In working with numerous business owners and being involved in several turnarounds over the course of my career, I have found that many are seeking a large magic bullet or a major overhaul to turn their business around. In most cases, I have found that major changes are not necessary. The good news is that, in most situations, all that is needed is a simple tweak here and there to turn a business around. Let’s look at a couple of examples.
Accounts Receivable Some business owners experience problems collecting the monies due to them from customers for products/services they have provided. I don’t need to tell you about the problems this can cause to your cash flow. Not only do small business owners not enjoy the task, they fear that aggressive collections will drive customers away. The truth is that it can. But a simple tweak here and there can turn things around.
A simple change in credit policy can make a world of difference. The first step is to check your prospective customers’ credit worthiness. If they have a questionable or negative credit history, you should require a deposit of at least 50% up front. I have learned through experience that a bad customer is worse than no customer, just as a bad deal is worse than no deal. Assuming that your standard terms are that payment is due in 30 days, the second step is to price your products and/or services at a level that allows you to offer a meaningful discount (the carrot or reward) if the invoice is paid quickly (10-15 days). The third step is to charge a substantial fee (the stick or penalty) for late payment. And finally, the fourth step is to make sure the customer understands your payment terms prior to placing the order.
With a few simple tweaks, you have laid the foundation to motivate the behavior you desire. You will find that some customers will pay early to take advantage of the discount and most will pay on time to avoid the late fees. Should you have to negotiate a settlement to get paid, you will be negotiating from a higher number rather than a lower number, netting you a larger settlement. And should you ever have to take a client to court to get paid, you will be suing for a much larger amount than without these tweaks.
Sales Securing more sales from your sales reps can be as simple as tweaking their compensation plan. I say this with caution as making changes to a rep’s compensation plan can be demoralizing and have the opposite effect. However, setting it up correctly from the beginning of their employment can prevent the need for further changes.
Direct sales people are compensated on results more than any other employee. The reason for this is that their results impact the well-being of the business more than just about any other employee. For this reason, it is important that a business hire the most effective sales people they can recruit. However, I can’t count the number of times that I have been told by a business owner that they cannot afford the really good sales people. I always find this puzzling, since a sales rep’s compensation should be tied directly to their results. What in the world could be better than paying a rep $200,000, $300,000 or even $500,000 per year assuming they are making the sales to justify it? Just imagine the revenue they would be generating! Of course, it is the salary business owners feel they have to pay that concerns them. What if they pay a large salary to attract the really good sales people and then don’t secure the sales? This is certainly a legitimate concern regardless of how small or large a company may be. Yet again, a few tweaks can make a big difference.
The first step is to develop a compensation plan that will attract good sales people and not put the owner in the poor-house. The best overall compensation plans which I have used are based upon a quota that includes a lower base salary with a great commission opportunity for those who produce results. This might include an overall opportunity of $120,000/year at 100% of quota based upon a salary of as little as $2,000/month (20%) and commissions of $8,000/month (80%) based upon achievement of 100% of quota (less for underachievement and more for overachievement). Of course the key is to determine how much revenue they need to generate to justify this level of compensation and that becomes the quota. If they generate 125% of quota they would earn 125% of the $8,000/month commission ($10,000) and if they only generated 75% of quota, they would be paid only 75% of the $8,000 commission ($6,000). If you need to offer a larger opportunity to attract the level of sales person you feel you require, simply raise the quota to justify the larger opportunity at 100% of quota.
Naturally, quotas must be realistic and at a level you are confident a good sales person can achieve. If it is just “blue sky”, your employment offer will be rejected or once the employee figures it out, they will feel that they have been taken advantage of and you will lose a good sales person. As the years go by, there is no need to change the compensation plan. All you need to do is adjust the quota which is expected in every organization. You may also wish to sweeten the offer by including a short ramp-up that includes some sort of guaranteed commission during the first 90 days or so while they are filling their sales funnel. This will help them get by with a low salary while they are getting started.
The second step is the presentation of your offer. I always prefer a written offer as it is a great opportunity to spell out the details of the offer and expectations while giving the business the opportunity to word it in such a way as to make it the most compelling. It also gives the prospective employee a feeling of professionalism and security.
The third step is to wordsmith the offer. Just a little tweak here or there can make the offer far more compelling. Using the example above, which sounds better? “We offer a base salary of $2,000/month and commission of up to $8,000/month” or “We offer a $120,000/year opportunity at 100% of quota, comprised of 20% salary and 80% commission. Overachievers earn more and underachievers earn less.” Again a little tweak can make a big difference. Chances are some tweaks you decide to make can make it sound even more compelling.
Summary I could easily give you many more examples if time and space permitted. You are probably familiar with the old adage, “How do you eat an elephant? One bite at a time.” The same holds true for solving business problems. It doesn’t need to be overwhelming or require a major overhaul. In most cases, minor tweaks are all that is needed to solve most business problems. You may only be a few tweaks away from success! Allow me to leave you with a couple of thoughts. We don’t trip over mountains; it is the molehills that cause us to stumble. Managing the little things make the big things happen.
As fellow business owners, do you share this view or do you feel differently? We would love to hear your thoughts. Simply leave your comments below. Our members will appreciate it.
In a recent article published in Forbes, titled “Today’s ‘G’ Generation: Replacing Greed With Generosity”, Scott Davis explores the anti-greed sentiment so evident in the Occupy Wall Street movement. The apparent cause for this cultural shift can be attributed to a number of high profile cases of corporate greed and world disasters in the last decade including 911, Hurricane Katrina and the earthquakes in Haiti and Japan. The article credits the concept of “Generation G”, which stands for generosity, to one of the world’s leading consumer trend firms. When times are toughest, people place a high value on caring, empathy and generosity.
The vast majority of Americans have lost faith in big companies, the senior leadership of those companies and advertisers. Each year, three quarters of the employees in large companies report violations of laws and company standards. And, that’s just private industry. The media is full of stories about the latest scandal surrounding one of our politicians.
As our members know, our philosophy at MainStreetChamber is to give first and expect nothing in return. Make no mistake this is not just some flowery slogan promoting altruistic behavior, philanthropy or the practice of selflessly serving clients, employees and society. According to research, ego is a central motive for entrepreneurs. In fact, giving first without expecting anything in return may be one of the most self-serving things an entrepreneur can do. But, before I expand on why this approach works, allow me to provide some background on the most significant factors that contribute to entrepreneurial success.
According to research, ego is a central motive for entrepreneurs. The true or rational egoist passionately loves the work as well as the process of building an organization and making it profitable. They are motivated to do what is actually in their own interest—that is, to do everything necessary.
In a study on “Entrepreneurial Motivation” conducted by Scott Shane, Edwin A. Locke and Christopher J. Collins published by Human Resource Management Review, entrepreneurship is not a profession for which people are naturally suited. It is a process. And, along the way, the entrepreneur comes face to face with any number of tough decisions, risks, obstacles, road blocks and/or detours. It is at these moments when many entrepreneurs self-select out of the game. Notwithstanding the role that numerous external factors play, it is the entrepreneur’s motivations that drive their decisions and ultimately determine their success.
The following motivations were identified in the study as having a significant impact on an entrepreneur’s ability to effectively advance through the process of starting, building, growing and sustaining a successful business:
Need for achievement (the desire to improve something that exists or create something new)
Risk taking (willingness to take moderate risks)
Tolerance for ambiguity (sees situations without clear outcomes as attractive rather than threatening)
Locus of control (belief that one’s actions or personal characteristics affect outcomes)
Self-efficacy (belief in one’s ability to achieve a specific task – task specific competence)
Goal setting (establishing objectives)
Independence (taking responsibility for one’s own judgment over that of others)
Drive (ambition, goals, energy and stamina, and persistence)
Egoistic passion (selfish love of the work)
So, what does giving first, without expecting anything in return have to do with entrepreneurial motivations? Let’s look at each of them individually.
Need for achievement – true entrepreneurs understand that in order to meet their goals they must demonstrate the value they can provide. By giving first, without expecting anything in return, they demonstrate their value.
Risk taking – true entrepreneurs do not consider it risky to offer a certain amount of free advice, assistance, samples or trials of their products and services. Most marketers understand the power of giving something away because it sets in motion the law of reciprocity; which makes recipients feel obligated to return the favor.
Tolerance for ambiguity – true entrepreneurs are at peace with the uncertainty that comes from giving with no assurance of a return. They are confident that even if they don’t get an immediate return on their investment, they have established themselves as a valuable resource.
Locus of control – true entrepreneurs believe the action of giving first without expecting anything in return is a worthwhile investment in their personal and professional brand.
Self-efficacy – true entrepreneurs are so confident in their ability to deliver high quality products and/or services that recipients will want to keep using it or will give them referrals.
Goal setting – true entrepreneurs have specific and measurable goals in mind when they give first. Their goals include targeting certain companies and people to whom they are willing to give first.
Independenc – true entrepreneurs have enough confidence in their own judgment to give first without expecting anything in return because they know why they are doing it.
Drive – true entrepreneurs have enough drive, stamina, tenacity and persistence to keep on giving first without expecting anything in return until they have achieved their desired results.
Egoistic Passion – true entrepreneurs are more than willing to give first without expecting anything in return because they love the work they do.
Networking at MainStreetChamber events gives you the perfect opportunity to practice giving first without expecting anything in return. Even though the primary purpose of networking is to meet the kind of contacts who can help you grow your business, it is critical that you focus more on what you can do for the people you meet than what they can do for you.
The best way to do this is to ask good questions. You must resist the urge to jump into your elevator pitch. If you demonstrate a genuine interest in the other person, they will be more inclined to open up and share more detailed information about themselves and their company. The more you learn about them the better job you will do in determining if you can help them in some way. The help you end up offering could be in the form of information, a recommendation or a referral to someone else who may be able to help them. This is a classic example of giving without expecting anything in return.
If the person you’ve been talking with happens to mention a challenge that your products and/or services could help them overcome, it would be foolish not to mention that your company could help them. However, this is another great opportunity for you to continue to build credibility and trust with this person by giving first and expecting nothing in return. Instead of launching into your sales pitch, why not suggest that you get together at another time to discuss their needs in more depth because although your products and or services help companies with issues such as those they described you want to make sure it is the right fit.
According to Scott Davis, Forbes contributor and Chief Growth Officer at Prophet, there are three core principles to keep in mind when giving:
Be authentic (i.e. be true to your brand and your core business)
Be relevant (i.e. make sure that what you do and say resonates with consumers and employees)
Be effective (i.e. make sure you make a measureable impact)
Many networking experts suggest you write notes on the back of the business cards you collect. I recommend that you bring along a notebook so you can take more detailed notes about the people you meet and the kinds of things you might be able to help them with. Then, whatever you do, make sure you follow up. Imagine their surprise when you contact them with the names of people, companies and resources that could help them. You may not ever do any business with them, but they will not forget you. And, that is worth a lot. Chances are they will recommend others to you.
Why not practice giving first at our next networking event? Each Monday, we send an email to members with a list of our upcoming events. They are also listed on our Upcoming Events page.
Are you hoping to achieve better results in 2012 than what you experienced in 2011? Although hope and faith are certainly important ingredients for success, they are not a substitute for a good plan. And don’t forget the old definition of insanity: “To continue what you have always done while expecting different results.”
Unfortunately, I haven’t seen any solid indicators that the economy is going to improve much in 2012. In fact, if our government doesn’t start making some dramatic pro small business changes, there are indicators that it could get worse. And even if it does improve, the experts are telling us it will never be the same as it was before it went south. So what’s a small business owner to do?
All we can do is focus on those things over which we have control. “We cannot change the direction of the wind but we can adjust our sails to reach our destination.” It sounds easy enough but when you are struggling to stay on course when sailing in rough waters, how can you adjust your sails?
The answer comes through continuing education and utilizing the many resources available to you. Allow me to highlight a few of them.
CEO FORUM The CEO Forum is open for enrollment in January and new Forums will continue throughout the year. The Forum provides roundtable opportunities to learn and share with your peers. Benefits for existing businesses regarding the Forum include:
Participate in professionally facilitated discussions on business issues
Receive feedback and advice on management, marketing, sales, finance and operations from other business owners
Opportunity to step back from day-to-day obligations and improve accountability to your goals and commitments
Exchange ideas and resources
Learn new approaches
Each participant will have a personal business coach. The dedicated coach will meet with the client on a regular basis, assess current business to prioritize, set goals and objectives with action steps to achieve.
The CEO Forum is jointly sponsored by SCORE and St. Thomas University and is targeted to small business owners with 5 to 20 employees. The cost to participate is a fraction of that charged by other roundtable/forums.
To enroll, contact the Minneapolis chapter of SCORE at minneapolis@score-mn.org or phone (952) 938-4570 and ask for Jim Handy.
THE SIMPLE STEPS FOR GROWING YOUR BUSINESS The Simple Steps for Growing Your Business begins in April. It is a series of workshops and roundtables designed to provide a new way to connect with a group of under-served, existing businesses. Minnesota SCORE chapters helped create 1,300 businesses in 2010 and over 65% of all SCORE assisted start-ups are still in business. The program is designed to help both current and new SCORE clients expand their business and contribute to the Minneapolis communities through job creation. The tools provided in this program are designed to assess, engage and mentor current small business owners so they can effectively implement strategies aimed at growth.
This low cost program is designed for small business owners or key executives who have been in business for one year, are fully committed to the business and want to expand. Experienced mentors provide one-on-one help to customize the growth plan. Roundtables meet to exchange ideas with a peer group of other small business owners. Finally, a menu of sales, marketing, operations, management and finance workshops (1 held every 2 weeks) focus on implementing strategies and plans.
To enroll for an April kick off, contact the Minneapolis Chapter at minneapolis@score-mn.org or phone 952 938 4570 and ask for Rick Barkley
MAINSTREETCHAMBER Free membership and free networking events are just some of the benefits for small business owners. MainStreetChamber also offers a variety of continuing business education workshops, seminars, Lunch & Learns as well as Webinars. In addition, MainStreetChamber also sponsors continuing business education delivered by other credible resources including the two mentioned above.
So unless you want an encore of your 2011 results, you’ll need a better plan for 2012. As small business owners who wear many hats, it’s easy to get lost in the minutia. And it is ever so lonely at the top. I know because I have been there many times before. So why not take advantage of these and other resources brought to you by MainStreetChamber? It’s your business and your future… will 2012 be a better year?
Focus is hard to achieve and even harder to maintain. This is mostly because of the tremendous number of distractions we face everyday. Small business owners become unfocused because of the myriad tasks, crises or opportunities that pop up everyday. Throw in a challenging economic climate and the focus challenge gets even worst. To combat this, you can employ one of the most powerful focusing methods I know – deadlines.
The Art of Setting Deadlines
Deadlines can be a scary thing. The original definition stems from a line around a prison which if crossed, would result in getting shot. Thankfully, deadlines today are not about life and death but rather about accomplishments on a timeline. Deadlines should be used to set a brisk pace of accomplishment but not a panicked pace of chaos. All deadlines should be rooted in solid business judgement and not thrown out just to have one.
Deadlines Are Not Goals
Every business has a set of goals and metrics it needs to hit. These goals are usually time sensitive and probably revolve around month, quarter and year end. Those dates are natural deadlines that you can use as both short term and long term yardsticks on your performance. The difference between setting a goal and a deadline stems from the desire to achieve (goal) and having to achieve (deadline). Deadlines don’t take the place of goals – rather, they help you achieve your goals by getting tasks completed that are within your control. For example, lets say you want to increase your sales by 20% in 3 months. That’s clearly a goal since achieving that is somewhat out of your control. What’s in your control is the plan to increase those sales. Clearly, in order to increase sales, you need a plan and that plan should include deadlines.
Practical Deadline Setting
In order for a task to have a deadline, it must be achievable, given the resources within your control. If it’s not, then it’s just a goal. It’s important to distinguish between the two because the whole point of a deadline is that it needs to be completed by a certain date. To help you set deadlines and achieve them, consider the 4 step process listed below:
Step 1: Pick What’s Under Your Control
What we can directly control are prime candidates for deadlines. This is important because when you set a deadline, you need to have all of the tools and resources available to achieve it or it’s just a goal. Keep this in mind when you set deadlines – otherwise you will just get frustrated.
Step 2: Identify Tasks That Help Your Goals
A great way to set deadlines is to tie them to goals. As our example above showed, there are things that must be done in order to achieve a goal. From filing your taxes to sending out that proposal, these tasks are critical to complete quickly s they are appropriate for setting deadlines.
Step 3: Dedicate Time Each Day:
Once you set a deadline, you must be dedicated to getting it done. That means you have to work on it each and everyday. This is the beautiful thing about a task with a deadline – it should be only a matter of investing the time to complete it.
Step 4: Finish It No Matter What
A deadline means that whatever you are working on is time sensitive and must be completed by the deadline date. It’s important to adhere to this no matter what – even if it means staying up all night. Think about it this way, once your deadline task is finished, you can move on to other things.
Deadlines Will Help You Succeed
Part of the beauty of deadlines is that they force us to finish tasks. This may seem trivial but most small business people (in fact, most people) tend to put off tasks because they are too busy or don’t have enough time. By setting deadlines, these “I’ll get around to it” tasks get completed. Why this is important is that the success of completion builds on itself. Pretty soon, your goals are starting to get achieved because you are taking control of what you can accomplish. This, in turn, gives you more time to focus on your goals. Go ahead, give it a try. Set some deadlines and watch what happens.
About the Author: Jarie Bolander is an engineer by training, entrepreneur by nature and leader by endurance. His new site, EnduranceLeader.com combines two of his passions – leadership and endurance athletics. The main premise behind Endurance Leader is that by enduring through hardships and struggle, we can conquer anything. Jarie also used to be a SCORE counselor, where he helped over 200 entrepreneurs stay focused on what’s important. You can follow him on Twitter via @EnduranceLeader
It’s official. The Holiday season has arrived. Now that we’re past Thanksgiving, Black Friday and Cyber Monday, my mailbox is overflowing with offers from retailers. And, for me, there is a definite theme to these offers. They are mostly from companies selling products and services related to technology. Technology has allowed these companies to track my internet search and buying habits which reveal my interest in products related to technology.
As a card-carrying techno geek I own a smartphone, iPod, iPad, HD TV, feature-rich universal remote controls and most of the latest technology. Since I bought most of it online, savvy retailers utilized analytics to profile me as a buyer of all things technical. And they would be right.
However, all of this got me thinking. As critical as technology is to building a successful business, it cannot replace the need for the human element. Technology does not purchase products and services; people do. Although Apple may argue with me, we do not have relationships with technology; our relationships are with people. Our strategic partnerships are with people rather than technology. For centuries, business has succeeded without a lot of technology. Yet, in the history of the world, I cannot recall a single business that has succeeded with out people.
For any business to grow and succeed, it needs people to buy products and services that are produced, sold, distributed and delivered by people. In addition, it needs brand ambassadors, strategic partners and relationship with people. And this is one place where MainStreetChamber™ really excels in helping our members. No one connects business owners more effectively than MainStreetChamber™. Our active members will testify to this at every turn.
It all begins by joining the Chamber. The good news is that there is no cost to join. If you haven’t joined MainStreetChamber™, you can do so by clicking here.
MainStreetChamber™ provides several online platforms where you can connect with other business owners, establish credibility and build relationships. You can also position yourself as an expert in your field and begin building relationships by commenting on (or publishing) articles here on our blog. You can join our LinkedIn group and become involved with our community there. You can like us on Facebook and participate in our Facebook community. You can even follow us on Twitter. Being active online can build your fame and credibility so that people important to your success want to meet you in person.
Of course, MainStreetChamber™ is most known for hosting off line events where business owners meet new contacts, identify prospective customers, strategic partners and suppliers as well as build relationships. Hundreds of small business owners gather regularly to network with one another to determine how each can help the other’s business grow and succeed. You might want to bookmark our Upcoming Events page. We also email an events update to our members every week. If you are not receiving it, chances are you are not a member. To start receiving our emails, all you need to do is join – it’s free. Why not check out our last large networking event of the year; Tropical Holiday Business Networking Event. This may be the event where you meet the important contacts that will make 2012 much improved over this past year. As with all of our events, it’s free.
If your target market includes small businesses, you may want to showcase your products/services with an exhibit table at the event. This event is especially great if you are looking to build your pipeline for 2012 because hundreds of small business owners have already registered for their free ticket!
MainStreetChamber™ also provides continuing business education through webinars, workshops and seminars. In addition, we also promote important workshops and seminars hosted by other great organizations like SCORE Association.
In summary, as important as technology is, you cannot succeed without people. And, there is no better place to leverage the power of people than through MainStreetChamber™. I hope to meet you at one of our events real soon.
Are you ready to get started marketing on Facebook? You might think that Facebook is simply a social network people use to meet and chat about their personal life. While that is certainly true, it is also true that Facebook is where people share their positive and negative thoughts about companies, products and services. Marketing on Facebook is one of the most cost-effective ways for you to attract and engage millions of prospective customers.
Perhaps you’ve heard that if Facebook were a country, it would the 3rd largest. With half of its 750 million fans logged in at any given moment, a world of opportunity awaits you and your brand. All you need to do to capitalize on this phenomenon is to get started. Sounds easy, right?
It is easy if you grew up with PCs, iPods and smart phones. For those of who didn’t, you may be wondering: where do I even start? To get going, here are four easy steps to getting started.
Sign up!
Remember the old saying “a journey of a thousand miles begins with a single step?” First things first, stop talking about your Facebook page and just do it. The first thing you need to decide is what kind of Facebook page you want to create. You can create Facebook pages for a Local Business or Place, Company, Organization or Institution, Brand or Product, Artist, Band or Public Figure, Entertainment, Cause or Community. To sign up, start here.
Be Thorough
You may be tempted to just jump in and signup. However, if you intend to use Facebook to market your business, it is important to fully complete your profile. Make sure you take every opportunity to tell the Facebook world what you and your business are all about. Make sure you have a profile picture and fully complete your information tab. Some business owners use a photo of themselves. Others use a photo of their business logo, their business address or some other image that represents their brand.
Plan
Take some time to plan what you want to accomplish with your Facebook page. Make sure that your plan involves integrating social media into your broader marketing plan. With regard to generating leads with Facebook, getting a large number of fans is very important.
Your plan can be as simple as writing down challenging, yet attainable goals on the number of fans you want to secure or the number of leads you want to generate. Plan to implement some potential tactics and commit them to schedule. For example, on Monday post information, on Wednesday ask a question and Friday offer a deal.
Execute
Most importantly, give your plan enough time to succeed. Social media marketing takes a little time to get moving. Don’t just update your status twice and give up. Once your base starts growing you’ll be able to see your true reach.
Developing and implementing a plan to market your business on Facebook is one of the most cost effective ways to build brand awareness and generate new leads for your business. Remember, if it were a country, it would the 3rd largest. With half of its 750 million fans logged in at any given moment, you could have a world of opportunity!
Need help getting started?
Looking for a little one-on-one assistance to get started? MainStreetChamber is hosting a free Webinar but on by Four51, Inc. on Tuesday, 11/29, 2011 at 11:30 AM. Click here for registration.
MainStreetChamber is also hosting a free Lunch & Learn Workshop put on by Four51,Inc. on Thursday, Dec 1 from 11:00AM. Space is limited to just 12 seats, so register now!You will leave with your own Facebook Business Page.
A few words about Four 51, Inc.:
For more than a decade, Four51 has provided technology solutions that fuel business in all 50 states and in more than 40 countries around the world. Four51 solutions including CommerceTools and FanTools increase the effectiveness and efficiency of an organizations’ promotional marketing in both traditional and digital contexts. After three years in development, they are proud to introduce FanTools which is a digital promotion application that enables businesses to easily connect with consumers fragmented across multiple channels across the web, social media and mobile landscapes. FanTools makes it easy for a business to take control of their online promotional marketing and local commerce activities.
MainStreetChamber is dedicated to helping small business to increase sales, revenue, profits and growth. In addition to monthly networking events, we offer specially designed workshops and seminars delivered by recognized experts to help members gain the knowledge and skills they need to grow their business.
Recently, at our very first Business EXPO at the Metropolitan event center, over 400 potential buyers met face-to-face with exhibitors who were showcasing their products and services. Needless to say, both attendees and exhibitors alike were thrilled.
At the EXPO, a couple of our members, Nick Tamble, owner, host and producer at HGVids and Lucas Olson, owner of VideosMN.com, teamed up and filmed the event. You can check it out yourself below. They make phenomenal videos like this every day for small businesses.
As you can see, this was quite an event. The credit belongs, in large part, to our partners at MediaMax Events & Expos (shown in the video). The decades of experience that owners Brad Gudim and Rick Martinek (MainStreetChamber members) have in organizing trade shows and Expos virtually ensured that the event was a success!
MainStreetChamber events and expos provide members with access to hundreds of new contacts every month whop have the potential to become mentors, customers, referral partners and friends. Enormous effort and expense goes into ensuring these free events a very worthwhile experience for our members.
One of the many benefits our members enjoy is FREE advertising. If you are willing to make a special offer or discount to our members, we will advertise and promote your business for free! For more information on how you can advertise your business for free by becoming a VIP Discount Provider, visit our VIP Member site.
Small businesses really appreciate the numerous free and low-cost methods we offer to showcase their products/services to our members (members doing business with members) and to the public in general. Our sponsorship opportunities include tables and exhibit booths at our events, ads in our event program booklets and opportunities to deliver presentations at Pre-Event Seminars, Lunch & Learns and workshops.
Although small business owners have many options to attend networking events, our events tend to attract bigger crowds. This is due to our use of traditional media as well as online marketing methods to promote our events. Another reason small business owners are attracted to our events is the opportunity to learn from top experts on specific topics related to building a successful business. This was one of the reasons our EXPO attracted so many attendees.
At the EXPO, we featured a keynote speaker and four breakout sessions on vital small business topics. If you were unable to attend, here is a brief overview of what the speakers shared:
Our keynote speaker was, John Tschohl, dubbed the “Guru of Customer Service” by USA Today, Time, and Entrepreneur magazines, is a customer service strategist, best selling author of numerous books. His presentation focused on why building a service culture is the most powerful, strategic and competitive weapon you’ll ever have and will share simple secrets for creating “over-happy customers” who are loyal for life.For information on hiring John to speak, purchasing his books and signing up to get his FREE newsletter, visit Service Quality Institute.
Mark LeBlanc, professional speaker, author of “Growing Your Business” and “Never Be the Same” delivered two of the breakout sessions. He is a former President of the National Speakers Association. His session focused on key elements of the proprietary system he developed for “Growing Your Business”. This system virtually guarantees business owners will have more focus, prospects, referrals and revenue. For information on how to hire Mark to speak or purchase his books, visit Small Business Success.
CJ Coolidge, entrepreneur, consultant and author of the critically acclaimed “Squaredime Letters” delivered one of the breakout sessions. His session focused on why the world is a remarkably different place than it was even a year ago and why small business owners need to make “4 Changes 4 Success” to create and maintain sustainable competitive advantage; the power key to increasing revenues while simultaneously reducing costs. For information on hiring CJ to speak or purchase his book, visit CJ Coolidge.
Jill Konrath, internationally-recognized sales expert and the bestselling author of Selling to Big Companies and SNAP Selling (May 2010) delivered one of the breakout sessions. Her session focused on why corporate decision makers want to do business with small companies, how to identify the right people to meet with, get their contact info, clearly articulate your value proposition, craft enticing email or voice mail messages that get responses and what it takes to put together an effective account entry campaign and much more. For information on hiring Jill to speak or purchasing her books, visit Jill Konrath.
With thousands of local small business owners as members and hundreds more joining each week, MainStreetChamber is really making a difference for the businesses on Minnesota’s Main Streets. Hold on tight because we’re growing and moving at lightening speed.
And, don’t forget to open our weekly email where you will learn about our Upcoming Events which will help you make more connections and learn more about how you can build a successful business and save money on the products, services and tools you need. Remember, at MainStreetChamber, the spotlight is on your small biz!
With the nation’s continued hiring freeze and unemployment at a current rate of 9.2% nationally and 6.6% in Minnesota as of July 2011[1], people are hitting dead-ends with their job searches. As a result, more and more otherwise qualified professionals from all walks of life are turning their professional skills and talents into profitable businesses. While on the surface, this trend appears to be good for the economy and the unemployed, the vast majority of aspiring entrepreneurs rush into business without first establishing the proper business structure to protect themselves from personal liability.
The danger in forming a business entity without the proper legal protection is that it exposes business owners to potential personal liability. Here is a common misconception. Let’s assume you have been an employee for a printing company for many years but were recently laid off. You want to form a printing company and are excited to be your own boss and run the company as you have always wanted. From your years of printing experience, you have learned what it takes to make your business successful. You are chomping at the bit to start marketing to clients and entering into client and subcontractor agreements, but realize you need to protect yourself personally by incorporating your new business. Once you set up your entity, you, as the owner, are guaranteed personal protection from your new company’s liabilities and debts, right?
WRONG!
There is a legal concept called “piercing the corporate veil” which allows creditors the ability to move beyond your company’s corporate assets once those assets are exhausted and go after your personal assets. The Minnesota courts have allowed creditors to pierce the corporate veil when they determine that the corporation is not distinct from the individual and is instead merely an “alter ego” or extension of its owners and is merely being used to advance their private interests rather than a legitimate business purpose.[2] Thus, the creditors “pierce” or move beyond the “corporate veil” and reach your personal assets to satisfy the unpaid debts or claims.
Minnesota courts have used a two-prong test to determine if creditors are able to pierce the corporate veil and attach debtor’s personal assets.[3] The first prong of the test, which is the prong focused on in this article, refers to the owner’s relationship to the entity. Factors which the courts consider for this prong include (1) whether there is insufficient capitalization for purposes of corporate undertaking, (2) a failure to observe corporate formalities, (3) nonpayment of dividends, (4) insolvency of debtor corporation at time of transaction in question, (5) siphoning of funds by a dominant shareholder, (6) nonfunctioning of other officers and directors, (7) absence of corporate records, and (8) existence of the corporation as merely a facade for individual dealings. The second prong requires the creditor to show that piercing the corporate veil is necessary to avoid injustice or fundamental fairness.
In order to avoid falling into the first prong, there are a number of actions you, as a business owner, can take to minimize the risk of falling into one of the 8 categories mentioned above. Some of these actions include:
Make sure your corporate records are complete and up to date;
Ensure that your operating agreement and member control agreement are drafted for your particular corporate needs;
Have a business plan prepared and available for review;
Make sure you have resolutions and meeting minutes evidencing important corporate activity;
Maintain a separate corporate bank account from your personal account; DO NOT commingle that business account with your personal accounts;
Make sure payments to members or shareholders are done in compliance with state law and with the member control agreement/bylaws;
Have a sufficient amount of capital in your business account to cover business transactions and current liabilities;
To conclude, the more effort you put into creating your business entity correctly, the less risk there will be in subjecting you and your personal assets to the debts and liabilities of your business entity.
You may email Ryan D. Kaplan at ryan.kaplan@kaplanlegalservices.com or call him at (763) 463-9360 to schedule a free consultation to discuss options for setting up your business entity and protecting you from liability. You may also visit his website at www.kaplanlegalservices.com.
If you follow the stock market you know it is not faring too well. While it has been up, it’s also gone right back down, losing all of the gains so far this year! Not a pretty picture. The reality is that most of us small business owners have little or no control over what happens on Wall Street. What matters most to us is what happens on Main Street.
On Main Street, we small business owners have to wear many hats. The problem is that most of us spend way too much time wearing operations and administration hats while neglecting to wear our marketing hat which is what we need to make our businesses grow and flourish.
Marketing is one area where small business owners on Main Street do have some control, if they understand which marketing strategies will give them the biggest bang for their marketing buck. Thanks to the internet, smart phones and a host of innovative technologies, small business owners have access to a wide variety of cost-effective marketing strategies.
However, one of the most cost-effective marketing strategies that small business owners frequently overlook is not new at all. Ancient merchants utilized “live event marketing”. Vendors would travel from near and far to meet buyers face to face and sell their products and services on the main streets of villages and towns. These early markets were “alive” with colorful images, a cacophony of sound, mouth watering flavors, intoxicating scents and handmade tools and utensils. It was also quite common for various types of entertainers, musicians and actors to perform.
These ancient merchants had no need for sophisticated marketing strategies to reach different demographics. They simply engaged their prospects in ways that are more difficult to do using today’s multi-media. Here for example:
All five senses
Product and/or service demonstrations or samples
Face-to-face interactions
The closest modern versions of “live event marketing” include trade shows, expos, conferences, fairs and networking mixers such as those hosted by LinkedMinnesota, Sharp Upswing, New Business Minnesota and MainStreetChamber. If you’ve attended any these events, you would have seen many businesses showcasing their products and services.
Although “live event marketing” may not be effective for all businesses, for those who know how to leverage it, attracting prospective customers can be as easy as shooting fish in a barrel. Check out the video below to see how some businesses utilized “live event marketing” at one of our past events.
If your target market includes small business owners and you want to showcase your products and services to several hundred prospective clients/customers, I would urge you to reserve your booth at our upcoming “MainStreetChamber™ Business Expo” (for free admittance – for exhibit rates email expo@mainstreetchamber-mn.org) at the prestigious Metropolitan Event Center on September 7 as soon as possible. We are expecting between 500-1,000 small business owners to attend. Our keynote address will be delivered by John Tschohl, a speaker and author recognized by USA Today, Time and Entrepreneur magazines as the ”Customer Service Guru”. In addition, we will have breakout sessions with small business experts Mark LeBlanc, CJ Coolidge and Jill Konrath. Our exhibit space is limited to just 84 booths/tables and they are going fast.
Close to 100 exhibitors will have an opportunity to meet up to 1,000 or more prospective clients/customers face to face, hear a dynamic presentation from an internationally recognized speaker and author and enjoy complimentary Hors D’oeuvres.
To help you leverage “live event marketing” to grow your business, I would encourage you to attend our upcoming Event Marketing Lunch & Learn on Tuesday, August 23 at the Kelly Inn in Plymouth. For the small cost of a lunch, you will learn simple, yet powerful event marketing tools and techniques from three experts. For complete details and registration, click here.
For additional details on how you can leverage Event Marketing at MainStreetChamber events, just click on Upcoming Events and then contact one of our chapter Presidents (all Minnesota chapters are listed in the side bar on the right). We are thrilled to help you in any way we can.
In summary, even though there’s not much we can do about what happens on Wall Street, there is a lot we can do about what happens on Main Street. And that is what MainStreetChamber™ wants to help small businesses discover
First 20 Community lending organizations selected to start making loans up to $200,000 under new Intermediary Lending Pilot Program
Startups, newly established and growing small businesses now have a new source of financing backed by the U.S. Small Business Administration as 20 community organizations have been funded by SBA to start making loans up to $200,000 to qualifying small businesses.
Authorized under the Small Business Jobs Act of 2010, the new Intermediary Lending Pilot Program will provide direct loans up to $1 million to 20 community organizations or intermediaries in fiscal year 2011, which in turn will use those funds to help finance small businesses, mostly in underserved markets.
Designed to expand access to capital to small businesses and drive economic growth and job creation, the program will fund 20 additional community lenders in FY 2012. The program has an additional year of authority in FY 2013 subject to appropriation by Congress.
“The Intermediary Lending Program is an important new tool to support businesses in underserved markets,” said SBA Deputy Administrator Marie Johns. “Partnering with community lenders will increase points of access to capital for startups and businesses that have been disproportionately affected by the recession.”
One goal of the pilot program over the next two-to-three years is to assess the intermediary model as an effective tool for increasing lower-dollar lending to small businesses and startups, particularly those in traditionally underserved communities.
Minnesota has often been at the top of the list of States making the most SBA-backed loans. Therefore, it is no surprise that one of the community lending organizations is located right here in Minnesota:
Just a quick note to thank you again for helping stage such a
wonderful event tonight!
That 1 minute I spent addressing the room was worth several thousand dollars in
potential new business.
I have never attended a better mixer in terms of learning and valuable business
contacts made.
You did an OUTSTANDING JOB!!
I'm really happy I found your organization -- and I will tell everyone in
business that I know about it.
Kevin Dolan
Client Cloning Systems
Member Sherry Buckley Says…
Thank you MainStreetChamber for the outstanding event tonight! The energy
and synergy were awesome!
Susan Fronk's presentation was concise, to-the-point and informative and Mr.
Gitomer was... interesting, entertaining, delightfully interactive and a
valuable resource. All in all a very worthwhile evening. Thank you!
In working with numerous business owners and being involved in several turnarounds over the course of my career, I have found that many are seeking a large magic bullet or a major overhaul to turn their business around. In most cases, I have found that major changes are not necessary. The good news is that, in most situations, all that is needed is a simple tweak here and there to turn a business around. Let’s look at a couple of examples.
In a recent article published in Forbes, titled 
Are you hoping to achieve better results in 2012 than what you experienced in 2011? Although hope and faith are certainly important ingredients for success, they are not a substitute for a good plan. And don’t forget the old definition of insanity: “To continue what you have always done while expecting different results.”
Focus is hard to achieve and even harder to maintain. This is mostly because of the tremendous number of distractions we face everyday. Small business owners become unfocused because of the myriad tasks, crises or opportunities that pop up everyday. Throw in a challenging economic climate and the focus challenge gets even worst. To combat this, you can employ one of the most powerful focusing methods I know – deadlines.
It’s official. The Holiday season has arrived. Now that we’re past Thanksgiving, Black Friday and Cyber Monday, my mailbox is overflowing with offers from retailers. And, for me, there is a definite theme to these offers. They are mostly from companies selling products and services related to technology. Technology has allowed these companies to track my internet search and buying habits which reveal my interest in products related to technology.
Are you ready to get started marketing on Facebook? You might think that Facebook is simply a social network people use to meet and chat about their personal life. While that is certainly true, it is also true that Facebook is where people share their positive and negative thoughts about companies, products and services. Marketing on Facebook is one of the most cost-effective ways for you to attract and engage millions of prospective customers.
MainStreetChamber is dedicated to helping small business to increase sales, revenue, profits and growth. In addition to monthly networking events, we offer specially designed workshops and seminars delivered by recognized experts to help members gain the knowledge and skills they need to grow their business.
With the nation’s continued hiring freeze and unemployment at a current rate of 9.2% nationally and 6.6% in Minnesota as of July 2011
If you follow the stock market you know it is not faring too well. While it has been up, it’s also gone right back down, losing all of the gains so far this year! Not a pretty picture. The reality is that most of us small business owners have little or no control over what happens on Wall Street. What matters most to us is what happens on Main Street.
Startups, newly established and growing small businesses now have a new source of financing backed by the U.S. Small Business Administration as 20 community organizations have been funded by SBA to start making loans up to $200,000 to qualifying small businesses.
