Paul Terry and Associates

Solving Isolation

Being the owner of your own small business is a fantastic undertaking.  Here is where you prove your concept, sell your product for a profit and become a social entrepreneur, changing the world one transaction at a time.  Yet, being a small business owner CAN be isolating and sometimes lonely.

However, there IS one simple and successful support strategy that is free, motivational and really helpful from a practical perspective.  This is a solution that will provide information, motivation, and access to resources.  This is a solution you can develop without spending a lot of time and money on professional advisors and/or consultants.

All business owners need personal support, access to accurate information, and to be around people who can motivate and inspire. Business is an interdependent environment of vendors, competitors, and resources. Business owners need to set up support systems that are appropriate (for level and content), easy to use (accessible) and timely (available when and where they are most needed).

The first step and easiest solution is to find a support partner who will help make you accountable.  The support partner is your unconditional “business friend”. Ideally, this is someone also in business like you who can listen, give emotional support for your business issues, and can provide constructive feedback on business dilemmas and opportunities.

The relationship is bi-directional – each support partner helps the other. You may agree to meet weekly, catch-up, share problems and successes, and then use your partner as an objective reviewer for your plans of the week. The meeting should be a check-in for ongoing support and follow-up. It is also key that this be on-going and long-term (e.g. 6 months) so that your support partner gets exposed to the issues and understands the context and the players in your world. Your meetings with your support partner can be a catalyst for positive change and an opportunity to talk discreetly about business issues outside of your own business environment.

Roberto felt that getting his business marketing efforts off the ground was so difficult he ignored many of the key initial steps. He felt the isolation and frustration and had no one to really talk to that could relate to his issues of time management, cash flow and making internal decisions. Then he found Maria who was in a very similar situation, yet in a totally different business. They liked each other, respected each others’ opinions and set-up a weekly review meeting over coffee every Friday when they could talk to each other, give each other feedback, and commit to an action for each week. These meetings continued weekly for many months and were supported by the occasional e-mail and phone call.

All you need to starts is to find ONE person in business like yourself.  This will need to be someone you like and trust…and is willing to help you just as you will help them.  Try it out and see if this will help you build your business and get the support you need to keep going and flourish!

There is too much to do and not enough time to get it all done.  In fact, there are two facts that time management experts seem to agree.  You will never really catch-up and you will never get it all done.  So what can we do, if anything?

Christopher Robin was explaining this issue to Pooh Bear in one long walk in the woods.  His wisdom went like this;  ” Well, Pooh…there is so much to do.  So organized is what we do, before we do it, so when we do it, it is not all mixed up”.  Too much to do; too many interruptions from so many people who want your attention.  What to do.  Do whatever you want when you feel like it?  Only do what is most important and only that?  Make sure you only do what you like to do?  Only do what makes sense for your clients and customer service?  Do what makes money first and then pay attention to what you need for you, last?

Hard to know what to do and what tools we can use to make a difference.  Sometime it can be an on-line solution with an application or a bell that rings.  Sometime it is simply a short hand-written sheet of paper.

The real issue is what do I NEED to get done!

In running our small business…what is the key matter to get done now.  Can I build skills that make this issue better?  Is there a tool that works for me?  What is the best solution for me?  Do we write it out; do we use an on-line tool; do we post it on our screen; do we tell others so they will remind us; do we have a regular schedule so that we have the time set aside.

Yes…all or some of this list.  Whatever works for you and moves your business forward. It is good to have a balance of the big three – work; family and health.  Bring that into a daily balance and it can only get better.  One more thing.  If your time management system no longer works, try something else.  Do not let the procrastination rule you.  Keep moving!!!

Radical Aging

 We are all aging…some with grace and patience and others without notice, care or attention.  It seems like everyone I know, I see at the “gym” or out and exercising in some way.  The streets in SF are full of bicyclists (another story later); there are runners all over Potrero Hill (our hood); the exercise equipment is in full use and diets and focus on healthy band local foods is prolific (See last blog re eating locally).

My dear friend, John of 30+ years really believes in radical aging and exercise.  He is 70 and has been doing this since I met him years ago in Vancouver.  He is someone who is on a mission to prove a point.  To age and age well, we must be a radical in what we do; in how we live and most specifically, how we plan and exercise.  I plan a movie in about 2-3 hours or perhaps look ahead for one month and buy theater tickets.  John and his hiking buddy Brian spend weeks together and plan for months to look for glaciers to cross; mountains to conquer and/or trails to hike, backpack and conquer – for days and weeks at a time. 

John is now on an amazing journey.  He is biking from Whitehorse in the Yukon to Victoria in British Columbia – solo.  The journey is 2350 kilometers or about 1800 miles.  He is alone without a support truck or cell phone.  He is on this journey for the personal challenge and to raise money for Parkinson’s research. (If you want to know more about his journey check out his Facebook page updated by his daughter every 2-3 days when he finds a pay phone and calls in with an update – after 100 miles riding per day.)

So how are we doing?  Do we age with grace and attention to detail or only notice our bodies when we are sick?  Do we quit bad habits when the “hacking” gets to us or because it is essential we exercise to live well…now while we can?  An old Buddhist saying comes to mind:  when sitting, just sit; when walking, just walk.  Above all, do not wobble”.

Can we take action for ourselves and our businesses?  Are we better managers and owners if we plan and take action?  Can we set up systems, support groups or get consulting help when we need to take action.  I hope your next steps are solid and well placed.  If there is a radical step to take in your near future, plan well, create systems to support yourself and then go for it.  Don’t forget to call in and if you need help, ask for it.  Habits are formed one step at a time…Here we go…take that first step.  The next one is so much easier.  Radical – one step at a time!  Not THAT hard…right?  So, when you are walking or running, just do that and see what happens.

Food for Thought

Food as a small business and the business of food.  Taste and preferences have radically changed and there are so many new businesses that are popping up in the Bay Area.  In fact, pop-up defines many, many new neighborhood food businesses.  You do not have to “go to them”…they will come to your neighborhood – farmer’s markets, food carts; food trucks; or food events at an abandoned cafe once a month.  You go on line and hear about it all from a tweet, a whistle or a hoot.  So many opportunities for so many home cooks to get their ideas out there and be tasted. 

Do support your local food vendor, confirm they are local and legal and see that they are there next week and the week after.  They are passionate about their wraps, their salsa, their falafel and their cupcakes.  And they are a business…they need to be supported and sustained.  You buy from them and stay loyal.  They are confident to stay in business, track costs and hire people to help them out. 

Tiny micro businesses popping up and sticking to the wall.  They are launched with the passion of the cook and helped by the curiosity of the crowd  – having fun, being out and eating the organic goodies.  This is everyone’s business.  Help your favorites run it like a business, give feedback, check for quality and service and be supportive with positive word of mouth.  Perhaps most will stay in business if they have fun, love what they are really doing and become profitable.  Wow… making a profit doing what you love…over and over again.  Now that is a thought that we can all relish and support.

http://sanfrancisco.about.com/od/fooddrink/ss/sffarmersmarket.htm

TIME MANAGEMENT TIPS

Planning and managing your time effectively is the single most important factor for the launching and management of a successful small business.  You may have great ideas, a great product or service and a receptive marketplace.  However, you still have to find and take the time to do all the work.  How do you get things done? 

Does any of this sound familiar:

• you feel pressured and overwhelmed with too many tasks and not enough time
• you work harder than anyone else with endless meetings, calls and interruptions
• you have ideas on how to improve but no time to implement. 

Therefore, you become paralyzed, tend to sabotage, procrastinate or simply give up.  All of the above conditions are a common reality.  There is simply too much to do and simply not enough time to do it. There is no one who is available to help you and only you, of course, can really do it right anyway.  So the only other solution … you stretch, juggle and squeeze!

However, it is possible to get things done without such a “squeeze”.  You can change and learn to work smarter so you can meet deadlines, be creative and then celebrate each success with a reward.  You can start right away with one successful strategy and build from there.  Pick a routine, a time management tool, or office procedure.  Make it something simple and easy to initiate.  Then include a monitoring or reward system to acknowledge that you have made this technique your routine and it is making a difference.  We are talking about CHANGING BEHAVIOR…and we can do it one step at a time.

Here are seven simple suggestions that, if implemented, can really help:

1.   Write out a goal that is very specific and measurable. (You want to open your business for the holidays.  You must be ready with inventory and marketing collateral by the end of August or you will be too late.)

2.   Use the master “to-do” list and match each task to pre-set goals.  (Use a prioritized list of very specific action steps each with an estimated start date AND completion date).

3.   Prioritize your “to-do” list based on effective criteria that will help your business now.  (Make sales calls to new and old clients before you procrastinate to file old client files.)

4.   Eliminte unproductive meetings or any personal phone calls udring the business day.   (Have meetings early in the day and make personal calls after 5 p.m or not at all.)

5.   Establish a pre-determined place where you get things done efficiently (For example, try to answer all calls right at your desk near client files when you first arrive at work and make all appointments right there).

6.   Revise your plans constructively.  If something doesn’t work out, you have learned from a “mistake”.  (Learn from your OWN experience.  This is NOT a failure but a discovery of what didn’t work.  Take this lesson learned and chnage your next action accordingly.)

7.   Take your pre-determined reward.  (Set up a reward in advance for your efforts.  When you have achieved the “success” that you have set fro that hour, day orw week and take the reward when you are “done”).

Plan and use your time well.  If your business is to be exciting and profitable, your attention to developing time management expertise will have a significant impact on your success!

© Paul Terry & Associates, 2011

Business is booming for some micro businesses.  Recent marketing studies and most small business articles say that it is small businesses that are growing, sustaining and creating jobs.  It is the little engine that can.  But can it? 

There are reports about local food-related and clothing-centric businesses that seem to suggest there are key trends to watch for – not only new and innovative products but how they are being distributed.  Gail Lillian, owner of LibaSF has leveraged her food truck serving falafels into a stand-alone restaurant business with her recent expansion plans for Oakland.  “The truck helped determine the market and build the right business skills – with key access points around the SF Bay Area.” 

Micro entrepreneurs are reaching out to the markets – the specific, targeted niche markets that seem to respond to what is being offered and to clients and customers who are willing to pay for the quality or uniqueness of the service.  There are pop-up shops and consignment retailers; there are food trucks; food stalls and food kiosks at the corner of your street and in the farmer’s markets.  There are neighborhood street fairs for clothing lines and third world imports. 

There are many, many “distribution channels”…and there are more and more businesses that are succeeding online with well-designed websites too.  Laurie Kanes runs 12 Small Things (www.12 smallthings.com), an on-line business providing access for artisans from many developing countries.  Her focus and purpose is to “showcase and sell fashionable, fair trade products from artisans facing some of the most challenging conditions in the world”.  This socially relevant business is targeting a niche and to do it well, must also execute and provide impeccable service. Laurie notes, “My competitive edge is to develop key partnerships to access the right markets and support the right artisans”.

Are these trends helpful to you and your micro businesses?  We DO need to know who will buy our products and services; we DO have to be accessible, we DO have to tell our stories so people will be interested in what we have not just once, but over and over again. 

However, the basic truth is we have to deliver – meet a promise and provide a benefit – and then build trust.  Do what you say you are going to do and take the action to make it work well…again and again.  Every new business requires an initial ignition but then after that first spark, we provide the consistent follow-through over and over again! 

The business action plan that we use individually and with small groups, (see www.paulterry.com), is an excellent tool to make this happen for any small business.

Let’s see how well we can grow when we “deliver the goods”.

Paul Terry & Associates has over three decades of experience helping implement effective solutions. PTA provides one-on-one advisory services, hands-on business training and entrepreneurial program development with a variety of specific products and services. We use our distinct entrepreneurial focus to audit current issues, assess realistic options, and solve key problems by applying strategic solutions that work. We work with our clients to develop a specific plan of action that can be executed and measured for successful outcomes.

Paul Terry

Paul Terry has over 30 years experience as an entrepreneur and a skilled, hands-on small business owner. He has owned and managed a Bay Area wholesale distribution company, two San Francisco-based retail food businesses, and a computer training seminar business.

In 1983 he founded Paul Terry & Associates (PTA) to offer clients entrepreneurial consulting, business action planning and guidance in transition management. Paul’s clients include businesses, non-profits and entrepreneurial training centers, both nationally and internationally.

Paul has been a results-oriented business consultant and a dynamic teacher of entrepreneurship for over 20 years. He has helped design and implement business solutions for hundreds of for-profit and non-profit clients, developed business-related and entrepreneurial curriculums and taught practical business skills classes to over 5,000 students. Paul has lectured on business topics to audiences in California, across the country, and abroad.

Paul is widely recognized, both locally and nationally for his teaching and small business advocacy work. Among his many awards are:

• 2006 – “Community Advocate Award” – San Francisco Renaissance Entrepreneurship Center for 20 years of consulting services
• 1995 – “Entrepreneurship Educator of the Year” – Inc. Magazine, Ernst & Young, the Kauffman Foundation and Merrill Lynch.
• 1994 – “Financial Services Advocate Award” – Small Business Administration (San Francisco)
• 1991 – “Business Instructor of the Year” – San Francisco Chamber of Commerce.

GREAT CUSTOMER SERVICE

Focusing on the Solution for Success

By Paul Terry

When we think of the most important issue in business, we always come back to customer service. In every consultation, workshop or class, we ask two questions and get amazingly similar results:

• What small businesses do you like to do business with?

• What small businesses do you NOT like to business with?

What is the common answer: It is good (or bad) customer service. Customers, clients, vendors and professionals all want to do business with businesses and business owners they like – that treat them well, give excellent service and follow-up and have consistent and fair policies for exchange.

Now, it is ALSO important that businesses offer excellent and effective products or the services the customer really wants, that the price is fair, that the location (retail or on-line) is convenient and the information is clear and consistent. The people providing the service must be qualified and come well recommended. BUT, to get repeat business and referrals – the business owner and staff MUST pay attention to customer service!

As business owners, we do NOT want any of the following to happen:

• A client or customer calling about a “late” delivery before you get a chance to call first

• Finding out that the “wrong” information was provided without correction for the client

• That you failed to follow-up on a request for additional information as promised

• That a client was left on hold without appropriate information of what to do or where to go next

• That the client finds that the service does not work as promised and cannot reach someone to complain or get help and support

A negative buying experience (and the results from thousands of students in classes and workshops) is almost always linked to “lousy and shoddy” customer service. Good customer service is essential for all businesses to exist for the long-term! Being able to provide it with all transactions and on a consistent basis is not just possible but must be essential for small business owners.

Here is some basic behavior we need to have as small businesses. This is directed by the owner and needs to be followed consistently if there is really going to be a commitment (by owners and managers) to customer service.

1. Commitment to quality service.

Everyone in the business is committed to creating a positive experience for the customer. The goal should always be “exceed customer’s expectations”. This should happen on every encounter – from the first point of contact and throughout the period of service. It should be included in the follow-up reminder in person, by phone or on-line.

2. Know your products and your policies.

You and everyone who works for you must know what they are doing – know about your product line or your service offerings – in order to gain and keep a customer’s trust and confidence. There should be complete clarity on what you offer, what guarantees you give and what would be done if there was any error or mistake made in the process!

3. Know your customers.

The objective of every small business is to “get and keep customers.” To do this, you need to know everything you can about your customers. Talk to people and listen to what they say so you can prepare in advance for any key issues. If there ever is a problem, get to the core of customer dissatisfaction BEFORE it happens.

4. Treat people with courtesy and respect.

Every contact with a customer — by email, phone, and letter, casual contact or face-to-face meeting — leaves an impression. The impression is often stronger than the service being offered. If you can “manage the impression”, you can affect the customer’s behavior! Always focus on how to fix any issue that “went wrong” Most customers will do business with you again if you resolve a complaint in their favor. They often become your advocate!

Customers want immediate resolution, and if you can give it to them, you’ll probably win their repeat business. Research shows that 95 percent of dissatisfied customers will do business with a company again if their complaint is resolved on the spot.

5. Always provide what you promise.

Fail to do this and you’ll lose credibility — and customers. If you guarantee a quote within 24 hours, get the quote out in a day or less. If you can’t make good on your promise, apologize to the customer and offer some type of compensation or restitution. Stay in touch and “get back to them.”

6. Focus on making customers, not making sales

Remember that keeping a customer’s business is more important than closing a sale. Research shows that it costs six times more to attract a new customer than it does to keep an existing one. You need to keep the client – and not always make the sale. Referrals work too!

7. Make it easy to buy.

The buying experience in your store, on your website or through your catalog should be as easy as possible. Eliminate unnecessary paperwork, help people find what they need, explain how products work, and do whatever you can to facilitate transactions. Make it an effortless and pleasant experience so that people will tell others, and will come back.

Overall

To be competitive and stay in business within these economic times, we need to treat our clients, customers and vendors with respect. They are our stakeholders and we need their loyalty, referrals and repeat business to stay and thrive in business. At your service is a practice without question.

© Paul Terry, 2009

Paul Terry and Associates – 185 Arkansas Street – San Francisco, CA 94107 – 415-255-0131 – pta@paulterry.com – www.paulterry.com

REALISTIC BUSINESS MANAGEMENT

Following Practical Experience That Works

By Paul Terry

Common Pitfalls & Successful Solutions

“Running a small business today is so risky – so much can go wrong.”  According to Dun & Bradstreet, over 90% of all small businesses that fail, do so due to common management pitfalls, inexperience in leadership, lack of money management skills and/or insufficient marketing expertise. Yet, small businesses can be successful. An obvious but important factor is that businesses need to realize that they can learn from each other.

The Qualities of Leadership

Any business organization or (investor in one) needs to know where the business is going, how it is going to get there and who is going to lead the way – the individual business owner, the executive director of the management committee or a collective. Democratic leadership includes a developed vision, an appreciation (and non-abuse) of power and an understanding the responsibilities of ownership. Good management requires several skills including a careful consideration of viable alternatives, decision-making abilities and follow-through.

An owner of a small display manufacturing business tried to delegate more decision-making responsibility to a department manager. The delegation was unsuccessful as the manager did not consider long-term effects or pay enough attention to results. The owner realized that he had tried to delegate additional responsibilities without providing appropriate training and support.

It is so important to realize that the leadership issue can be solved only when you have the right person in the right place. The wrong person (even a friend or loyal employee) may have to be removed, regardless of how awkward that may be, or the business itself may be at risk. Many small businesses are managed by people with little previous management experience or industry specific management experience. For example, the executive director of a non-profit often does not have the expertise to manage a for-profit activity. It is so important that the skills of the business manager match the complexity of the business.

Starting a business, although time consuming, is relatively straight forward. However, as the business grows and becomes more complex, different management skills are needed. The manager needs more skills in order to match business growth. Sometimes, the only solution is to hire the experience from the outside.

Peter, a successful plumbing contractor, expanded quickly and promoted himself to business manager. However, he was inefficient and had never developed management skills. His bookkeeper convinced him that it would be more profitable if he remained in the field as a plumber. He hired an experienced business manager to oversee growth and was able to turn his full attention to the aspect of the business that he was best at doing.

Doing it Alone

A common management pitfall is making decisions in isolation or without sufficient information. Support can often be found at no cost by developing peer support systems with another small business owner or group of owners/managers or by creating a voluntary board of advisors.
Sara, a self-employed psychotherapist, has used a support partner for several years. Her partner is another therapist so they are able to both give and receive encouragement and objective

• feedback on a weekly basis. If more time is needed, they schedule telephone calls or send e-mails and at times, can set-up another face-to-face meeting.
• Another successful support technique is a direct support group, set-up to give feedback and advice for all group members. One such group includes four women and two men, all of whom own small businesses, including in-home care, landscaping, dog training, publishing, counseling and used book sales. They meet every two weeks to give/get feedback, report on their progress from the previous meeting and set new goals. The regular support and mutual commitment has reduced their isolation and motivated improvements.
• One final suggestion for support with a decision-making component is using a voluntary board of advisors. These are could be colleagues, friends and business associates who meet regularly to give advice and feedback to a business owner.

Recently, a small book publisher set up her own board of advisors. They meet every 6 months and assist with specific issues. She is rewarded with encouragement and clear directions. They have a good time together and are available to help as needed.

Managing Your Time: “Too Much To Do…Never Enough Time to Do It…”

This is a common problem that affects the managers and owners of almost all small businesses. To be effective, managers need to manage their own time well. This means learning to prioritize, schedule and monitor as well as develop effective work habits. Many businesspeople appear to be very busy, and seem to never have the time to get down to the business of management. This often means failing to recognize or solve problems, implement solutions that make systems run more efficiently, or to fully monitor business activities.

John is the marketing manager for a small distribution business. He uses daily “to do” lists, weekly checklists and a monthly sales plan. As a salesperson, he spends a great deal of time prospecting but he still needs to be efficient with his marketing efforts. He prioritizes his messages by what he calls the “hassle factor”. A top priority means to do it now or it will only get worse. A time priority means that a deadline must be met or quality will suffer and a financial priority means a message should be answered because it is a sure sale. His work is directed by precise criteria with specific benefits and a corresponding time priority.

Managing People

There are many theories of management – from hierarchical to cooperative. For a socially responsible business, it is important to have a clear vision, open communication and a management style that is accessible and transparent.
Managing people, however, is a very personal issue. As the business grows, more people are usually needed. As more people are hired, new management skills need to be introduced for both the collective and the owner-directed business. Staffing the expanding business is a big issue. Paul Hawken, the former owner of Smith & Hawken has remarked:

“To get good people to work for your business you want to provide a place where good people want to be. Therefore being a good human being is good business, for both the employee and the customer.”

There are many common mistakes made in expanding the personnel of a business. This includes hiring the most available person (not necessarily the best candidate,) not matching the person to the job and not giving adequate training and support to existing employees and new hires.

Louise has a successful weaving supply store. The store is expanding and she needs more professional sales assistants. After several hiring mistakes, she is learning that careful selection and training is simply essential.

Small business employers need to understand how important it is to pick people who fit the culture of the business, accept the vision and feel comfortable with the management style. Employees must also really identify with the products and be able to make the same commitment to service and quality. Employees are, after all, the direct reflection of the business to its public.

Money Management

For most business organizations, the process is the same. Money comes in from revenues; it stays in the business as inventory or investment, and then goes out again for operating expenses and purchases. This flow of money in and out makes recordkeeping a necessity, yet it is frequently avoided. This is another common management mistake.

The best defense is an effective financial information system. An investor in a business should insist that this include a bookkeeping system that generates accurate and timely financial statements and a manager who reviews and interprets the data regularly.
A small co-op food store, recently reorganized, discovered that its historical financial information was incomplete. The system had not been maintained. A new record-keeping was immediately installed and they were able to make realistic projections that informed both management and co-op members.

Predicting the Future

Historical business data has a very practical application for the future. It is a foundation for projecting income and expense. The financial projections become future objectives. As the business progresses, management can compare the actual results to the projected objectives, adjust if necessary, and then make more informed decisions based on these comparisons.

A non-profit food business prepares a budget for each year in advance. Every month, the actual results are compared to the budget. If there is a large variance, a new projection is produced and monitored carefully. The bookkeeping system makes it possible to keep track of management objectives.

Watching Cash Flow

The cash flow statement compares the actual flow of cash into the business with the actual flow of cash out of the business. A careful business manager uses this statement regularly so that excess income can be re-invested or used to take cost-effective discounts. Many cash shortages can be predicted and avoided by borrowing money or trying to increase short-term sales. It is interesting to note that even when sales are increasing, there may still be a cash flow problem.

A small cable manufacturing business sold several contracts to one customer at a substantial discount. The supplier then re-ordered excessively. Sales soared but the narrow profit margin forces the cable business into a cash flow crisis. They had to fire their first client to stay in business – but it worked.

Marketing Issues & Techniques

Another small business pitfall is the tendency to ignore the marketplace. Research is important in order to discover new opportunities and resources. The research can be simple, such as talking and listening to customers, and still be effective. It is important to have open relationships with vendors and even competitors as they can also provide very useful information. Most small businesses need to focus on a specific “targeted” market. Narrowing your focus allows one to know ones market well, identify with customer needs and respond to market changes quickly.

Mike sells household products by targeting independent grocery stores. First, he narrowed his product line to specific, related products. Then, he imitated sales techniques other distributors had successfully utilized. Finally, he convinced store managers that his products and commitment to services was superior. This approach has built a very successful wholesale business and has been able to grow and expand each and every year.

Customer Relations

Customers can be fickle and even annoying at times, but they are the lifeblood of the business. Loyal customers support your business with their patronage, provide excellent new product ideas and can even bring you new customers. Word of mouth is an effective marketing tool!
A growing on-line and mail order business was totally committed to one specific goal – repeat business. Their most loyal customers, the ones who created the most word of mouth business, were the customers whose problems were solved by the company’s dedication to customer service. This focus on finding solutions to customer problems created a satisfied and fiercely loyal customer base.

Maintaining Quality Control

While price often seems to be the most important thing, it can be a mistake to compete on cost alone. A better approach is a commitment to quality products, high standards of service and direct, personal attention. Customer loyalty comes from providing helpful information, giving extra service, and offering recourse for repairs or replacement when a problem arises. A commitment to consistent quality control will build loyalty and reinforce word of mouth.

Occasionally, a specialty cheese store would have a customer return a cheese because it was “too strong.” Even though this would seem to be a matter of taste, and cheese is a perishable item, the cheese store would grant a refund or credit without question. They would then offer the customer samples of items that might be more to their liking, and use the occasional return as an opportunity to display their commitment to customer service. This resulted in a very loyal customer base. For this business, the adage of “the customer is always right” proved to be the best marketing advice that they ever followed!

Having Fun

If the business isn’t any fun, why do it? The attitude of owners and management will always be reflected onto the employees and eventually to the customers. If people are enjoying themselves, the good feelings are infectious. Michael Phillips, author of Marketing Without Advertising, expresses it well:

“In order for the business to grow and flourish, you must love it. To love a business is to make a total commitment to its needs, and requires a dedication of your time, attention and passion…You have to love the business in order to put up with the trials that it brings you.”
A positive environment means you get to have fun in business, you attract quality people to work for you and they, in turn, attract loyal customers. A ‘business is fun’ attitude is a successful and proven small business solution!

© Paul Terry, 2009
Paul Terry and Associates – 185 Arkansas Street – San Francisco, CA 94107 – 415-255-0131 – pta@paulterry.com – www.paulterry.com