Posted by: Mike Clough | January 18th, 2010

Strategic Small Business Plan for 2010

Small Business 2010

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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Responses

YAY!! Great message. I have been trying to share a similar message with the small businesses I know ever since the original crash. It’s so hard sometimes, since small business owners will often have trouble seeing the forest for the trees.

You are absolutely correct, Brenda. It is much easier to write an article to the general public than look an entrepreneur in the eye and tell them that they are missing much opportunity.

From my personal small business consulting experience, I believe the toughest part is getting the small business owner to view their operation from the mountain top rather than from the trenches of the battle.

Too often, they are so busy doing the work that they do not have time to run and build their business and see the opportunities they are missing. I know this first hand as I have been there myself. From my current position, the best I can do is try to point it out and hope they consider it.

Thanks for your comment.

I just wanted to let you know that I enjoy reading your messages very much. As a young entrepreneur (both in age and experience), I try to find as many ways in which I can help the business (without spending a lot of money).

With just opening our business last year, I try and step back as much as possible and re-analyze the steps that we are taking, but unfortunately don’t always know what to look for. When I read posts like this, they always kick start me if I have been having problems. THANKS! I look forward to reading the next.

Thank you for your kind words, Carly. Since the blog generates no revenue, it is here only because of a labor of love for small business and small business owners. Comments like yours make it all feel worthwhile. So thank YOU!

Mike,
I’m a “seasoned” entrepreneur (both in age and experience) and commend your selfless sharing of wisdom and insight. You ROCK!

Why not create some revenue streams with your website. Check out http://www.simpleology.com This is a fantastic tool to share and you can make a few dollars. Mark Joyner is a marketing genius we can all learn from.

Thank you Susan. Since there is no advertising on this blog, it generates no revenue. The only rewards are kind words from readers and the knowledge that I have helped some small business somewhere.

So, thanks again!

Thanks for the rallying cry, Mike.

One thing that I found some time ago is that it’s more cost-effective and a whole lot less stressful (for me) to delegate tasks to other small business professionals vs. staffing up (been there too). In doing so (with the right people, of course) you not only get client-ready deliverables, but also gain from the knowledge and experience of those who may have more seasoned experience or talent in a particular area. Everyone wins – the client, my business and other business owners.

So, in responding to your comments concerning gaining from the wisdom of others vs. being a dictator to discover new growth opportunities, I’d add to the vendor list providers in your industry. Even if you’re a one-man-band, you can’t do it all – at least not well. Sharing the work with others who have a high work ethic, talent and integrity not only lets you focus on what you are best at, but also provides interesting marketing and networking opportunities you may not have envisioned.

I agree, Nanette! If you can select the correct people, those with the same burning desire for high quality as yourself, you can dramatically increase your productivity and hell a fellow small biz owner.

Consider that 60.8% of the 26.8 million business in America have fewer than five employees. You can read more at http://bestbizpractices.org/2009/07/14/america-runs-on-small-business/.

Thanks for your comment!

Ah yes, the key is finding the right people. I’ve been fortunate enough in the past twenty years to find some real gems – and recognize them for what they are immediately. Having such “vendors” in your corner makes you shine in your client’s eyes (and sometimes prospects – I’ve brought some in who I know will be better at speaking the language of those we are presenting to as the apparent lead in initial meetings). I’m always sad to see any one of them leave the industry and find them much tougher to replace than any employee I’ve ever engaged.

YES! It is much better than sitting around whining about how bad the economy is. I have two small businesses and we’re doing just fine. I work hard and am constantly learning and expanding.

However the key thing is customer service. Making sure your client is well cared for. In this climate you must do more and be better. If you do so, you’ll survive and beyond.

ALL HANDS! I love it!

Laura, thanks for your comment and congratulations on your businesses!

Mike: All of your blogs are A+, but this one is A+++. My favorite parts: “To hell with patience, I’m going to kill something.” and “Enough is enough! We are better than this!”.

As a 25 year veteran of my industry and a 13 year small business owner, I am fortunate to have a network of advisers including fantastic employees, ex-employers, vendors, clients and business friends to help me along the way – and I am grateful to count you in that group.

As you have advised, we are marketing like crazy…more than we ever have and more than any other printer I have ever worked for. And it’s working – new opportunities come our way every week.

Also as you have advised, I meet with a SCORE adviser this week to help evaluate and better systemize our marketing plan. Can’t wait to hear their evaluation of what we are doing and advice on how to make it better.

Thank you for your kind words, Lisa. And I would bet that based on your actions, your small business is doing far better than your competitors! I know I see you on Twitter and I receive your nifty weekend newsletter which saves me a lot of time.

I bet your employees really enjoy where they work and your customers enjoy giving you their business! It sounds like you are doing everything right and are probably a beacon to other small businesses.

As your business grows you will hire new employees and that is a step in turning our economy around! Now if all small businesses would do the same thing, we would be out of this economic situation in no time.

Lisa, thank you for doing your part, for reading my blog, and for taking the time to comment. Please keep me posted on your success.

Mike, I like your site and the information. I clicked on the tab ‘Subscribe by Email’. I hope it went through.

I have started the process of forming an LLC, as an umbrella to cover a small manufacturing business and a consulting Business. That is where a marketing plan comes in.

It is amazing how few businesses actually put in place effective plans. I talk to a lot about their importance, but it does fall on death ears so I apprecaite your post because it is so vital for survival.

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