Small Business Uncertainty Continues to Drag the Economy

In 2007, more than 70 percent of small business owners felt good about their company’s financial situation while this year, less than half of small business owners surveyed recently by Forbes felt good about their financial situation. According to the same survey, less than 60 percent of small business owners feel their financial situation will improve over the next twelve months.

As anyone involved in small or medium sized business knows, these numbers are just the tip of the iceberg. While big businesses continue to rack up record profits, small and medium sized businesses around the United States struggle. And while these businesses struggle, unemployment remains the biggest issue facing the nation.

The hiring that small to medium sized businesses do is important, because they provide just over half of private sector jobs in the United States, according to the Small Business Administration’s Office of Advocacy. Over the past 15 years, small businesses have created 64% of new jobs in the United States.

Small to medium sized companies in the United States are defined as companies that have less than 500 employees and, according to Forbes the number of companies with 250 employees or less fell by 3 percent from 2005 through 2010.

Some states, including sparsely populated Wyoming and Nevada went up by more than 10 percent over that time, while states with higher populations, like Wisconsin, Michigan and Ohio, fell.

And while the amount of small businesses in Nevada rose from 2005 through 2010, there is no doubt that Nevada (as well as other states that saw massive growth pre-recession) is struggling economically as much as any state in the nation.

Another important factor to consider is how strongly small to medium sized business owners themselves feel about the state of their business.

Almost two-thirds of small business owners said they will keep the same number of employees for the next year, instead of hiring more, according to the Small Business Outlook Survey released by the U.S. Chamber of Commerce.

Fifty-five percent of the small business owners surveyed by the Chamber said economic uncertainty is one of the biggest reasons they aren’t adding employees, followed by 34% who said “a lack of sales” was making them move slowly hiring and more than eight out of 10 small business owners said the economy is “on the wrong track.”

Yes, it’s true that small business bankruptcies dropped in 2010 from record highs in 2009, but the number of bankruptcies in 2010 still dwarfs pre-recession numbers from 2006 and 2007.

So what does this all tell us about the state of small businesses today?

First of all, there is a lot of uncertainty. Along with the entire middle-class, small business owners have been forced to carry the heaviest load during this economic downturn and there doesn’t seem to be another economic segment of society willing to take on that load.

Secondly, until small business owners can feel confident about the trajectory of their business, we will be mired in this lack of recovery.

So what can these business owners do to alleviate uncertainty and build their confidence? Working with someone you can trust, an unconditional friend is a great way.

Faced with these challenges, more and more small and medium sized business owners are turning to Business Coaching to help.

Studies have shown that working with an ActionCOACH Business Coach can provide a return on investment of $7.50 for every dollar spent and in these tough times, who wouldn’t want that type of return?

So if you’re like many small business owners searching for help, turn to an ActionCOACH.

Put These Factors Under the Magnifying Glass When Researching Franchises

Anytime you invest your money, you should do your research, but when it comes to franchises, you’ve got to know what to look for before you start. For those interested in getting involved in a large format franchise, there are a number of important factors to take into consideration before making a decision.

While each of these factors is important, it’s equally important to remember to practice due diligence before investing. You can get most of the answers you need on the following topics by reviewing the franchises FDD or Franchise Disclosure Document, which every franchise in the United States must submit.

1. Age of franchise- The longer the franchise has been around, the stronger it probably is. It’s simply common sense that if the franchise has been around for a while it’s probably generating new franchisees and royalties.

2. Number of franchisees/ Demand for service- If a franchise organization has limited franchisees, the organization’s resources may be limited as well. This goes hand in hand with number of franchises because successful franchises have great demand for their services or products, so they grow exponentially.

3. Number of clients/ Client satisfaction- How many people does the franchise sell to over a given period of time? We know McDonalds’ has sold millions of burgers world-wide because they tell us, so potential franchisees know that the McDonalds they buy will have plenty of built-in customers.

4. Franchisee success- Would you want to buy into a franchise that left its franchisees bitter and broken in the end? Of course you wouldn’t. The best indicator of future success is prior results. If existing or previous franchisees failed within the system, what makes you think you’ll be successful? A big advantage of working within a franchise is that you don’t have to re-invent the wheel, so don’t think you can be the first successful person in a system that creates failure.

5. Number of markets- The number of markets a franchise is in is a huge factor in the overall health of the company. If a franchise is in a number of countries it isn’t subject to the whims of one nation’s economy. When currencies lose value, the franchise isn’t riding that currency. There is stability in franchises that exist in many different countries because the fluctuations of local markets simply don’t affect them as profoundly. Plus, when you have business systems that work in different and varied markets, you can be sure that the system itself is built to work.

6. Reach and Scope of marketing- Owning a business can be a lonely proposition, but entering into a franchise gives you resources that owners of privately-owned businesses simply don’t have. But if your franchisor isn’t marketing to a wide enough swath of customers, you can feel like you’re on your own, despite all those royalties you pay.

Are Entrepreneurs Born or Made?

When you take a look at a list of some of the most successful entrepreneurs in the world, many come from business backgrounds, learning at the foot of their parents from childhood.

But many, including Oprah Winfrey, Steve Jobs or Larry Ellison came from other fields and backgrounds to amass their fortune.

So are entrepreneurs born or made?

When you think about it, the question is another case that boils down to nature versus nurture.

After all, business is, in many ways, survival of the fittest, and only those with the proper tools will survive and thrive.

For some, those tools are passed down from generation to generation.

Whether it’s through genetics or simply learning from being around one’s parents is a debate for scientists, but looking closer it seems to be a combination of traits from both nature and nurture.

Of course, entrepreneurs do share certain traits.

They tend to be powerful personalities that don’t take “no” for an answer. They aren’t destroyed by failure which means they are able to overcome challenges more easily than most.

But those traits don’t necessarily mean they grew up in families that ran businesses. In fact, sometimes it’s easier to come from a non-entrepreneurial background because you don’t learn bad habits.

For those who were raised by parents that were successful entrepreneurs and became entrepreneurs themselves, business was a bond that grew the relationship itself.

Like any family business, entrepreneurs that were raised by entrepreneurs develop a very intimate feel for business very early in their life. In fact, for many, dealing with the challenges of a business is akin to dealing with familial challenges.

So are entrepreneurs born or made?

It seems that if you have the grit and determination necessary, anyone can be an entrepreneur. The great advantage that some had was that they didn’t have to look far to find a mentor to teach them what they needed to learn.

Americas Conference Comes to Las Vegas

The last week has been an important one for us at ActionCOACH as we welcomed coaches from all over North America to the 2011 Americas Conference from January 16 through the 21^st at Aliante Station here in sunny Las Vegas.

This was the largest meeting of Business Coaches in North America this year, at least until our Global Conference takes place in Miami in August.

There were a number of highlights throughout the week. We had some terrific speakers, and of course, Brad started each day with rousing sessions that talked about overcoming challenges and the importance of buying customers and creating lifetime value with customers.

As usual, the highlight of the week was the Awards Dinner, which took place on Wednesday night. It was a pleasure to see so many coaches honored for their hard work and commitment. The winners were:

Firm of the Year – Lancaster, Pennsylvania Firm

Rookie of the Year – Greg Forzani

Associate of the Year – John Lankford

ML of the Year – Craig Hohnberger

Coach of the Year – Heather Christie

ActionCOACH Award – Rick Crossland

TeamCOACH Award – Jim Munro

SalesCOACH Award – Kyle Oberndorf

MarktingCOACH Award – Chris Dirkers

Brand COACH Award – Jim Palzewicz

NetworkCOACH Award – Cheryl Dyck

SeminarCOACH Award – Jamie Cunningham

AbundanceCOACH Award – Greg Anderson

Forum Poster of the Year – Wayne Bergman

Commitment – Kevin Weir

Ownership – Laurie McNaughton

Integrity – Doug Savidge

Excellence – Tracy Ford

Communication – Collen Keenan

Success – Thom Finn

Education – Susan Roberts

Team Work – Ken Zelanzy

Balance – Janna Hoiberg

Fun – Andrew Houston

Systems – Tim Jones

Consistency – Monte Wyatt

Gratitude – Doug Winnie

Abundance – Greg Stonehocker

We also unveiled a terrific new video the marketing team produced called, “I’m An ActionCOACH”. This video features many of our top coaches at locations all over the world talking about what they, as an ActionCOACH, can and will do for their clients.

All in all, it was a fun, informative week with the best Business Coaches in North America. Best of all, it felt like there was a momentum gained from the Americas Conference that will be invaluable to ActionCOACH in 2011. The entire team seemed committed to making 2011 the best year ever for ActionCOACH, and I have no doubts they will do just that.

Jodie Shaw

Football Coach Equals CEO

At ActionCOACH we know that good coaching is about performance. Mentoring and counseling have their roles, but when we coach a business we are focused on the performance of our clients.

We measure results through systems and find new ways to attack problems, use our resources and personnel and get winning results. Doesn’t that sound similar to what a football coach does?

Football, or any sport really, is a terrific metaphor for business. Successes and failures are measured by the numbers, but in sports the results are accelerated and intensified, making it easier to see.

In sports, everything happens within a given amount of time and the process is irrelevant to the ultimate performance on game day. Again, a very similar set of circumstances to any business.

In the business world the CEO is the head coach. Both of their jobs are to set their team up for success. For a football coach, having the right personnel in the game, with a proper game plan are keys to winning and the same can be said for the CEO

Both managing a football team and a business at the highest level are about the same things. Managing the business on a daily basis and constantly producing performances from your team at a level that constitutes success.

So do you manage your business like Sir Alex Ferguson and Bill Belichick or is your team strictly Pee Wee League?

Tell me what you think…

Jodie Shaw

My Top 10 Marketing Books

There are so many books in the marketplace that claim to teach everything anyone needs to know about marketing. Because there are so many different options, it’s almost impossible to know what books are important to read and which ones can be nothing but a waste of time.

With the end of 2010 and the start of 2011 upon us, it is a great time to tell you which marketing books I consider the best around. This is list isn’t in numerical order from most important to least. Instead they are listed randomly because each of these books can be extremely helpful. Finding the ones that suit you best is obviously a personal decision, so why not read them all, if you haven’t already.

1- Web Copy That Sells by Maria Veloso
The world of marketing has changed and “Web Copy That Sells” is a great way for business owners who aren’t sure of the differences between traditional advertising and online marketing to get a leg up on their competition. For those who aren’t experienced selling their products and services online, this book is a must have.

2- New Rules of Marketing & PR by David Meerman Scott
Another important read for business owners that aren’t sure what to make of online marketing, “New Rules of Marketing & PR” is very helpful in teaching people how to develop communication with their customers. This book will teach you how to communicate directly with buyers and increase sales while raising online visibility.

3- Guerilla Marketing by Jay Conrad Levinson
The concept of “Guerilla Marketing” has been around for a long time but that doesn’t mean the message has gotten old. In fact, it’s pretty clear that Jay Conrad Levinson’s vision of marketing is as fresh as it’s ever been. If you haven’t read this marketing classic yet, what are you waiting for? Guerilla Marketing was first published way back in 1983, but today you can get the Fourth Edition for just a few bucks. That may just be the best $10 you’ve ever spent when all is said and done.

4- 22 Immutable Laws of Marketing by Al Ries and Jack Trout
What makes this book so valuable is what makes it so entertaining. With its chapter length short and the “laws” taught in a pithy, interesting way, the “22 Immutable Laws of Marketing” makes it easy to understand what factors are important and what aren’t for small business owners. Rather than an in-depth treatise on marketing, this book is basically 22 capsules of business wisdom. These “laws” are common sense marketing with some brilliant examples from the real world to prove them.

5- 22 Immutable Laws of Branding by Al Ries and Laura Ries
How do you build a brand and keep it alive? In his follow up to “22 Immutable Laws of Marketing”, author Al Ries, along with co-author and daughter Laura Ries talk about ways to define your brand with basic truths of marketing that remain the same no matter how much technology changes. These days, customers are looking to buy from businesses that focus on them. Finding the correct niche, target market, are incredibly important today. This book helps teach any marketer how to focus on reaching the correct target and that alone makes it worth reading.

6- Cutting Edge Advertising by Jim Aitcheson and Neil French
“Cutting Edge Advertising” provides a step-by-step plan to create cutting edge print advertising. Hundreds of world famous print ads are discussed and analyzed by the people who created them. They share their secrets in a carefully structured, inspirational journey through the journey of great advertising. Few marketing books cover the subject so completely. By learning how to think like top copywriters, business owners can become masters themselves, writing outstanding advertising copy for any kind of marketing campaign.

7- Advertising and the Mind of the Consumer by Max Sutherland and Alice K. Sylvester
Did you ever wonder what it was that changed a suspect into a customer? How to turn that customer into a raving fan? “Advertising and the Mind of the Consumer” is a great way to delve into the mind of the people that make up that very important segment of your business, your customers. For business owners that think marketing is some mysterious formula that is impossible to find, this book can be extremely helpful.

8- Positioning by Al Ries and Jack Trout
Al Ries continues his dominance of my personal Top 10 list with his third appearance, “Positioning”. Basically this book talks about how to “position” a given product or service so it will stay fresh in the consumer’s mind. This “Position” should reflect the strengths and weaknesses of the business while putting its position with its competition into context. In today’s targeted market business world, positioning your business in the right way is vitally important. This book speaks to that need in the usual interesting concise manner of any book with Al Ries’ name on it.

9- Blue Ocean Strategy by W. Chan Kim and Renee Mauborgne
We all know that the business world is full of competition, but what if you could find an ever expanding market that isn’t cluttered with competition? Don’t think it’s possible? Well that’s the idea behind “Blue Ocean Strategy”. The book, written by W. Chan Kim and Renee Maugborne, details how businesses should be looking to set sail in blue oceans which are free of competition, but instead focus too much of their time on “red” oceans, cluttered with traffic from their competitors. Don’t think your marketing is hitting the right mark? “Blue Ocean Strategy” offers tips on sailing clear of the competition, which is why it’s on the list.

10- Unleashing the Ideavirus by Seth Godin
Seth Godin is one of the brightest minds in the world of marketing today because he takes a unique approach in discussing important ideas. He stays true to that formula with final book on my list of Top 10 Marketing Books, “Unleashing the Ideavirus”. Nobody wants to catch a virus, but if you look at your marketing like a virus that needs to spread, you can begin to market your business correctly. This book teaches business owners how to get their message out to consumer networks and, from there, get out of the way and let the message do the work. It’s a unique approach, but one that works in today changing world of marketing, which makes this book vitally important.

Of course there are many more books on the subject of marketing that can help your business get where you want it to go, but the ten listed above have proven to be worth their collective weight in gold for me in my business career.

What books have helped you achieve your goals in marketing? Are there important ones that I missed? Tell me what you think…

Is It Real or a Sim?

Cyber bullying has been a real problem in America recently. It seems like every few months another child takes their life because of incessant cyber bullying on social networks.

That’s why I was so disturbed when I came across this screen image from “The Sims 3”. The Sims franchise is among the most popular in the world of video games. In it people create characters and, thanks to the personality traits of these characters, play out those characters’ lives in virtual reality.

The pleasure in the game is the cathartic nature of it. Like most any video game, The Sims is an escape where a person can be whoever they wish to be, while seeing a somewhat realistic outcome to life’s challenges.

Unfortunately, as you can see from the image, the cathartic nature of the game doesn’t only lend itself to pleasant, positive outcomes. Sometimes it hits a little close to home, especially with the increase in cyber bullying we have seen over the last few months.

In the image, the main character, sitting at the computer, can do such run of the mill things as play a game or chat with friends. They can also post inappropriate comments or troll on a forum with something evil, mean- spirited or simply inappropriate to say.

So why did the designers even include such benign, yet dangerous options?

Did they not understand how serious the problem of cyber bullying really is and how having these simple options on their game can make Sims players, especially children, believe that cyber bullying is not just ok, but an acceptable part of any online experience?

I don’t believe in censorship and there are certainly other video games that have gone over the line in what is appropriate like the Grand Theft Auto series. But players of that game know what they are in for. They know it’s going to be a violent, unrealistic world GTA is played in. Sims players are looking for a much different kind of escape.

But I guess in the world we live in, The Sims 3 is a far more realistic game right down to the aspects of cyber bullying it plays up. If that’s supposed to be cathartic, I think I’d rather steal cars and evade the cops in Grand Theft Auto.

Jodie Shaw

Colin Powell on Leadership

Leadership seems to be a misunderstood concept in some circles these days. Doesn’t it seem like the one that shouts the loudest and longest is the driving force behind some cause or company?

That’s not leadership as I know it. That’s not successful leadership. Successful leadership comes when the leader knows how to motivate their team to get it done.

There are many different ways leaders can be effective, but there are certain traits all good leaders have in common.

In November, one of the most important American leaders of the last 20 years, Colin Powell discussed what leadership meant to him at the American Wind Energy Symposium in Phoenix. When I read about Colin Powell latest speech on leadership, I knew what made him such a strong leader. He knew what mattered.

You see, no matter what field you’re in, the principles of leadership remain the same. There are just certain traits that people expect out of their leaders.

So what are those traits that make a great leader according to Powell?

The most important part of being a leader is earning the trust of those you are leading. According to Powell, “Every human endeavor has leaders and followers, and your job as a leader is to inspire,” Powell said at the symposium. As any leader knows, without the backing of your team you will accomplish nothing, which is why they need to be inspired.

Of course, Powell believes that leadership starts with goals. You need to have clearly defined goals that each of your team knows, and understand their role in accomplishing.

Leadership is about being sure that things get done and expressing appreciation to the team that does it. Remember, it isn’t a leader’s job to do the work it is their job to make sure the work gets done.

So how do you inspire your team? Are they ready to go into battle with you? To buy Powell book, The Leadership Secrets of Colin Powell, simply click on his picture at the top of this blog.

Jodie Shaw

Daily Deals Deliver

The latest news about the possible acquisition of Groupon by Google is causing shockwaves throughout the world of marketing.

If you’ve never heard of Groupon, it’s the leading daily deal site on the internet, offering discounts to customers at various shops including restaurants and other service based industries. I assume everyone has heard of Google and if you haven’t, how did you even find this blog?

Google offered about Groupon for $5.3 billion with a $700 million earnout, but at the time of this writing Groupon had decided to stay independent because it is better off on their own. What makes this news even more incredible is that it equates to Groupon growing at a rate of $20M per day since it was founded in 2008. Certainly those are amazing numbers and just the tip of the iceberg in the growing daily deals marketplace.

According to reports, Groupon has made about $500 million in sales this year and their value was estimated at more than $3 billion before Google made their bid.

So what does the rise Groupon by Google mean for small business owners?

First off, get ready to use daily deal websites because we are going to see a proliferation of them. After all, when you’ve had the success Groupon has had, there are going to be imitators.

There are already other sites in play, such as LivingSocial that do virtually the same thing as Groupon. There are also niche daily deal sites like OpenTable Inc. an online restaurant reservation system that offers daily deals.

It seems like no matter what industry you are in, it’s just a matter of time until there is a daily deal site just for you.

Small business owners shouldn’t be afraid to use these sites. Local advertisement spending is estimated to be about $133 billion this year and more and more of that money is moving away from traditional advertising and moving toward social networking.

Daily deal sites like Groupon are just an extension of this trend and certainly offer great opportunities for buying customers for small businesses.

Do you offer deals on sites like Groupon? If so, does it work for your business? If you don’t, why haven’t you tried it yet? Let me know what you think…

Jodie Shaw

Building solid relationships

Is your focus on networking or relationships?

Do you think they are the same thing?

If you do you’re not alone. Too many business people confuse the two.

The goal of networking is to build relationships that will help your business.

It’s not just about collecting or distributing as many business cards as you can, it’s about making sure that every person you come in contact with has a relationship with you.

After all, if they don’t know you, don’t trust you, why would they do business with you? And isn’t that the point?

So what are the mistakes people make when networking that keep these contacts from becoming real relationships?

First, many will make the business pitch too early in the relationship.

After that first meeting, if the only contact you make with other people are solicitations, what kind of relationship are you building?

It isn’t one based on trust is it?

Another big mistake made is when people assume closeness when it isn’t there.

It takes time to build a relationship.

The relationship you have with your best friend didn’t happen overnight, did it?

Don’t assume because someone is a contact of yours that you are closer than you are. This can destroy a reputation and a business.

Finally, make sure you don’t sign new contacts up for things they haven’t asked for.

No one likes being on the receiving end of spam and if you’re sending that to people who aren’t expecting them, you are sure to turn them off.

Remember, networking is about building relationships.

Take your time, get to know the people you are networking with and be sure they want to be a part of what you are doing.

Jodie Shaw