Tag Archive: grow_your_business

Finding the time to grow – not just run – the business

By Sherron Lumley.

For many small business owners, finding the time to grow, not just run their business can be a perennial challenge. “It’s tough,” says Sharon Rose, owner of Rose City Acupuncture in Portland, Oregon. In addition to seeing clients throughout the day, Rose keeps her own books, manages her own billing, writes a monthly newsletter, and handles the marketing for her business.

“With relatively few resources and often no support staff, managers of the nation’s 26 million small businesses can find themselves even more pressed for time than overworked and stressed-out colleagues in big corporations,” writes Hillary Chura for The New York Times.

Pull-Quote3.pngTo get a sense of the challenge and scale of the small business growth problem, a 2011 National Small Business Association (NSBA) survey of 400 small-business owners reported, “Unfortunately, 45 percent do not believe there will be any growth opportunities for their business in the coming year,” and, the number of small businesses reporting decreases in profits was just as large, at 46 percent. In another new report by market research firm Infogroup, more than half of the small business surveyed—56 percent—reported their “growth” was flat or had declined in the previous 12 months.

Creating a blueprint for change

But in keeping with the entrepreneurial spirit, both the NSBA and Infogroup surveys found that a majority of small businesses reported feeling confident about the future of their own individual firms, with most anticipating growth. So how does one go about making growth a reality?

Distinguishing short-term goals from long-term goals is an important first step in putting one’s business on a growth track. Long-term goals are big picture, purposeful and mission statement driven. Short-term goals are S.M.A.R.T: Specific, measurable, action-oriented, realistic and time-specific. “Give yourself daily, weekly and monthly activities and standards to which you hold yourself personally accountable,” writes Bob Phibbs in his book, The Retail Doctor’s Guide to Growing Your Business. “You must feel all of the work is worth it, or you will be doomed to failure.”

Kurt Andrews, who runs his own American Family Insurance Agency in rural Corvallis, Oregon, definitely feels his work is worth the time investment. Though he has two employees, Andrews still handles most day-to-day operations, saying, “I believe in being available to speak with my customers personally.” That’s not surprising since it was that same personal touch that helped him initially build his customer base—his early sales prospecting involved heading out to construction sites with coolers full of ice water in the summer and coffee and donuts in the winter to chat up small contractors and their employees.

Twelve years later, though, taking care of all his current customers leaves him little time to find new ones, he acknowledges. “I can’t rest on my laurels,” he says, “It’s change or die.” To avoid that fate, Andrews says he would like to grow his business by ten percent in 2012. Again, that short-term goal is precise, measurable and time-specific. And to accomplish this goal, he is specifically blocking off four hours per week to focus on growth, make cold calls, and contact referrals. He will also participate in an upcoming Farm Expo to meet potential new clients and plans to take the time to visit all of the local co-ops and grain elevators in his farming community this year.
Don’t make today the enemy of tomorrow

Time management expert Peter Turla, founder of the National Management Institute, says, “Many people prioritize items based on what’s most urgent and what’s next-most urgent.” Instead, he says the key is to ask, “How does this activity fit in with my long-term objectives and where I want to go with a particular project or with my career or my life?”

Although it is tempting to concentrate solely on building relationships with existing customers, this can’t be a business’s sole focus if it is to survive and prosper. When the NSBA surveyed small business owners about which future growth strategies they plan to implement in the coming 12 months, the top four responses were: new advertising and marketing strategies (43 percent), expanded Internet presence and e-commerce (36 percent), and strategic alliances (26 percent). However, “no growth strategies planned” came in at fourth with 24 percent.

“With me,” says Rose, “I see people a couple of times and then they are healed and they go away, so I always need to find new business.” To raise the visibility of her acupuncture business, Rose takes advantage of 20 minute pockets of time to update her business Facebook page, network with other professionals, and handle email correspondence, tasks that will ultimately lead to more business. Occasionally, she sacrifices a weekday of appointments to participate in trade shows, where she offers a limited range of services to attendees, who she sees as potential future customers. “I lose a Friday when I do a trade show over the weekend,” she explains, “but it’s essential.”

Learning to delegate

Do it, ditch it, or delegate it is a favorite tenet of time management, but of the three Ds, delegating is the perhaps the hardest for small business owners to do. “If you want your business to grow, you need extra brains—not just extra brawn—no matter how smart you are,” says Rhonda Abrams, author of The Successful Business Plan: Secrets and Strategies. She adds, “While this may seem self-evident, hire well. Just as it’s easier to be a good parent if you have good kids, it’s much easier to be a good boss if you have good employees.”

To better delegate his agency’s clerical tasks, Andrews hired an assistant to work afternoons and a licensed agent who works in the mornings. His assistant takes care of the front desk responsibilities, filing and making past due calls, while the additional agent can handle functions that require an insurance license, such as following up on leads. Although he intends to stay available to his customers, having the phone lines covered throughout the day at a minimum frees his time to pursue his business growth strategy.

Creating a blueprint for change, prioritizing tasks with an eye toward bigger goals, and understanding the importance of delegating: following these three steps will help small business owners finally find the time to grow, not just run their companies.

Steps for Attracting Bigger, Higher Paying, Clients and Customers

Here’s an easy solution to some of your business woes: Go out and get bigger clients and customers. This could include, but is not limited to clients who have a bigger budget, clients who have more to spend and are willing to spend it with you.

Steve-Strauss–in-article-Medium.pngSmall businesses often have small customers; that’s the nature of the gig. Small business customers could be individuals, families, other small businesses, non-profits, professionals, freelancers, startups – you name it. And, while they all have budgets like the rest of us, it is also true that their budgets are usually pretty tight, which often means you have to work hard and long to make some real money since your margins are so thin.

That’s why I am telling you that the smart move is to go out and get some bigger, probably corporate clients who are playing on a bigger field with more dollars. You can do more for them and charge more.

Example: I have a pal who sells real estate. His specialty was selling small duplexes and four-plexes. When the real estate market was still humming along, this afforded him a nice lifestyle because there were so many of these types of deals available. But, then the economic tsunami hit. He was soon underwater.

Instead of drowning by staying with what he had always done, he devised a new plan – namely, the one I am suggesting here. He decided that selling large apartment houses took basically the same skills that he already had, but that he would make a lot more money per sale.

He decided to seek out bigger, better paying, customers.

So that’s what he did. He took classes on selling these sorts of properties and began to schmooze potential owners. It took a while, yes, but within a year he was in escrow for a 100-unit, multi-million dollar apartment complex. When it closed, he made more money on that one sale than he had on all of the deals he had done in the previous year.

So that’s the idea, of course begging the question: How do you attract and land these corporate clients? This is how, in seven easy steps:

1. Do your research: Make a list of your ideal corporate client. What companies nearby fit that description? Come up with a list of five or 10 candidates.

2. Target the right people: This part is a little tricky, but doable. Once you have identified a corporation with whom you would like to do business, you need to find the right manager with the budget who buys what you sell. But of course, in this Internet age, it is possible. Search for terms like “purchasing agent,” “procurement” and “RFP” (Requests for Proposal).

You should also turn to LinkedIn to research and find the right people in those corporations. My previous post shows you how to do this.

3. Be prepared: When approaching corporate clients, your job is to show them that hiring you is not a risk, and that you can handle the extra business and have a history of doing so efficiently. And look big. Spruce up your website. Dress for success.

4. Know your new customer: Corporate managers are busy, and must be able to justify the decisions they make. So, you will need to make a crackerjack presentation. Why hire you? What is your offer? Show them why you are the best choice for the job.

5. Understand their budget issues: Yes, they have bigger budgets than Sam the Butcher, but they still must spend their money wisely, justify their choices and get good results. You will need to able to show them that this expenditure is the best use of their budgetary dollars.

6. Check out their supplier diversity programs: Typically, large companies have supplier diversity programs, which are intended to increase their work with small businesses. They may even have legal requirements to do business with minority-owned, women-owned or veteran-owned business for instance. This can be your ticket in.

7. Follow up, follow up, follow up, and then remind: These words of wisdom once given to me do not mean you need to become a pest, but you do need to be persistent and professional.

Now, go catch that big fish. Do you have any success stories on “catching the big one?” Share your thoughts with the SBOC community in the comments section.

About Steve Strauss

Steve Strauss is one of the world’s leading small business experts. The senior small business columnist for USA Today, his Ask an Expert column is one of the most highly-syndicated business columns in the country. Steve is also the author of the Small Business Bible and his latest book is Get Your Business Funded: Creative Methods for Getting the Money You Need. A popular media guest, Steve is a regular contributor to ABC News Now and frequently appears on television and radio. His business, The Strauss Group, creates unique, actionable, entertaining, and informative multi-media small business content.