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National Small Business Week is Here!

By on May 21, 2012 in Grow Your Business, Melinda Emerson @SmallBizLady, SmallBizChat, Your Small Business

America’s #1 Small Business Expert Joins the New York Times. I am excited to announce that I am joining the writing team at the You’re the Boss section of The New York Times. Premiering this May, my column on social media and small businesses will run weekly on the blog centered on small business ownership advice.  Loren Feldman, small-business editor of The New York Times says “Melinda Emerson is a force of nature. She will be writing about social media, and we are very excited about adding her passion, her energy and her insights to You’re the Boss.”  Click here to read more.

I consider May to be National Small Business Month. There are always tons of events, conferences and contests that kick-off or take place during the month of May, and this year is no exception.  May 20-26, 2012 is actually National Small Business Week, which is a great opportunity for businesses large and small to celebrate all that we contribute to the U.S. economy.  Here’s a list of some of the top events taking place this week to help you grow your small business:

On #Smallbizchat this week: We are having a National Small Business Week celebration sponsored by Verizon Small Business @VZSmallBiz. In honor of this special week, Verizon is giving away 12 top business books to the first 200 people who come to #Smallbizchat this Wednesday between 8-9pm ET and use our hashtag.  Follow my @SmallBizLady Twitter handle for more details. Here’s how to participate in #Smallbizchat http://bit.ly/S797e

This week’s #Smallbizchat topic: How to Use Pinterest to Grow Your Small Business with Jennifer Abernethy @SalesLounge and Author of The Complete Idiot’s Guide to Social Media Marketing.  Don’t miss it.

Join FedEx Office, Our Office is Your Office Tweet Chat Series On Tuesday May 22, 1-2pm ET with Gene Marks @GeneMarks. He’ll be sharing advice on networking to increase small business cash flow.  To join the live chat on Twitter, follow @FedExOffice and use hashtag #FedExOffice.

National Small Business Week Conference:  Sponsored by the Small Business Administration @SBAgov, which is holding its annual conference in DC this week. If you are in the area, they are having a Tweetup Tuesday May 22nd in DC. There is still time to register http://owl.li/aZhFu

See SmallBizLady Live: I’ll be in Chicago this week attending the Black Enterprise Entrepreneur’s Conference at the Chicago Hilton. It kicks off May 23-26th, 2012.  Be sure to check out www.blackenterprise.com this Thursday May 24th. A feature article on my business will be published as part of their Black Blogger Month series.

Great Contest Opportunity: If you are looking to expand your business, Chase and www.LivingSocial.com have teamed up to give up to 12 grants of $250K to small businesses. This is am amazing opportunity for today’s entrepreneurs. For complete contest details visit www.missionsmallbusiness.com The last day to enter is June 30th.

Do you know about any other great events for National Small Business Week? Please share them in the comments.

For more tips on how start or grow your small business subscribe to Melinda Emerson’s blog http://www.succeedasyourownboss.com.

Melinda F. Emerson, known to many as SmallBizLady is America’s #1 small business experts. As a seasoned entrepreneur, professional speaker, and small business coach, she develops audio, video and written content to fulfill her mission to end small business failure. As CEO of Quintessence Multimedia, Melinda educates entrepreneurs and Fortune 500 companies on subjects including small business start-up, business development and social media marketing. Forbes Magazine named her #1 woman for entrepreneurs to follow on Twitter. She hosts #SmallBizChat Wednesdays on Twitter 8-9pm ET for emerging entrepreneurs. She also publishes a resource blog http://www.succeedasyourownboss.com Melinda is also bestselling author of Become Your Own Boss in 12 months; A Month-by-Month Guide to a Business That Works.

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Should You Have Good Pricing or Great Pricing?

By on May 14, 2012 in Cash Flow & Finance, Grow Your Business

Should you have good pricing or great pricing? Our first instinct is to have great prices that will permit us to crush the competition, gain market share and fuel fast growth. The usual problem is that great prices typically provide slim profit margins. Good pricing, however, over the long term, should create enough profitability to make your enterprise a business rather than a glorified hobby. The challenge is developing a pricing strategy that is simple in concept and execution. How you create your best pricing will depend on your type of business, your sales objectives, competition, marketing strategy and/or cost structure.

Let’s look at several different types of businesses and their different approaches to pricing:  Brick and mortar retail/wholesale enterprises which depend on inventory to sell, typically price the goods on arrival and the pricing can be manufacturer’s suggested retail (with or without discounts), or a standard markup of 50 to 100% depending on the item. Commonly competitive items, like a gallon of milk for example, should be shopped to be sure your price is close to that in stores like yours. It is important to feature the occasional “loss leader”, an item you sell at minimal markup, to stimulate traffic. The overall objective, however, is to have an inventory mix that will give you solid profit margins at the sharpest price points possible (considering your competitors pricing), especially on high-turnover items). 

There are some factors, however, that can allow you to build generous margins with minimal competitive penalties. For example, my local convenience store has a 15 to 20% premium on much of what they sell compared to similar items in the local supermarket. The candy, soda, dairy products, and other grocery items are limited in variety and customers typically pay without complaint especially when the purchase must be made when the supermarket is closed or farther away. You can also charge more if your service is unique, for example you repair certain luxury cars, or you are in industrial air conditioning repair, or a doctor with a specialty practice, or a lawyer who deals only with tax litigation. Typically, the more specialized and unique the service the more you can usually charge.

So what should you be thinking about when you are considering your pricing strategy?

  1. Whatever you charge, make sure you cover your costs. A good price should do it; too many great prices might put you out of business.
  2. If competitive conditions are good for you, that is you have few competitors and solid demand, don’t be afraid to squeeze out a few additional profit dollars in your pricing. You can always lower them later if competition heats up.
  3. Focus on cost controls. Work diligently to drive your costs down because it will let you make more money without raising your prices.

Finally, don’t be emotional about creating your pricing program. Let your numbers, e.g. overhead, material costs, sales costs, and whatever else goes into you getting your product sold drive your pricing. It is the only way you are going to be successful. Good luck!  

Do you have any good pricing advice?

For more tips on how start or grow your small business subscribe to Melinda Emerson’s blog http://www.succeedasyourownboss.com.

Melinda F. Emerson, known to many as SmallBizLady is America’s #1 small business experts. As a seasoned entrepreneur, professional speaker, and small business coach, she develops audio, video and written content to fulfill her mission to end small business failure. As CEO of Quintessence Multimedia, Melinda educates entrepreneurs and Fortune 500 companies on subjects including small business start-up, business development and social media marketing. Forbes Magazine named her #1 woman for entrepreneurs to follow on Twitter. She hosts #SmallBizChat Wednesdays on Twitter 8-9pm ET for emerging entrepreneurs. She also publishes a resource blog http://www.succeedasyourownboss.com Melinda is also bestselling author of Become Your Own Boss in 12 months; A Month-by-Month Guide to a Business That Works.

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How to Get Over Your Fear of Sales

By on May 10, 2012 in Grow Your Business, Q & A Interviews, SmallBizChat

Every week as SmallBizLady, I conduct interviews with experts on my Twitter talk show #SmallBizChat. The show takes place every Wednesday on Twitter from 8-9pm ET. This is excerpted from my recent interview with Amy Palmer @Fearbustinsales http://twitter.com/fearbustinsales. Amy is a nationally recognized salesperson who helps business owners find a selling style that fits their personality and values. As head of a worldwide online virtual coaching and consulting business, Amy has been featured in the Woman’s Advantage Calendar for 2008 – 2012, Washington Business Journal, Washington Woman Magazine, Success for Women magazine, and Success magazine. Access her free teleseries here: www.demolishyourdreadofselling.com

SmallBizLady: What is “Sales Sabotage?”

Amy Palmer: It is when you have great ideas, a great product or service, even a great plan, and yet SOMETHING keeps getting in the way of taking your business to the NEXT LEVEL of REVENUE SUCCESS! It is when we get in our own way when it comes to selling.  We set ourselves up for failure before we even begin.

SmallBizLady: What causes “Sales Sabotage”?

Amy Palmer: Fear, reluctance, insecurity.  Past experiences (either as a consumer or as a salesperson).  Preconceived notions.  Fear of rejection.  The desire to be liked, and the fear of not being liked.

SmallBizLady: Why is it important to overcome sales sabotage?

Amy Palmer: If you don’t face your fear and reluctance, and find a way to become comfortable with selling, it will prevent you from achieving the goals you set for yourself, and it will prevent you from helping all those people are you meant to serve.  Also, look at it this way- by overcoming sales sabotage, you will generate more revenue and continue to grow to the point where you can afford to hire a sales team to sell FOR you!  Then you can spend even more of your time doing the things you love most.

SmallBizLady Can you share the steps to your “Fear-Bustin’ Process” to help overcome sales fear?

Amy Palmer: Step 1: Identify Roadblocks- what is REALLY getting in your way.

Step 2: Reconnect with Your Passion- why do you do what you do, how does it benefit others.

Step Three: Reprogram Your Thinking- don’t think of it as selling, think of it as “Promoting Your Passion.”

Step Four: Determine Your Personal Style- what are your strengths when it comes to communication, incorporate that into your process.

Step Five: Customize a Process- the more control you have over the process, the more comfortable you will feel.

Step Six: Put your Process In Action! It’s all about implementation- get an accountability partner or coach to assist you.

SmallBizLady: If someone is really uncomfortable with the sales role, how can they be successful in owning a business?

Amy Palmer: The BAD NEWS is, they can’t. The GOOD NEWS is that it isn’t difficult to become comfortable with selling. You don’t have to love it, you don’t have to become a super-expert or master sales guru. To develop a level of comfort, you simply must find a way to connect with your audience in a way that fits you, your personality, and your strengths. Once you combine this with the passion you have for what you do/what you offer, there will be no stopping you. And here’s even BETTER news- once you figure this piece out, develop a successful sales plan, and learn how to implement it, someday you will generate enough money to hire someone to do some of the sales activities for you!

SmallBizLady: How long does it take to truly overcome sales sabotage?

Amy Palmer: The process I designed uses the steps I followed myself early in my career.  It took me years to figure it out.  Sharing the steps with my clients saves them a lot of time.  However- fear and reluctance does come back.  Each time you reach a new height or you are in a new situation, it can resurface.  The key is having strategies in your toolbox to release the fear in a timely manner.

SmallBizLady: What sales effectiveness tips do you have for those who are doing well and/or already enjoy selling?

Amy Palmer: My number #1 tip in these circumstances is TRACK YOUR PROGRESS. Keep track of each opportunity, each sales conversation, phone calls, etc. along with results. This is the way to go from “good” to “great”. You can hone in on where you can tweak to get even better. Number #2 tip is DOCUMENT YOUR PROCESS. Someday you may hit a sales slump and be clueless as to why. You need to go back to your exact step-by-step process and find out if you have been taking short cuts or have gone off on tangents in your sales process. Another reason to document your sales process is because by having continued great results, you will one day want to scale your business and bring on salespeople. Having a proven process in place will accelerate the results of your team.

SmallBizLady: What is the role of a really good salesperson?

Amy Palmer: Your role as a salesperson is to INSPIRE that potential client to TAKE ACTION whether or not it includes doing business with you.

It all comes down to three necessary elements:
1. Letting go of your attachment to the results.
2. Stop focusing on yourself and truly focus on that other person.
3. The ability to step up and do what it takes to motivate another person.

SmallBizLady: How can you be an effective, top-performing salesperson without being perceived as “pushy” or aggressive?

Amy Palmer: Your relationship with that potential customer is a partnership- AND you are in the role of mentor.  Build Credibility, Empathy and Trust with the potential customer and they will see you as both a partner and advisor.  Sometimes you will have to tell them something they don’t want to hear. Sometimes you will need to be firm. Sometimes you will need to follow-up repeatedly. That’s your job. That’s what it takes to INSPRIRE someone to take ACTION. I never said it was easy- I only said it was authentic. And it truly follows the concept of selling = serving

SmallBizLady: What is the difference between “Attraction Marketing (Pull Marketing)” and having a sales plan?

Amy Palmer: Attraction Marketing will address those who are unaware of you and what you have to offer. By using your knowledge and content and offering it up freely to the mass public, you are providing value AND you are attracting those who are interested in your area of expertise.  The steps it takes between someone saying “I’m interested in your topic” and “I want to do business with you” are considered your SALES PLAN.

SmallBizLady: What does a Sales Process look like?

Amy Palmer: In a nutshell it is broken into the following steps:
1. Attraction Strategy- How do you bring people to you? How will your ideal client learn who you are and what you have to offer?
2. Connection Strategy- Once someone knows about you, what steps will you take to create a relationship? How does that relationship continuing in the form of follow up?
3. Conversation Strategy- How is your Sales Conversation structured? How do you present your product/service?
4. Service Strategy- How do you ensure happy customers? What is your process for asking for referrals?

SmallBizLady: How can you use attraction marketing in your sales plan?

Amy Palmer: Through social media and other online methods, it is now easier than ever to build a relationship with your audience. Attraction marketing is used heavily in your “Connection Strategy”- you need to have a campaign of value added items to share with your audience that enables them to get to know you and your offering. Blogging, ezines, teleclasses, webinars, livecasts, tweetchats, are all about building relationships. Where many people go wrong is that they fail to ever ask the audience to take the next step.  95% of your connection strategy is about giving and offering, 5% should include a request to take the next step if they are interested.

If you found this interview helpful, join us on Wednesdays 8-9pm ET follow @SmallBizChat on Twitter.  Here’s how to participate in #Smallbizchat http://bit.ly/S797e 

For more tips on how start or grow your small business subscribe to Melinda Emerson’s blog http://www.succeedasyourownboss.com.

Melinda F. Emerson, known to many as SmallBizLady is one of America’s leading small business experts. As a seasoned entrepreneur, professional speaker, and small business coach, she develops audio, video and written content to fulfill her mission to end small business failure. As CEO of Quintessence Multimedia, Melinda educates entrepreneurs and Fortune 500 companies on subjects including small business start-up, business development and social media marketing. Forbes Magazine named her #1 woman for entrepreneurs to follow on Twitter. She hosts #SmallBizChat Wednesdays on Twitter 8-9pm ET for emerging entrepreneurs. She also publishes a resource blog http://www.succeedasyourownboss.com Melinda is also bestseller author of Become Your Own Boss in 12 months; A Month-by-Month Guide to a Business That Works. 

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5 Things You Could Do Today to Generate a Sale

By on May 1, 2012 in Business Inspiration, Cash Flow & Finance, Grow Your Business, Melinda Emerson @SmallBizLady

Sales GrowthIt’s May.  That means it’s National Small Business Month and it’s time for you to get serious about your business.

Answer these questions about your business: Have you updated your business plan?  Are you using your business plan to run your small business?  Do you have monthly/weekly sales goals?  Do you know by the 15th of the month how well or poorly your business did last month? Are you doing 5 things before 11am each day to jump-start sales and revenue in your business? If your answer is no or not really try these:

Here are 5 things you could do today to generate a sale:

1)    Send an email to a recent customer (within the last two weeks) and ask for a LinkedIn or Yelp recommendation. Be sure to send the link in the email to make it easy for them.

2)    Call a contact that you met at a recent networking event to schedule coffee or a lunch appointment.

3)    Send a personal note to an old customer to check in on them.  Include an article of interest to them, too.

4)    Write a 300-500 word blog post for your business blog.

5)    Evaluate your accounts receivable to see if anyone is 30 days behind in paying you, and give them a call to find out payment status. While you’re on the phone with them, inquire about another order.

May is the busiest time of the year for me, and I have some great free resources for you from some of my corporate customers that will help you as you run your small business.

May 1:  Take a business course for free: I’m the lead instructor for Black Enterprise’s Small Business University: Register for the Small Business University NOW and learn how to build and grow your business! Plus enter for a chance to win more than $50,000 in prizes. It’s not too late to sign up today http://www.blackenterprise.com/sbu/

May 2: 7th annual New York XPO for Business at The Javits Center in NYC. I will be delivering a keynote speech: “Using Social Media to Engage Customers & Drive B2B Success!” My speech is from 4:00 – 5:00 PM. I will teach small business owners how to create a winning online marketing strategy. Register today before it’s sold out.  Here’s a BONUS! FREE 1-DAY XPO PASS REGISTER NOW = http://bit.ly/ubMH61 Promo Code = SPEAKER15

May 8: Live Tweetchat on Twitter Learn How to Build a Social Media Brand to Grow Your Small Business. Stay tuned for details.

May is going to be a great month for being in business. Check back at this blog daily for tools and resources to succeed as your own boss.

Melinda F. Emerson, known to many as SmallBizLady www.twitter.com/smallbizlady is one of America’s leading small business experts. As a seasoned entrepreneur, professional speaker, and small business coach, she develops audio, video and written content to fulfill her mission to end small business failure. As CEO of Quintessence Multimedia, Melinda educates entrepreneurs and Fortune 500 companies on subjects including small business start-up, business development and social media marketing.  Forbes Magazine named her #1 woman for entrepreneurs to follow on Twitter. She hosts #SmallBizChat Wednesdays on Twitter 8-9pm ET for emerging entrepreneurs. She also publishes a resource blog http://www.succeedasyourownboss.com Melinda is also bestseller author of Become Your Own Boss in 12 months; A Month-by-Month Guide to a Business That Works. http://succeedasyourownboss.com/products/purchase-the-book/

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How to Grow a Billion Dollar Membership Site QA

By on April 26, 2012 in Grow Your Business, Mompreneurs, Q & A Interviews, SmallBizChat, Women in Business, Your Small Business

Every week as SmallBizLady, I conduct interviews with experts on my Twitter talk show #SmallBizChat. The show takes place every Wednesday on Twitter from 8-9pm ET. This is excerpted from my recent interview with Alexis Maybank @giltfounder Alexis cofounded Gilt Groupe with her best friend Alexandra Wilkis Wilson. Gilt Groupe took only four years to take the fashionista crowd by storm, transform online shopping, and attract five million members and earn a $1 billion valuation.  Previously, Alexis was an early member of the eBay team and launched eBay Canada and helped launch eBay motors; She has a B.A. from Harvard College and an MBA from Harvard Business School. She has appeared on CBS-TV, CNN and other networks. She and her cofounder recently authored BY INVITATION ONLY: How We Built Gilt and Changed the Way Millions Shop (Portfolio; 2012) www.giltfounders.com Alexis shares tales from her wild ride of launching a hyper-growth startup.

 

SmallBizLady: Gilt Groupe took both the fashion and e-commerce industries by storm with such a simple idea.  How did you do it?

Alexis Maybank: My partner and I were inspired by the popularity of New York’s designer sample sales, and we wanted to make this popular local pastime available online to customers throughout the US.  Gilt Groupe was designed to offer highly coveted fashion labels at insider prices to a passionate group of consumers. Today we’ve evolved to become a website selling diverse luxury lifestyle products to customers around the world.

 

SmallBizLady: In just 4 years you attracted 5 million members and a $1 billion valuation. What is it that sets Gilt Groupe apart?

Alexis Maybank: The most critical factor contributing to our success was its founding team. In addition, we enlisted the industry’s leading and most coveted brands to sell on our site, for the first time sought to curate the best of a season or collection and not feature everything, tapped cutting edge viral and social marketing techniques to scale the customer base quickly, and used leading site creative to cultivate a leading luxury brand online.

 

SmallBizLady: Common advice is to never go into business with friends or family, but you have turned that on its head.  How has it worked for you?

Alexis Maybank: In a startup, it is absolutely critical to be able to trust and rely on your co founders and/or team. If you are considering going into business with a friend or family member, you are likely to put a lot on the line. It is important to communicate. Lay out any potential issues or concerns on the table and talk about them in detail. We did this because people told us to have these discussions, but we were never all that concerned about working together. It is important to think about the context of your friendship. In our case, we were friends from business school, so we had seen each other’s work ethic and drive in action, and we were familiar with each other’s basic business acumen. Most important, we each had seen the other at our best and worst and knew we would not encounter any surprises as we hit the inevitable highs and lows any start-up faces as it grows. Our confidence and trust in each other was absolute.

 

SmallBizLady: You talk about relationships and execution being keys to your success. Why are these two factors so important?

Alexis Maybank: Relationships were absolutely critical to the success of Gilt. Our relationships with the fashion community were necessary in convincing brands to sell their wares on Gilt. Our relationships with friends were important because they helped to form our early base of members and customers of the site. Our relationships also enabled us to find and recruit top talent in all functional areas, from merchandising to marketing to operations technology and finance.  Execution is key; ideas are cheap.  We knew that we needed to execute our vision better than our competitors, and we started having competitors enter our industry very quickly.

 

SmallBizLady: Gilt Groupe’s success was largely built during the recession. What advice do you have for someone starting their business in this economy?

Alexis Maybank: There is no better time than now to pursue an idea you are deeply passionate about, and in fact there are many sources of financing available now to would-be-entrepreneurs. If you have an idea, here are some things that you might consider in determining if now is the right time to pursue it. First the idea should be easy for you to explain in one sentence to a friend or colleague.  Second, does this concept exist in any shape or form already? Why or why not? Take an honest look at the marketplace. Who else is out there? Has someone already tried this and failed—and if so, why? Have times changed? Sometimes an idea can be too ahead of its time and advanced for the market. Importantly, can you test your idea before overinvesting, just to make sure? These days the best way to make sure that the time is right for your idea is to get it out there and see what people think. Getting customer feedback from the start will help you build a better product, one that will maximize your investment.

 

SmallBizLady: In your book you discuss the value of naysayers especially early on in building the company.  Can you explain their value? 

Alexis Maybank: Don’t get discouraged by the people who tell you your idea will never work. Instead listen to them and see if you can apply any of their thinking into refining and improving your strategy. If you can anticipate pitfalls and those hard questions you will get from investors and partners alike in advance and more importantly be ready with great, well-thought-through answers, then you will be better equipped for the challenges ahead.

 

SmallBizLady: With the tech industry still being predominantly male, what are some of the unique challenges you faced getting started? 

Alexis Maybank: We launched a business initially targeting female customers; in fact we were precisely the target demographic. This was very clearly an advantage as we understood the consumer mindset better than anyone. Beyond that it can be more challenging raising money as a woman. Women led 28 percent of all U.S. businesses in 2002. Yet female entrepreneurs historically receive less of the invested dollars coming from venture capital firms, estimates are as little as four to nine percent.  So while this is clearly a challenge, keep in mind that as a female you are more likely to be a more memorable party pitching the partnership as there are not as many women to walk through there doors to begin with!

 

SmallBizLady: Entrepreneurs think that venture capitalists invest in ideas, but you argue they really invest in people.  So what makes them want to invest in someone? 

Alexis Maybank: Because there’s so little due diligence that can be done on most new start-ups, it’s natural that VCs concentrate most on the team involved. Many investors like to see a track record of success and will use this to guide them. Drive, ambition, leadership potential, integrity and the ability to motivate others are also important traits for an entrepreneur. You need to focus on the background and skill sets of the key team members in order to convince investors that you are the right team to back.

 

SmallBizLady: Growth is something all small business owners work towards, but growing too quickly can be detrimental.  How can this be avoided?

Alexis Maybank: There are two areas where you see companies suffer when growing too rapidly. The first is not anticipating the right type of people they will need to lead various teams or functions, hiring them too late or making the wrong choices in hiring.  Hire fast enough, but do not over-hire, and invest in recruiting the right talent so you do not have to rehire later, which is often a time consuming and sometimes costly mistake.  Second, if you grow too rapidly and are not investing enough in making sure your business infrastructure is strong enough then you can find yourself ground to a halt when the site crashes, the orders outpace what you can ship out in an acceptable time, or your accounting systems fail and lead to detrimental errors in expense reporting or others. Try to anticipate what could “break” next and get rigorous as a team in shifting focus fast enough to address these problems.

 

SmallBizLady: What advice can you offer for how to spot a trend that could reinvent an industry?

Alexis Maybank: There are no simple formulas here.  However if you are intimately familiar with an industry or a customer group, and you recognize a really tough problem that is universally faced or a so-called pain point that confronts all, and you have a pretty good solution that you could introduce or build better than the existing alternatives, then you are probably on to something important.  Some of these problems could have been left for dead or abandoned, and sometimes people need to just take a fresh look at them.

 

SmallBizLady: Can anyone transform a personal passion like shopping into a business?
Alexis Maybank: Not all personal passions should be transformed into a business, but if you think that your passion has a viable market, then explore it, and perhaps find someone who could join you in your venture. We believe doing a start-up with someone you trust is so much more rewarding and fun than going at a business alone.

 

SmallBizLady: What role should style play in a professional woman’s career?

Alexis Maybank: Style is important, not only in terms of looking well groomed and put together in a manner true to who you are as a person, but more importantly personal leadership style. In the book we discuss differences in leadership styles. Not every approach will work for every woman, but over time one can hone in on what feels natural and what is effective in reaching your goals and standing out amongst the crowd.  If you are true to your nature in presentation and style, then you feel most comfortable, and are inevitably at your most confident – the key ingredient to true style.

 

SmallBizLady: Gilt Groupe has since expanded beyond fashion with sister sites such as Jetsetter.com for travel and GiltCity.com for local deals and finds.  Was this always part of the plan?

Alexis Maybank: We have always been close to our customers. We both spend a lot of time with our members, listening to their perspective and ideas and responding to their feedback, as well as investing in regular customer research. Our members communicated clearly that they were not only interested in fashion and decorative items, but they lived or aspired to live a luxury lifestyle which included travel, local experiences, food and wine. We incorporated this feedback into our business and our offerings.

 

SmallBizLady: What are some tips you can share to help people maintain their corporate culture during major company growth?

Alexis Maybank: It is not always easy to maintain a corporate culture as a company grows, but it is important and is absolutely worth the investment. Establishing a vision and a mission and regularly communicating them to the employee base and to potential hires is important. Think about company culture when hiring. The cultural fit for a candidate is just as important, and sometimes even more important, than the candidate’s skill set.  The best way to select individuals who fit your company’s culture is to include employees in the hiring process who embody the culture and are really good at vetting for certain values in the hiring process.  Make sure they are involved in training new hires, too.  You can even do something as simple as hosting lunch or after-work cocktails.  No matter what however, the company’s culture will always be a reflection of the leader or leadership. So you must lead based on what you value culturally.  Any disconnect will lead to a shift, even if not intended.

 

SmallBizLady: What challenges is Gilt currently facing and what are you doing to overcome them?

Alexis Maybank: Our site has always centered on the excitement of fresh inventory daily at insider prices and our customers know we have selected the best of the best from a collection or a designer, so they don’t have to look at everything or spend hours shopping.  It’s a simple, fast and fun experience that revolutionized online shopping.  As we grow into more lifestyle categories and offer hundreds of sales weekly now, we must focus on keeping the shopping experience as exhilarating, speedy and entertaining. This means we have to invest heavily in anticipating what each customer wants to shop for when s/he visits our site.  People want to see the 15 sales best for them – not everything — and feel ‘wow, Gilt really knows me.’  Therefore we are investing in understanding people’s preferences and shopping patterns so that we can deliver the most personalized shopping experience on the web to each person and allow her / him to discover the right products quickly.

If you found this interview helpful, join us on Wednesdays 8-9pm ET follow @SmallBizChat on Twitter.  Here’s how to participate in #Smallbizchat http://bit.ly/S797e 

For more tips on how start or grow your small business subscribe to Melinda Emerson’s blog http://www.succeedasyourownboss.com.

Melinda F. Emerson, known to many as SmallBizLady is one of America’s leading small business experts. As a seasoned entrepreneur, professional speaker, and small business coach, she develops audio, video and written content to fulfill her mission to end small business failure. As CEO of Quintessence Multimedia, Melinda educates entrepreneurs and Fortune 500 companies on subjects including small business start-up, business development and social media marketing. Forbes Magazine named her #1 woman for entrepreneurs to follow on Twitter. She hosts #SmallBizChat Wednesdays on Twitter 8-9pm ET for emerging entrepreneurs. She also publishes a resource blog http://www.succeedasyourownboss.com Melinda is also bestseller author of Become Your Own Boss in 12 months; A Month-by-Month Guide to a Business That Works.

 

 

 

 

 

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Are You Doing Your #1 Job as an Entrepreneur

By on April 23, 2012 in Business Inspiration, Grow Your Business, Melinda Emerson @SmallBizLady

Your skills as an entrepreneur can make the difference between a booming enterprise and closing your doors far too soon. Your #1 job as a small business owner is to sell. Your job is to motivate, inspire and convince customers, potential investors, and often family that your business idea is worthwhile. It typically requires passion for your project, a coherent message, and most importantly, a confident delivery of that message. This can be a tall order if you don’t have a sales mindset. Do you have discomfort speaking to strangers? Are you unable to convey enthusiasm about your business? If you have a tough time getting into the sales mode, your solution might be to hire or partner with someone and let them do the selling, but then you can get into a mine-field of issues around control of your message.

How do you build your sales confidence? First, you need to understand where you are today. If your venture is a side-hustle in addition to a main job, and your business passion is on “low” and you just want to keep working your flea market stand, or selling cosmetic products to friends, you probably are where you want to be from a sales energy standpoint. The stakes grow considerably, however, if your venture is a full-time effort. The pressure to generate enough revenue to support yourself and your family will make you become laser focused on selling. Not to mention, if you have goals to grow your enterprise, this means a stepped up selling effort, too.

The Flawless Pitch – First you want to create a “flawless pitch”, telling your company’s story in one minute or less – what you do or sell, who you specialize doing it for and what makes your business special. For example “My name is Bob and I own Bob’s garage. We specialize in the repair and maintenance of luxury car transmissions at far less than dealer prices and all work is guaranteed”. You have a story to tell both potential customers and prospective investors which will get them to ask “Tell me more”.

Give it a Test Run – Practice is not just for baseball and dance class. You need to practice your pitch in the mirror, with your family and friends, and with anybody else who will listen. Ask for hard questions and honest feedback.  This will keep you from looking foolish later. If you open a dry cleaning store, and a customer asks you about the chemicals you use for cleaning, you should be informative and give that customer good reason to do business with you. In the restaurant business it is about tasty, quality food, well presented in a clean environment. As proprietor, you and your staff will be touting signature dishes, great service, and satisfying portions giving customers great reasons to return by delivering on what you promised. People need and want to be convinced to buy stuff. You must be able to tell them why they should buy from you.

People should be able to feel your passion – Your enthusiasm and positive spirit are absolutely essential to selling. Whether you are selling to customers, selling your business concept to potential investors or ­­­­trying to borrow money from your local bank, don’t minimize the excitement of your passion for your business and your absolute belief in its success. If you are short on enthusiasm for your enterprise, you need to take a hard look at whether being in that business is for you. Your ability to sell is key.  Introspection today should set your expectations for tomorrow.  Once you get the hang of power selling, closing a sale will be thrilling and more fun than work.

Do you have more ideas to get over the fear of selling?

Melinda F. Emerson, known to many as SmallBizLady is one of America’s leading small business experts. As a seasoned entrepreneur, professional speaker, and small business coach, she develops audio, video and written content to fulfill her mission to end small business failure. As CEO of Quintessence Multimedia, Melinda educates entrepreneurs and Fortune 500 companies on subjects including small business start-up, business development and social media marketing. Forbes Magazine named her #1 woman for entrepreneurs to follow on Twitter. She hosts #SmallBizChat Wednesdays on Twitter 8-9pm ET for emerging entrepreneurs. She also publishes a resource blog http://www.succeedasyourownboss.com Melinda is also bestseller author of Become Your Own Boss in 12 months; A Month-by-Month Guide to a Business That Works.

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12 Bible Verses Every Small Business Owner Needs For 2012

By on April 9, 2012 in Business Inspiration, Grow Your Business, My Recommendations, Women in Business

I normally do this post at the top of the year, but I was inspired to wait until now.  With Easter upon us, I though this post would be particularly meaningful at this time of year.   My religious theme for 2012 is, “Either I win or I learn, but with God’s help I never lose.”

I pray that you are inspired by God’s word.  Your faith in yourself and your business are key to your long-term success. Starting a small business is a spiritual journey. You should pick a verse that will inspire you. I thought it would be helpful to share some of my favorites. Use these bible verses in the good and tough times in your small business.

  1. Deuteronomy 8:18 NIV But remember the LORD your God, for it is he who gives you the ability to produce wealth, and so confirms his covenant, which he swore to your ancestors, as it is today.  All of our skills and special talents that we use in our businesses are all given to us by God.  He gives us the ability to make money and cut deals.  He did it for our parents and mentors and he does it for us too.
  2. Romans 12:2 NIV Do not conform to the pattern of this world, but be transformed by the renewing of your mind. Then you will be able to test and approve what God’s will is—his good, pleasing and perfect will.  The bible commands us to be innovative in our businesses. We should not ever try to be like anyone else. The world is still waiting on a better mousetrap, and we should never rest on our successes. We must renew ourselves by being lifelong learners and reading constantly.
  3. I Thessalonians 5:16-19 NIV Be joyful always; pray continually; give thanks in all circumstances; this is the will of God for your life.  It is important to have a prayerful life as an entrepreneur; it will help you on those days when things do not go your way.  You need to have the strength to thank God, even when you do not win that big contract. God protects us when we do not get opportunities that we think we can’t survive without. Always be grateful.
  4. Proverbs 16:18 NIV Pride goes before destruction, a haughty spirit before a fall.  Many entrepreneurs struggle with pride. Do not be afraid to tell clients or employees that you do not know the answer. Try to diffuse any issues with truth and by taking full responsibility for fixing the problem.  Never let your ego get in the way of doing what’s in the best interest of your business.
  5. II Corinthians 9:8 NIV And God is able to bless you abundantly, so that in all things at all times, having all that you need, you will abound in every good work. God always delivers to us what we need in order to do our best work.  Sometimes he sends a check we need just in time, and other times he sends us creativity to find the best solution to our challenges. Trust in the Lord at all times.
  6. II Timothy 1:7 NIV For the Spirit God gave us does not make us timid, but gives us power, love and self-discipline. Fear is the enemy of entrepreneurship. God wants us to go out with the power he gives us to pursue our ideas in business.
  7. Hebrews 12:11 NIV No discipline seems pleasant at the time, but painful. Later on, however, it produces a harvest of righteousness and peace for those who have been trained by it. You must be fiscally disciplined in business. You cannot put all your hard work at risk by not being focused on your big picture goals and your monthly sales goals. It is painful at times, but it will produce quite a harvest.
  8. I Corinthians 9:24 NIV Do you not know that in a race all the runners run, but only one gets the prize? Run in such a way as to get the prize. Running a business is hard. It’s a marathon not a sprint. There will be plenty of stumbling blocks in your way. Everyone trips and falls while running this race, but winners get up faster than everyone else. You must do what you need to do to win your race.
  9. Mark 5:36 NIV Overhearing what they said, Jesus told them, “Don’t be afraid; just believe.” There will be times when you are the only person who believes in your business dream. Don’t be afraid. Believe in yourself and your business idea.
  10. Ecclesiastes 11:4 AMP He who observes the wind [and waits for all conditions to be favorable] will not sow, and he who regards the clouds will not reap. You must be willing to make decisions in your small business. No one is going to come along and do it for you.  Make hard decisions quickly, so you can move on to doing the work needed to help your customers.
  11. Proverbs 11:14 NIRV Without the guidance of good leaders a nation falls. But many good advisers can save it. It is critical to have a kitchen cabinet of advisors for your small business. Your business will not survive on your experience alone. Pull together four to five people who are invested in your success. The group should include an existing entrepreneur, a customer, a mentor, a lawyer and a accountant. Seek out a mastermind group or peer to peer mentoring program to help as well.
  12. Philippians 4:13 NKJV I can do all things through Christ who strengthens me. Whenever you struggle with your self-confidence read this bible verse to yourself.  There will be times in your business when you need to force yourself to stretch beyond what you think is possible. You can do it. I believe in you.

Do you have any other bible verses that inspire you? Please share.

For more tips on how start or grow your small business subscribe to Melinda Emerson’s blog http://www.succeedasyourownboss.com.

Melinda F. Emerson, known to many as SmallBizLady is one of America’s leading small business experts. As a seasoned entrepreneur, Melinda Emerson "SmallBizLady"professional speaker, and small business coach, she develops audio, video and written content to fulfill her mission to end small business failure. As CEO of Quintessence Multimedia, Melinda educates entrepreneurs and Fortune 500 companies on subjects including small business start-up, business development and social media marketing. Forbes Magazine named her #1 woman for entrepreneurs to follow on Twitter. She hosts #SmallBizChat Wednesdays on Twitter 8-9pm ET for emerging entrepreneurs. She also publishes a resource blog http://www.succeedasyourownboss.com Melinda is also bestseller author of Become Your Own Boss in 12 months; A Month-by-Month Guide to a Business That Works.

 

 

 

 

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How to Grow An Online Business QA with Andrew Davis

By on April 5, 2012 in Grow Your Business, Q & A Interviews, SmallBizChat

Every week as SmallBizLady, I conduct interviews with experts on my Twitter talk show #SmallBizChat. The show takes place every Wednesday on Twitter from 8-9pm ET. This is excerpted from my recent interview with Andrew Davis @CPC_Andrew .  Andrew is Author of the Merchant Comparison Shopping Handbook and the Director of Marketing for CPC Strategy, an online retail strategy consultant for retailers and agencies. You can contact Andrew directly at andrew@cpcstrategy.com 

SmallBizLady: What do small businesses need to know before setting up an online store?

Andrew Davis: Before setting up your online store you need to establish your niche and product line. Research needs to be done here. The clothing industry: Huge but there’s a lot of browsing online (low conversions, hard to start paid marketing campaigns) and a ton of online retailers who are already in this space. Unless you’re making really unique, cool, and trendy garments that you know will catch on, it’s probably not the right place for you to be.

You also have to be prepared for the technical resources involved in setting up an online store. Picking a platform, payment systems, tracking clicks and sales, monitoring your SEO efforts and social media profiles are all part of the online retail picture today. Without a knack for technology or a passion to learn it quickly you’ll soon be overwhelmed.

Prepare to learn how to use social media to it’s full potential, it’s becoming more interconnected with search, SEO, traffic, and sales generated by your website.


SmallBizLady: What are some DIY shopping cart solutions?

Andrew Davis: I would suggest ecommercetemplates. Very flexible, affordable and allows you to do your own customizations. Another choice is AspDotNetStoreFront, they’re a little more expensive. There’s also assisted avenues to go through first to help you get your feet on the ground and start selling. Ebay, Amazon and Etsy are a few of the most popular. I’d look at Magento as well. It’s an open source platform that has a ton of flexibility.
SmallBizLady: Does your shopping cart need to have a function to set up a store on Facebook?

Andrew Davis: No, but prepare to have a Facebook page sooner than later to at least use it as a marketing tool. If you’re interested in more info on Facebook commerce I suggest you check out this blog by a great ecommerce writer Linda Bustos on the 7 dimensions of Facebook Commerce http://www.getelastic.com/7-dimensions-of-facebook-commerce/
SmallBizLady: Is Paypal a viable way to collect money or do SMBs need a separate online merchant account?

Andrew Davis: There’s nothing wrong with using Paypal to get started. It’s a trusted payment system and will integrate with your site quickly. Some other options to consider is implementing Google Checkout / Google Wallet and Amazon Checkout so users with accounts on those popular sites can check out with easy.

Make sure you set up your merchant services and gateway through a local bank. You can also search for an authorize.net gateway reseller.
SmallBizLady: How should I design my site?

Andrew Davis: Work with a web designer who’s experienced in ecommerce to develop the look and feel of your site. User experience is KEY. Not what you think looks good. You want to make it as easy as possible for a user to use, navigate, and checkout on your site. After this is set up, test, test test. I’d check out http://unbounce.com for help testing landing pages and providing analytics you can extract to make informed decisions about your product page designs moving forward. Testing is key!
SmallBizLady: How do I record sales?

Andrew Davis: Besides your accounting behind the scenes, I highly recommend using Google Analytics as a free Analytics tool to track user metrics and conversions. Be sure to install the ecommerce pixel portion of Google Analytics and learn how to tag your product URLs with appropriate tags.


SmallBizLady: Once an online store is set up how should I promote it?

Andrew Davis: SEO, SEO, SEO, social media, social media, social media. These avenues will be the foundation of all revenue streams, even paid marketing channels. Start there first and really throw yourself and your team into getting a solid SEO strategy built out first. Listen to Gary V in the video above – he knows consumer trends better than anyone. If you market like him you’re going to be successful.

 

SmallBizLady: How do I stay ahead in the ecommerce industry?

Andrew Davis: Here are some industry experts and websites that will help you keep up with all the latest SEO and online marketing trends:

 Here’s some great websites to follow as well.

  •  SEOmoz.org
  •  GetElastic.com
  •  SearchEngineWatch.com
  • SearchEngineLand.com
  • Unbounce.com/blog
  • Distilled.net/blog

 

SmallBizLady:  How do I grow my online business?

Andrew Davis: Scale is so important for small businesses. The big guys (Walmart, Best Buy, Target) have already solidified their positions online and are able to scale with ease. You need to be prepared at the beginning to suffer some losses in short term revenue to invest in the long-term health of your business. Develop a strategy that embodies grabbing market share rather than short term profits and you’ll be in for a fun ride. It’s a hard line to walk when you’re a small business owner, but it’s important to understand if you want to bring your small business to the next level. SEO is the main area where you need to learn how to scale. Interns, outsourcing, family members, friends, all can be used to help you develop your social network and content creation strategy faster, which pays off in the long run.

 

SmallBizLady: How do I become more efficient in my online business?  

Andrew Davis: Efficiency in online retail comes from the tools you use. It’s going to be important to have a centralized area where you can discuss key tasks with your employees, like through a private Facebook group or Google+ circle.

That could actually be an interesting way to incentivize your employees to use Google+ more, which sends signals to Google that help with SEO. Other interesting tools and skills that can help speed up your efficiency are:

  •  Ghostery for finding out what tools and programs your competitors use (Chrome plugin)
  • Boomerang for Gmail
  • StayFocusd for Web Browsing (Chrome plugin)
  • Google Docs
  • Microsoft Excel / Access proficiency
  • HTML
  • CSS
  • In Design
  • PHP
  • Copywriting (so much SEO is about social media and blogging these days it’s important to understand each from a psychological standpoint, i.e. how to communicate to your audience, and from a work standpoint, i.e. how to achieve the goals with social media and blogging that you want to achieve)

Don’t be afraid to outsource menial tasks overseas. It’s not your best use of time to focus on repetitive, time consuming tasks. If you think you can outsource it and do it fine, do it, so you can focus on more high level strategy and project execution.

With online retail, it’s most important to know when to scale and how. You want to keep moving up. Some online retailers take over a niche or establish a certain market share but don’t know how to move up to the next level.

Start small, but make sure you consult with others more experienced on when and how to scale. This is also very important for online marketing strategy. You may think you know the best way to do something, but find out 6 months later a different way would have been better and saved you time.

Don’t be afraid to ask for help and soak up knowledge. Attend a conference or two. Some are free for online retailers.

How to Make Your Employees More Efficient:

You’ll want to incentivize your employees to achieve key goals in your business. For example, want a higher conversion rate? Give a bonus to your web designer if it goes up by X percentage points.

Want a bigger social media presence? Do the same.

Also, make sure each employee is in the most efficient spot for use of their talents. You as the head will be wearing many different hats, but you don’t want a web designer doing PPC, and you don’t want a data guy making design decisions. Everyone’s opinion counts, but know who’s best suited for what in your company.


SmallBizLady: How much upfront money do I need to get started?

Andrew Davis:  This depends on your category. You can get started for around $5k but be prepared to use $10k – $15k within your first year of operation if you want to make some steady growth. Growing your ecommerce store is all about investing for the long term upfront. Landing page testing increases your conversion rates which makes all other marketing initiatives more efficient. SEO should be the backbone of these marketing initiatives to test your landing page and refine your site before moving into paid marketing channels. Remember, paid marketing channels will give you quick money, but you can easily overspend and it can get out of control. And more important, paid traffic is not as good for the long term health of your business as is SEO. Think long term, control your niche, prove to Google that you are the expert in your field for your products (show them why with your content, videos, customer service strategy, etc) and Google will reward you with lots of organic traffic.

 

SmallBizLady: Anything else I need to know before I get started?

Andrew Davis:  Prepare to use email marketing to it’s full potential. Coupons are important as well. Shoppers want to feel like they’re getting a deal. You’ll be collecting the contact information of any user that completes a sale on your site, and that’s some of the most valuable data you’ll have. Work on increasing the lifetime value of these customers by sending them coupons and just saying ‘thanks’ for being a customer.

If you want a real world example of an online retail store that really knows how to treat a customer, check out www.heartypet.com.

 

If you found this interview helpful, join us on Wednesdays 8-9pm ET follow @SmallBizChat on Twitter. Here’s how to participate in #SmallBizChat: http://bit.ly/S797e

For more tips on how start or grow your small business subscribe to Melinda Emerson’s blog http://www.succeedasyourownboss.com.

Melinda F. Emerson, known to many as SmallBizLady is one of America’s leading small business experts. As a seasoned entrepreneur, professional speaker, and small business coach, she develops audio, video and written content to fulfill her mission to end small business failure. As CEO of Quintessence Multimedia, Melinda educates entrepreneurs and Fortune 500 companies on subjects including small business start-up, business development and social media marketing. Forbes Magazine named her #1 woman for entrepreneurs to follow on Twitter. She hosts #SmallBizChat Wednesdays on Twitter 8-9pm ET for emerging entrepreneurs. She also publishes a resource blog http://www.succeedasyourownboss.com Melinda is also bestseller author of Become Your Own Boss in 12 months; A Month-by-Month Guide to a Business That Works. 

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How to Get New Customers Part II

By on April 3, 2012 in Branding & Marketing, Grow Your Business, Melinda Emerson @SmallBizLady, Starting A Small Business

There are numerous ways of getting new customers but not all methods are applicable to all businesses. I also need to remind you that getting repeat business from your existing customers is far easier than attracting new customers, but it is important to have a strategy for getting new customers in the door. In Part 1 of this series, I provided a philosophy and an approach for obtaining more business. Choosing your best customer acquisition strategy will be driven by why your customer is buying, their purchase frequency, and how they collect purchase information. In Part 2, the focus is on specific strategies and tactics to create a stampede in your small business.

Here are 7 strategies for getting new customers:

  • Start advertising: You want customers to know you exist – If you have a storefront business that depends on local customers. Consider investing in local online advertising, direct mail, flyers, or local penny-saver ads. You can also do pay per click ads online too. Use calls to action in each advertising initiative to get prospects to contact you. Do not start any advertising program that you can’t maintain for at least six months.
  • Start building a prospect list. One of the key ingredients in a business is having an active prospect list.  One of the best ways to build your list is through your website.  You should have 3-5 ways to engage web visitors to get them to give you their contact information. Create a coupon or giveaway from your website. It could be a special report, free chapter of a book, or audio interview, a 10% off coupon, a free estimate or a giveaway for the first X number of new customers who download the giveaway.
  • Launch a public relations campaign: Your PR campaign should have a story behind it.  The fact that you open your doors is not compelling enough.  Consider having a PR tie-in a local charity, cause or group. For example, my neighbor got a front-page story in our local community paper as a donor of care packages in support of our troops. The article also highlighted her business and her contact information. You can always donate a portion of net proceeds to charity and get a tax write-off too.
  • Use incentives: Give your current customers referral incentives – everybody likes a deal. If an existing customer gets a special discount, cash, or free stuff for recommending a new customer to your business, it creates a winning situation for everyone. Interestingly enough, when you give a surprise benefit to an existing client, like a free pizza after so many purchased or a “no charge” for a regular dry cleaning customer, or free shipping and a discount on future business, customers tell others about these unexpected bonuses.
  • Develop a social marketing strategy: – Like it or not, we are in a digital age and ignoring free marketing tools, such as social networking sites is just plain foolish. You must be googleable! It used to be that all you had to do was build a website, now you need a blog and to have a social media footprint to go with it. No one uses the yellow pages any more. It is pretty common that if we want to know anything about anything we go to the internet. If your business is not there, it can really impact your visibility. Read, read, read and seek out a professional to get you started with social media marketing. Check out my book “Become Your Own Boss In 12 Months” to get more insights on building an online brand.
  • Use Success By Association – Become a part of your industry trade organization, local Chamber of Commerce, Rotary Club, community service organizations, and other groups both local and national. My active membership in the National Speakers Association led to some outstanding business contacts for me. It is very satisfying to learn from peers and fellow business owners.
  • Create recognizable value – If you are in a business where you can provide informational value through articles or newsletters that provide tangible customer benefit, it can lead to getting a new customer and development of a “following”.  Media is always looking for content to sustain itself and to grow. If you have a message of interest, write an article for your local media outlet, notify your local TV or radio station about your unique business and the benefit it brings. Don’t keep your  better mousetrap a secret.

Getting the word out about you and your business will take planning and hardwork and you will sell your faith in your enterprise. It is not always easy to do, but persistence will get you to success.

Do you have any other tactics to share on getting new customers?

Enter the #SMBSolidInk Twitter Sweepstakes! Your Chance to Win a New ColorQube 8700 for Your Small Business! Follow @Xeroxoffice for details http://bit.ly/HsA9Xt

For more tips on how start or grow your small business subscribe to Melinda Emerson’s blog http://www.succeedasyourownboss.com.

Melinda F. Emerson, known to many as SmallBizLady is one of America’s leading small business experts. As a seasoned entrepreneur, professional speaker, and smallMelinda Emerson "SmallBizLady" business coach, she develops audio, video and written content to fulfill her mission to end small business failure. As CEO of Quintessence Multimedia, Melinda educates entrepreneurs and Fortune 500 companies on subjects including small business start-up, business development and social media marketing. Forbes Magazine named her #1 woman for entrepreneurs to follow on Twitter. She hosts #SmallBizChat Wednesdays on Twitter 8-9pm ET for emerging entrepreneurs. She also publishes a resource blog http://www.succeedasyourownboss.com Melinda is also bestseller author of Become Your Own Boss in 12 months; A Month-by-Month Guide to a Business That Works.

 

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How Do I Get New Customers Part 1

By on April 2, 2012 in Branding & Marketing, Grow Your Business, Melinda Emerson @SmallBizLady, Starting A Small Business

So often I am asked about how to get new customers that I decided to develop a two part series on the topic.  

No customers, no business. A simple and obvious fact, which leads new business owners to ask the question “How do I get customers to see and buy from my business?” The first question to ask yourself is:  Who are your customers and how do they like to buy the kind of products you’re selling? You want to be able to see the “face” of your primary customer. Is it a child, teenager, senior citizen, a techie, “do-it-yourself” person, a woman, a man, or some other demographic? If your target customer is Hispanic, it would not make much sense to advertise your product in an Irish magazine or Jewish website. Knowing your target customer lets you tailor your message to who’s buying.

Is your business a “brick and mortar” storefront? Online? Industry specific? Are you selling pizza, hats or doing software consulting? Your approach to creating “buzz” for your enterprise will vary in each case. If I am selling pizzas, I’ll advertise locally via the web and direct mail to announce specials, offer coupons, and give great friendly service. This business is built on the perception of competitive value-pricing, tasty meals, and ease of ordering on-line or by phone. Your likely customer will be within a few miles of your store and wants quick pick-up or available local delivery. Specials will get new customers in the door, but quality, value and taste will bring them back and get them to tell their friends. Having an online presence is important because it makes it easier for customers to order and to see all of your menu items.

If you are selling hats, you have several marketing options. You can offer hats online showing a variety of styles, perhaps with a buy-one get-one 50% off and free shipping. Consider partnering with local women’s organizations on fashion show fundraisers where you offer a discount on the hats shown. Or you can partner with a local boutique to help them accessorize their outfits — with special prices on your hats.

If you are developing a software consulting business you must position your business carefully. How unique are your programming skills? How much demand is there for what you know? Is a business built on reputation, contacts, networking or SEO? You must have a very targeted audience. You might start by creating a website and brochure outlining your skills and experience and distribute it to your network of contacts online and offline. Look through Information Technology magazine want ads to look for good matches to your qualifications. Sometimes a company looking for an employee might be willing to outsource the services to a company instead.

The underlying philosophy in getting new customers is trying to get them to buy when they have a need or are “in market.” We are “in market” for groceries when we run out of food, or for a new washing machine when the old one finally breaks down, or for another car when the cost to fix our current car is just not worth it anymore. The key is the right offer at the right time to increase the chances that customers will call or come in ready to make a purchase. Some offers must have a seasonal flavor, you don’t sell snow shovels in July, some are timed to days of the week – 30% off on Tuesday or after 3pm, restaurant deals for slow mid-week periods geared to seniors for example. It is also true that sometimes a customer being “in market “ is dependent on future plans for example a home renovation, creating a web site, deciding to plant a garden, to join a gym, or take a vacation. All of these activities typically mean that money is going to be spent and not surprisingly, cost-conscious customers still want that great deal. Now that we have covered the framework for getting new customers, Part 2 of this series will get into specifics of attracting new customers. Remember, choosing your best customer acquisition strategy will be driven by why your customer is buying, their purchase frequency, and how they get their purchase information.

Do you have any ideas to share about how to get new customers?

For more tips on how start or grow your small business subscribe to Melinda Emerson’s blog.

Melinda F. Emerson, known as SmallBizLady is one of America’s leading small business experts. As a seasoned entrepreneur, professional speaker, and small business coach, she develops audio, video and written content to fulfill her mission to end small business failure. As CEO of Quintessence Multimedia, Melinda educates entrepreneurs and Fortune 500 companies on subjects including small business start-up, business development and social media marketing. Forbes Magazine named her #1 woman for entrepreneurs to follow on Twitter. She hosts #SmallBizChat Wednesdays on Twitter 8-9pm ET for emerging entrepreneurs. She also publishes a resource blog http://www.succeedasyourownboss.com Melinda is also bestseller author of Become Your Own Boss in 12 months; A Month-by-Month Guide to a Business That Works.

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How to do Facebook Ads for Business

By on March 20, 2012 in Branding & Marketing, Grow Your Business, Social Media

 

On Facebook, 850 million people spend more than 350 minutes a month hanging out online. To some, it may be how they keep in touch with college friends, the way new moms share photos with family, or where sports fans go to cheer on their team and connect with other fans around the world. To businesses, it’s more than just a communication tool–it’s a goldmine. Businesses have the opportunity to create a Facebook Page where they can interact with their customers, provide product information, offer promotions, and gain valuable customer feedback. Facebook ads are becoming a major marketing channel for small businesses.

The user information that Facebook provides is data that businesses and marketers have dreamt about for decades. All of the information that determines a business’s demographic is being handed out on a silver platter when a Facebook account is created. Name, age, gender, geographic location, birth date, political opinion, religious view, marital status, place of work, college, college major, high school, friends, likes and interests are the advertising treasures that make the Facebook Ad’s platform unique. As business owners we are able to target campaigns to any and all of the profile characteristics that pertain to our specific target customer. This allows for more quality leads.

Facebook Ads operate using the cost per click (CPC) model, similar to Google AdWords. When running ads in Facebook you have the option to direct people to a business brand page within Facebook, or to an external website. When using ads within Facebook, you have custom opportunities that you can only take advantage of within Facebook. Opportunities include running a sponsored story, an ad for a Facebook Event, a specific post, application, contest, or video. This allows for marketing creativity and the use of an ad to coincide with a current social promotion.

There is also a major value here that a search engine can’t provide- the social reach. This is a feature that associates ads that run with users that have interacted with that brand or business on Facebook. The social reach brings us to the value of a friend’s opinion and word of mouth recommendations in 2012 purchasing. Those features are the clear picture of two marketing mediums working together for a better user experience.

Paid Ads + Social Intelligence = Smarter CPC

 

The above images display the social feature that Facebook incorporates into their ads and the role that a friend referral for a business plays in Facebook marketing

5 Areas to Focus on When Setting Up Facebook Ads

  • User Destination: Figure out where you want to send the users that click on your ad. There is a strong benefit to sending people to a Facebook Business Page, as well as sending them to a company website. It all depends on the marketing goal you are hoping to achieve. Costs per click will also vary based on where you direct people to go. A CPC landing page can make or break an ad campaign, but the landing page doesn’t necessarily need to be offsite. Facebook Business Pages allow for creative opportunities for landing pages including a contact form or a Facebook store among other options.
  • Ad Type: Determining which ad type to choose can directly impact the success of a campaign. Facebook Ads are a common ad type that is structured most similarly to traditional CPC ads. Sponsored stories, event, post, and application ads can also be successful for brands but focus on more specific content. There is a strong social advantage for running ads that highlight a brand’s status update or event because they show “likes” and shares associated with that post. These ad types often see increased click through rates because of the social association.
  • Targeting: You not only have the opportunity to target your current demographic, but can also connect with an audience that you would like to target as customers. Facebook allows you to target users based on every profile feature that they enter. Likes and interests are a feature that businesses need to take advantage of. If a business sells fitness products they have the opportunity to show their ads to anyone that “likes” fitness, health, working out, yoga, etc. The specific targeting allows for leads from a very qualified user group, which makes the Facebook Ad conversion rates much higher than traditional CPC campaigns.
  • Reporting: In addition to the basic reporting that Facebook offers, there are other ways to track your user’s activity after they click on your ad. You can setup goals and conversion tracking in Google Analytics that can assist in determining the success of the ad campaign.
  • Optimization: Continuously managing your ad campaign is vital to its success but knowing how to optimize it is what can really drive results. Knowing which ads are performing and why is what you’ll need to know to carry that success to the other ad campaigns.

As a marketer, Facebook Ads have been a revolutionary tool for driving success for clients. The dream-like targeting capabilities set Facebook apart from all other ad platforms and deliver quality results. Unfortunately, at the current time Facebook reporting doesn’t compare to the capabilities and functions of Google AdWords. Facebook offers basic features of budgeting, bidding, and reporting with a major opportunity for improvement as ads continue to grow and be a major financial driver for Facebook in 2012.

Do you want more tips for how to use social media to grow your small business? Register today for  Melinda Emerson’s webinar teaching social media, direct mail and email communications techniques March 29th 1-2pm ET http://www2.pbsmartessentials.com/how-to-better-communicate-with-your-customers

About the author:

Lindsay DeFeo is the Director of Social Marketing at Teknicks, a well known Social Media Agency in New Jersey. Lindsay utilizes her education and experience in both marketing and design to provide valued services to Teknicks’ clients. After working across several interactive enhancement marketing channels, Lindsay quickly saw the value for businesses in social and has built the Teknicks Social Marketing department from the ground up. She now manages a hard working and innovative team, working with many of Teknicks clients to improve their social presence online. Connect with her on Twitter at @Teknicks.

 

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How to Export to China as a Small Business

By on March 15, 2012 in Grow Your Business, Your Small Business

Every week as SmallBizLady, I conduct interviews with experts on my Twitter talk show #SmallBizChat. The show takes place every Wednesday on Twitter from 8-9pm ET. This is excerpted from my recent interview with Frank Lavin @Export_Now Frank was America’s salesman in chief in his role as Under Secretary for International Trade at the U.S. Department of Commerce. Fluent in English and Mandarin, from 2001-2005, he served as the U.S. Ambassador to Singapore, during which time he negotiated the Free Trade Agreement between the US and Singapore. His company, Export Now is a service that allows U.S. producers to sell their goods on China’s largest e-commerce platform, Taobao. For more info http://www.exportnow.com

SmallBizLady: Why should small businesses be trying to export?

Frank Lavin: Sales growth can accelerate with a new sales channel. Look across the border. While the domestic economy is growing at about 3% this year, many countries expect 5, 7 or 9% growth in 2012. When a company enters new markets, it increases its customer base; and a larger customer base means increased sales; and ultimately a company with more sales will hire more workers. “Selling goods and services overseas should be a part of every business plan,” says the current Undersecretary of Commerce for International Trade, Francisco Sanchez.

 

SmallBizLady: Why is China a good target market for small businesses?

 Frank Lavin: China is not just the largest oversees market. Chinese consumers see American brands, from the iPhone to laundry detergent, as a sign of quality. A population more urban and more middle-class than ever before places a premium on products that represent high standards and sophisticated tastes. Families typically have one child but increasing levels of disposable income. They value American goods. In ten years, U.S. exports to China increased by 468 percent, a growth rate that is higher than the growth rate for exports to the rest of the world.

 

SmallBizLady What is the best way for a small business to sell in the Chinese marketplace?

Frank Lavin: E-commerce is a simple and efficient way to reach customers in new markets. The smaller the company, the less practical it is to learn a new language, deal with new tax codes and currencies and to take a huge global risk. E-commerce reduces those barriers and lowers the costs of entering a new market.

 

 

SmallBizLady: Why is e-commerce the best option for selling to the Chinese?

 

Frank Lavin: In China, e-commerce has grown rapidly as an alternative to shopping in physical stores. In a nation still building the highway and mall infrastructure American consumers take for granted, Chinese e-commerce has leapfrogged ahead, making online retail the best opportunity for Chinese consumers to find the right combination of variety, quality and price. To open a physical store, or a wholesale operation, a company needs an extensive on-the-ground sales and marketing operation. The largest e-commerce platform in China has 150 million active customers and $60 billion in annual sales — a platform your company can reach from your desk in the United States.  E-commerce allows a U.S.-based business to make targeted marketing investments — starting at almost zero. It is widely recognized as an innovative tool that can help U.S. businesses sell to these markets more easily and more cost effectively.

 

SmallBizLady: So what are some of the options for selling in China?

Frank Lavin: There are four other steps many small businesses take to start selling in China: 1. Go to China on your own or with others in your industry and showcase your products at trade shows to find a local distributor. 2. Go on a trade mission organized by state or regional officials. 3. Contact a commercial officer at the U.S. embassy and ask to participate in the government’s match-making program that helps companies find distributors. 4. Check with your current customer base to find customers migrating to China or with China connections and follow your customers.

The largest global companies can afford to have managers fly to Shanghai, set up distribution networks and solve legal and customs issues.. Most small or mid-size companies that want to start with a modest investment under carefully controlled conditions will prefer to start with a partner that understands China. A partner with an e-commerce and logistics infrastructure can make your entry into a new market even easier.

 

SmallBizLady:  As a small business owner, what do I do to get started exporting to China?

Frank Lavin: Our book, “Export Now,” points out the mistake many companies make, which is to do nothing. Companies that fail to plan or to make an effort to learn local market conditions also fail to win new customers. We emphasize four steps: understanding how customers differ, understanding competitors in the new market, understanding the capabilities you need to win, and understanding the steps you need to take to close the capability gap.

 

SmallBizLady:  What can a small business owner do to encourage sales with an e-commerce solution in Chinese?

Frank Lavin: While e-commerce allows your product to speak for itself, a little help can spur sales. We will work with you to organize a focused online ad campaign, including product images, banners and a few videos that show your product in a Chinese context. Even a modest investment can make a difference. The Taobao search window is searchable in English so you can see how similar products are presented on the site, even if you do not understand the language. You will get all the customer data we have, including comments. Taobao has a culture of substantial commenting activity and that can help businesses as they shape a product line for export. (For example, shoppers will request products in particular colors and in this year, the Year of the Dragon, they will tell you that dragon logos are popular.)

 

SmallBizLady:  Who are the Chinese customers?

Frank Lavin: Taobao has 150 million active users. China has an ambitious, hard-working middle class with a strong appreciation for American consumer products. Chinese consumers aspire to the world-class quality they associate with top brands. Urbanization has pushed the population into cities and now more than half of Chinese live in urban areas. Five cities — Chongqing, Shanghai, Beijing, Guanzhou and Tianjin — each have populations of more than 10 million and another 150 Chinese cities each have populations of more than 1 million.

 

SmallBizLady:  What attracts Chinese consumers to buy certain products?

 Frank Lavin: The American lifestyle and its association with American brands attracts Chinese consumers. Small and mid-size businesses do best with premium and novelty products, items that Chinese consumers will associate with quality attributes. Some categories that draw particular interest are baby items that speak to the Chinese focus on education and safety, automotive items that appeal to car aficionados, and luxury home and beauty items. Exporters have found it is best to not focus on price competition but to emphasize a brand or product attribute that is well respected by consumers.

 

SmallBizLady: How do I win against copycat products?

Frank Lavin: The best defense is a strong offense. The single most important step to combat the possibility of intellectual property theft is to be in the marketplace yourself — and to go as fast as you can. Chinese consumers are increasingly sophisticated and they have demonstrated that they value an authentic product. Companies from Apple to Levi jeans have learned the advantages of bringing their own products to the market. Using a trusted partner increases the likelihood of success.

 

SmallBizLady: How can a small business owner sell agricultural products in China?

Frank Lavin: Food, cosmetics, wine, and pet food each require special licensing. Packaged goods from the United States are popular with shoppers. Stability is important, though. For now, no ice cream please!

 

SmallBizLady: How does Export Now work?

Frank Lavin: Export Now partners pay an annual service fee of $3,000. The annual service fee covers product listings and warehousing for one year.  Export Now partners also pay transaction fees for all products sold. Fees depend on individual tariffs and other costs and range from 15% to 20%. All in all, your margin for sales to consumers in China will be very close to your margin for sales in your home market. How the product is positioned and described to consumer is vital — so we do the translations by hand. Export Now handles all language, legal and customs issues. After our partners ship merchandise to the company’s depot in Long Beach, Calif., Export Now consolidates the goods it collects into containers that it ships by sea to its warehouse in Shanghai. Consolidating shipments and the use of sea routes instead of air cargo provides significant savings, which allows you to sell your products to Chinese consumers at attractive price points. On arrival, Export Now shepherds the merchandise through customs and handles the relevant duties and tariffs. Our China team also handles the relevant Chinese product labeling required by local authorities.

 

SmallBizLady: What are the three biggest things a small business owner should keep in mind as they begin to market their products to China?

Frank Lavin:

  1. Move incrementally. This mammoth market can absorb your entire marketing budget. Come up with a plan that allows you to move step by step and adjust as you go along.
  2. Find partners. Partnering with intermediaries can mean finding a distributor, a licensee or another ally who will be a force multiplier for you.
  3. Actively listen to customers. Be sure you have a robust feedback mechanism that allows you to hear about specific product attributes that may work well in the Chinese market. For example, Dunkin Donuts found success with a pork-flavored donut offered in its Chinese stores.

 

If you found this interview helpful, join us on Wednesdays 8-9pm ET follow @SmallBizChat on Twitter. Here’s how to participate in #SmallBizChat: http://bit.ly/S797e

For more tips on how start or grow your small business subscribe to Melinda Emerson’s blog http://www.succeedasyourownboss.com.

Melinda F. Emerson, known to many as SmallBizLady is one of America’s leading small business experts. As a seasoned entrepreneur, professional speaker, and small business coach, she develops audio, video and written content to fulfill her mission to end small business failure. As CEO of Quintessence Multimedia, Melinda educates entrepreneurs and Fortune 500 companies on subjects including small business start-up, business development and social media marketing. Forbes Magazine named her #1 woman for entrepreneurs to follow on Twitter. She hosts #SmallBizChat Wednesdays on Twitter 8-9pm ET for emerging entrepreneurs. She also publishes a resource blog http://www.succeedasyourownboss.com Melinda is also bestseller author of Become Your Own Boss in 12 months; A Month-by-Month Guide to a Business That Works.

 

 

 

 

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When You’ve Done All You Can, Get Up!

By on March 12, 2012 in Business Inspiration, Grow Your Business

There comes a time in every entrepreneur’s life when you just catch a bad break.  You work really hard on a deal. You thought it was yours. Then at the last minute, after nearly a year-long sales process, you loose the contract. This especially stings when you’ve spent hours studying the customer and cultivating an internal advocate over lunches and dinners. You tracked the incumbent vendor and shaved you margin as much as you could to get the business. It feels like a kick in the gut when it slips right through your fingers.

After you get over the initial shock, this becomes one of those days that makes you wonder why you are even in business. You probably feel like nobody loves you and no one seems to care.  When it happens the first time, you might not be sure how to handle this, particularly if you are one of those small business owners who takes things personally. Your business is your baby after all, who can blame you, Right! Not really. The sooner you learn not to take these things personally, the better you will handle it when things don’t go as planned.

I know this pain.  During the early years of running my first company Quintessence Multimedia it happened several times, and it hurts—a lot.  I remember one time in particular, there was an advertising agency we had been chasing nearly a year. Once day we got a call and that they wanted us to fly down to Austin, TX to discuss a specific project.  At the time, things were tight financially and we really needed this opportunity.  When we got there, the client invited us to dinner and then stuck us with the check.  Then the next day, as we were presenting our capabilities, I knew five minutes into the meeting that these people had no intention of doing business with us. They had wasted our time and our money, and I was furious. I actually lost it that day on our host after the meeting. I later found out that one of our corporate advocates had asked their agency to meet with us, but a real business opportunity was not promised.  I learned a lesson that day about how to qualify customers, and that people have no problem wasting your time.

After it happened, I reached out to a mentor to complain, and she told me something that has always stayed with me. She said, ”When things don’t happen that is God’s way of protecting you from something or someone.” I took what she said to heart, but then I felt so defeated every time we got the rug pulled out from under us.   I know that many of you have felt the same way, maybe even recently.

This past week, I heard Olympic ski medalist, amputee, and author Bonnie St. John speak at a women’s history month event.  Now, Ms. St. John is a one-legged Olympic skier, and she talked about how she won her first medals.  She said in downhill skiing you needed to compete in two races to win a medal.  After the first race in 1984 Paraolympics, she was in first place in gold medal position, but the second race was on a different course. Word from the field was that there was an icy spot on the course, and some people had wiped out, and one woman had been taken to the hospital. Bonnie said as she started her second race, she was doing well hitting her stride, and all of a sudden she hit the ice. She fell, and said she felt like crawling off the track. But something in her said get up.  She got up and finished the race and earned a Bronze medal. She’s said, ”Everybody falls, but winners get up.”  She later said the woman who won the gold medal had fallen too, but she got up faster.

In our businesses, there will be many times when we get knocked down, but successful entrepreneurs get up faster than the competition.

Do you have a suggestion for how to handle major disappointment in a business?

For more tips on how start or grow your small business subscribe to Melinda Emerson’s blog http://www.succeedasyourownboss.com.

Melinda F. Emerson, known to many as SmallBizLady is one of America’s leading small business experts. As a seasoned entrepreneur, professional speaker, and small business coach, sheMelinda Emerson "SmallBizLady" develops audio, video and written content to fulfill her mission to end small business failure. As CEO of Quintessence Multimedia, Melinda educates entrepreneurs and Fortune 500 companies on subjects including small business start-up, business development and social media marketing. Forbes Magazine named her #1 woman for entrepreneurs to follow on Twitter. She hosts #SmallBizChat Wednesdays on Twitter 8-9pm ET for emerging entrepreneurs. She also publishes a resource bloghttp://www.succeedasyourownboss.com Melinda is also the bestselling author ofBecome Your Own Boss in 12 months; A Month-by-Month Guide to a Business That Works.

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