Small Business and the Recession

Many people think that small businesses fail during a recession. Still others think that small businesses prosper during a recession. According to an article on Small Business Notes, economists opinions are also divided. If a small business is solidly run, it should be able to hold its own during a recession, especially if it has a unique selling position. That doesn’t mean there won’t be rough times for any particular small business, but because they often procure funding from alternate sources, such as credit cards, angel investors, home equity loans and other non-traditional funding sources, they tend not to fail as easily.

Cutting Costs

Small businesses also have more leeway to clear obstacles. A small business owner has only himself and possibly a few partners to discuss major changes with – it doesn’t have to go through the lengthy process and red tape of getting board approval, determining whether something is good for all its stores or just a few. Generally, there are less than five partners who can discuss any changes or obstacles around a good cup of coffee.

You can do several things to stay in business during a recession, including:

* Cutting workforce costs: Cut employee hours. This may keep you from laying off people.

* Cut inventory and supplies costs. You may be able to find product elsewhere or may be able to bargain with your supplier for a discount rate.

*Cut expenses such as utilities and phone costs. Shop around for different phone services. Many services offer a discount just because you change, and allow you to keep your number. Remember to shut off lights and electrical equipment when you are not using it. Get rid of the second line you use for a hard-wired facsimile machine. If your business has Internet, use one of the online fax services.

Once you cut costs where you can, take stock of your business. If your business is a brick and mortar, looks at ways to draw people into your store. Change the layout so that something very tempting is in the window or out on the sidewalk to draw people in. If you are a small business that provides services via the Internet, update your web page.

Don’t wait for the last minute to cut costs. If you have to decrease employee hours to keep all of your employees, do it quickly and fairly. Don’t just cut one person’s hours by 10 hours per week. Cut five employees by two hours per week. If you wait until it’s too late, you may not be able to make it through the recession or you may find yourself having to lay-off people.

Unique Selling Position

Don’t forget, competition gets rough during a recession. Fewer people are buying, so you have to stand out. One of the things that can make you stand out is a unique selling position. A unique selling position is something about your product or service that makes it stand out from all other products and services that are the same. It makes people want to buy from you and invest in you.

A unique selling position could be used as your slogan, to further business even in a good economy. Before you apply what you may think is a unique selling position, take stock of your product or service. What makes it unique? What would make you purchase your product or service over a product or service that is exactly the same?

If you can’t find something that is unique about your product or service, add a service to make it unique. You might be the only one to offer free shipping. You might be the only one to provide notary services with your documents without charging extra. You might be the only car repair shop that gives a customer a ride home when she or he drops a vehicle off for service. You might offer a free sample of another product when someone buys a certain product. Find something that is different about you, your product and your service and incorporate it into your marketing.

Sharing

If your rent is high or you have space that is too large for you, consider sharing space. If you have an office that provides service, consider leasing an office space that provides receptionist services to all the tenants. The landlord usually includes this service in the rent she or he charges you each month.

Bartering

Do not discount bartering. Barter for supplies. Your suppliers may need your service or another service you can provide. Barter with customers if they ask. They may have something you need, whether in your personal life or for the business. A bartered service may lead to a partnership, which may also lead to increasing the probability that both businesses will at least make it through the recession, or may even, both prosper.

Marketing

Do not stop marketing because you think you cannot afford it. You should amp up your marketing campaign. Remember, your competition is fierce during a recession. If you are a brick and mortar store and do not have an Internet presence, build one. If you cannot create your own web page, trade services with someone who can build a web page and optimize it for search engines. Just sticking a web page out there won’t get you anywhere. If it is optimized, search engines will eventually find it. Join social networking sites and post your web site. Post specials you may be running.

Considerations

Keeping your head above water during a recession may end up making you more successful once the recession ends. Excellent customer service and thinking out of the box to come up with a unique selling position to use with your marketing tactics may keep you from going under during the recession, and may also skyrocket your sales in a good economy.

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…

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

Hamburger University

I remember when I was a kid watching a campy movie called “Hamburger the Motion Picture” about a fictional Hamburger University. If you’ve ever seen the movie you know how utterly forgettable it is, yet somehow, this stupid flick came to mind the other day when I saw a headline about McDonalds’ latest dalliance into the world of education.

You see, McDonalds has had an image problem in the U.K. for some time. There has long been a snobbish stigma attached to “McJobs” and that stigma has made it harder for the franchise to find and keep good employees.

To solve this problem McDonalds has begun to offer degrees in business management through an affiliation with Manchester Metropolitan University.

The degree is a two year foundation degree in managing business operations and the goal is to build a model in which people can train and work at the same time, empowering team members while building a stronger workforce.

McDonalds will be offering this opportunity to their managers, but according to the company, about 90% of McDonalds managers begin as crew members.

Of course McDonalds isn’t doing this because of Christmas cheer. It all comes down to the bottom line. After all, a well trained staff leads to better sales.

According to Senior Vice President David Fairhurst, because of the broader economy, there needed to be a way that employees could continue to develop their skills without leaving the company.

With 85,000 employees in the U.K. alone, Fairhurst said McDonalds felt it was important to the success of their business to become a pioneer in educating employees.

This isn’t the first time McDonalds has jumped into the field of education. In the United States, Hamburger University (not the school from the teen comedy) has been around for years, offering college credits for managers.

This means that McDonald’s training for Managers is now recognized as college-level course work, eligible for credits that can be transferred to colleges and universities (both private and public) and applied toward a 2 or 4-year degree in many areas of the United States.

Even in the U.K. this isn’t their first step in education. Last year McDonalds began offering an apprenticeship program which has received some praise around the United Kingdom, with about 10,000 apprenticeships available per year.

What do you think about McDonalds and Hamburger University? Is education something your employees would like more of and could getting that education for them benefit your business?

Jodie Shaw

Franchise Due Diligence: Know your numbers

Owning a franchise is one of the best ways to get into business for yourself (especially for the first time), because you are buying into a proven business model that has all of its systems in place.

That doesn’t mean, however, you shouldn’t know as much as possible about the franchise and the opportunity you are looking at, as outlined here …

Do your research.

Know your numbers.

Read all the documentation and talk to both current and former franchisees about the opportunity you are considering.

Franchising can be one of the best ways to pursue your entrepreneurial dreams.

Like any other business, however, just make sure you know as much as you can about the company, the business, its potential and your own capital requirements before you make the “leap.”

Jodie Shaw

How McDonald’s Thrived During the Recession

Here’s a great article on how one of the top brands in the world not only survived … but thrived during the recent economic downturn …

http://www.mint.com/blog/trends/mcdonalds-recession-09212010/

What’s interesting is that those businesses that are run on solid foundations can survive just about anything.

Just look at how some companies rebound after major natural disasters like the Tennessee floods last or Hurricane Katrina.

How do they do it?

They’ve already got the company built in their minds, their systems and their plans.

The famous industrialist Andrew Carnegie once said people could take everything away from his and he and his TEAM could rebuild it in a period of four years.

These days, with all the innovation in communications and technology, stressed companies can do that in hours.

So … if your own business has survived (and maybe even prospered) … how did you do it?

If not, what went wrong … and what would you do differently next time (because you’re not giving up your entrepreneurial dream, are you?!)?

Good stuff to ponder …

Jodie Shaw

Are We Really Out of the Recession?

Are you ready for some good news? The United States is no longer in a recession. In fact, the recession ended more than a year ago. The millions of Americans collecting unemployment checks may not agree, but according to the National Bureau of Economic Research, a non-partisan group of economists, the United States escaped the recession way back in June… of 2009!

In their report, the NBER made it clear that just because the recession has ended, that doesn’t mean the tough times are over. In a statement release by the Bureau they said, “In determining that a trough occurred in June 2009, the committee did not conclude that economic conditions since that month have been favorable or that the economy has returned to operating at normal capacity. Rather, the committee determined only that the recession ended and a recovery began in that month.”

Obviously the economy has been slow to recover from one of the longest and deepest recessions in American history, but there are some signs of life. Recent reports in housing, manufacturing and employment proved better than expected and companies have garnered strong earnings in recent quarters,  which has raised hopes that hiring might soon begin in earnest.

But there are obviously still issues. One of the biggest concerns is how the depth and length of the recession will affect long term employment prospects for the millions of Americans who have been out of work for extended periods of time.

Nearly 6.2 million unemployed American workers have been out of a job for at least 27 weeks. The longer they’re unemployed, the more their skills can degrade and the more difficult it can be for them to rejoin the labor market, which may cause a long-term employment problem throughout the country.

So what does this mean for business owners across the country and the shrinking American middle class? Most in these groups know that despite reports of the recession being over, the recovery has yet to take hold in a meaningful way, unlike past recessions.

After previous recessions the United States recovered quickly and explosively, but those elements have been lacking during this recovery.

For example, following the recession that lasted from June 1981 to November 1982, the economy grew by nearly 14%. The economy grew by more than 10% following the July 1990- March 1991 recession and also by about 10% following the 2001 recession, incredible numbers compared to today’s recovery.

The economy has grown by less than three percent since the recession ended in June 2009, meaning we still have a long way to go to get back to pre-recession levels of growth.

The Organization for Economic Cooperation and Development in Paris, said it doesn’t expect the United States’ unemployment rate to fall to pre-recession levels until at least 2013 in a report released on Monday, September 20.

That date is years away, and it is vitally important that entrepreneurs and small business owners find ways to accelerate the recovery. Reinvesting in your organization, team and community is a great way to start. At ActionCOACH we teach a culture of abundance and never has there been a greater need for abundance than today.

What are you doing to boost the recovery in your business? Do you feel the United States is past the worst of the economic problems or are we in for a double-dip recession?