Venture Mentors (VVM), a Western Massachusetts organization providing “support to the entrepreneurial ecosystem.”

At VVM and other groups, I have the privilege of hearing early-phase new business plans that entrepreneurs are pitching or submitting for review. Sometimes, I offer counsel on launching ideas, products and brands. Often, I learn at least as much from the process as I impart.

Much of what is true for startups is also important to longer-established businesses. Lessons in “what makes for a successful startup” that have made a lasting impression on me include the following:

Focus is important.

Daniel Goleman, author of Focus: The Hidden Driver of Excellence, claims that the ability to focus is the primary predictor of both professional and personal excellence and success. The entrepreneurs who most often succeed demonstrate this ability to both see and remain committed to the overarching goals they set.

Flexibility is important, too.

Yes, focus is great, but focus at the expense of the ability to regroup, redirect and (to use an overused phrase) pivot can go beyond persistence to become foolish stubbornness. When do you know a plan is not working? Thomas Edison famously said, “I have not failed. I’ve just found 10,000 ways that don’t work.” Sure, but more often, 10,000 failures indicate that it’s time to seriously tweak, pivot or discard.

The best entrepreneurs combine the ability to focus with the ability to continue generating ideas.

This is why we see so many serial entrepreneurs, who develop a company, sell it, and then develop another. And if an idea doesn’t quite work, they can often refashion it into one that does.

No entrepreneur should be an island.

During business plan reviews, many a seasoned businessperson will offer advice – on concept, phasing, financials, regulatory and testing matters, competitive scene, and more. Not only does the entrepreneur learn something, the rest of the review participants often do as well. There are a lot of really smart people out there, with a great deal to share if you have the willingness to hear it.

This is still a great world full of wonderful ideas.

Many of the business plans I hear are confidential, so just let me say… world health, the environment, education, communication, and a multitude of other burning needs give us the opportunity to improve the world. If indeed the world does improve, I bet it will be in large part thanks to the efforts of focused, flexible, imaginative, and well-mentored small and growing businesses and, of course, their fearless leaders.

Reaching unreachable people

I don't answer my phone at the office anymore unless I know the caller.

A lot of my email goes in the trash unread.

I don't even listen to my voicemails.

I can't possibly read everything I need to read.

Does this sound like your customers and prospects? Let's face it, many decision-makers are overwhelmed with demands, sales calls, interruptions, and urgent tasks. This is especially true with the ever-increasing number of channels contributing to information overload. The jaunty concept of the information superhighway is not only antiquated but far out of sync with where we are today; standing in the middle of a field in an intense information hailstorm, with little chance of respite or shelter.

Much as you may empathize with everyone who wants to shut down all the noise, you have urgent needs of your own.

There are customers and prospects to reach, new products to launch and messages and a brand to promote. How can you reach your particular "unreachable people" who have resorted to avoiding unwanted messaging? How do you compete in this crazy environment?

-Use multiple channels. We know that people are still reading, viewing and listening to some information - they are just skipping lots more. What exactly any one person is taking in varies, of course, although there are clear trends among specific groups. By employing, let's say, social media, content marketing, press visibility, select advertising, trade show and conference presence and engagement, and maybe even the surprise of a print (gasp) newsletter, you will get through with some percentage of your efforts.

-Be useful more than you are promotional. Remember, in an ideal world, your offerings solve a problem your prospect has. Give a little, in terms of information, advice or value, and you will enjoy better reception than you would otherwise receive.

-Remember that no matter how busy your prospects and influentials are, they take time out for social media or content that they think constitutes a a bit of a break from their primary pursuits. Since the new equivalent of water cooler socializing and coffee breaks is reading an article on LinkedIn, checking Facebook or reading a blog, be a lively and interesting participant online. Do communicate, on occasion, about something other than your own company and its products. Engage in give-and-take discussions about trends, industry activities, customer accomplishments, and more. People enjoy engaging a lot more than they enjoy being sold to.

-Make it a better world. Guide your company to develop or express social responsibility. Become involved in cause marketing. Sponsor important events. Mentor youth. Create truly green products. Save the environment. Whatever you do, do something valuable - and in the process, reach unreachable people.

-Don't waffle. How many companies start a project (and marketing outreach is as valid an example as any other) and then don't fulfill, change course, lose faith, or make crippling budget cuts? After three decades in the business, the vSA team can assure you that the most successful marketers are continuous, consistent marketers who don't try to grow chiefly by cutting costs.

-Put in your 10,000 hours. Author Malcolm Gladwell estimates that the world's best (at anything) enjoyed not only talent and good fortune but also put in an estimated 10,000 hours of effort before becoming so-called overnight successes. Whatever that true effort-hours number may be, a solid commitment contributes to the difference between mediocre and great results.

In short, it is indeed difficult to reach "unreachable" prospects and customers, but it must be done if you plan to maximize sales and business success. Make sure your message is meaningful, your methods multiple, your purpose at least in part noble, and your activity and motivation unflagging.

By doing ALL these things, you are likely to outperform many of your competitors not only in your reach but in reaching other key, quantifiable business objectives as well.

 

Too much sales advice and not enough sales?

[caption id="attachment_2194" align="alignleft" width="426"] Image copyright 2014 van Schouwen Associates, LLC[/caption]

How to develop and implement your own best practices - excerpted from the award-winning Succeeding in Small Business Blog


Not only can achieving sufficient sales be challenging, but the very process is further confused by the often contradictory counsel you’ll get from a myriad of sales experts.

The fact that various experts advocate what seem like completely different approaches doesn’t necessarily mean that somebody is dead wrong – although, in some cases, “experts” are simply peddling their own seminars and consulting services to you. Generally, finding which advice works best for you comes down to weighing factors including what you are selling (business services or  jams), to what types of people you should be selling, your own style and tolerance for specific sales approaches, and the amount of effort you are willing to devote to sales.

My own guidance as provided here is an amalgam of what I, too, have sifted from expert advice, tested by three (long!) decades of selling and supervising others who sell for my company. Let’s examine some common and somewhat conflicting sales advice:

A- Focus on A-list prospects OR
B- Work with a big network of contacts

B! Sure, you’ll focus and follow up where you see potential, but I’ve learned that even “sure things” can dissolve faster than sugar cubes in hot tea. You’ll be less crushed when this happens – not to mention more prosperous in the long term – if you “play the field” in sales, keeping a lot of conversations going at all times.

A-People buy when they are ready OR
B- Always be closing – and if they won’t close, forget them

A and B. Keep lightly in touch with prospects who you sense may become customers someday. Don’t call or email them constantly, or you will become an annoyance (yes, you). But, in my experience, prospects call with a need at unexpected times. By keeping lightly in touch, you help assure they remember to call you instead of someone else.

A- People buy from experts OR
B- People buy from people they like

Mostly A. Customers prefer to buy from people they like, but in the end they typically buy based on need and perceived value. Generally, clearly superior expertise or offerings will trump the old boy/old girl network, although we can all cite exceptions. “I was always well-liked,” claimed Willy Loman in “Death of a Salesman.” Was he? Without proving himself valuable, whatever charm he might actually have had didn’t amount to much. That said, being nice and expert is really nice.

A- Sales is dead; social media and inbound marketing are the answer OR
B- Sales has never been more important

It depends on what you have for sale. It’s a marriage of A and B in many cases. Marketing opens the door, sales closes the deal. Experiment on how the two work hand-in-hand for your company.

A- If you want loyalty buy a dog OR
B- Don’t burn your bridges

B! Unless you have a scheme that involves changing your identity, nothing serves you better than a good reputation. That includes having former clients, employees, vendors, and associates consider you a fair and decent person. The worst salespeople are the sleazy characters who no one trusts, refers or wants to see again.

A- You must make your numbers each month OR
B- It’s a long-term game

B. I’m with Warren Buffett on this. If you are in business for the long term, learn to accommodate sales cycles, seasonal variations and economic ups and downs. Watch your numbers, but don’t fire yourself when there’s a dip for which you understand the reason.

In summary...

It really pays to develop a sales philosophy that suits both you and your company, and to evolve the resulting sales system based on your needs and experience. The next task is to sell, sell and repeat.

Wishing you great sales results.

You Don't Have To Be So Fancy All the Time

If you have never experienced a cultural gap between yourself and a child, I venture to say you have never been a stepmother. Perhaps I am mistaken, but this is what I suspect.

For example, prior to venturing into A World of Children I Met Well After Their Births, I believed that I was casual and easygoing. I have recently learned that I am a crazy person, one who swoops in to pick up every peanut and every pre-chewed corn kernel that has landed on what used to be a kitchen floor but now more closely resembles an oversized Rice Krispies Treat.

I have learned that I am not as friendly as once, in my innocence, I believed myself to be, but instead am a person who strongly prefers that the front door of the house not be left hanging open all night ("Welcome, raccoon and possum!" my better self would have said).

I have discovered that I am a person who makes the mistake of reading the writing on tee-shirts, and that sometimes I do not like what the tee-shirts have to say. Perhaps I do not understand the tee-shirt jokes.

I do not like to find anyone's girlfriend's bra in the couch cushions.

I could go on.

But most of all, I have learned that I am "fancy" and that fancy is kind of weird.

"Fancy" is a person who says "don't bite your dinner plate, please" and "did you use your toothbrush today?" Fancy has never longed for a pickup truck, much less chosen a model and color.

Fancy reads books! And likes it! "Books," as one of the children informed me, "don't do anything. They just sit there."

This is true. They do. And when Fancy gets really, really tired, she just sits there, too.

©2014 Michelle van Schouwen, Longmeadow, MA
All rights reserved. 

Entrepreneurship - Learning from start-ups

Every few weeks, I have the privilege of hearing early-phase new business plans that entrepreneurs are pitching or submitting to groups for review. Sometimes, I have the honor and the challenge of offering counsel on launching ideas, products and brands. Often, I learn at least as much from the process as I impart.

A few highlights I find fascinating and applicable in business and beyond:

-Focus is important. Daniel Goleman, author of Focus: The Hidden Driver of Excellence, claims that the ability to focus is the primary predictor of both professional and personal excellence and success. The entrepreneurs who most often succeed demonstrate this ability to both see and remain committed to the overarching goals they set.

-Flexibility is important, too. Focus at the expense of the ability to regroup, redirect and (to use the overused phrase - pivot) can go beyond persistence to become foolish stubbornness. When do you know a plan is not working? Thomas Edison famously said, "I have not failed. I've just found 10,000 ways that don't work." Most often, 10,000 failures indicate that it's time to tweak, pivot or discard.

-The best entrepreneurs combine the ability to focus with the ability to continue generating ideas. This is why we see so many serial entrepreneurs, who develop a company, sell it, then develop another. And if an idea doesn't quite work, they can often refashion it into one that does.

-No entrepreneur should be an island. During business plan reviews, many a seasoned business person will offer advice - on concept, phasing, financials, regulatory and testing matters, competitive scene, and more. Not only does the entrepreneur learn something, the rest of the review participants often do as well. There are a lot of really smart people out there, with a lot to share if you have the willingness to hear it.

-This is still a great world full of wonderful ideas. Many of the business plans I hear are still confidential, so just let me say... world health, the environment, education, communication, and a whole lot more have the opportunity to improve thanks to the efforts of focused, flexible, imaginative, and well-mentored entrepreneurs.