What You Can Learn From a Bread Stick
Olive Garden has been in the news a lot recently. The chain offered a $100 “pasta pass” to 1,000 customers that allows pass holders to chow down on unlimited pasta for seven weeks. That marketing ploy got a lot of coverage in the press, but more important to the restaurant in the long run is the fact that a disgruntled group of investors replaced its entire board of directors. They were so critical, they even called out Olive Garden for its bread sticks! The times, they are a-changin’ One of the biggest problems the chain is facing is that it hasn’t kept up with the times. While all-you-can-eat bread sticks may have been the hook that pulled Baby Boomers in for a meal of pseudo-authentic Italian food, it’s not working so well for the Millennials. The lesson comes too late for the ousted directors, but you still have time to move. Is your product or service positioned to appeal to a younger generation of consumers or businesses? A CPA I know was once employed by a division of The Yellow Pages. He went from having more work than he could handle, to a trickle, to losing his job over about five years. His employer moved too slowly. The market is constantly moving. Yesterday’s successful business strategy will almost certainly need to be adjusted – if not this year, very soon thereafter. Learn a lesson from the bread stick and take a critical look at what you’re doing. And if you count yourself among an older generation, bring in a trusted younger associate to give you an assessment. Ask yourself these two critical questions: Will my product or service meet the expectations and desires of the next generation of consumers or managers? Is the way I’m marketing my business on target with the next generation of consumers or managers? Time for a youth movement? A “no” answer to either of those questions means it’s time to do some serious retooling in your business. Also, take a look at your staff. Is it time to bring in some younger employees? Perhaps you can make contact with a nearby college or university and plug your business into an internship program. Sometimes the most valuable part of working with an intern is the exit interview when you, as a small business owner, can get an honest appraisal of your business from the perspective of your next generation of customers or clients. Whether retirement and a sale is in the foreseeable future, or you plan to someday pass along your business to your children, you must continue to grow its value, and that means keeping up with a changing market. Otherwise you’ll eventually find yourself left holding little more than a stale bread stick, figuratively speaking. Image: Bread Sticks, © 2007 Charles Haynes, used under a Creative Commons Attribution-ShareAlike...
read moreLocal Planners, Not Big-Box Execs, Blamed For Small Biz Woes
How cozy are you with your local planning commission, city council or county officials? If you want to preserve existing small businesses and the look of a local business district that has evolved over many years, those are the decision makers you need on your side. While it’s popular to blame national big-box retailers for the demise of smaller local merchants, more often than not, the real culprit is zoning changes instigated by local government officials. In their attempt to boost local revenues they often make zoning changes aimed at redevelopment. These efforts typically force out existing businesses and tend to eliminate the architectural and cultural features that make an area unique. Saving local merchants This is what a Hunter College study found after looking at 10 year’s worth of business changes in Brooklyn. Mike Owen Benediktsson, assistant professor of sociology along with students Brian Lamberta and Erika Larson concluding that fighting chain stores alone isn’t enough to prevent the loss of “mom-and-pop” shops in a community. Always on the hunt for strengthening an area’s tax base, local officials usually turn to the tactic of adding commercial space through rezoning. This gives property owners an incentive to either redevelop their sites themselves or sell out to developers. Along with this comes higher rents that force out existing tenants. This scenario is far more common than a chain retail giant swooping into a community and forcing out smaller businesses through competitive pricing. However, if large existing storefronts come under the umbrella of rezoning for redevelopment, it paves the way for the big national brands to come in. Kelo v. City of New London This is somewhat reminiscent of what happened in New London, Connecticut, when the city used its power of eminent domain to transfer land from one private owner to another in the name of economic development. The US Supreme Court ruled the taking legal, but tragically, the hoped for development never materialized. It is certainly true that small businesses need local governments that are financially strong. However, it’s also true that the lure of higher tax revenues can put small business owners and their elected officials on the opposite sides of some zoning issues. I remember a local official once saying that all the important decisions he made during his career were land use issues. That’s critical for small business owners to keep in mind as they decide who to support for local office. On the positive side of this issue, many local agencies are eager for public input on zoning proposals and master plan development. Be sure you participate. If you don’t, you might someday find that you can’t afford to do business in your own hometown. Image: Kabul – City of Light Development area and concept plan, uploaded by Arcaddmarketing, used under a Creative Commons Attribution-ShareAlike...
read moreHow to Prevent Workplace Porn Problems
Do you need to lock down your entire network to prevent porn at work? Pornography in the workplace is a problem in more ways than you might imagine. Here are two examples: In a case that got a lot of publicity, a high-ranking official at the Environmental Protection Agency downloaded more than 7,000 porn files and spent as much as six hours of his work day viewing them. A hospital technician is suing a former co-worker and the hospital charging that the co-worker repeatedly indulged in smartphone porn while he was supposed to be watching equipment during open-heart surgeries. According to a Nielsen study, 25 percent of working adults surf pornographic websites from work computers. To back that up, it turns out that 70 percent of all online porn viewing happens between 9 a.m. and 5 p.m. Further, all these statistics make it obvious that employers who don’t take measures to prevent workplace porn viewing are skating dangerously close to sexual harassment lawsuits. Put it in writing Employee handbooks should establish a strict “no porn” policy. Further, they must point out that viewing porn, sending porn, using company equipment to store porn are all prohibited and can be considered sexual harassment. Also, be sure to let employees know that their jobs are safe if they see others viewing porn and report it to management. Often, implementing an anonymous reporting hotline for employees is a smart idea. For example, what does an employee do if he or she sees the department manager viewing pornography while at work? The fear of retaliation can prevent reporting and cause an even bigger problem in the long run. You should also let employees know that you may monitor the websites they visit while on company equipment. If you suspect an employee, check where he’s been. Without a dedicated IT department, this may be beyond the ability of some smaller firms. Consider filtering In some cases, Internet filtering may be warranted. These can be used to restrict company computers strictly to work related sites. However, some business owners that have used them question their effectiveness. Also, with so many employees using their own devices at work, filters on your Internet connection may not block all the connections to porn sites. As with all important issues in your company, the keys are to Establish a policy, Train employees on the policy, Enforce the policy, and Revisit the policy on a regular basis. This heightens awareness and lets you, as a small business owner, set the “tone from the top.” It makes it much less likely that workplace porn will be a significant problem in your...
read moreHow To Take a Slice of the 3D Printing Pie
Some years ago a friend of mine had an idea for a new cross-country ski binding that he thought would be an improvement on what was available then. He made a simple drawing and took it to a local fabricator to get an estimate for a prototype. The cost was so high, he abandoned the project. Today, with 3D printing, he could easily afford to get his prototype made. That scenario is just the beginning of what the 3D printing revolution could mean to small businesses. All small business owners and would-be entrepreneurs need to understand what 3D printing is all about and see how it might enable them to expand their offerings or start new businesses. 3D printing explained in 2D If this is your introduction to 3D printing, it’s simply a printer that networks to your computer and creates objects. You could use one to make a prototype of a new children’s action figure, for example. While a regular printer takes ink or toner, to make the action figure the “ink” would be some form of plastic. Today, 3D printers cost as little as a couple of thousand dollars. Prices go up as features increase, such as the size of the object they will “print.” Yearly sales of 3D printers are currently estimated at around $2 billion. One of the important variables to consider – and one that will help you understand how “disruptive” these devices may turn out to be – is the “ink.” NASA has reportedly ordered a pizza to be made via a 3D printer. So food can be the “ink.” Already sugar and chocolate are being used commercially for 3D printer creations. Scientists are working on printing with human cells to make replacement organs. And this is only the beginning. Business opportunities Churning out human kidneys may not be your path into the business of 3D printing, but there are many other ways that 3D printing could work for your business. Use a 3D printing service to create models and prototypes. Use a 3D printer to make a small quantity of a product. Use a 3D printer to customize products. Start a service to provide 3D printing to others. Sell the printers. Sell the accessories. Train others how to use 3D printers. If 3D printing is able to realize its potential in the short and medium terms, it will grow significantly. If we’ve learned anything from the Gold Rush, safety razors and ink jet printers, it’s that the real money is in providing the supplies and services that are required by those who use the product. The names of few gold miners are remembered, but everyone knows Levi’s. If you have an idea for an invention that could be rendered through 3D printing, go for it; if not, you may want to grab your small piece of the 3D-printing pie via sales or service and watch it grow as the entire industry takes off in the coming years. Image: MakerBot Replicator 2 – 3D-printer – Unboxing – 007, © 2012 Creative Tools, used under a Creative Commons Attribution-ShareAlike...
read morePlanning to Sell Your Small Business? The Time Could be Right
There are four words that I’m always listening and looking for in the news. And when I hear or read those four words, I go into “pay-close-attention” mode. Those four words are: “…more businesses plan to…” These words are important because they mean that some survey firm has talked to business owners about their actual plans. They didn’t ask consumers how they are “feeling” about one thing or another, which often is more of a reflection on a person’s mood than anything based in reality. Businesses need to map out their moves in advance, so if they are planning to to something, it indicates seriousness. Confidence is up So this is why I perked up a bit when I read a headline declaring that more small business owners were planning to sell their businesses at a good price in coming months. The headline was based on a BizBuySell.com survey that was released recently. Further, compared to last year, there are 20 percent more prospective business sellers who are “very confident” they’ll get an acceptable price than they were last year. Overall, 63 percent of sellers expressed general confidence that they will get an acceptable price. However, all trends – like politics – are ultimately local and it doesn’t really matter very much what 63 percent of people you’ll never meet are doing or thinking; the important point is what you believe and what your plans are. Are you considering a sale? If so, perhaps this general confidence in the market is exactly what you need to move forward with your plans. The important determining factor is what is giving these owners the confidence to sell. The main reason is pretty simple: improving business financials have given rise to increased confidence. The interesting thing about the survey is that buyers essentially confirmed the view of the owners who plan to sell. Buyers are a little less confident now that they be able to snatch up a business for a bargain basement price. Well, that’s overstating it a little. In the survey they phrased it as being able to purchase a business at “a good price.” Sales are strong Other good news for buyers is that sales remain brisk, in relative terms. When BizBuySell took the market’s pulse last quarter it found the strongest market for business sales since the recession and that pace continues. Looking to next year, however, the consensus seems to erode a little. A sizable percentage – 29 percent of buyers and 36 percent of sellers – think they will get a better deal if they wait another year. One of those groups has to be wrong, unless the market is unchanged in 2015. As you review these figures, think about your own exit strategy. If it involves selling your business, the lesson here is that you shouldn’t depend on selling at a specific time. Consider a window in time in which you would comfortable with selling and if prices hit a target that’s acceptable, strongly consider pulling the trigger. You don’t want to face a market of falling prices just as your “window” is about ready to close. Image: “American Cash” by Revised by Reworked – Own work. Licensed under Public domain via Wikimedia...
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