Top ten resolutions for small business owners
1) Do not let desperation cloud your thinking. New for 2010 The perfect storm of desperation is upon us. This storm is caused by customers/clients buying less, expenses rising, customer/clients going out of business and increasing competition for every little opportunity. The perfect storm makes you vulnerable to charlatans who know how to use the right words and prey on your desperation. You will be offered “unparalleled access to government purchasers with millions to spend.” You will be invited to events that will provide you a chance to “share your elevator speech with a multitude of buyers in just one hour” through speed networking. If your desperation clouds your thinking you will not be able to assess invitations and announcements for their true opportunity value. Assess the value of the opportunity and compare it to its cost – actual fee and your time. Don’t let your fear override your good sense; remember that if it sounds too good to be true, it probably is.
2) Stop looking for grants and no-strings attached money. Back up to the top because tough times make people susceptible. According to the SBA (Small Business Administration) and many other small business organizations, grants are typically used to fund centers or projects for the development of small, women and minority owned businesses and not for supporting individual businesses just because they are owned by a female. Time spent looking for grants would be better spent identifying and qualifying prospects and/or applying for Small Business Loans. There are loans available for sound business plans. I moved this item from #5 in 2009 back near the top because the number of people who promise you grants increase and they become more brazen during vulnerable times.
3) Watch government announcements very closely Retained from 2009 In 2009 two characteristics of the stimulus package (officially the American Recovery and Reinvestment ACT) became apparent. First, the money was going to come through the same channels it has always come – for example: road and bridge money would go to Departments of Transportation or cities and counties to award contracts. Second, most of the money was going to come very slowly. It is important to pledge to watch the government announcements about stimulus packages, incentives and other money related actions because those announcement will provide information about who will receive the money, how it can be used and may include clues about if and how Woman Owned Businesses can be involved.
4) Determine if Subcontracting is a good option for my business. Still an untapped possibility for many Small Businesses Many Small Businesses are missing revenue because they do not pursue opportunities to be a subcontractor. Very often government and large business contracts require that the Prime Contractor use Small or Minority/Woman Owned Businesses (M/WBEs) as subcontractors. The Prime Contractors have trouble finding qualified subcontractors.
5) Find partners. Retained from the three previous years because Small Businesses rarely use this strategic practice. Government agencies, education institutions and commercial businesses do not always separate projects or purchases into small enough parts for most Small Businesses to participate. This is done to save money because an “umbrella” project saves time, effort and cost for the end user. The economic situation is increasing this trend. Partnering can provide a solution for this obstacle because it puts you, and your partners, in a better position to get the big “umbrella” projects. It also will likely save you money and time.
6) Look for outsourcing opportunities. Retained from 2009 As businesses and government agencies reduce staff and struggle to maintain services and functions they may outsource functions. You could be their outsource. For additional information on outsourcing read my article at: http://www.leverageanddevelopment.com/Outsourcing.html.
7) Consider new direction or re-packaging of your business. Revised from 2009. The economic sands are shifting and that may mean you need to shift your direction or the way you package/market your business. Your customers/clients may be changing their product line or the way they do business to deal with the new economic condition. That means you have to change the way you sell, respond, deliver, etc. to them. Always remember that you are not selling your products or services, you are meeting the needs or solving the problems of your clients/ customers; package and market your products/services in a way that addresses that need or problem.
8) Do the Certification paperwork! Still important. Because the opportunities for Minority and Woman Owned Businesses is increasing there are more and more “pretenders” trying to take advantage of the situation. Because of this most Government Agencies, Education Institutions and Prime Contractors are requiring that M/WBEs be certified to qualify for opportunities. There is not usually a reason to be certified if your customers/clients are individuals. However, if you are trying to sell to government, schools or corporations then a certification has become more of a necessity than a differentiator. Pull that Certification paperwork out of the “to do” stack and do it in 2010. Note: there is not a certification just for being a Small Business, but there are specific qualifications depending on your industry type; you can find the qualifications on the SBA website (www.sba.gov). It is worth officially qualifying your business as “Small” because many government agencies and corporations set specific goals for the amount they will spend with officially classified Small Businesses.
9) Take the time to actually identify and qualify your prospects. All time favorite. In tough economic and slow revenue times it is scary to spend time and money on marketing. But the best antidote for fear and depression is action. Use this time to identify potential customers/clients and conduct research to actually make sure they qualify as prospects for your business. If you do this you will not only feel more in control of your business future, you will have a bonafide list of people to market to.
10) Make your networking pay off. Carried over from 2008 and 2009. If your networking activities have not paid off or you have limited amount of time for networking then be sure you network with identified, qualified prospects. Attend the luncheons, meetings, and conferences that your prospects and customers/clients attend. Because it is comfortable, it is tempting restrict your networking to groups of other business owners like you or to others in your line of business; but do not do it. Participating in the organizations and meetings that your prospects participate in provides the best (maybe only) access to the people who actually use your products/services. Also, take advantage of the “Groups” on the social networking sites, this is the next best thing to being in a meeting with your prospects, but spend your time on the “Groups” that your prospects and customers/clients frequent.
More detailed information and guidance is provided by Janet W. Christy in her book Capitalizing on Being Woman Owned: Expert Advice for Women Who Have or Are Starting Their Own Business which is available through bookstores and on-line booksellers.
Janet Christy, President of Leverage & Development, LLC and author, Capitalizing on Being Woman Owned
www.leverageanddevelopment.com
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