Fresh Insights into marketing to and owning/managing a small business in America…
Six Steps to Protecting and Growing Revenues & Growth in 2012
A typical small business owner has a lot of things on his or her mind – not least of which is how to protect their revenue, particularly in a flailing economy.
But there are six steps small business owners can take to not only protect their revenue, but grow it, even in tough economic times, according to a new report by The Guardian Life Small Business Research Institute.
According to the report, the following six steps all characterize small business owners who saw revenue increases in 2011 over the prior two years – in other words those who successfully weathered the recent economic storm…
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Krubski says Small Business is the Future of the American Economy
Is the following statement true or false? “Small business is the once and future hope of the American economy.” Read rest of article
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Throw Away Your Mission Statement and get yourself a good COP; How you can create a more action-oriented company
A mission statement is about what you want your company to be, while a COP explains how your company will become what you want it to be. It serves as the day-to-day guide to your and your employees’ activities. The COP works by helping you and your employees visualize future success. If employees are consciously working day-by-day toward a central goal, then ultimately, the goal becomes engrained into their mentality. Read rest of article
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Why the debt ceiling debate won’t stop America’s small businesses
The truth is that, for America’s small business owners, the debt issue is an old tune, perhaps with a few new lyrics. We began as a debtor nation – dependent on a creditor country across the sea – and printed a currency without much prospect of making good on either its value or the debt incurred. In fact, the “continental dollar” printed during the Revolutionary War was worth one penny by the end of the war. Thousands of tradesmen and farmers were literally left holding the empty bag of the American government’s promises. Eventually, our national finances straightened out. However, until that time, the many small businesses that funded the Revolutionary War had to rely on themselves to figure out a viable route to survival. Read rest of article
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Opinion: Higher Highs and Lower Lows in 2012
By any account, 2012 is going to be an interesting year and a time for as many opportunities as challenges — particularly for the most nimble and resilient of America’s small business owners. That old adage “when the going gets tough, the tough get going” still rings true — and now is the time to get a move on, as you prepare your business for 2012. Read rest of story
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Overcome Four Obstacles to Growth in 2012
The upbeat forecasts could get lost in the doom-and-gloom pronouncements that typically accompany a Presidential election year, says John Krubski, a futurist and research adviser for the Guardian Life Small Business Research Institute. He suggests that small companies use the uptick as an excuse to adjust their business models and seek new markets.
In this Smart Answers column, Schamotta and Krubski pinpoint four challenges they foresee facing entrepreneurs in 2012 and offer advice to business owners on how to meet these obstacles to growth, head-on. Read rest of article
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And…
Small Business America: Seven Tips for a Better Balance Sheet in 2012
This is a time when most companies large and small are actively engaged in the annual year-end accounting exercise and assessing how well they performed in the 12 prior months. Based on the annual Guardian Life Index of What Matters Most to America’s Small Business Owners, here are seven recommendations that might well make next year’s fourth quarter analysis more productive and more rewarding. The following observations and recommendations are based on research into data regarding small business owners who out-performed the average in increasing their 2011 revenues over prior years.
Intentions Matter
The most successful leaders in business, politics, education and virtually every other walk of life tend to be self-motivated. But even the most driven, self-guided individuals benefit from having a tangible plan with an achievable time horizon. In business, an optimistic attitude combined with a conscientious program will deliver better results.
For example, small business owners who planned to expand their business over a 12-24-month time horizon were two times more successful at increasing revenues in 2011 than were those who focused on merely maintaining the status quo of their enterprises (69.3 percent vs. 33.5 percent).
The Right Short-Term Strategies Make a Difference
According to “The Longevity Project” — a book about effectively achieving a long life — the secret to successful longevity is being “…a prudent, persistent, well-organized person….” The same holds true for those small business owners who managed to build revenues of their businesses over the past two years.
They were far more likely to plan and provide for contingencies rather than to just react to them as they emerged. For example, instead of immediately down-sizing as the business climate faltered, these entrepreneurs made certain to have cash reserves and credit lines available to cover contingencies. On the other hand, respondents in the sample whose companies had significant revenue losses in 2011 tended to hastily reduce commitments and expenses as difficulties emerged. For example, 47.1 percent of higher growth companies in the sample were prepared to tap their cash reserves during difficult times, whereas only 34.4 percent of companies that just maintained their revenues said they could rely on such a financial resource.
Don’t Let Your Business Run You
Contrary to conventional wisdom, the small business owners in the Guardian Life Research Institute’s sample who increased revenues during the recent “bad” economy tended not to be consumed by the companies they own and run. In fact, they were far more likely to see their businesses as a platform for a more satisfying involvement with family, friends and community, as well as an aid in developing themselves as better persons all around.
Those owner / managers whose revenues fell in 2011 tended to be more fiercely independent and obsessed with their companies at the expense of connecting to people and the community. In fact, nearly 35 percent of small business owners who had high revenue declines described themselves as being obsessed with their business, thinking about it 24 / 7, whereas only 29 percent of owners of higher growth small businesses defined themselves that way. Ironically, it appears that the old adage “all work and no play” not only makes Jack a dull boy, it also hampers his ability to build the most thriving business possible.
Choose Your Resources Wisely
Some resources that small business owners rely upon are more consistent with running a growing company than others. Across the board, advice from friends was viewed as important for all owners / managers. However, business owners hope to increase their company’s income in 2012, they would be well served to listen to other key people in their business sphere, paying particular attention to accountants, financial advisors and informal support groups of executives in their industries.
Owners of higher growth small businesses consistently reported that they relied upon these resource people at rates that were five to eight percentage points higher than owners of companies that had revenue declines. Interestingly, legal advice seems to be associated with a reverse effect, as 76.2 percent of owners of companies with revenue declines look to attorneys for counsel, whereas 63 percent of higher growth companies relied on legal advice.
Surprisingly, the U.S. Small Business Administration appears to have the least impact on revenue generation. Across all three categories of revenue — higher growth companies, those that maintained revenues and those that had declining revenues — only about a third of small business owners considered the SBA a useful resource for business-building.
Be Careful What You Do With Borrowed Funds
If small business owners intend to make the best use of borrowed money, they should put it into research and development. According to the Guardian Life Research Institute data, 57.6 percent of higher growth small business owners felt an R&D investment presented the most positive return, versus just 38.3 percent of revenue-flat companies and 15.8 percent of revenue-declining businesses.
Furthermore, using the proceeds from a loan to open new offices or production facilities or to add new capabilities was more likely to correlate with a drop rather than an increase in sales. Similarly, revenue growing companies did not see much benefit from increasing staff with borrowed funds. In fact, those businesses that applied loan proceeds to hiring were about twice as likely to have lower revenues in 2011.
Sharpen Your Management Skills
Professional development appears to have a significant impact on the ability to increase a small business’ income. Knowing more about business management and being better at strategic planning and money management consistently correlated with increased revenues. The most compelling areas of management development, however, were associated with improved understanding of how to hire the right people. Among higher growth small businesses, 63.3 percent of owners said this skill was important to learn, whereas only 52.7 percent of revenue declining businesses cited it as important.
Also noteworthy is the importance owners place on gaining better insights into generational, ethnic and gender differences in the workplace. All of which speaks to the fact that productive companies clearly benefit from owners / managers who work at improving their all-around management skills.
A Little Personal Improvement Doesn’t Hurt
Consistent with owning / running a successful business is the need to be a leader who possesses strong interpersonal skills. There is also great value in sharing a clear vision of the company with employees and colleagues. Furthermore, it is extremely important for business owners to demonstrate a total commitment to their companies and to inspire their teams to perform at the highest level of their abilities. For example, 57.6 percent of higher growth companies had a clear vision of their businesses, whereas only 38.5 percent of revenue-declining businesses had this farsighted view.
Focusing time, energy and attention on each of these seven areas is vitally important to improving a small business’ balance sheet. According to the Guardian Life Research Institute, there is a consistent correlation between increasing a company’s revenues during difficult economic periods and these seven areas of focus. But ultimately, there is no substitute for embracing better marketing and sales strategies — ones that directly address what matters most to customers and prospects.