America's Best Business Practices

This is the time of year when most small business owners focus on preparing their income tax. Some of the rules have changed since filing last and there are certain things you might want to consider before approaching your tax preparer.

To bring small business owners and entrepreneurs the very best information on tax preparation possible, I have teamed up with Brenda Richter, a CPA out of Santa Barbara, California, who is a member of Principa Alliance and blogs at bercpa blogs. In this article Brenda shares some sound advice for Small Business Owners and entrepreneurs. Here are her thoughts.

It is expected that many businesses did not fare as well in 2009 as they have in previous years.  As a result, many business owners may be approaching tax season with some fear and apprehension regarding their tax preparer fees and any taxes due.

One way to reign in your professional tax fee expense is to get a guaranteed price up front from your CPA.  In progressive, forward thinking CPA firms where an emphasis is placed on providing total quality service and on the value of the services to the client, billable hours are not used. Rather, Fixed Price Agreements (FPA) are used.

As a client, you do not buy hours from your CPA. Thus, your CPA should not sell time. A more cost effective approach is for you and your CPA to sit down and decide together what services you value, and how much you should pay for these services. During the meeting, you should also discuss payment terms and any relevant mutual commitments. Then an FPA can be prepared that states what you agreed to in the meeting. With the creation of an FPA between you and your CPA, you have one less cash flow item to worry about for tax season.

Another way to keep your tax preparation fees in check is to have your financial information in good order.  Make sure that all of your accounts are reconciled before turning the records over to your CPA, and double check your entries in the general ledger.  Make sure that new assets weren’t inadvertently included in office supplies and that there are no personal expenses included in your business books.

If your CPA is using a paperless system, see what you can do to work with it.  Send them as much documentation through their customer portal as possible and scan your own documents ahead of time.

A new piece of legislation passed unanimously by the Senate in January now allows taxpayers to deduct charitable contributions to aid victims of the devastating earthquake in Haiti.  The law allows U.S. taxpayers to make charitable contributions to Haiti relief programs before March 1, 2010, and claim those contributions on their 2009 income tax return. The legislation also includes a provision allowing those who text-messaged a donation the ability to use a phone bill as proof of their donation.  Since the records for such donations will not be in your 2009 records, be sure to pull this information from your 2010 accounting.

Make sure your CPA is aware of the following:

• Did you restructure your debt this year?
• Did you sell your home this year
• Was your home foreclosed on during the year?
• Did you buy a home this year?
• Do you have any new dependents this year?
• Do you have children over 18 who are no longer dependents?
• Did you have any higher education expenses for you or your dependents?
• Did you make any qualified energy improvements?
• Did you purchase a qualifying energy vehicle?

There are also new rules regarding the use of Net Operating Losses (NOL).  If you have an NOL for 2009, you will need to discuss which strategy is best for your personal situation.  You will need to make the decision to carry back the loss to prior years and request a tax refund or elect to forgo the carry back and carry the loss forward to offset higher income that you expect in the future at higher tax rates than in previous years.

Several other pieces of tax legislation were passed in 2009, however, many of the provisions effect tax years beginning in 2010 and beyond.  This makes tax planning a crucial step for 2010.  When meeting with your CPA in 2010, be sure to ask about the following:

• Converting your traditional IRA accounts to ROTH IRA accounts
• Changing from a traditional medical insurance plan to a high deductible plan combined with a Health Savings Account
• Does your estate plan and related insurance need to be updated?
• How can you make energy efficient improvements and save taxes at the same time?
• Should you consider purchasing a qualifying energy vehicle?
• Do you qualify for first time home buyer credits for homes purchased before May 1, 2010?

Many CPAs send out regular newsletters regarding changes in tax laws.  With many new laws on the way, you will want to make sure that you read those newsletters and be aware of issues that relate to your situation.

Finally, with so many shortages in federal and state government agencies you will see stepped up enforcement activities among IRS and state auditors.  Make sure that you are in compliance with regard to compensation plans, benefit plans, qualified plans, accountable plans, use taxes, record keeping and the like.

Hopefully, this article has given you the information you need to prepare for your initial meeting with your CPA or tax preparer. If you would like to contact Brenda Richter, you can do so by emailing her at bercpa@silcom.com or her LinkedIn page.

Those who enjoyed this article also enjoyed:
Record Retention Requirements

If you would like to contact me, you can do so by emailing me at mike.clough@bestbizpractices.org or visiting my LinkedIn page.

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There is no question that Social Media is in the forefront. Each of the several articles I have written on the subject has generated numerous comments. A “virtual” friend and follower of my blog, Tim Negris, often comments with thoughts that are even better than my initial posts. Following my post of “Using Social Networks for Marketing“, Tim sent me his thoughts. It was far too long to fit into a single post and far too good to shorten. So, I have divided it into two segments. This is the first segment and you can expect the second within a week or so. Here are Tim’s thoughts:

If you are contemplating or attempting the use of social media for marketing a product, a service, or yourself, you may have a giant knot in your stomach.  It may be that you don’t know how to go about it, or you have tried unsuccessfully to do it, or you are just sick to death of “Web 2.0” hipsters with funny glasses and soul patches or nose jewels daring you to master a dazzling lexicon of odd terms, like wiki, mashup, crowdsourcing, and folksonomy, or telling you that you should be blogging, tweeting, and friending.  Take a deep breath – in through the nose, out through the mouth, tell the cool kids to go get a Starbucks to stay, and let’s sort this out.

Before all this new stuff started, in the context of marketing, the word “media” most commonly  referred to newspapers, magazines, radio, TV, brochures and other documents, web sites, physical and electronic mail, live demonstrations, and seminars or “webinars”.  What all these things have in common is that they are all different forms of one-to-many information broadcasting. The information flow is one-way, sent by a single person or organization and received by some number of individuals and acted up by some subset of those individuals.  These media and their marketing applications are not social.

There are a number of other traditional marketing methods that are social but have little to do with any kind of media, per se.  These include one-to-one methods, like telemarketing and in-store sample presentation, and they include one-to-many methods, like multi-level marketing and trade shows.  What makes these “social” is that they all involve real-time interaction between people in the form of two-way information flows, mostly questions and answers.

Social media are interactive web applications that are different forms of many-to-many information sharing.  The flow of information is n-way (multi-way), presented by one or multiple people and responded to by multiple people. There are many different kinds of social media but those most relevant to marketing are:

• Social networks, like LinkedIn and Facebook
• Review sites, like Angie’s List and Yelp
• Presentation sites, like YouTube and Flikr
• Micro-blogging applications, like Twitter and Yammer
• Blogging applications like, Blogger and WordPress

Which of these different social media you should use for marketing depends greatly on what you are marketing and to whom you are marketing it, but in all cases there are some common mistakes you should work to avoid.  As a general rule of thumb, if you wouldn’t do it at a cocktail party, you shouldn’t do it in social marketing.  Here are the seven deadly sins of social marketing.

1. Don’t shout, sell, or argue
2. Don’t monopolize the discussion
3. Don’t run out of refreshments
4. Don’t be presumptuous or rude
5. Don’t be vulgar or indiscreet
6. Don’t be shy or unresponsive
7. Don’t be dull or boring

Next week I will share the second segment of Tim’s thoughts on selecting the right social media tools for the right job. You won’t want to miss reading it as it is even more useful than this post. In the meantime, you can subscribe to the blog by clicking here and you will receive an email each time we post a new article.

Click here to read Tim’s thoughts on the difference between “brand” and “branding”. If you would like to contact Tim Negris, you can do so through LinkedIn or tnegris@gmail.com.

If you are serious about social media, you may enjoy an inexpensive paperback by Jim Tobin and Lisa Braziel titled, “Social Media Is A Cocktail Party: Why You Already Know The Rules Of Social Media Marketing.”

Those who enjoyed this article also enjoyed:
How Important is Social Media in a Marketing Plan?
Using Social Networks for Marketing
Why Many Small Businesses are Still Struggling

If you would like to contact me, you can do so by emailing me at mike.clough@bestbizpractices.org or visiting my LinkedIn page.

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Most entrepreneurs do extensive planning and research before starting a business. But, after they get everything up and running, they tend to fall back into a natural bias for action mode. Once your business has been launched, it doesn’t mean your days as a strategist are finished.  In fact, they are just beginning.

Ongoing planning is necessary because the environment in which your small business operates is continually changing. This has become more important over the last year or two. Many of the new marketing tools have created new opportunities. Challenges like the current downturn in the economy may arise that may be vastly different than those assessed during the start-up stage. Initial financial projections can be literally and figuratively on the money—or trending in a different and unexpected direction.

With just a few planning tips, you can keep your small business right on track for long-term growth:

Make your business plan a living document. Many business plans become nothing more than “artifacts” of business start-ups. Don’t let this happen. Refer to your business plan every quarter or six months to compare estimates against current realities.  Then, update your plan as needed with new or modified contingencies and adjust time frames for key milestones such as expansions or new product/service lines.

Capture and monitor the numbers. Financial statements can provide a snap shot of the health of your business. If you project cash flow several months into the future based on reasonable expectations for sales and income, customer demand, regular payments (e.g. loans and rent), and other factors, you can and then compare actual cash flow to projections. This process reveals significant deltas which represent opportunities to improve performance.  Companies that don’t do this often find themselves in a situation with no room to maneuver.

Keep your finger on the pulse of the industry.  In today’s global economy, even slight changes can have a profound impact on small businesses.  The influences may be as far-reaching as a shift in demand for a certain commodity, or as local as a new stoplight near your store.  Monitor macro (world) and micro (local) events; study sales records, and keep a running dialog with customers, suppliers, and colleagues.  You’ll have fewer surprises, and will be better prepared to anticipate and capitalize on changes.

Form productive connections and alliances. Although business growth usually means having access to additional resources, there may be other, more cost-effective options. Creating alliances with other businesses in your field and certain consultants, you can stretch your capabilities. These alliances can help you meet peak market demands and/or generate revenue from products/services that you may not have.

Develop an irreplaceable staff. Because a growing business will demand more of your time, invest in your employees so they can take on both routine as well as management responsibilities. This strategy will pay multiple dividends. Your staff will relish the opportunity to grow personally and professionally which will strengthen their loyalty to you and your company. You will be free to focus on more important issues.

Revisit your marketing plan. Marketing has changed and continues to change. What has worked in the past, quite often is not working now. If you haven’t already, consider incorporating Web 2.0 marketing including social media to your plan. Call on all employees to find creative ways to support sales efforts.

If you would like to contact me, you can do so by emailing me at mike.clough@bestbizpractices.org or visiting my LinkedIn page.

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Many businesses are struggling and asking for help. I know because I meet with them every week. Actually, it is not too surprising to find that entrepreneurs who are doing most of the work might have trouble seeing the forest for the trees. I listen to them as they tell me that what they used to do is no longer working. What does surprise me is their reaction when I bring up the subject of Web 2.0 marketing or social media. All too often I am told, “I don’t want to talk about that.”

Every time I meet someone who just doesn’t get it, I think, “You can lead a horse to water but you can’t get him into a swimsuit.” However, all joking aside, I am concerned because this stubborn resistance to adapt to what is happening is far too pervasive. Is it possible that business owners have been so busy keeping their noses to the grindstone that they haven’t seen the shift taking place around them? Yet, what really stymies me is that if what they have done in the past is no longer working, why wouldn’t they consider trying something new that is working?

I have come to the conclusion that the issue is a lack of understanding about the impact that Web 2.0 marketing and social media has made on marketing in the last couple of years. Those who are hanging back must think that it is only a fad rather than a real paradigm shift. This is a mistake that could cost these business owners dearly. Therefore, I searched for something that I could use as an educational tool to bring more awareness to the issue. I found this great Socialnomics video below on YouTube that I would like to share with you.

After watching this video, I hope that those who may have felt that social media is a fad, will look at things in a new light. In a previous article, “Why Many Small Businesses are Still Struggling”, I go into greater depth on the paradigm shift from a traditional mechanical model to the new and evolving organic model and how it has changed marketing forever.

There are classes, workshops and seminars going on in most all communities about this phenomenon. Some provide an overview and are free while others go into depth and charge a fee. We recently had a free overview on Web 2.0 marketing here in Minneapolis and there more than 400 people in attendance. Interest in this topic is very high.

Knowing that you need to become involved with social media and in a larger sense, Web 2.0 marketing, and securing the necessary tools, does not mean you will enjoy success, just as having all the ingredients does not make you a good cook, or having a saw, hammer and nails does not make you a skilled carpenter. You need to fully understand how to use these tools and what techniques are most effective.

Here is an illustration of how some people take an ineffective approach to social media. I have invited a fair number of people to connect with me on LinkedIn who told me that they never connect with anyone they have not met in person. I have people on Twitter who follow me and when I try to follow them back, I notice that they have everything locked down and I have to request the privilege of following them. Although this is their right, these individuals will probably have limited success marketing with social networks. They are restricting themselves to the smallest communities possible. And when they do use these new found tools, they try to advertise just like they would with television or radio and it does not work. The article “Using Social Networks for Marketing” explains why this is so ineffective.

In future articles we will address individual networks and tools and explain how best to use them. In the meantime, if you do not fully understand how to use social media effectively, be sure and read the additional articles mentioned above or below. If you would like to be automatically notified when a new article is posted, click here to subscribe by email.

Those who enjoyed this article also enjoyed:
Web 2.0 Online Marketing Series – Overview
Why Many Small Businesses are Still Struggling
Using Social Networks for Marketing

If you would like to contact me, you can do so by emailing me at mike.clough@bestbizpractices.org or visiting my LinkedIn page.

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As I sat in my office pondering the formidable challenges facing small business I gazed out my window here in Minnesota at the frozen landscape. Longing for a prettier picture, I closed my eyes and conjured visions of Florida’s moonlit beaches. Suddenly, the beach seemed to come alive with millions of small shining lights. As I squeezed my eyes shut tighter, I saw that the lights were millions of baby turtles crawling towards the sea.

I didn’t make this up, really. Each summer, April to September, Florida beaches offer a spectacular demonstration of the battle to survive against impossible odds. Millions of sea turtles hatch and embark on an awkward pilgrimage as they travel en masse to the open ocean. Only a small percentage will make it as they are easy prey for a host of predators.

With a first year failure rate of 85%, micro businesses are just as vulnerable as baby sea turtles. Although I knew most (60.8%) small businesses employed less than five people, the vast majority are so small they don’t even show up on the radar. These micro businesses are born, survive briefly, and then die, often without anyone even knowing that they existed.

A recent report funded by the U.S. Small Business Administration and the Office of Advocacy states that Nonemployer firms are essen­tially businesses without payroll but with annual receipts above $1,000. The report uses special tabulations produced by the U.S. Census Bureau’s Nonemployer Statistics and data from 2002-2004.

The SBA report, titled, “The Nonemployer Start-up Puzzle”, written by Zoltan Acs, Brian Headd, and Hezekiah Agwara and published in December, 2009 differentiates Nonemployer firms—businesses without employ­ees—and Employer firms. Nonemployer firms represent a large percentage of businesses; however, little is known about their dynamics (entry and exit). The report seeks to illustrate basic statis­tics about the prevalence of entry and exit for Non­employers and the local conditions that led to their entry.

Nonemployer start-up rates across states and indus­tries seems countercyclical to labor market changes, while employer start-up rates move in line with overall economic cycles. These characteristics of start-up rates indicate that starting a Nonemployer firm is more likely to be an occupational decision based on a tight labor market, while employer firm start-ups are more likely to be responses to economic opportunity. Nonemployer firms that survive and thrive, however, are likely to become Employer firms down the road.

Here are some highlights of the report:

• Nonemployer firms have entry rates about three times those of employer firms. Of the existing companies in 2004, 34.3 percent of Nonemploy­ers were new and 12.6 percent of employers were new.

• Exit rates were lower than but similar to entry rate levels for both Nonemployers and employ­ers.

• Entry and exit rates (collectively referred to as turnover) seem associated with an industry’s economies of scale (essentially, amount of capi­tal needed for entry). Mining, with its high econ­omies of scale, had low turnover rates, while service industries, with low economies of scale, had high turnover rates.

• Employer birth and exit rates had a wider distri­bution by industry than those of nonemployers. This attribute is most likely because the sizes of employer firms have a wider range than Non­employers, which by definition are restricted in growth of payroll.

• Florida and Nevada had the highest combined birth and exit rates over the period of analysis, most likely the result of the states’ tendencies toward service-type industries and their grow­ing economies. States with warmer climates in general had higher turnover, with Georgia and Texas in the top five states for turnover. East Coast states leaned toward low turnover, with Pennsylvania and Connecticut in the five states with the lowest turnover.

• Average receipts size for Nonemployer births by industry ranged widely. Educational services had by far the lowest receipts sizes; wholesale trade the highest.

• The econometric model found, after controlling for population growth, that the states’ unemploy­ment rates were positively correlated with Non­employer entry and were the main driver at the state level.

• The main driver for employer entry was state real GDP; unemployment also had a positive impact.

You don’t have to be psychic to predict that 2010 is going to be a record year for Nonemployer business start-ups. The only question is whether or not these baby micro businesses will survive. Hopefully, these budding little entrepreneurs will stick their heads out from their shells and seek counsel on how to meet the many challenges ahead. To read the entire SBA report, visit the SBA Website.

If you would like to contact me, you can do so by emailing me at mike.clough@bestbizpractices.org or visiting my LinkedIn page.

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Ken Yancey, CEO of SCORE Association, recently released his top ten secrets for small business this year and I would like to share them with you. Here are his thoughts with links to articles I have posted on the various topics.

“When it comes to getting ahead in business, it’s all about making the right moves at the right time. At SCORE we share secrets for success based on having helped more than 8.5 million entrepreneurs. This year, we’ve come up with our top 10 list to make 2010 a profitable year for America’s small businesses.”

SCORE’s Top 10 Secrets for Small Business Success in 2010

1. Grow your customer base. Understand your customer demographics and why they buy your products and services. Win clients over with new and diversified products. Offer multiple price points and create packages or customizable plans, which give your customers greater freedom and flexibility.
2. Expand low budget marketing. Promote your business for free on Twitter, and set up a Facebook fan page. Start a blog and comment on other blogs. Take this opportunity to communicate with customers about your business. Go viral.
3. Surround yourself with experts. Get feedback from advisors you trust. Entrepreneurs count on SCORE for free and confidential business mentoring. Use a mentor to test ideas, map a sales plan and focus on success. Ask SCORE for advice and meet with a SCORE mentor.
4. Add ecommerce through a web site. Your business needs a web site to stay competitive. Secure all variations on your company’s domain name. Use online forms to encourage interaction. Add a shopping cart to sell your products, not just promote the brand.
5. Free up time to sharpen your focus. Organize for success. Set a time each week to handle routine tasks. Use a PDA to keep track of phone numbers, dates, appointments and meetings. Take time for planning and reflection. And, be sure you take short breaks to refresh and recharge.
6. Create experience events to draw in customers. Host special events like demonstrations, trunk shows and classes. Offer rebate programs to encourage repeat purchases. Rearrange merchandise to make it appear fresh and provide a fresh customer experience.
7. Network to build buzz and referrals. Join groups (even “virtual” groups) that represent your clients. If you don’t have the money to join an association, offer to donate your services. Take advantage of social gatherings, committee appointments, membership meetings and networking events. Each meeting is an opportunity for referrals.
8. Track your cash flow. The one thing all businesses need is cash. Ensure that you collect receivables within 30 days. Monitor invoices. Pay early when you get a discount. Always keep an eye on your cash. Prepare cash flow reports so you understand your cash needs.
9. Plan for financing success. Even if you’re in business, you should have a business plan ready to submit to potential lenders. Know how additional funding will help you grow your business, and demonstrate your ability to re-pay the loan.
10. Consider an LLC. As a sole proprietor, you are personally liable for the debts and liabilities of your business. A corporation or limited liability corporation (LLC) protects your personal assets and property. You can register your business as a separate legal entity.

Thank you, Ken. Having owned several small businesses and working in senior management at a couple of Fortune 500 companies, I could not have created a better list myself.

Too often small business owners are so busy doing the work that they don’t have the time to run their company and build continuing growth.  Item #5 is very important. Take the time to climb the hill and watch the battle taking place. It looks much different from the hill top than it does in the trenches.

Also, small business owners tend to see things only from their daily environment. As Ken pointed out in item #3, it can be extremely helpful to gain an objective view of your operation through a pair of outside eyes.

Those who enjoyed this article also enjoyed:
Strategic Small Business Plan for 2010
Why Many Small Businesses are Still Struggling
Using Social Networks for Marketing

If you would like to contact me, you can do so by emailing me at mike.clough@bestbizpractices.org or visiting my LinkedIn page.

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In the old sailing ship days, the captain’s cry of “all hands on deck” spurred every man on board into action, whether or not it was his watch. The welfare of the ship and all who sailed on her depended on it. The command is still used on naval ships and as a general call to action.

Enough is enough! We are better than this! We have done it before and we can do it again! “Calling all hands on deck”, is my urgent plea to American entrepreneurs and small business owners for 2010. I implore you to rally to the call to turn this nation’s economy around one business (your business) at a time. My hope is that you will, in turn, call “all hands on deck” to those within your company.

I am reminded of a plaque I have on my wall of two buzzards (vultures) sitting on a tree limb. One turns to the other and says, “To hell with patience. I’m going to kill something.” The definition of insanity is to keep doing things the same way and expect different results. There comes a time when you know you need to make a change. That time is 2010. With the start of a new year and a new decade, now is the time for entrepreneurs and small business owners to reflect on the past, create a strategic new plan for the future and implement it with all the passion that drove them to start their business in the first place.

As I have worked with small business owners over this past year I have witnessed first hand how much they have struggled. Of course, if it was easy, anyone could do it and there would be nothing special about you. Publilius Syrus said, “Anyone can hold the helm when the sea is calm.” However, I will readily agree that the economy has delivered a significant blow to small business. Even businesses that are “too big to fail” have been struggling.

Yet, I believe many small businesses, surrounded with bad news, have not done all they could do to change things within their own company. I say this because I have observed many things that could have been done differently that would have substantially increased revenue. This article is a call to improve what is taking place in the most important small business in America; your small business!

If you have employees or contractors, each of these individuals can be a huge resource to you if motivated properly. On the other hand, if you have a mindset that you have all of the answers and your employees and contractors are simply paid to follow your direction, you are missing a huge opportunity. I hate to be the one to tell you, but you do not have a monopoly on good ideas. Benjamin Franklin said, “A man wrapped up in himself makes a very small bundle.” Excellent ideas can come from many places including employees and contractors. A business leader I respect often says, “Even a stupid person can have a great idea.” The most successful leaders solicit all of the ideas they can and seriously consider each before they decide which to keep and which to discard.

So, if you are tired of struggling, as you may have last year, it is time for you to turn to your employees and contractors and call out “all hands on deck” so you can engage them in the challenge to increase sales and cash flow. (See turnaround article, “How to Improve Cash Flow in Ninety Days.”)

Be sure you reward good ideas and get everyone involved. Stephen Covey says,”Without involvement, there is no commitment. Mark it down, asterisk it, circle it, and underline it. No involvement, no commitment.”

When all hands are on deck, you can tell your employees and contractors, “Enough is enough! We are better than this!” John Steinbeck said, “It is the nature of man to rise to greatness if greatness is expected of him.” What do you expect of your employees and contractors? Do you want them to just keep their head down and do their job? Or do you want them to engage and contribute by sharing ideas and becoming involved? Are you providing a lifeless work environment where involvement, ideas and fun come to die? Or is it a fertile garden where people grow, contribute, share and bask in the sunshine of “team” success?

If your problem is sluggish sales as is the case with many small businesses, why not involve every department in the solution? From the person who performs receptionist duties, to accounting, to production, to customer service, to shipping; challenge everyone to come up with ideas on how they can better support sales to secure more business. The key is to examine every function looking for ways to improve it. Pay particular attention to any processes that impact profitability, sales and the customer experience.

In fact, as worldwide competition intensifies, monitoring and improving customer satisfaction are absolutely essential. For example, a message can be added to your invoices which might generate new leads, sales or add-on orders. Collection calls and correspondence can be more friendly and polite while remaining firm on deadlines and consequences. Accounting reports can be altered so they provide more useful data relative to customer purchases which management can use to increase sales.

Small businesses that have put a greater emphasis on marketing are succeeding in securing customers from those who have cut back. I have noticed that those who have studied the recent changes in marketing tools (see “Why Some Small Businesses are Still Struggling” and “Using Social Networks for Marketing”) and are using them correctly (very important), also seem to be  flourishing more than those who have not. Be sure to review and consider using the many new Web 2.0 marketing tools available. (See “Web 2.0 Online Marketing Series – Overview”.)

Encourage sales people to attend networking events and to use social networks (i.e. LinkedIn, Facebook, Twitter, etc.) to build their credibility with prospects and customers. In tough times sales people need inspiration and motivation more than they need a kick in the butt. Thomas Edison said, “Many of life’s failures are people who do not realize how close they were to success when they gave up.” If you want to increase revenue, then focus on eliminating as many obstacles as you can so your salespeople can secure sales.

In summary, now is the time for small business owners to become leaders. All businesses need periodic check-ups from top to bottom. Solicit feedback and ideas from your employees. Why not hold a contest? They see so much that you don’t.

I cannot say with confidence when the economy will rebound. But can you really afford to wait for it to happen? What if it takes another year? Another five, or even ten years? If you wait, will you still be in business when things turn around? You can make things happen now in spite of the economy! And those who take action now will be far out in front when we do have an upturn. If you feel that you could use the advice of another successful executive or small business owner, don’t forget that SCORE offers free workshops, consulting and mentoring.

So please consider this a call to arms to all entrepreneurs and small business owners in 2010 to shout, “All Hands on Deck!” Enough is enough! And we are better than this! There is absolutely no good reason to not snatch victory from the jaws of defeat!

What great ideas do you have that you can share with other small businesses?

If you would like to contact me, you can do so by emailing me at mike.clough@bestbizpractices.org or visiting my LinkedIn page.

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In a recent article “Why Many Small Businesses Are Still Struggling,” I pointed out the many changes taking place in marketing. Due to the fact that I sometimes hear from entrepreneurs that Web 2.0 marketing does not work for business, I want to follow up with one of the major reasons it works so well for one and not for another.

Having all the latest Web 2.0 marketing tools does not ensure your marketing success if you use them incorrectly. Unfortunately, all too often entrepreneurs join social networks and associated groups and then immediately attempt to market to everyone the very same way they ran advertising in the past. Not only does this not work, it actually harms your credibility and thwarts your success.

I was searching for the best way to explain this scenario and then… one of my LinkedIn connections, Larry  Beacham of  StoneColdMillionaire.com, used an analogy that described it perfectly. See what you think. Here is his explanation.

Imagine, for one moment, someone wanting to go to the park and feed bread to the pigeons. This individual loads up his bread and heads to the park excited to spread the nourishment around to the hungry birds.

Upon stepping onto the grounds of the park, this individual starts to run full speed through the park yelling, “Bread! Bread! Bread!,” and waving his bread in the air. As you can imagine, the birds scatter.

Every day he attempts this approach knowing that the birds will be there, but he never seems to get any birds to take advantage of his offer. He knows that the birds are hungry for it, but he doesn’t understand why they won’t respond to his offer.

One day he decides to have a seat on one of the benches and he begins to quietly break off pieces of bread and toss them to the ground. The first couple of times he does this, no birds respond at all. But he decides to come back each day and do the same thing, and he notices that a few birds cautiously fly down to scoop up the bread and then quickly fly away.

Day after day he sits quietly on that same bench breaking off pieces of bread, and each day he notices that more and more birds are beginning to eat the bread.

After a few months of this same ritual, those same birds that scattered when he first entered the park are now literally sitting on his knee and shoulder eating the bread right out of the palm of his hand.

What’s the point? In his original attempt, this guy was the pushy salesman trying to penetrate his market with the wrong approach, and it was a total turnoff to his potential “clients.” So, instead of trying to sell them on what he had to offer with an “exciting presentation,” he simply sat down and gave his value away consistently. He was calm, non-threatening, unassuming and very generous.

Over time, his credibility was established because of his consistency and the birds began to see that he wasn’t there to hurt them. Those birds that wanted what he had would take advantage of it and they did it when THEY WERE READY, not when he was ready.

If you would like to contact Larry Beacham you can do so by emailing him at larrybeacham@yahoo.com or through his LinkedIn page.

So, stop trying to sell your stuff. Stop trying to convince people you have the greatest thing in the world. Nobody is listening. Show yourself as someone of value FIRST and give yourself time to establish your credibility. Once you do this from the heart, you won’t have to worry about getting business – the business will literally come to you.

If you would like to contact me, you can do so by emailing me at mike.clough@bestbizpractices.org or visiting my LinkedIn page.

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