Small Business Series: Why Most Small Businesses Fail

This is an online seminar series produced by people at www.marketingprofs.com that I thought the audience for this blog might find interesting (or potentially benefit from). Cost is $99. the seminar is Friday, May 18 at 2:00 p.m. Central time.

Click this link for more "general" information about MarketingProfs seminars: Learn more about how MarketingProfs seminars work...

Here are details about this particular seminar:

Small Business Series: Why Most Small Businesses Fail
When: Friday, May 18, 2007 at 3pm Eastern (12pm Pacific)
Duration: 90 minutes
Cost: $99.00 for broadcast and additional material

ABOUT THE SEMINAR
Statistics show that nine out of 10 new businesses fail within the first five years. And the majority of those don’t make it more than two years. Veteran marketing/management consultant Michael Goodman looks behind the grim statistics and shares his observations about WHY they fail and what smart marketers can do to keep their companies from becoming casualties.Michael's insights have the potential to save struggling companies and help others gain a leg up in the competitive marketplace.This is the 1st installment in our Small Business Seminar Series. These sessions will be held monthly on Friday afternoons. We’ll deal with everything, including: advertising, taglines, promotion, budgeting, publicity and low-cost (even no-cost) market research. We’ll use case studies from small B2B and B2C companies, and we’ll borrow some ideas from large companies that have paid the big bucks for some of the most valuable lessons in marketing.

YOU WILL LEARN

• How to identify the early-warning signs of trouble
• How to align the mission of marketing to that of the business
• How to keep marketing priorities in perspective
• How to market more effectively without spending more money
• How to adapt marketing lessons from giant corporations to a small business budget

WHO SHOULD ATTEND

Marketers, company owners and general managers in all industries. This seminar will address both B2B and B2C markets.

• Marketers and general managers in small- and medium-sized companies
• Entrepreneurs who are planning to start a new business
• Service professionals and consultants in small practices
• Consultants and marketing service providers who serve the small business community

This series is a must for marketers and entrepreneurs in small and medium-sized companies where everyone has to pitch in and make sure the work gets done and products and services are delivered as promised. Taken together the sessions promise to deliver a virtual “SBMBA” – a Small Business MBA.

ABOUT THE PROFS EXPERT
Michael Goodman is a senior marketing and management consultant with experience that spans the spectrum from micro-businesses and start-ups to the Fortune 25. He learned marketing at corporate giants Procter & Gamble, Frito-Lay and Playtex. He has consulted with clients in both business-to-business and business-to-consumer; local, regional, national and international markets; and industries ranging from industrial chemicals and consumer packaged goods to financial services and healthcare.

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In Search of Topics

According to Google Analytics, Buzz4Business gets anywhere from one to eight visitors a day. And, you view about one and a half posts before leaving.

If you're not familiar already, and you have a Web site or blog of your own, you can sign up for a free Google Analytics account. It will track the traffic on your site for you and provides a tremendous amount of information, literally at your fingertips, about where visitors to your site are coming from, what they read and how long they stay. All for free! I've used several tracking services in the past; Google Analytics is by far the most expansive -- and least expensive for what it provides.

What Google Analytics won't tell you, however, is what the visitors to your site want to read, see, or do.

That's where I'm struggling with this blog forum. Even though more than a hundred people have dropped in to visit, no one has left a comment. I'm not complaining... but a one-sided conversation is kind of difficult to keep going, you know?

What topics would you like to see covered, presented or discussed on this site? If you aren't comfortable clicking "0 comments" below and leaving your suggestions directly on the forum, please email me at tphillips@swpub.com. I'd love to hear from you!

Human or Automated Voice Mail?

If you are anything like me, you absolutely despise getting menu after menu of computerized voice mail when you call a company’s help line, information line, etc. It drives me absolutely bonkers. If I wanted to talk to a machine, I would have gone online to see if I could solve my problem or find the answer.

Ok. In reality, it doesn’t bother me enough to go to the extremes that Paul M. English has gone. Mr. English and his colleagues have contacted more than 500 U.S. companies at their listed toll-free or other telephone numbers and determined just what menu options (buttons) to push to get to a live person.

And, they’ve published this information, free of charge, on their Web site for all to use. Here is the link: http://www.gethuman.com/us/.

I am eternally grateful. This list could save an awful lot of time on hold or listening to menu after menu of lists to determine just how to get to the solution to why you called the number in the first place.

Of course, if your desk (or your computer desktop) looks anything like mine, you won’t be able to find the list when you need it. I think I’ll bookmark this link now…

The gethuman™ logo, website and content are Copyright 2006-2007 by Paul M. English.

Delivering Success

Just this week, the U.S. Small Business Administration and the U.S. Postal Service launched a new program called Delivering Success. Delivering Success is a series of video interviews with successful entrepreneurs who share the lessons they’ve learned about owning a small business.

There are a number of videos posted on the web site. You can just watch the video for the topic that interests you. Or, if you have an hour or so, you can sit back and watch the entire series. Here are some of the video topics covered in the videos released so far:

• Entrepreneurial Spirit--learn what it takes to turn a passion into a business.
• Getting Started--how to overcome obstacles when starting a business.
• Financing--discover how SBA-backed financing helped these entrepreneurs start their businesses.
• Planning & Research--critical components of success explained by owners who know how.
• Marketing 101--explore a variety of marketing techniques to build your customer base.
• Hiring & Developing Employees--these owners let you in on what worked for them.
• Promoting & Growing Your Business--learn innovative techniques to increase your business.
• Business Reality Check--be prepared to change course from small business owners who had to do just that.

There's also a video about 10 quick tips for business success.

You'll find the videos and other information at this link: http://www.sba.gov/tools/audiovideo/deliveringsuccess/index.html.

Did you find this posting helpful and relevant to your business? I'm interested in your comments - either about this posting or about other topics you'd like to see on this blog. Please enter your comments by clicking the "comments" button below, or send me an email to tphillips@swpub.com.

Limited Advertising Budget - What's Best?

Q: I have a limited budget for print advertising. I heard that big ads get better response than smaller ads. Is it better to spend it on one big, colorful ad or to do smaller ads?

A: Really, it depends on your objective for print advertising. Here are three scenarios...

1. You're just starting your business and knew that you would have to advertise to let people know you're open for business. Is it better to do one big ad or to split that budget into smaller ads that run over a period of time?

It's better to run repetitive smaller ads than just one ad in this case. Frequency and repetition in advertising kind of build on each other, so that ultimately your smaller ad has more impact because the increase exposures increase the number of people that will see it. Research studies show that an ad has to be seen between three and 10 times before the viewer remembers seeing it... more before they remember what it was about... and what company it was for.

2. Your business has been around for a while, but you would like to bring in more new customers.

Again, it's better to run smaller ads over a period of time than to spend all your money on one ad. The key is to advertise what "new" customers are in the market to buy... or giving them a reason to come into your store. What makes you different? Why do they need your product or service? Which words and images motivate them?

3. You have a special event or sale coming up soon.

This might be the only time that a single, large ad might be effective. Might is italicized. It assumes that what you are selling is what people want to buy that day (or weekend). It assumes that the offer matches their motivation to buy. It assumes that they'll see your ad when you're running it (see #1).


Bottom line is that when you have a set, limited budget, frequency is more important than size. You also need a bold headline and a great offer to get your ad noticed. This is true not only for print advertising, but for your Web and broadcast advertising as well. Frequency, catchy "headlines" and great offers work together to get your ad noticed.

Tips to Cut Overhead

I love the Internet. The way that something can be found or said about virtually (literally) any topic. While debating a topic for this blog... wondering what might be of interest to the yet unknown readers in the small-business universe I'm trying to connect with...

Everybody I know seems to be in a financial crunch right now. Work life or home life; it makes no real difference when you're a small business owner and work=life. Whether one blames the housing market... or the rising interest rates... or the high price of gasoline... it pays to keep an eye on expenses.

I found a link that purports to list 100 Tips to Cut Overhead Costs. Now, what person interested in small business ownership couldn't use that list? When you're small, every penny counts, right?

So... I perused the list. And, some of the items listed make sense to me. Others seem like a lot of effort for a few bucks saved. But, what I think isn't really important. If you can benefit from any of the ideas... then by posting the link here, I've helped.

My hesitation in posting is that there is no profile section to the blog. I can't verify where the original information came from, who wrote and compiled the list, etc. The information is from a blog simply entitled, "Blogging Out of Debt."

http://www.debtconsolidationlowdown.com/2007/02/getting_to_blac.html

Coupon Trends

A new annual report has been released about coupon distribution and redemption in the U.S. for 2006. CMS, a provider of logistics services for promotions, reports that more than 286 billion coupons were distributed last year, representing a value of more than $331 billion to consumers. Of these, just over 2.6 billion coupons were redeemed by 142 million consumers.

The report states further that 89% of coupons are distributed in FSI's in Sunday newspapers, with 92.5% of overall coupons distributed directly to the home (in newspapers, magazines, direct mail, etc.). Less than 5% were distributed in-store.

Big numbers that the coupon industry trackers uses to market themselves. Researchers, by nature, are skeptics. So, the research analyst in me can't help but try to look at the figures objectively... or at least from another angle or two.

• The figures reported above represent a 12% decline in the number of coupons distributed and a corresponding 13% decline in the number of coupons redeemed.
• There are 226 million adults in the U.S. and 142 million redeemed coupons in the past year -- or about 63%.
• The coupons measured and tracked are consumer-packaged-goods products... branded grocery products, cleaning supplies, etc., that virtually everyone uses. If 142 million consumers redeemed 2.6 billion coupons, it means that each consumer redeemed only 18.3 coupons last year -- or an average of 1.5 coupons/month.
• 2.6 billion coupons redeemed out of 286 billion distributed means that less than 1% are redeemed.
• $331 billion value of 286 billion coupons represent an average coupon value of $1.16 for products that typically cost less than $5 -- or more than 23% of the value of the item.
  The average expiration period for coupons was 2.9 months.

The article states that several trends impact consumer perception, and therefore redemption practices. The consumer price index (CPI) is rising faster than the average coupon face value. Average expiration periods are falling. Average face value is declining. The number of multi-purchase requirements is increasing and now represents nearly 30% of all coupons distributed.

I believe that coupons serve as a valuable marketing tool, if used properly with realistic expectations. What do you think? Do coupons have value in today's marketplace? Do you use coupons in your business -- why? How do you determine the right face value, design, distribution, expiration date? How do coupons integrate into your overall marketing plan?

Registered users on CouponInfoNow.com can read the full report here: http://www.couponinfonow.com/Couponing/2007trendsoverview.cfm

From Rants to Raves

Lately, a number of the newsletters I regularly get have been focusing on handling complaints and dissatisfied customers. Is it really possible to change a dissatisfied customer's mind and increase their loyalty to your business, product or service?

It depends, say the experts.

It's in our nature to talk to our loyal customers and treat them as special. Because, after all, they are special and we already know how to please them.

It's more difficult to listen to dissatisfied customers. Beyond just not being happy, they are not happy with us. After all, in a small business, we generally think of ourselves as the company. It's personal.

There are a number of suggestions for transforming rants to raves about your company:

1. Listen. Without being defensive and explaining why not.
2. Seek them out. Don't let angry customers "just leave." Ask people what you could do better, before they leave. Follow up on service that you think might have been less than stellar.
3. Resolve the situation to their satisfaction, not yours. The key is to ask them what you can do to correct the situation. You might be surprised; they may not want much. If you're prepared to do more, then by all means do more.
4. Don't dwell on it. Do what you can and then move on. Constantly improve; but realize that you won't win every single customer back. Celebrate the ones you do; learn from the ones you don't.

I used to fly more than a quarter-million miles a year for business, with half of those miles on one airline. I decided to use miles to fly my mom and sister to Vegas to visit relatives and go to the Grand Canyon, as they had never been. When checking in at the ticket counter, the agent said my party would likely be upgraded to first class.

Imagine my dismay when our seat assignments were changed four times before entering the plane and then again after boarding. Ultimately, two of us were in center seats in the back row, and the third member of my party (also a platinum flyer with this airline) was relegated to a center seat between three-year-old twins.

Needless to say I complained. To the gate agent. To the flight attendants. Ultimately, to the platinum service desk. What happened? Nothing. A form-letter apology response "explaining" that sometimes flights are overbooked.

On another trip, and needless to say another airline, there was blizzard and my flight was grounded in Chicago. For seven hours. I was not an elite flyer on this airline. The airline gave $5 food vouchers and bottled water to every stranded passenger. Granted, the vouchers paid about half the cost of a sandwich, but which airline do you think gets my business now?

How do you and your staff handle complaints? Are there set policies and procedures in place, or do you handle each dissatisfied customer differently? Would you share some of your tips and techniques?

Interviews: Can They Predict Performance and Behavior?

At some point, virtually every small business owner needs to hire someone... a vendor, an employee, an accountant... when I think back on my 25-year career (35 years if you count jobs before graduating from college), I've been interviewed a lot more times than I've interviewed someone. From what I've read, this is pretty typical.

It's not surprising, then, that we all feel a little bit of anxiety in the interview process. Are we asking the questions we need to ask? How do we really know if the person will perform well... or fit into our company culture... or possesses the basic skills to do the job?

I have some "favorite," if not off-the-wall, questions that I ask in interviews. I mean those beyond the standards that most interviewees prepare responses for in advance. Questions that I think help me to understand the candidate's motivations on a deeper level. Some of these include:

• If you could go anywhere in the world on vacation, for any length of time, and money were not an object, where and how long would you go? What would you be doing?
• What are you passionate about? When are you the most content? What makes you angry?
• Let's say I offer you this job and the next day you find out you have three months to live. Will you still want the job? If so, why? If not, what would you rather be doing?
• How do you define customer service? Give me an example of a time when you received/provided exceptional/unsatisfactory service.

Can interviews really help you know what kind of employee the person will be? What are some of the techniques, questions and processes that you use to minimize the risk of hiring someone who is not a good fit?

The Value of Industry Conferences

I just returned from a national conference for the newspaper industry. It was a mind-expanding experience to see and hear what my "colleagues" are doing across the country. The sessions were insightful and ran the gamut from big "Rah, Rah" sessions to discussion about the details of putting out a newspaper every day... or, in our case at Southwest, every week.

It's not the kind of thing I would enjoy doing every day. Which is probably why I don't work for an industry association like the Newspaper Association of America (NAA) who put on the conference. I much more enjoy making an impact on a smaller scale.

My job experience has run the gamut from my first "real" job working for an interior designer to my current job in marketing and research for Southwest Newspapers. I've done research work for consumer products companies like P&G, RJ Reynolds, Dracket, American Studios (the photographers for Wal-Mart stores), and a multitude of other large corporations. I've done marketing research for media companies -- newspapers ranging in size from The New York Times to the Jordan Independent, television and radio stations -- and for businesses that advertise with them ranging from international retailers to the single-store mom-and-pop.

I've worked at companies with retail store fronts - my extended-family's restaurant in Ohio, a veterinary office, a fabric/crafts store. I've run a machine at a plastics manufacturer and pumped gas at my father's service station. And, I've worked at corporate headquarters designing and influencing the market-data programs and procedures for many subsidiaries.

But, enough about me. That's not what this forum is about.

When I stop to think about where my real passion is... what really makes me tick... what others think I'm good at... it almost always has to do with "helping the little guy." How to help small business succeed. Where seemingly the smallest detail can make the biggest impact.

That's what this forum is about. It's, simply stated, meant to be a forum for bringing questions and answers, or at least advice, together. For those people who, quite frankly, can't attend national conferences for their industry. Not because they don't want to, but because doing so would have a direct impact on the bottom line far exceeding the cost of the conference... because their business would be closed while they're away.

I feel compelled to say that my conference attendance was paid for not by me, or by Southwest, but by the national association. Otherwise, most likely, I wouldn't have been able to attend, as we at Southwest have to weigh our decisions about such expenditures (in both time and money) very carefully as well.

Anyways... how do you feel about attendance at conferences for your industry type? Do you go? Are they beneficial and valuable? Are they out of reach for you and your company? What kinds of session topics would entice you to attend, if any?

This forum is for you. What topics would you like to see discussed here?