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.

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.

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!

Tough Times

The experts are saying the recession is over, but it sure doesn't feel like it for this small business owner. Costs of running a business are higher and revenue is lower.

Below are a few helpful tips to save money during tough times:

1. Remember when we were told that computers would eliminate paper work? Well, it ain't true! Paper is still a major expense for most offices. However, a small business can save money by using less expensive copy paper for most internal paperwork. Save the high-end, more costly paper for customer correspondence.

2. Partner with other business when advertising. Advertising is one thing a small business should not cut back on during a recession, but by partnering with other businesses, costs can be shared.

3. Talk to other business owners. Brainstorm, share ideas - the more business heads that get together, the better.

4. Ask employees for ideas. These are the people who work in the trenches. They can offer practical suggestions about where to save and how to streamline. They have a vested interest in making sure the business stays afloat.

Maybe the recession is showing signs of improving. If we have hung on this long, we can do it for awhile longer.

Creative Blocks

In addition to being a web designer and small business consultant, I also write content for blogs and web sites. As every writer knows, there is nothing more frustrating than a writer's block. It gets to the point where I feel like I am writing the same things over and over again!

A block in the creative thought process can also keep your business stagnate. You seem to lack good ideas to move forward or give yourself new avenues.

Here are some ways to help break out of the block:

1. Stop thinking about it. Move to another project, focus on something else for awhile. Sometimes the perfect path to growth is not trying at all.

2. Brain storm. Get a pencil and a piece of paper and just let thoughts flow. Write them down, even if you think they are silly or unworkable. Don't think about what you are doing, just do it. You may surprised when you review your list and find some great ideas.

3. Look at what other similar businesses are doing. If possible, visit them. Check out their web sites. Obviously you do not want to copy exactly what another business is doing, but you may discover other ways you can move forward.

4. Talk to people. Get ideas. Family members, friends, staff and other business owners - get their feedback. Ask how you can improve or offer more. Bounce ideas off of them.

5. Talk to current customers. Ask them what other services or products they would like your business to offer. Ask them to suggest ways you can improve to serve them better.

By getting those creative juices flowing again, you will be able to come up with new ideas to move your business forward.

Ways to Attract Customers

In tough times like these, customers are understandably careful about when, why and how they spend their money. As a small business owner, it pays to offer customers an added bang for their buck.

Free is a very attractive word. It commands attention. By offering a free service or item, along with a purchase, you might be a able to persuade a customer to buy from you rather than your competitor.

For retail stores, one technique that works is to have a drawing for a prize of some sort. Not only can you bring people into your store this way, but you can, if done correctly, attain contact information so you can send out email or mailed newsletters to the entrants. Note: if you are gathering contact information and intend to send either email or mailings, you must state that on the entry form and ask the person to check off a box to give you permission to use the information that way. It is also advisable that you let them know that you will not be selling this information to any third party.

Before offering something for free think hard about what you will be giving away. Money is tight for small business owners, too, so you don't want to spend so much on your freebie that it negates the sales you bring in. For example, with TTR Design, my web design business, I will at various times offer one free additional web page with a package purchase, a free slideshow with package, free contact form or a percentage off the final invoice. If I can get someone to buy a web design package, adding an additional page is not too costly and it helped me get the job in the first place.

What Small Business Owners Say - Part 4

Click here for Part 1 | Part 2 | Part 3

In Part 4 of our What Small Business Owners Say series, we continue our interview with Katie Rowan, the owner of Fresh Picked Vegetarian Delicatessen* in North East, PA.

Kristine: What are some of the ways you use to keep customers happy and coming back?

Katie: I try to be there to answer questions. I teach cooking classes so get more of a chance to do this. I also just try to make tasty, consistent food that isn't expensive.

Kristine: What advice would you give to someone who is thinking of starting his or her own business?

Katie: It's a lot of work for very little money (probably none) the first couple years. You can't get discouraged. You also have to adapt to changing markets and take it one step at a time. Better to start small and do it right.

Kristine: Any other comments or bits of advice?

Katie: BUY LOCAL!! It's the only way that you can support the economy. Where and how you spend your money is how you change the world.

Thanks to Katie for her advice and insights.

*Fresh Picked Vegetarian Delicatessen, inside Mary's Select Foods, is located at 22 South Lake St., North East, PA 16428 Phone:(814)725-5227. Made to Order 11-3 Sunday through Friday, Grab and Go during Mary's hours (Sat-Tues 9-5; Wed-Fri 11-7). Fresh Picked Deli's fabulous menu features 7 layer burritos, portabella cheezsteaks, hummus avocado wraps and much more. Fresh Picked strives to use local and organic foods and is always making healthy food that tastes GOOD!

What Small Business Owners Say - Part 3

Click here for Part 1 | Part 2

In Part 3 of our What Small Business Owners Say series, we speak with Katie Rowan, the owner of Fresh Picked Vegetarian Delicatessen* in North East, PA. Fresh Picked opened in July of 2008. Currently Fresh Picked offers take out and delivery.

Kristine: What made you decide to start your own business?

Katie: I've been teaching cooking classes for the past 10 years and have had hundreds of people tell me I should open a restaurant. Both my parents own their own businesses (R.W. Rowan and daughters, Clymer Hardware & Melva's Beauty Salon) and I know what it takes to make it work in a small town.

Kristine: Why did you decide to open a vegetarian deli?

Katie: That's where my talent lies. I've been a vegetarian for 18 years and my mom was an excellent cook. I learned to make healthy and delicious food- it's an ongoing challenge- and even meat and potato kinda folks love it.

Kristine: What has been your best form of advertising so far?

Katie: It's hard to say, I feel like I'm always networking in one way or another. They say word of mouth is where it's at, and I think thats true, but I think you have to use all forms.

Our interview with Katie Rowan continues tomorrow.

*Fresh Picked Vegetarian Delicatessen, inside Mary's Select Foods, is located at 22 South Lake St., North East, PA 16428 Phone:(814)725-5227. Made to Order 11-3 Sunday through Friday, Grab and Go during Mary's hours (Sat-Tues 9-5; Wed-Fri 11-7). Fresh Picked Deli's fabulous menu features 7 layer burritos, portabella cheezsteaks, hummus avocado wraps and much more. Fresh Picked strives to use local and organic foods and is always making healthy food that tastes GOOD!

What Small Business Owners Say - Part 2

Click here to read part 1

Megan Collins is the owner of The Last Wordsmith Book Shoppe in North East PA. We recently sat down and talked about what it is like to start and run a business these days. Below is part 2 of our interview:

Kristine: Is there anything you would have done differently when you started your business, knowing what you know now?

Megan: It’s really hard to say because you learn so much from your customers as to their wants and needs, and you can’t do that until you are actually interacting with them. Like, I had no idea that there would be a big call for Amish fiction. Your customers really determine your inventory in a book store. Personally, I like mostly non-fiction but I wouldn’t sell many books if that’s all I stocked.

I do wish that I had planned an advertising scheme of some kind. Something like, an ad that read, “Guess what’s coming to 17 East Main in North East?” one week and then for the next few weeks give clues and make people guess what it is. Something that would spark interest from the beginning and get people thinking. People remember stuff like that.

Kristine: What advice would you give others who are thinking of starting their own businesses now?

Megan: Be sure that you are ready to struggle, financially, personally and physically. Long hours, no pay and little time for family or entertainment. If you are patient and tenacious and absolutely love what you are doing, you will be fine.

Kristine: What measures are you taking to ensure that your business will survive during these tough times?

Megan: I have cut back on decorations and catered items for holidays and events. Plans for new sidelines are now on hold. I have also had to cut employee’s hours.

I have not cut back on advertising – I think you have to keep your name out in front of people. They have to get to know you and continue to be reminded that you are there.

Kristine: Any other comments, thoughts or bits of advice to potential or current small business owners?

Megan: Just to do whatever you can to get through this time. Other businesses started during down times and kept going, look at Disney, he started during the great depression. It won’t be easy, but if you can make it through, it will be worth it. At least I keep telling myself that!

Kristine: Thanks very much for your time and insight.

Later this week, we interview Katie Rowan, owner of Fresh Picked Vegetarian Delicatessen in North East PA.

What Small Business Owners Say - Part 1

Megan Collins is the owner of The Last Wordsmith Book Shoppe in North East PA. We recently sat down and talked about what it is like to start and run a business these days. Below is the first part of our interview:

Kristine: You started a business in August of 2008. The economy had not totally tanked then, but there were signs. What made you decide to start a business in a difficult economical climate?

Megan: My plan was to start up a small bookstore as my “retirement” job. So I had put money aside for a few years for that. When I was laid off from my job as a Human Resources Manager and had no promising prospects for work, I thought I might as well start it now.

Kristine: What kind of research did you do before starting your business?

Megan: I looked at several professional organizations and found The American Booksellers Association to be most helpful. Their forums helped tremendously. There is nothing like getting help from people in the business and several had been in for over 20 years. Their advice was priceless.

I also contacted PAZ & Associates. They are consultants who specialize in opening bookstores. Their books and workshops provide real life situations, budgets, business plans and so much more.

I can’t stress enough the value in talking to people who have been in the business for years. As a business owner, you will use their advice on a daily basis.

Kristine: Some people have predicted the death of independent bookstores because of Amazon, Barnes & Noble and the like. What is your take on this?

Megan: I really think that personalized service will always win out over big box and internet stores. Communities like to help their own. People who come into the book shop become more than just patrons, they become friends. We offer book clubs and writer’s workshops and personalized services that you never get from other bookstores.

People come in and take ownership and pride in the bookstore. I’ve had people come to the Last Wordsmith and call it “their bookstore.” It is a really nice feeling to know that they feel that way and they don’t want to see it close up, so they do what they can to make sure it stays in business.

Part 2 Coming Soon.

Creative & Cheap Ways of Advertising Your Business

Keeping a business afloat in early 2009 is certainly a challenge. It takes me back to when I first began my web design business and needed to advertise on a $50 advertising budget!

One thing I did then and am getting ready to do again now, is send out a few targeted mailings. I ordered some nice postcards from Vista Print, bought some postcard stamps from the post office, went through the phone book yellow pages looking for companies who might need my services and mailed a few cards out. I actually made a couple of contacts through those mailings that became long-term customers. It was well worth the initial cost. This time, I am searching online for local businesses who might need my services and will be sending out a few postcards at a time. I am also going to keep some postcards with me at all times to hand out or stick on public bulletin boards around town.

Since I am reestablishing myself in a new area, I am also handing a few business cards out to friends, relatives and business owners I have worked with, so they can pass them out to others. Believe me, my husband's wallet is full of my business cards!

Another thing I did recently was to post my services on one of the local television station's free online classified sections. I got lots of web site hits the first few days, when my ad was on the landing page. It dropped off after awhile because new ads were being posted and so did my hits, but it was free and is still up for someone who finds it.

In a business climate like this, we need to keep thinking of creative and economical ways to advertise our businesses. If we do, we may just be able to hang on.