Knowing your customer better

One of the many keys to success as an entrepreneur is knowing who your customer is and what they want.  “Knowing and understanding targeted customers is the overarching rule of exceptional companies.  Award-winning business builders know their customers as well as they know their own families, perhaps even more so.”

Successful entrepreneurs know the exact needs and buying behaviors of their customers and specific individuals they are looking to target.  They have done their homework and analyzed their target audience.  In essence, they know their customer’s profile – age, gender, income, professions, education level, associations, tastes, interests. They understand their customers’ likes, dislikes and interests.  Knowing a customer to this depth is one of the key characteristics of highly successful business leaders.

On the flip side, entrepreneurs who don’t focus on what their customers need and want often fail.  Cultivating a relationship with individuals who might buy your products is key.  “All too often, entrepreneurs spend their energy on everything but having conversations with current and potential customers.”

Companies that know and understand their customer can use it to their advantage and reap rewards that lead to success.  “Knowing specifically what buyers want, savvy leaders can build and deliver the precise solutions to meet customers’ needs.”  They also offer their products at the right locations, at the right price, and with the appropriate warranties.  They deliver the right features and support to create positive buying experiences.

Getting to know your customers is essential to any sales strategy, so how to know your customer better? 

Gather demographic information.  You can acquire the information through a service or a compilation of your demographic statistics from your website, social media endeavors, etc.

Use surveys to acquire customer feedback about your product or service. They're good to use before you have sold it to the customer and after you close the sale.

Engage in focus groups.  Such groups can be ideal for testing new products or potential strategies.  They also allow you to hear real-time feedback.  “Many companies have used focus groups to road-test successful products.  They can now be carried out on line as well as in person by making use of video technologies like Skype.”

Try blogging.  The comments you receive on your blog posts can tell you a lot about your customers.  You will get to know their likes, dislikes, and opinions.

Another idea: You can hire a market research company if you have the funds, but don’t have the time.  If you don’t want them to do customized research for you, many market research firms also offer reports for free or a cost on their websites.

Try social networking.  Your social networks are a great place to learn about your customers.  You can learn a lot from their social profiles, interactions with your company, as well as demographic information which is available through features such as Facebook, Twitter and LinkedIn.  Your social networks are also a terrific place to poll your audience and ask the questions you need answered.

“Track Customer Compliments and Complaints.  No matter where you received them from (email, website, social networks, comment cards) – it would be a best practice to start an Excel Chart, or other similar tracking method, to keep track of the responses.   You can then find patterns, good and bad.  This can help you adjust your business as necessary, to improve on the bad, as well as know what to market about your business, emphasizing the good.”

Additionally, do your research and most importantly, listen to your customers.  Ask them the pertinent questions that can help you better understand their wants and needs.

Here are some articles you may want to check out about getting to know your customers better:

“5 Steps to Learning More About Your Customers”: http://inklingmedia.net/2012/02/10/5-steps-to-learning-more-about-your-customers/

“How To Get To Know Your Customers”: http://www.sitepronews.com/2011/06/20/how-to-get-to-know-your-customers-a-spn-exclusive/

“Improve Customer Satisfaction By Getting to Know Your Customer”: http://www.kristinaevey.com/customer-service/improve-customer-satisfaction-by-getting-to-know-your-customers/

“Getting To Know Your Customers”: http://www.smallbusinessnewz.com/getting-to-know-your-customers-2008-07

Until next time…

Keeping your employees happy on a tight budget

Many entrepreneurs start their own business to pursue their passions or in essence, make themselves happy.  Starting your own venture can be an exciting and fulfilling challenge that brings one joy, especially if success is achieved.  But once you expand and hire staff, how do you keep them happy as well and subsequently, productive?

Experts believe that happy employees are better leaders, becoming less adverse to risk and bounce back more quickly from failures; that they are more productive – there is less burnout and stress and they become more focused on their work and are up for new challenges.  Experts also believe that happy employees are more creative and are better team players.

So how to keep them happy you might ask?  One idea is to make employees feel like they belong or in essence, make them feel like they have a friend.  People need to feel like they “know” one another, which in time yield more positive results.  Think about taking your employees out for after-work drinks once a month or allow them to engage in other social activities, such as company softball leagues.  When I worked as a paralegal, my company provided Friday desserts and end-of-the-month lunches so that there was a sense of community and a nice way to break up work-flow and a long, grueling work week.

Reward contributions.  Obviously people are always looking for monetary rewards such as salary increases and bonuses but if you can’t afford to do that, applaud your employees in other ways.  Recognize milestones when employees make progress.  Give them more responsibility or promote them.  Often giving a title change makes an employee feel more valued.  Think about congratulating employees on success publicly.  Social recognition fosters growth.  If you find a particular employee shy that might not take well to that, bring them into your office and praise them in private.  Highlight their successes.

Provide regular, consistent feedback or as I mentioned above 1-on-1 meetings where you can commend hard work privately.  “Employee feedback is a critical part of the education process, and shouldn’t just be relegated to the annual review.  To be effective, feedback needs to be specific and actionable.”

Create a culture of education.  For employees, one of the single most important motivational factors is the ability to learn.  Bring in specialists to teach employees new skills or incentivize actions.  Think about sending your employees to seminars or conferences where they can learn new things and engage and network with others in the same industry.  They may come back with new knowledge and skills to offer your company.  “In all cases, make it clear that these are rewards for people’s efforts in order to create an association with going the extra mile for the company.”

Take an interest in who your employees are.  Make them feel like their role in the organization is a necessary, vital one.  Show your employees that you care about them and want to help give them the tools to succeed.

Foster a fun environment.  Give employees some time to wind down and get to know each other better.  Let them joke around and take breaks when necessary.  The daily grind doesn’t always have to be so gruesome.  “When mistakes happen, people can see the funny side and are not just focused solely on the downside.”

Don’t be a micromanager.  Let your employees feel like they have some control over the work they are producing on a daily basis.  While you need to keep an eye on their progress, give them some autonomy.  “Encourage times when employees are completely disengaged so they can focus on their family and set their own personal priorities.”

Stop keeping score.  Don’t think: well I did “such and such” for my employee, what can they give me in return?  Obviously, return on investment is important but it’s not always best to think that way.  Give your employees room to breathe.

Provide job related perks.  Some companies offer discounts on cell-phone plans or gym memberships.  Also, consider giving reliable, hard-working employees more flexible hours, telecommuting options, and/or extra vacation days (perhaps a whole day on some of those pre-holiday half-days).

Create challenges.  “Research shows that people who have to bring their skills to bear at work, and who have stimulating and challenging job tasks, tend to have higher levels of job engagement and company commitment.”  Find ways for your staff to use their skills to the fullest.  Give them opportunities to add value in their unique ways.  Help them make progress toward their goals.  As long as you challenge people without overwhelming them, they will rise to the challenge and enjoy it, and your company will reap the benefits.

Lastly, and quite possibly, most importantly, give your employees a voice.  Take the time to listen to your employees ideas and allow them to add value through their unique skill sets.  Think about what you can do to help them be their best selves and give their hardest effort to your company.  Meeting the needs of your employees can help them thrive and grow.  “Anything you can do to remove roadblocks and help employees make progress will contribute to their well-being as well as your bottom line.”  Show your employees that you care about their success and happiness.  Empower them to give their very best.  

As I’ve discussed today, there are many ways to keep your employees happy without having deep pockets.  New companies and start-ups often don’t have the funds to give annual raises and bonuses but as outlined above there are many ways to keep your employees productive without such resources.

Here are some articles you might want to check out about keeping your employees happy:

“15 Ideas for Keeping Your Employees Happy”: http://www.inc.com/young-entrepreneur-council/15-ideas-for-keeping-your-employees-happy.html

“Motivational Tips for Keeping Your Employees Happy and Satisfied”: http://businesssearch.dnb.com/small-business-tips/motivational-tips-for-keeping-your-employees-happy-and-satisfied/

“How to Keep Your Employees Happy While Pushing Them to Their Limit”: http://www.quicksprout.com/2011/05/18/how-to-make-your-employees-happy-while-pushing-them-to-their-limit/

Until next time…

Expanding your small business

Maybe you’ve been in the small business market for a year or two or three but are looking to grow and expand, so how to do that?  Some of the options I’ll lay out for you today might not all be right for the type of business you’re in but others may be.  Choosing the proper one(s) for your business will depend on the market you’re targeting, your available resources and how much time and money you’re willing to invest.

If you’re not already, get on the internet.  Such a vehicle allows young entrepreneurs to reach a significantly larger market and serve their customers 24/7.  For a small fee per month, you can market your services in the States or worldwide.  The greatest benefit of the Internet is that it levels the playing field between large and small businesses.  “A well-designed website can extend the range, size and scope of your services, even projecting an image of a well-oiled and established corporation, instead of a small business run by a solo operator.  Develop a good website, and compete side-by-side with the big boys.”

Hire cheap but effectively.  If you can’t afford full-time employees, you can hire commission-only sales representatives or interns.  For the reps, you pay them merely what they earn and interns often work for free or for a small stipend as they often get a college credit in return.  The drawback of an intern is that they may only be able to work during their winter, spring or summer breaks.  You could also consider the option of hiring people who are willing to work for nothing but a stake of equity in your company.  

Network and participate in business organizations.  These will prove to become valuable sources of information leading you to referrals to grow your small business along with well sought after advice from industry experts.  It will keep you up to date on the latest industry news and developments.

Partner and join forces with other similar businesses.  Think about working out a deal where you help one another promote and market your products.  You can do something known as an “ad swap” where you can advertise for free on their site or publication and vice versa.

Find inexpensive ways to advertise your business regularly.  Go on LinkedIn or Facebook.  Send out press releases.  Always have business on hand and readily accessible.

Capitalize on your reputation and expertise.  Accept consultancy projects or speaking engagements.  Get word of mouth out there.  The better you’re known in your field, the better chance you have at growing and expanding.

Write articles in relevant publications or you might even consider writing a small book.  Or think about developing a software program for mass publication.

Sponsor trade shows or events in your community.  “The major focus of the tradeshow is to provide a familiar venue for business professionals to research business products and services in an environment focused on a specific vertical market.  Expositions such as trade shows allow your business to exhibit and demonstrate your products to other businesses, but sponsoring one can enhance your image as a market leader or a trendsetter.  On a lower scale, you can participate in your community's activities, providing support to projects on fund-raising for the poor.  Both of these activities can enhance your business' credibility, and entrench your role in the community and industry.”

Think about opening your first or next location.  Physical expansion isn’t always the best growth scenario but it’s often the one entrepreneurs look to first.  Once you open a location, you can consider franchising it.

Think about licensing your product.  This can be an effective, low-cost growth medium, particularly if you have a service product or branded product.  "You can receive upfront monies and royalties from the continued sales or use of your software, name brand, etc, if it's successful.   Licensing also minimizes your risk and is low cost in comparison to the price of starting your own company to produce and sell your brand or product.”  To find a licensing partner, start by researching companies that provide products or services similar to yours.

Diversify.  Sell complimentary products or services.  "Diversifying is an excellent growth strategy, as it allows you to have multiple streams of income that can often fill seasonal voids and, of course, increase sales and profit margins.”

Target other markets.  What other customer base can you reach?  What is an underserved consumer in the marketplace?  Look to service these peoples’ needs.

Merge with or acquire another business or expand globally.  That said, you don't necessarily need to acquire another business to expand globally.  You just need to prime your offering for an international market.

While not all of these steps might be right for you given your type of small business, consider some of the options that seem feasible and you might find just the right way to expand into the broader marketplace and grow your small business one step at a time.

Here are some articles you many want to check out on business expansion:

“How to successfully expand your small business”: http://www.fastupfront.com/business-articles/business-development/how-to-successfully-expand-your-small-business/

“Expanding your small business the smart way”: http://www.fastupfront.com/business-articles/business-development/how-to-successfully-expand-your-small-business/

“How to successfully expand your small business”: http://www.rapidadvance.com/blog/?blog=how-to-successfully-expand-your-small-business

“How to expand your small business to help with its development”: http://bizammo.com/management/how-to-expand-your-small-business-to-help-with-its-development/

Until next time…