Your Niche?

The word "niche" gets batted around a lot. If you have done any reading about running a small business, the word has undoubtedly cropped up. Every small business should have one, they say. What's unclear is exactly what having a niche means.

"Niche" literally means "nook" or, more descriptively, a corner. It's not large. In fact, it's a small, very specific place. And, all of your customers reside there.

Many new small business owners have a difficult time narrowing down their focus. Trying to sell a product or service to everyone is an easy trap to fall in to. Throwing precious advertising dollars into marketing campaigns and not targeting those who are the most likely buyers is a recipe for disaster.

Aspiring small business owners need to think about the following before going into business:

• What problem will my service or product solve for customers?
• Is there a need that is currently not being filled?
• How can I serve customers better than existing businesses?
• What will make my service or product more desirable than others?
• Given my unique products or services, is there enough demand for me to become successful?

Existing business owners may also benefit from adding a new niche product or service. Moving into areas that you currently don't serve can be a great way to increase revenue. The key is being aware. For example, a local competitor may have gone out of business. Is there a way to step in and make the competitor's customers your own? Why did customers use them instead of you? Can you add products or services to increase your base?

Remember - you don't need a bazillion customers, you just need enough. Making them happy and keeping them coming back is the best recipe for success.

Friday Thought

"Don't part with your illusions. When they are gone you may still exist, but you have ceased to live." -- Mark Twain

Finding Inspiration

"You can't wait for inspiration. You have to go after it with a club."
-- Jack London

It's easy to fall into the trap of waiting. Waiting for inspiration, waiting for work to come to us, waiting, waiting, waiting for something to happen. The problem with waiting is that whatever we are waiting for may never find us. Isn't it better to go out and find it for yourself?

Inspiration can actually just happen. Those times come rarely during the course of our lives, though. Actively looking for inspiration can bring results much more often.

Business inspiration can come in any number of ways. Below are some methods for finding those sometimes illusive inspirational moments:

1. Brainstorm: Get a piece of paper and a pencil and write down whatever comes into your head. It may sound silly, seem impossible, or even stupid, it doesn't matter. A brainstorming session should be short, 15 minutes or less. After the session, put the paper away for at least 24 hours. You might surprised at what you came up with during that 15 minutes.

2. Look for inspiration: While running your errands, doing your grocery shopping, visiting the doctor - really look at everything around you. Don't take anything for granted.

3. Communicate: Talk with lots of different types of people, from other business professionals to family members. Don't forget the kids. Fresh ideas often come from those young minds.

Inspiration is out there. Sometimes we just have to open our minds to find it.

Prosperity

"Prosperity is only an instrument to be used, not a deity to be worshiped." -- Calvin Coolidge

Oh, if we would only remember that. The pursuit of money over the best interests of our fellow human beings is all too common. Scams, selling potentially dangerous products, and identity theft are perpetrated every single minute of every single day. Most business owners are not in those categories, of course. But we may have been guilty of pursuing dollars to the detriment of our customers. Sometimes, there is a fine line between money and what's best for the customer. Business owners are human beings and temptation can be great.

We are in business to make money, to support ourselves and our families, and to enjoy life. Money is the ultimate goal. If we lose site of the fact that people are more important than money, we open ourselves up to feeling okay about selling substandard products or following procedures that hurt our customers, whether they realize it or not.

People first, business second is the most rewarding business philosophy you can live by. Nothing is more important than believing in your product or service, knowing it is beneficial to the customer, and treating customers like family.

Spelling It Out

It's pretty common for small business owners to hire family and friends as employees. The wisdom of that decision is a subject for another post. Whether your employees are family, friends, or strictly staff, the best way to avoid the vast majority of employee problems and solve issues as they arrive is to have a detailed employee manual.

A precise employee manual should outline company procedures, rules, and consequences.

The following should be included:

1. Hiring procedures
2. Employee duties
3. Break and lunch time rules
4. Conduct
5. Internet use policy
6. Procedures for employee discipline
7. Procedures for employee termination
8. Employee responsibilities
9. Dress code, if any
10. Miscellaneous company rules and regulations

Each employee should have a copy of the employee handbook and be required to read it. Business owners should periodically update the manual and, again, require all employees read the updated material.

An employee handbook or manual is an essential part of successfully running a small business. It outlines expected employee behavior and defines procedures. Many employee problems could be avoided with an accurate employee handbook.

Forward or Backward?

"In the business world, the rear-view mirror is always clearer than the windshield." -- Warren Buffett

Is that ever true! We know exactly what we "should have" done, but don't know exactly how to go on from there. Still, there is something to be learned in those "should have" dones, as well as in those "should not have" dones. Perhaps the path to the future is staring at us out of the past.

Small business is not just about finding the right product, service, or business model. Successful entrepreneurs have more than a few things in common. Drive, determination, and a willingness to take risks are a few. Another skill that most have in common is the ability to look at those "should" and "shouldn't" haves and perceive the road ahead. Learning from mistakes as well as successes often teaches us the most beneficial way to move forward.

Plans, Plans, and More Plans

Everyone knows that it is important that a business start-up develop a comprehensive business plan. A well-done business plan can greatly improve the chances of obtaining financing and gives the new business owner a blueprint to follow in those first frantic months. Business plans are not just for start-ups, though. A yearly business plan can be of great benefit, allowing the business owner to refine procedures and plan for the future.

Business plans force a business owner to examine every aspect of the business. Discovering what's working and what isn't can be an eye-opening experience. A written business plan is the ideal way to learn whether the time is right to expand your business and, if so, how to go about doing it. A yearly business plan can, just as with a business start-up, help you gain financing to grow your business as well.

5 Steps Toward Resolving Customer Complaints

Where are we without customers and clients? Out of business, that's where. The ability to relate to our customers is second only to our product or service. Our product or service fills a need or solves a problem for customers, but it doesn't stop there. We have to keep our customers engaged, informed, and satisfied.

Below are five steps to take when dealing with customer complaints:

1. Listen, listen, listen. If a customer is calling to complain about something, listen first. Don't try to think ahead to come up with an answer. Simply listen.

2. When a customer needs help with a problem, repeat your understanding of the situation - out loud - to your customer. Discern the exact nature of the complaint.

3. Ask questions. Customers want to be heard. By asking questions and taking complaints seriously, you have won half the battle.

4. Offer solutions. Give customers a choice of options.

5. Console the customer. Offer a discount on a future purchase, something of value for free, or otherwise give the customer some type of additional compensation.

Treat customer complaints as a way to improve your business. When customers experience difficulties with your product or service, it gives you an opportunity to think about how the problem could have been avoided in the first place.

Remember the Faithful - It's Good Business Sense

Most businesses have a loyal group of customers who stick with them through thick and thin. They were won over a long time ago. They wouldn't dream of going anywhere else for the product or service. Or, would they?

In the rush to find new customers, small business owners often forget to reward their devoted customers for staying with them. In truth, it is much more cost-efficient to sell to existing customers than it is to search for new.

Loyal customers will leave if they feel unappreciated. Have you ever offered special deals and restricted them to "new customers only?" Have you rewarded returning customers in some way to compensate? If not, say goodbye to some of the faithful.

A few excellent ways to keep current customers happy include:
* Hold customer appreciation sales
* Conduct customer satisfaction surveys
* Talk to your customers

That last one may seem obvious. You probably talk to your active customers quite often. Engaging your customers in conversations about additional products or services they would like to see you offer and asking for suggestions about ways to improve your business can be of great benefit. You expose yourself to new ideas and your customers become part of your business family. It's a win-win!

Too Much of a Good Thing

We all have the best intentions when we start a small business. I absolutely loved learning about programming and designing and becoming a successful web designer. After 10 years of designing web sites, however, I had a significant burn out. I was definitely not in love with web design any longer. There was one part of the web site building process I was still in love with, though. That was the writing part. Writing content had always been part of the territory. As I enjoyed designing less, I loved writing more. Writing had always been a passion, so it was like returning to my first love, in a way.

Moral of the story? Once your business becomes more of a burden than a joy, it might be time to think about moving on to something else.

And,in case you noticed, I didn't update this blog at any time during the year 2010. Let's just say that, for me, 2010 was not a year to remember!