Dear Managers: The NY Times on May 26th, 2013, in their lead editorial titled “A Is for Avoidance” with a sub-headline of “Apple Is the Latest Example of how American Multinationals Avoid Taxes” continued the demonizing of American business. They specifically mention Apple, Microsoft, Google, Amazon, Starbucks, Hewlett Packard, and General Electric for using aggressive […] Read more »
Partner with Established Brands to Build Your Own
You are known for the company you keep (as well as the company you are). There are several ways to bask in reflected glory. For example, you can run an ad for your product featuring your most prestigious customers. There’s some chance that those customers will kick in some money to support your ad, but […] Read more »
Closeouts. . .A Fact of Life
Even if your product has a long and happy run in the marketplace, it’s likely to reach the end of its run eventually, and leave you with a significant inventory on hand. Welcome to your first closeout! Think of this as an entrepreneurial rite of passage: If you’re in the game long enough, you’re almost […] Read more »
Interpreting the Numbers for Better Decision Making
Entrepreneurs do not love risk and express this dislike by devoting energy and brain power in determining risk and then deciding whether to proceed or not. Before they would abort, the smart Entrepreneurs would first look to minimize or eliminate the risk by Partnering, Sharing, Mitigating, Testing, etc. Analyzing the numbers can be a vital […] Read more »
Profits
Your ultimate goal is to make your product yield a profit. Obvious, right? So much so that it’s not worth mentioning? Well, yes and no. I’m always surprised to discover how many entrepreneurs take their eyes off this ball, elementary as it is. So I’ll go ahead and restate the obvious: The sustainability of your […] Read more »
Managing Your Inventory
“too much carryover inventory can wipe away all your hard-earned profits and wreck your cash flow” For those who sell products, one of the key challenges in responding to a flow of reorders is keeping a large enough inventory on hand—but not too large. The constant dilemma you face is that you know your customer […] Read more »
Packaging A Major Factor in the Sale
Many times, the packaging of the product is as important as the product itself. Of course, if you’re making a product like industrial machinery, this may not be true. But in the case of consumer products, packaging can be an overwhelmingly important element. Perhaps the most extreme case involves products bought by collectors, such as […] Read more »
Hiring the Right People
Okay, let’s assume that you’ve got your idea, your business structure, and your money in hand. The next thing you’ve got to get your hands on is good people. In many ways, this is the scarcest commodity of all. Before you hire, you have to figure out: • what skills you’re looking for, and […] Read more »
Publicity: A Wild Card for Small Business
Publicity is the great wild card for small businesses. Certainly, advertising can be effective. However, a story in the media about you, your product, or your company generally carries far more weight and legitimacy than any paid for ads. Such a story is likely to reach both consumers and any intermediate customers, such as retailers. […] Read more »
TESTING Reduces Risk and Maximizes Success
Oftentimes entrepreneurs–blinded by their belief in their new product idea which is reinforced by their loved ones–lunge full force forward in the production and marketing of their can’t miss product. They will invest in some or all of an optimistic quantity, expensive brochures, displays, molds, public relations campaign, advertising, and more. All this, based on […] Read more »
How Small Companies Can Sell Large Customers
Competition for customers in most industries is extremely intense. This is exacerbated if the customer is a large one and your product is not particularly unique or patent protected. Your customers are also in a high pitched battle with their competitors. This can be seen in your everyday life. Look at the competition in cars, […] Read more »
Finding Ideas to Start a Business
One of the most asked and difficult to answer questions I get when I speak to MBA students is “How do I get the right idea to start a business?” In approaching a reply, I would say at the outset, that there are no simple magical answers or formulas. I would add that most successful […] Read more »
Licensing Can Work for Small Businesses Too
Normally the subject of licensing would not appear in a Bootstrapping context because there usually is an up-front cash payment and a guarantee associated with securing a license. These two factors can be substantial with a high visibility license, such as Mickey Mouse, NFL football, Nike, Armani, etc. However, I bring it up here for […] Read more »
Building Trust
The single most important thing you can do in starting and building a business is to get people to trust you. Trust needs to be earned and takes time, although you can lose it in a second. Telling people to trust you doesn’t cut it. In fact, when people I just meet tell me to trust them, my antennae is up to watch my back. The benefits of being trusted are enormous. People have confidence in those they trust. Read more »
Cash Free Ideas to Beat Competition
Competition for customers in most industries is extremely intense. This is exacerbated if the customer is a large one and your product is not particularly unique or patent protected. Your customers are also in a high pitched battle with their competitors. This can be seen in your everyday life. Look at the competition in cars, retail stores, food stores, homes, computers, music, etc., for your dollar. This extends into the industrial sector and personal services. Here are some non-cash ideas to help your small business better compete. Read more »
Preparation Works in Business as in Sports
The sports media and coaching community consistently attribute the success of our sports stars to their dedication to preparing for their role on the playing field. Football quarterbacks, who besides their extreme physical routine, spend huge amounts of time seeing film of their next opponent and studying their game plans. Baseball pitchers study countless hours […] Read more »
ACCEPT CRITICISM GRACIOUSLY
I believe that a strong attribute of a successful entrepreneur is to accept criticism and to do it graciously so that the person offering it will give it again. Sounds simple enough, but a great number of people just can’t do it. They get angry, petulant, standoffish, etc., and resent the person offering it. The opposite should happen as most people offering it like you and are doing it to help you. In fact, it may be uncomfortable for them to do it. Those receiving the criticism should thank them. Read more »
MYTH – ENTREPRENEURS LOVE RISK
A rejection is not a failure. It should be viewed as an opportunity to learn. Successful entrepreneurs have the self-confidence to face all these ego risks and to put their energies into reducing or avoiding risks to the business. Read more »
A TWITTER CZAR IS NEEDED. . .to force all members of CONGRESS TO LEARN HOW TO IMPROVE THEIR LISTENING SKILLS which currently are abysmal. This applies to members of both parties.
Good listening skills reflect how a business owner operates their business and should be applied for successful selling. See how good listening should also be relayed to Congress. Read more »