Social Business

Beef Up Your Profit Potential

In order for any company to stay in the proverbial “black” they need to adopt a strategy of forward thinking. Part of that kind of thinking should also incorporate the “out of the box” variety. In other words, where could you possibly find new customers? Believe it or not, a viable source of additional revenue could be found through earning a government contract. Yes, there is a lot of talk about budget cutting and deficits, but the fact remains that our government is still open for business. Could some of that business come your way? It’s quite possible.

If you haven’t checked out the Small Business Administration yet you should. They have many resources available for you to tap into that can help improve your bottom line. One such resource is their Business Matchmaking Program. This is where they provide the bridge between companies and new potential buyers. As you can imagine, anything to do with the government is going to require a stack of forms and paperwork to fill out. This shouldn’t discourage you, but instead encourage. Keep in mind that other companies are feeling the same level of pain. That means if you push through you might just be the last company standing!

Another way to beef up your profit potential is to consider a merge with another company. Recently there were two competing satellite radio companies: Sirius and XM. They were knocking themselves out to try and win over customers. The solution? A merger that melded their programming and their customer base. Overnight they became the only game in town jumped to an impressive 20 million new listeners. You might not approach that success, but you’ll never know until you try!

What Else Have You Got?

There is a lot to be said for being the best at one thing. After all, you only need one solid hit in business to set you up for life. Ask the maker of the Barbie Doll or the hula hoop. However, savvy business owners know that to stay competitive, you need to diversify. For every Barbie there was also a G.I. Joe and Mr. Potato Head. For every hula hoop there was a slinky and a Frisbee. Any small business operator should have an answer to the question, “what else have you got” standing by. You never know who you might run into in an elevator!

Some businesses offer a specific service like carpet cleaning. That’s what they do and they make a good living at that. However, that doesn’t mean they can’t diversify. If you’re cleaning someone’s carpet, the addition of an outdoor power hose could open up a new line of business of scrubbing decks and patios. You could even set up package deals for the inside and outside of a home. A store that specializes in selling running shoes for the serious runner could also stock running outfits, water bottles, socks and even sport theme sun block. In other words what can you add to your line of goods or services that will let you expand the potential for profit.

Perhaps you’ve reached the limit of what you can offer. What about offering yourself? As an operator of a successful small business you’ve obviously have some valuable insights that many folks could benefit from. Maybe there is a local learning center that would be interested in a course taught by you. That’s taking diversifying to an entirely new level!

Filed Under: Business Tagged With: Business, Hula hoop, Small business

License to Sell

Businesses are set up for two reasons: To sell goods or offer services. There are many businesses that end up offering their services for the goods they sell. Talk about cornering the market! If you’ve created a product that has found a modicum of success then you might consider taking that product to the next level by licensing that product to a larger manufacturer. This isn’t about giving up your idea, but about getting the opportunity to have that idea reach a global market.

Most of the products in your home are actually licensed products. Someone came up with an idea for a vacuum cleaner, ballpoint pen or even a potato chip that improved on what was out in the market. What this unique product lacked was marketing muscle and production cash. When you license your product to an established corporation then you’re entering into a partnership with very little risk to you. Your new licensing partner should be putting up the bulk of any necessary marketing or manufacturing costs. In return, they will get a piece of the profits from the sales of your product.

Setting up a licensing deal is like forming a new business alliance. Some folks come up with that one great idea, license it and then just sit back to collect the royalty checks. Others want to stay in the business with further development and expansion of the original product line. Either way is a viable option. Also, make sure you’ve got a good lawyer on your side to review the license contracts. There have been too many horror stories of inventors losing out. Don’t let that be you!

Filed Under: Business Tagged With: Business, Invention, License

Take Your Business Around the World

One of the most powerful business tools you have at your disposal is staring right back at you: The Internet. As you read this article, the potential exists that hundreds, if not thousands, if not millions of people are reading it as well. They all have the same access. Now imagine if you could reach that same level of active users through your own business website? That would be impressive on anyone’s business ledger. The issue at hand is whether or not your web site can reach out to this millions of potential new customers.

This is where the idea of partnering with other business entities comes into play. If you can cross promote your goods with a company that has comparable goods then you stand a reason to both benefit. Suppose you have a mail order business selling bulk candy. What if you partnered up with a website that sold Halloween costumes? Candy and Halloween go hand in hand. That’s just one example. There are many more possibilities that could be right around the virtual corner.

Naturally, expanding your business globally means your website has to be user friendly in many different languages. That’s just a matter of programming. Once a customer discovers your website, you want to make their viewing experience engaging enough so they’ll come back, even if it is just to browse around. That comes down to the issue of fresh content. How often are you updating your web site? Does your design feel fresh?

Another component you should consider is allowing customers to express themselves. If the internet has taught us one thing it’s that everyone has an opinion they are desperate to share. Setting up a way for customers to interact with one another and share their own experiences can help broaden your company’s reach. Go for the gold by going global!

Filed Under: Business Tagged With: Business, Halloween costume, Website

Reach Out to the World With Your Business

A popular new reality show gives start up entrepreneurs the chance to get a cash infusion for their businesses, but first that need to survive the “Shark Tank.” In this show, a panel of successful business folks are willing to put their own money on the line for an idea they feel can be marketed in a big way. Not everyone with a solid business idea will make it onto the “Shark Tank”, but that doesn’t mean you can’t develop you own marketing strategies. The goal is to share your home base business with the rest of the world.

There was a time when Sears cornered the mail order business by annual issues of their catalogue. Now those catalogues have been replaced by websites. So, how strong is your internet presence? The website for your business will be the first impression you potential customers will make about your company. Are the products displayed and written about in an engaging manner? Is it easy to order items? Does the website add fresh content? Those are all key components for any business that wants to market their product globally.

One successful path to growing your home business is finding compatible partners. These are companies whose customers might benefit from your product. For instance, if you are in the business of making uniquely colored shoelaces then you need to get with a sneaker company. If a Google search can help customers find your company then it can also help you research other businesses that would be a good fit for your expansion.

Just because you’ve got an awesome website for your company doesn’t mean you can stop there. There many more avenues to explore on the web to get the word out on your product. By targeting other social networks you can build strong brand recognition and profit.

Filed Under: Business Tagged With: Business, Sears, Shark Tank

Take a Lesson from the Colonel

It was at the age of 40 when Colonel Sanders first began selling his famous fried chicken. However, he wasn’t selling this chicken from a KFC restaurant. Instead, the Colonel was offering his special recipe fried chicken to customers at his gas station. Soon, more people were coming for the chicken and not the gas. At that point, Sanders had a decision to make: Should he expand his business? Fortunately for those of us who enjoy the secret blend of 11 herbs and spices, Sanders moved his chicken business to a café and a new fast food was born.

Is it time for you to expand your business? If you have a traditional “brick and mortar” type operation that is achieving a consistent level of success, then it might make sense to open a second location. Just as you prepared for your first opening, this expansion should follow the same rules. You should put together a complete business plan. You’ll also need to do your research about picking the perfect second location spot. Most importantly, you should consider what kind of strain opening a second location might have on your current business. Once all of those factors have been weighed and signs point to a “yes” then expansion could be in your future.

Another great lesson to take from Colonel Sanders is what happened when his first restaurant failed. Yes, it’s true, Colonel Sanders’ first Kentucky Fried Chicken restaurant failed when an interstate project drove away all his foot traffic. Instead of accepting failure, the Colonel decided it was time to branch out and franchise his chicken business. He toured the country with his special fryer and seasonings to show burgeoning fast food entrepreneurs how they could get into business for themselves. Of course, the Colonel got a piece of every franchise operations. Maybe your business is also ready to become franchise!

Filed Under: Business Tagged With: Chicken, Colonel Sanders, KFC

Traits of an Effective Business Leader

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You likely started a business to pursue a personal passion. That is the true beauty of entrepreneurship; you come up with your own ideas and bring them to life. However, all entrepreneurs are not natural-born leaders. Along with other necessary business traits, such as sound accounting skills, the life of your business depends on effective leadership skills. Every team needs a leader to help keep them driven and focused. If you cannot lead your workforce, then your employees will not be as effective. As a result, your sales will not be as profitable.

One of the most important things to relay to your team is enthusiasm. If you are not an enthusiastic leader, then how can you expect your team to exhibit enthusiasm? Your attitude will always affect the way your business turns out. Customers want to deal with businesses that are confident and warm, not ones that are unenthusiastic and unsure of why they are there. Keep the workplace fun but still professional. Everyone should understand their purpose in your business.

Communication is an essential trait of an effective leader. Constantly keep in touch with your employees. Talk to them on a daily basis, especially if you are there at the place of business. If you operate multiple businesses, then keep in touch on a weekly basis at the bare minimum.

Recognize success just as much as down-falls. As a leader keeping tabs on a business as well as the people who make it happen, it is easy to get caught up in the mistakes. If you are constantly pointing out others’ mistakes, you will come across as nagging and pessimistic. This decreases morale in your team. For these reasons, it is vital that you point out the great work that your employees do. Not only will this make them feel valued, but you are helping to set an example so that other employees can follow suit.

Filed Under: Business, Employment Tagged With: Business, Employment, Leadership

How Managers Directly Affect Employment Morale and Business Production

As a business owner, it takes a lot of trust to let someone else run your business. But this is inevitable, especially as your business continuously grows. Adding managers to your team also helps give you the personal time you need away from your business so that you can return refreshed each day you are at the office.

Finding appropriate managers can be a big task. This is especially the case if you are hiring from outside of the company. Every business owner looks for similar traits in their managers: passion, trustworthiness, a good work ethic, enthusiasm, leadership, and experience. Once you have found the perfect manager, you cannot just leave it at that and be on your way. No one is perfect, and even managers can sometimes fall off the bandwagon.

Every team needs a leader, and you cannot always be around. The leadership role is then the responsibility of your management team. A leader always sets the tone of the business. If a manager is having an “off” day, then your employees may also be down. Everyone has their bad days, and this type of scenario has a quick turn-around. However, the danger is that customers do not get into the buying spirit if they are in a depressing place of business.

In more serious situations, managers might become disgruntled. They often share their misery with other employees, causing backlash against the company. This is potentially dangerous, since again, their attitudes directly affect the customers.

Avoid negative impacts on your business by keeping in constant communication with your managers. Touch base one-on-one at least once a week. Also reward your managers for hard work and great accomplishments. This will keep up the morale and decrease the chances of discontent with the job. Finally, if another employee raises concerns about a particular manager, listen closely and do your own investigations. Talk to your manager and see what can be done to improve the situation. If your manager does not wish to improve, then it is time that you both parted ways professionally.

Filed Under: Business, Employment Tagged With: Business, Employment, Management

When Sharing Information with Your Employees Gets Too Personal

As a business owner and manager, it is important that you inject an atmosphere of friendliness and teamwork within your business. It is normal to chat with employees and to get to know one another. There is a long-held belief that personal matters should stay out of the workplace. This holds true for employer-employee relationships. There are reasons to justify this stance:

You might make your employees feel uncomfortable. A story to share with your closest friends may not sit well with an employee, particularly if you don’t know him on the same level as your friends.
Your employee might spread gossip. When talking about your personal life, it is easy to let things slip. Although a piece of information might seem harmless to you, it can turn into something big. For example, think of what could blow out of proportion if you tell an employee that you drank too much that weekend. Unfortunately, it is a part of human nature to talk and to share news about each other.
Your stories might be offensive. Your business is likely dynamic and diverse. You should keep your small talk G-rated in order to avoid any type of backlash.
A disgruntled employee might turn other employees against you.

So what can you do to maintain the friendliness in your place of business without crossing the line? First and foremost, your focus should be work. It is okay to get to know your employees and talk, but do not take it too far. At the same time, if you notice an employee being too gossipy, seek her out and talk to her about it. It is best to address any type of job dissatisfaction directly with the employee before it gets out of control and affects the atmosphere of the whole business.

Filed Under: Business, Employment Tagged With: Business, Employee Relations, Employment

Advertising Your Business: Which Form is Best for You?

Advertising is an important part of your business. Although you might have customers now, you constantly need to reach out for new ones. Let’s face it: your current customer pool doesn’t likely purchase goods or services from you on a daily basis. Advertising also plays a role in keeping your customers interested and excited about your business.

The confusion begins once you decide how and where to advertise. There are several venues to choose from for different markets. Different types of advertising also vary in costs, with business cards being the cheapest and television ads being the most expensive. Here is a breakdown of different types of advertising and what they entail:

Business cards. These are useful to pass out to potential customers and to give to your current customers so they can share information with friends. Depending on how fancy you get, a pack of 500 cards can range from $20 to $150.
Yellow pages. These are hit-and-miss unless your customer is specifically looking for your service. No target market reads the yellow pages front to back. These are more appropriate for specialized businesses. Examples might be a wedding boutique or a pediatrician.
Magazine and newspaper ads. These run a set amount of time. You can choose between different sizes and colors, and perhaps even page placement at an additional cost. Newspaper ads are the least likely to capture attention unless you run it every single day.
Radio advertising. This is expensive and is becoming more outdated as more people are using satellite radio and different forms of media to play music. Many radio ads yell at their targets in hopes of getting their attention. If this is not how you want to be portrayed, you may want to skip it.
Television advertising. The most expensive, with ads ranging between 15 and 30 seconds long. Not only do you have to pay a company to help you create the ad, but you also have to pay to air it. Television ads are not for newbie business owners on a tight budget.
Word-of-mouth: free and based on excellent customer care.

Filed Under: Advertising, Business, Employment Tagged With: Advertising, Business, Yellow Pages