The hope of recovery rests upon the shoulders of small business. The stimulus bill won’t help us – it is small business that will drive us out of this situation.
Small business creates 60% of the jobs in a healthy economy. During a recession, nearly 100% of the jobs are created by small business.
Steve Strauss is a leading resource on small business and how to be successful. He is an author, blogger, attorney, and small business expert columnist with USA Today, author of the Small Business Bible: Everything you need to succeed in your small business and blogs regularly at Mr All Biz.
Steve has an extensive background in startups working with and as an entrepreneur. His first business was a law firm and he made a profit in the first year. Growing in small business has given him the knowledge and expertise to assist others in their success.
99% of all business is small business.
ROO: Return on Organization. To help small business, Steve has partnered with Office Depot to help small business by starting ROO-Return on Organization. The idea here is that time is money. If you incorporate some smart organizational ideas into your business you can yield extra time to market to your best prospects, take care of your best prospects, take care of your employees, generate more cash-flows...
Steve’s Tips to Increase Your ROO:
1. Organize Yourself. Keep your personal inventory stocked. Pens, online assistants, notepad, batteries for digital tools, paperclips, cellphones, PDAs...keep them stocked. Keep them organized for when you need them.
2. Always be mobile. Laptops, PDA’s, Smartphones, and technology –whatever you need to maintain and stay in touch with your workforce and your customers.80% of your income comes from 20% of your customers. Keep them informed and serviced. Take care of your customers
3. Own your software…Master its uses, its features, its purpose. Understand everything that it can do for you, your company and your customers.
Small businesses are so successful because they can move so quickly. They can adapt and make changes much quicker than a large corporation. There is much more room for modification; hence a higher potential for growth. There is always a great deal of opportunity for small business success.
22:10
The landscape for small business right now: we know it is a difficult time right now and with the credit crunch, it certainly affects all of us, especially small business. Fortunately, people are discovering ways to work around these. There are opportunities.
- You can offer value for the dollar. Entice people to purchase your product or service.
- Be innovative with your company
- Finding different methods to promote your company. Steve’s example was blogging, which proved to be a powerful tool to promote his books, increase his audience, his online presence, and businesses.
You can’t always follow your passion if there is not a real need for your idea.
You must respond to market needs. Follow what people want to buy.
People want:
- value
- comfort, escape things (movies)
- discounts to save money,
- simplification
Ask them what they want and give them what they want. Survey your customers to find out what they want. Give them an incentive to participate. The responses will provide valuable feedback enabling you to tweak your business with new ideas and improvements, suited to your customers.
Steve’s book, Small Business Bible: Everything you need to succeed in your small business remains a timely book for small business owners. The ideas are applicable no matter what the economy. Some facets of your business just don’t change – they are the vital components, your foundation.
One point that Steve strongly emphasized in the second edition is to really think about your online presence and doing it right. It is so important to have a website. Today’s world is driven by technology. Your website is your business card. You need something elegant and powerful to represent your company and online, no one ever knows if you are even a small home-based business. This is the beauty of the online community. It can be fairly inexpensive and it will make a tremendous difference in your business.
3 tips/resources in his book to help a company thrive in today’s economy
1. Create Multiple Profit-Centers: there is a business cycle and you need to be prepared for when the market changes. You need other avenues of income to ensure a constant flow of dollars. They are also called line extensions.
2. ROO-use your time well and efficiently. Take that extra time to market to your company.
3. Find your marketing angle: something cost effective. Steve calls it “shoestring marketing.” These are inexpensive methods to get your name out there, enhancing your company image.
40:32
In your USA Today column, Social Media is the number three trend in small business. So many people use Facebook and LinkedIn. Online networking is an absolutely fantastic venue to promote business. It is important to learn how to do it and it is more effective than for example, chamber of commerce events. Online networking works for you 24/7, 365 days a week. It is not a one shot deal at a local event. You can do business, anywhere, virtually, giving small businesses a wide expanse to grow and intensify their organizations. The power of social media offers a multitude of immeasurable benefits.
Q: How do you calculate the right owner of a business?
You must decide if the lifestyle will fit you. Can you leave your job and benefits – does this excite you? If you can answer yes, then you have the entrepreneurial mindset. <
Secondly, do you have a business idea that will be successful? You must write a business plan. Invite others to read it. Do others think it is viable?
You must be a business person about this, not just run with your heart. Take a calculated prudent risk and evaluate your idea, expertise, and how much you can dedicate to your business. It is not just for fun. Your excitement doesn’t make a profit.
Q: If President Obama were to ask Steve what 3 ways would better drive the stimulus plan's impact on small business?
1. Increase SBA loan guarantees.
2. Offer more contract money in other areas that aren’t so heavily concentrated, other than construction. Give it to other areas. Thinking back to WWII, it had a tremendous impact on the economy.
3. Amend the bankruptcy laws. Make it easier to take a risk and have an exit strategy if needed. It allots people an out for taking that risk.
Q: What are your predictions for 2009.
Steve: In one year from now we will see a turn in the next 12 months. The stock market with rise and small business will start to flourish. This is a great time to innovate and try new ideas. We will have a more diverse economy and will probably see many other new types of businesses that aren’t around today. People will be able to benefit from the infrastructure…there will be some phenomenal changes to come.
First five people to comment here will receive a FREE copy of Steve’s book. I'll need to contact you for mailing instructions.
NOTES: Exact quotations are italicized. Precise paraphrasing is not. This post and this blog is the first of an experiment working with Susan Poirier of Ace Concierge. (Highly recommended) We'll refine the whole process and the look of this blog as time goes on. Any feedback is welcome.
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