by Donna Johnson on March 31, 2009
The guest on Indie Business Radio yesterday was Marc Kramer, author of "The Small Business Turnaround." In our discussion, Marc reminded us that sometimes we need to scale down in order to scale up. That is, there are times when a business needs to minimize the options offered to customers in order to position itself for maximum growth in the coming years.
As a general rule, no matter what business you're in, about 80% of your sales come from about 20% of your customers. This makes it easy to analyze where the vast majority of your sales come from. When you do that, you can quickly and easily view the habits of your frequent buyers, and then tailor your future actions to focus on those customers.
For example, if you are a candle manufacturer offering different shapes and sizes of candles in 600 fragrances, but your most frequent buyers tend to purchase 50 of the same scents over and over again, you can quickly see that some fragrance oils are just sitting in a bottle waiting for the occasional customer to ask for a candle in that scent. By scaling back to 100 stock fragrances and perhaps offering the others in limited edition candles or in special kits, you beef up your ability to sell to your most profitable customer base and create a new reason for them and everyone to buy the scents that don't typically sell as well. Scaling down to scale up is a sensible option to consider on a regular basis to keep your offerings fresh and your inventory moving.
Question: How are you scaling down to scale up?
by Donna Johnson on March 30, 2009
As you may know, I moved to Charlotte, North Carolina, from my hometown of Washington, DC in 2006. Since arriving here, I’ve met a lot of wonderful people who have welcomed me and helped me and my family navigate around our adopted home city. Since arriving, I’ve been on the lookout for opportunities to connect with other Indie Business owners, and Charlotte has no shortage of them.
Most recently, my journey led me to Marc DeWalle and the North Carolina Startup Blog, which today features my first column. The North Carolina Startup Blog is a part of a worldwide system of blogs that celebrates the entrepreneurial and startup news from international cities, and also US cities from Ann Arbor to Phoenix and everywhere in between.
My column today features the short version of my entrepreneurial journey and includes a photograph of me and several Indies taken last summer after one of our marathon meetings on Capitol Hill to advocate on the FDA Globalization Act.
I am also excited that the North Carolina Startup Blog is one of several blogs that has agreed to syndicate the Indie Business Minute. Stay tuned for those announcements coming up soon. I hope that, like me, you are finding ways to use technology to share your unique message with the world.
Question: Writing for local publications is a great way to share your passion and knowledge with your local community. Have you considered writing for a publication in your hometown?
by Donna Johnson on March 28, 2009
I met Jason Keath last year when he tapped me as a speaker and panel moderator at Charlotte WordCamp. I’ve stayed in touch with him since then, including keeping up with his pioneering career as the Social Media Director for Charlotte-based Heels.com. In this video, Jason shares his insight and tips for anyone looking for a job in the rapidly expanding social media industry. The information he shares is also helpful to any Indie who wishes to launch a new business as an Internet marketing and social media consultant.
Jason will be the guest speaker at the Indie Business Breakfast in Charlotte, North Carolina, on April 11, 2009 at the Earth Fare Natural food Store. For details and to register, click here. You can connect with Jason online at his website and on Twitter.
Question: Do you consider social media to be a bona fide “industry” as Jason indicates? Why or why not?
by Donna Johnson on March 27, 2009
A lot of people ask me whether it’s appropriate to post the exact same content at more than one online location. In other words, is it OK to post the same article to your blog and 3 or 4 other social networks to which you belong. I absolutely advise doing this, especially if each of those locations is unique unto itself and is frequented by groups of people who are interested in your subject matter.
Content is king on the Internet. It drives everything from search engine rankings to word of mouth buzz. If you are a mineral makeup company with a fantastic article about how mineral makeup colors can help you look your best on your wedding day, you’ll want to post that article at your blog of course. But why not also cut and paste it to a bridal networking site, and a mom’s networking site? And while you’re at it, submit it to your local women’s magazine as a suggested feature in their annual bridal issue. If the media outlet is relevant to your target audience and adds value to their experience, you want to be there.
Your customers are all over the place. They’re at your blog, at other people’s blogs, at private social networking sites with a few thousand users and at large ones with millions of users. It’s a mistake to try to force everyone back to your blog when you can share valuable information with them where they are most comfortable — where their friends are and where, as a result, they are more likely to engage with you and share your ideas with others. Yes, it’s time consuming. Yes, it’s monotonous. But it’s worth it. After all, if you invest your time empowering others, they will give you their valuable time, and this will in turn empower you. Now that’s what I call a win/win situation.
Question: how do you select what outside social media outlets for re-publication of your articles and other content?
by Donna Johnson on March 26, 2009
click the orange arrow for a message or read the text underneath
Whether it’s a blog, an e-commerce cite or a Twitter page, most businesses see an online presence as a tool to make money. That is, for every day the site is accessible, its success is calculated in large part by the number of sales it generates. While sales are undoubtedly important, a good site does more than just generate sales. In addition to creating cash flow, a good site should also serve as an effective communications tool to help spread the word about your business.
The Internet is a two-way street and its power is not fully realized until its ability to help you engage people is harnessed. For example, your site communicates that you sell products in different sizes or fragrances. That’s nice, but it means little, especially to someone who is new to your site, unless it’s communicated in a way that promotes engagement and action. A sale, maybe. But what about a newsletter sign up, a blog comment, a contest?
No one should leave your site without doing something that they would not have done if they had not been there. That’s why it is important that site copy be clearly, concisely and legibly written, that it be grammatically correct, that photographs be crystal clear and attractive and that any audio or video is relevant and easy to understand. You may not be able to start out with all of these ducks in a row. The important thing is to get started with something and then improve it as you grow so your business is supported by an efficient communications tool that connects your brand with the world.
Question: How do you use your websites (yes, there should be more than one!) to engage your customers and motivate them to action?
by Donna Johnson on March 25, 2009
click the orange arrow for a message or read the text underneath
I frequently respond to questions from entrepreneurs who want to start a business in a big hurry and right away. Often, there are financial pressures that they believe can be immediately relieved by the income that will surely materialize if they just have a business of their own. I try not to drown their enthusiasm, but I always remind them that building a business from the ground up is not a microwave venture – it’s a crock-pot venture.
As you may know, we can cook chili quickly and it may taste pretty good. But if we really want the flavors of the herbs, spices, vegetables, beans and meats to mellow together into a mellifluous mélange of flavors that makes your taste buds dance, we must cook the ingredients together slowly, over constant heat and for a very long time.
Only slow cooking over constant heat (translation: constantly implementing new ideas and thinking outside the box) creates a business with real staying power.
So next time you think about how long it seems to take to grow your business for long term profitability, remember that fast isn’t always better. Be patient and celebrate your progress every day. Be consistent, work hard and be thankful for the forward movement, even if it seems to be happening slowly.
Be consistent and never let up on the heat — you’ll enjoy the ride more and maximize your chances of long term success.
Question: How has growing your business resembled cooking a meal in a crock pot? Are you patiently executing every step or trying to build Rome in a day?
