Archive for the ‘Business Management’ Category

US Chamber of Commerce — What We Can Learn about Managing A Crisis of Confidence

Thursday, October 8th, 2009

The US Chamber of Commerce, which proclaims itself to be “the world’s largest business federation representing more than three million businesses and organizations of every size,” has a big problem on its hand.

High-profile companies have been quitting the Chamber, a virtual Who’s Who of top businesses, including Apple, PG&E, Nike, and Exelon.

The reason: the US Chamber’s opposition to the Waxman-Markey climate change bill.

The US Chamber points out that “ore than 96% of U.S. Chamber members are small businesses with 100 employees or fewer” and that “As the voice of business, the Chamber’s core purpose is to fight for free enterprise before Congress, the White House, regulatory agencies, the courts, the court of public opinion, and governments around the world.”

But its members seem to feel that the U.S. Chamber is not listening.

And, as a member of my local Chamber of Commerce, I’ve been upset about some of the positions staked out by the US Chamber: they didn’t truly seem to help small businesses.

I had mentioned something to my local chamber, but it turns out that local chambers of commerce are not necessarily members of the US Chamber — which is a branding problem.

For both the US Chamber and local chambers.

I’m a member of a local chamber, but have no input on what the US Chamber’s policy making function. Yet I was upset enough to consider quitting my local chamber, which has nothing to do with the US Chamber.

Meanwhile, the US Chamber seems to be responding to the news that more big-name members are quitting, seemingly each day, by sticking to its guns.

I’m sure that the US Chamber is losing smaller companies, too.

Yet as a call-to-action for prospective members, the Chamber says, “The Chamber understands your needs and protects your livelihood as if they are our own.”

It’s not a matter of them being “as if they are our own.” As a membership-based organization whose mission is “to fight for free enterprise,” its members’ needs and livelihood are their own.

So, the lessons learned:

  1. You need to listen to your members. It certainly doesn’t seem like the US Chamber is doing this. I’m sure the US Chamber conducts surveys of its membership to help determine the direction and policies to support. But when even energy companies are quitting because they have deep concerns regarding the US Chamber’s position on climate change, that’s a problem.
  2. You need to respond to your members. The lack of response to the companies leaving seems to indicate that the US Chamber doesn’t truly care about what its members think. In fact, according to Fast Company, Why Did Apple Quit the U.S. Chamber of Commerce?” “Apple’s move probably won’t change any minds in the Chamber of Commerce–Eric Wohlschegel, a spokesman for the organization, shrugged off the mass exodus by explaining that some companies have more to gain from the Chamber’s stance than others.” Seems like that’s not acting as if members’ needs and livelihoods are “our own.”
  3. You need to realize that, whether you think it’s one or not, there’s a crisis. Shrugging off “a mass exodus” is not a way to manage a crisis. There is a message from the president of the US Chamber about its climate control policy, but it’s dated Sept. 29, and a lot of the high profile membership resignations have occurred in Oct. They haven’t even issued a press release this month, as of this morning, Oct. 7, to present their side of the issue. And there are no current op-eds on the site with data that supports a controversial policy.
  4. You need to engage your members. The first step could be to say, we realize that our current stance on climate control may be unpopular but we think it’s the right one, but we’re willing to meet with members to explain our reasons. Town Hall meetings have a bad tone these days, but why not set up events to talk to and hear from members? Why not show the level of membership support for the current policy? Yet we have no idea of how many members surveyed agree with the policy. So far the US Chamber has not done a good job here.
  5. You need to reach out to prospective members. Considering that the US Chamber needs to continue to recruit members, they need to use policy positions that will encourage prospective members to join. Doesn’t seem like fighting against climate change would generate new members.

Meanwhile, I’d have to say that the local chambers seem to be ignoring the matter, too. They may operate independently, but a lot of people may not realize that. There’s bound to be a lot of people and local businesses upset, and that could leave them with negative feelings about all chambers of commerce — which is not what you want right before renewal season. I know it’s not the local chambers’ battle, but they need to let their local members know they’re not part of the US Chamber.

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Reasons Why the Recession is Actually Good for Businesses

Friday, October 2nd, 2009

Eighty-one US banks have closed so far this year, and unfortunately for businesses, misery loves company. With high-street staples such as Circuit City closing, and many other big brands scaling back operations (Dell has closed 140 stores, Sprint/Nextel 125, even Disney has stopped supplying the public with cartoon merchandise in 98 locations), one might have to read these five reasons why the recession is good for businesses in order to get any sleep at night.

1. Value Engineering

While recessions may sound the death-knell for money lending and expansion, they breed frugality. In a shrinking economy businesses are encouraged to look inside themselves, find out where they are wasting money and stop it. By “value engineering”, the process of reducing the cost of the elements that go towards making a product, a business can cut its costs in a sustainable way. Using less packaging, for instance, will not impact the quality of the product but will create savings that will translate into great profit margins, even more so when the recession wanes.

2. First-class Fifties

Business-development advisers suggest that in an uncertain economic climate, the one sector of the market that will still show signs of growth is the over-fifty marketplace. If a business can find a way to market its products to appeal to this demographic, it will have found a whole new revenue stream post-recession. Not only that, but it will also provide the company with valuable experience at broadening their customer base and marketing to consumers that they haven’t approached before.

3. Analyzed Ideas for Customer Focus

In a game of Russian Roulette, no-one wants to add another bullet to the gun. In business, as with roulette, adding more risk to a risky situation can not only be costly, but fatal. That is why all ideas need to be thoroughly explored and analyzed to make sure that they are customer-focused. Businesses who love their own product or invention are good, but the recession demands that companies concentrate on giving the customer what they really want. A recession makes sure that businesses are providing products and services that their customers are excited about spending their money on – products that do not meet customer needs are promptly killed off.

4. Competition-Killer

If one business can survive the difficulty a recession brings, it is possible that its competition will not have been so lucky. If a rival business fails, the gap in the market left in their wake is an opportunity for growth and expansion for the most productive company.

5. Toughness

A business that has bore the brunt of a recession will be mentally tougher than a post-recession start-up trying to muscle in on their territory. The challenges that it has triumphed over will create a bond and determination that would be difficult to form in less tumultuous times, and one no amount of training could mimic.

Guest post by Jack Ratcliffe, who writes at The Credit Letter about the latest Citibank credit cards and more..

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Naming Your Business: Top 5 Factors to Consider

Tuesday, August 25th, 2009

You’d probably think twice before going for a trim at Yummy Hair or getting an oil change at Sham Auto Repair, right? Choosing a business name is one of the most important decisions an entrepreneur can be faced with- the name will stick with your company for years into the future, tell customers what your business is all about, and determine branding, online marketing, and advertising strategies. Here are a few things every entrepreneur needs to consider when selecting a business name:

The “Sticky” Factor

Choosing a memorable business name can be tough. Many branding and online advertising experts advise starting with brainstorming or mindmapping.  While bouncing ideas off a few trusted sources is smart, try to avoid involving too many people (employees, spouses, silent partners) in the naming process. If you’re in need of a little inspiration, check out sites like rhymer or wordlab. Noemata and bubbl are also good places to start or to browse if you’re fresh out of ideas.

SEO Implications

Sure, you know a few search engine optimization basics- your business name should be simple to search for and easy for prospective clients to identify. But did you know that many common search terms are delivery devices for malware? According to a recent study by McAfee, certain popular terms, celebrity names, and phrases link to malware sites that can crash the computer where the term was searched- not entirely your fault (unless your business offers that dangerously named “Jessica Biel Screensaver”), but a bad first impression nonetheless. Do a little research, and avoid choosing a name that’s too similar to a dangerous, obscene (likely to be blocked) or otherwise undesirable search term.

Copyright/Trademark Issues

Copyright and trademark issues don’t just prohibit you from calling your own burger restaurant “MacDonalds.” Licensing regulations can impact logos, tag lines, graphics, and overly similar company names alike. Yes, it’s time consuming to perform a U.S. Patents and Trademarks Office search, but the effort will be well worth it if you find that you need to make modifications to all of your promotional materials before they’re printed. Check out the SBA website’s tutorial on copyright and trademark issues for more information.

Domain Names

In an ideal world, your domain name would be the same as your business name. This isn’t always possible, especially if you have a name with a common term in it. Try to avoid modifying the name beyond recognition (“PriceLogic” shouldn’t ever become “PryceLogixNetworkOnline”). You can also choose a catchy tagline or a descriptive domain. For example, one local taco shop went with www.eataburrito.com. Instead of a popular domain that might be unavailable (drsmith.com), try something descriptive (Marina del Rey Opthamology or Marina Eye Doc). Even if your name is available, you should still be careful- some businesses who register their full company name don’t count on the way the words read as a single block of text. It always helps to get a second opinion before you commit to a domain.

Translations

If you plan to do business in foreign markets, you’ll need to consider the language and cultural implications of your business name. We’ve all heard about the Chevy Nova and its unpopularity in Spanish speaking countries- naming the U.S. model the NoGo probably wouldn’t have been a smart move, either. While services like Google Translate are free and easy to use, they aren’t able to translate the cultural or slang implications of a certain name. Ask a native speaker what they think of a prospective name before committing to it.

Naming your business is an important (and fun!) first step in starting your company. Avoid the mistake of an unfortunate name (like Yummy Hair) by doing your research and choosing wisely.

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Back-to-School Season: Why Business Owners Should Get Excited

Tuesday, August 18th, 2009

Remember that back-to-school anticipation from when you were a kid? You’d buy a new backpack, pick out your “first day” outfit, get all your new school supplies organized, and excitedly make your way to class for the fresh start of a new school year. As an adult, late August just doesn’t produce that same excitement (unless you count claiming the house back from your summer vacationing kids or finally being able to watch the new season of Mad Men). Back-to-school season is actually a great time to jolt your business out of the summer slowdown mentality. Great deals, online marketing opportunities, and a fully-staffed office are just a few things you can look forward to in the coming months. Here are a few cool things to get excited about as the summer comes to a close:

Great Discounts. Retailers at both online and physical stores ramp up the discounts in order to drive back-to-school purchases- for example, Microsoft’s Bing is running a huge cash back promotion with participating retailers. Now is a great time to get office equipment, office furniture, or even a new copier or printer for a steal.  Many smaller and local companies also offer steep discounts on products and services in the fall.

Summer vacation is over. There is an upside to the end of vacation season. Summer is a naturally slow time for many businesses because so many employees take time off. Come fall, everyone is back, rested, and ready to tackle new challenges. You’re playing with a full team- there’s no need for out-of-office reminders, vacation adjustments, or other distractions that can bog down the workload of many employees.

Everyone’s getting back to business. Statistics show that online media use jumps when school is in session. Whether it’s the increasingly chilly weather or all of those students doing research online, web traffic tends to increase when it’s time to get back into the classroom. This can be great news for any small business owner that’s been working on driving web traffic or creating an online presence. Stay on top of the search engine optimizaton efforts and maintain your social media presence- it’ll pay off in the coming months.

Great promotional opportunities. Back-to-school season has a way of making people get motivated and get moving. Maybe it’s the whole “fresh start” idea, but creative back-to-school promotions are a great way to drive traffic to your website or generate much-needed sales after a slow summer. Now is a great time to think about upping your online marketing efforts.

Full Talent Pool. Back to school isn’t just for elementary-age students, it also means that college students head back to campus en masse. Thinking of hiring an intern? If your business is in a university town, you’ve got access to a great talent pool. To all those future (or current) business owners who are still in college: if you’re interested in a spot at our internship program here at Resource Nation, send us a note (info@resourcenation.com)- we’re accepting applications as of this week!

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Marketing Tips from American Express

Monday, August 3rd, 2009

In an interview in BtoBObline, Marcy Shinder, VP of Brand Strategy and Marketing at American Express OPEN, offered up these tips (in a different format):

  • A downturn is a good time to identify ways to transform a company.
  • A lot of companies look at delivering better customer service as a differentiator. (For service organizations, this can be a challenge since your competitors are likely to be trying the same things. Instead, think about what improvements would deliver the most value.)
  • Companies need to stay relevant. (In other words, think about the problems customers buy from you, and make sure that what you provide truly solves their problems.)
  • Provide tangible value. (We have a client with a fascinating vision of the future of technology in their sector, but we’ve advised them to make that game-changing vision a secondary message because their first goal is to sell product. So they need to focus on ways they provide real value to their customers. A compelling vision of what’s to come is good, but that doesn’t always help customers when deciding to buy now instead of putting off the purchase for later.)
  • Companies need to market differently from the day of the 30-second spot. They need to provide insight, inspiration and advice during every customer interaction.
  • Companies need to answer what they can do for their customers.

Some good common sense advice, yet I’d bet a lot of companies don’t follow up on this. Check out the complete article, “American Express’ Shinder on marketing to small businesses.”

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The Importance of Updating Your Business Plan

Monday, August 3rd, 2009

Business plans are the homework that just won’t end. Imagine being in school and being given an assignment to write a term paper. You have an outline of what’s required, a recommended format that you should use, and a timeline in which completing it would be advised. Here’s the rub: what if that assignment is never done. The due date comes and goes and it constantly has to be redone and revised and updated.

The importance of updating a business plan is simple: it creates a long-term strategy for your business, while alleviating the stress and headaches of operating a business if action is continually implemented. There are important factors to consider when revising and updating a business plan. The following outlines the necessary steps in perfecting that business plan you filed away months – or even years ago.

Reminisce: Remember to look back at your initial business plan at least once a year. Perhaps your business’ target market has changed. Maybe your customers are purchasing one particular product or service more than others. And, of course, one must always look at new industry trends – this in itself can have a positive or even devastating effect on a business. Small business owners must continually refresh their business plan by focusing on the aforementioned elements when reevaluating the business plan’s content.

Financial Updates: A financial analysis should be updated monthly. Entrepreneur.com eloquently puts it: “Have a monthly review of the difference between planned results and actual results for your sales, profits, balance and cash.” A solid, well thought out business plans should have monthly milestones, assumptions, and tasks.

Another reason to update a business plan: every small business could use more money at some point. An outdated plan will not convince any borrower – or potential investor – to fund your business. It makes you, as the entrepreneur seem unprepared and unmotivated in staying current with new market trends, financial projections, and customer feedback. Notably, changes to the management team and competition are just as significant. Believe it or not, a business’ competition will at some point increase, decrease, or elevate depending on the climate of the market. Fully evaluating and analyzing competitors is essential to understanding the market and what is needed stay ahead of competition.

Evolution: Finally, if your business is changing, evolving, or adding to its line of services or products, it is absolutely essential to renew the product and services description section of the business plan. With the constant fluctuation of the market, small businesses are adding or taking away products and services in order to meet the needs of their intended market segment.

As the company’s vision continues to evolve, the business plan becomes a reflection of the business’ personnel, mission, and philosophy. However, in order to properly convey a company’s new fangled identity, management team, or other core values, the business plan itself must evolve as the business’ does. Both go hand-in-hand.

Tools: It’s a poor carpenter that blames their tools. Not everyone can feel truly qualified when it comes to writing up their own business plan. There are a few options here to make sure that you’re not going in blind to the formatting, requirements, and structure that may be demanded of your document. Some seek the help of mentors who have written their fair share of business plans to review and advise on the plan that the entrepreneur is writing. Some outsource the entire endeavor to third party firms or even MBA students off of CraigList.org who are looking for a few bucks. The happy medium can sometimes come in the form of tools from companies that offer software solutions.

Business plan updating has become so pertinent to a business’ long-term success that colleges and trade schools are offering courses in this particular subject. Entrepreneurs must recognize that paying close attention – as well as constantly altering and updating the content and past performance or projected financials of a business plan – is vital to not only the company’s future, but ultimately its sustainability and growth in the marketplace.

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Going Green(er) At The Office

Tuesday, July 28th, 2009

One of the most common misconceptions about going “green” is that it’s expensive.  It doesn’t need to be- in fact, conserving resources is also a great way to conserve cash.  We know- you’ve already heard that purchasing a recycling bin or emailing memos instead of printing them can add up to huge savings (yeah-just like you’ll be able to save for retirement in just a short while by skipping that daily $5 latte).  But a big impact doesn’t require big changes to the way you work already- it can be as simple as using your existing office copier to scan paper documents.  Here are a few quick and easy changes that can help you in your effort to go green(er) at the office:

Buy refurbished supplies.
Keyboards, mice (mouses?) monitors, and other equipment can be purchased on the cheap from retailers that deal in refurbished equipment.  You can also go the DIY recycling route and look for deals on eBay and craigslist.  Or trade in used equipment when you’re done using it.

Buy earth-friendly materials.  You can’t plead ignorance anymore- you know what’s in that printer ink, and how much waste is created by throw-away cartridges!  Use “solid” ink and other earth-friendly materials: recycled paper, biodegradable packaging components, and other office staples usually cost the same as the less earth-friendly options.

Buy sparingly. Studies show that our consumption habits are based not so much on actual need, but availability of resources.  Office supply closet stocked with paper, ink, and toner at all times?  People will use it- and not think twice about accidentally printing a second copy.  Closet looks like it needs a refill?  People conserve.

Track use. Most office copier machines have tracking functions, where you can tell which department or employee is printing, and how much.  Use these features to your advantage by targeting the most wasteful offenders.

Bring your own dishes. Disposable food containers are one of the chief sources of non-recycled waste.  Americans alone reportedly throw away 2.5 million plastic bottles hourly. Keep real silverware and dishes on hand, and invest in a travel coffee mug- most coffee shops will even give you a discount for using it.

…Or walk to lunch.  Good rule: if the lunchtime taco/sushi/burger place is less than a mile away, walk there.  It won’t take longer than driving and finding a good parking space, and you’ll feel a lot lighter and more energetic when you get back to work.

Use less paper. Use printed sheets you no longer need as “scratch” paper for notes.  This is really easy- you can set up a “scratch paper” bin by the printer that anyone can take from as needed.  Bonus- stumbling on juicy office gossip when people accidentally discard emails they probably shouldn’t have printed (From: Kate in Payroll.  To: Jim in Sales. Subject: Last Night.  Hmm…)

Use less paper, part II. Get a credit card processing terminal that has an electronic signature capture device so you don’t need to print a receipt for every transaction.  Many customers will actually decline a printed receipt if asked- so ask them!

Send emails. Email marketing is cheap, easy, and fast.  Don’t waste paper when you don’t need to: email customer invoices, order summaries, and other correspondences.  They’ll probably thank you for making a dent in their junk mail pile.

Use online invoicing and payroll services.
Instead of giving each employee a paper check inside an envelope twice a month, set up a direct deposit service with a payroll outsourcing company.  Most services start at as little as a few dollars per check- less than the cost of printing and mailing.

Turn off the lights.
Yeah, it sounds like something your cheap grandpa would say- probably because it actually does save money on electricity costs.

Switch to electronic document storage. Download a free document management program and use your existing office copier to scan documents.

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How Body Language Can Make You a Better Manager

Tuesday, June 30th, 2009

A firm handshake, a welcoming smile, steady eye contact- all of these are the signs of a confident, competent leader, right? Well, maybe. Turns out, a strong handshake matters less than how you shake hands, smile wattage should depend on personal proximity, and steady eye contact can be read as confrontational in some settings. We’ve all heard that somewhere around 90% of communication is passed along by nonverbal cues- gestures, inflections, and body postures that are usually subconscious. What does your body language say about your management style?

Phrasing and “Energy” Projection

Phrasing is a term used by movement experts to describe when gestures and body movements align with the intentions of spoken words. Think of someone nodding his head up and down, but repeating a verbal “no”- that’s bad phrasing. In movement studies, the more calm, confident, worried, tense, etc. a person feels, the likelier it is these feelings will be projected in his or her body language.

This is good news and bad news for managers- the energy you feel is what’s projected. If you’re frantic, your movements will be tense, quick and agitated, if you’re calm, your gestures serene and soothing. Here are a few examples:

Posture

We all know that confident people stand up straight with shoulders back and head held high, but what about in a business setting, where you’re often sitting down, referencing materials, and conversing with multiple parties at once (sometimes via email and phone)? Typically, a head tilted down indicates negativity or disinterest- picking up a report to read it at eye level or just shifting your eye gaze is better.

Likewise, slumped shoulders connote defeat and unhappiness- taking a deep breath to lift your shoulders before a meeting can stave off these negative body movements. Your hands can also have a big impact on how your posture is perceived- displaying the thumbs (watch out for hands in pockets, balled-up fists, etc.), the physically strongest finger, is typically a sign of confident optimism and honesty- traits everyone hopes their manager possesses.

Handshakes

A firm handshake projects “outward” confidence only. Coupled with a palm-down grip (a “dominating” handshake), the person on the receiving end of the handshake may feel like you- quite literally- are trying to get the “upper hand” in the situation. Your grip should be natural, not forced. Don’t lean in too close- anywhere closer than 18 inches is considered the “intimate” zone of personal space.

A one-handed shake is good, but the “shake” should match your overall energy level. If you’re excited and talkative, a vigorous handshake is fine. Make sure it’s one handed when meeting someone for the first time- the two-handed “politician” handshake is often read as disingenuous or arrogant.

Facial Movements

Eye movements are one of the easiest body language cues to notice in business meetings. Traditionally, the eyes look to the right when someone is imagining or creating, and to the left when a person is remembering or recalling events. Looking to the right- even unintentionally- when explaining something can give a false impression of dishonesty. Try to look directly at the person you’re speaking with instead.

Finally, smile often. Yes, it’s cliché, but it’s true, real smiles (the kind using the whole face rather than just the mouth) release endorphins, causing a change in mood- and posture, too. Smiling naturally, and often, is the best thing you can do project the calm, confident management style your employees will respond to.

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Morning Meditation

Tuesday, May 26th, 2009

My route to work each morning takes me past what is left of the New York Flower District. Passing the palm trees, orchids, rhododendrons and azaleas that line 28th Street, I think about the day ahead- what needs to be done, what I’m looking forward to. The plants and flowers themselves remind me of the passing of the seasons: Halloween pumpkins are replaced by Thanksgiving wreaths and later Christmas trees, which make way for red Valentine’s day roses and then Easter lilies as winter thaws into spring. These transitions help keep me in the present, aware of the “now.” While it might not be the traditional silent, chanting meditation, my daily walk focuses my mind for the tasks ahead.

Thinking about what you see on your way to work can be a powerful starting place for focusing your vision for your business. Chances are, you became a business owner because you wanted to be in charge- setting the pace, the goals, and the mission for your company. Focus and clarity is so important, especially if you hope to be an effective leader.

Prepare yourself for your day by observing what’s around you. Whether you walk to a towering office building or just down the hall to your home workstation, be present- set the tone for your day, and clear your mind before getting to work. Ask yourself what you want to accomplish, and maintain this focus- don’t get bogged down by the little details or daily tasks that can chip away at your larger mission. Sometimes a little morning meditation is all it takes to put everything in perspective, allowing yourself the freedom to grow your business the way you want to.

Believe in you.

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Does Networking Really Work? (Sounds like a lot of work!)

Friday, March 27th, 2009

It depends how you do it.

Going to cocktail events and social hours, grabbing business cards and tossing yours around, brief handshakes while looking over that person’s shoulder for the door or the next person in the room.

Nope, that doesn’t work.

Connecting, helping others first, taking a sincere interest in them and their business, helping them see opportunities they may not see themselves.

That’s what I’m talking about.

And yes, it is work. Just like building any relationship, it requires commitment, follow up, and heart.

And it’s worth every minute.

Do you make networking a regular part of your business and marketing strategies?

Are you connecting in person (or over the phone if geography is a challenge) with people you meet online?

How are you contributing to your networking relationships? Just this morning, on a call with a colleague, I thumbed through my mental Rolodex for a connection that will help her grow her network and her business.

Easy, peasy, Japaneasy. It took about 5 minutes to make the connection and a warm introduction. She’s off and running, with gratitude, and I feel very good about it.

How’s that for honoring a “Givers Gain” philosophy?

How do you use networking in your business? How has it helped you? Tips to share?

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