Experts Share

Key Steps to Small-Business Success

1 WE’RE IN THIS TOGETHER

OVERVIEW

What does it take to grow a successful business? We asked some of the top business and success coaches to share their tips and tools on how to grow and scale a business.

The next few pages are rich in hard-won ideas. From networking to understanding cash flow, each coach shares his or her insights and action items designed to help you move forward. Contents

Networking Events That Get Results...... 3

Networking Is Still King...... 7

Creating a Strengths-Based Company Culture...... 9

It’s Cash Flow, Stupid...... 13

How to Allocate Your Time and Resources for Impactful

Marketing...... 16

Product Market Fit...... 18

Small-Business Success Story...... 21 NETWORKING EVENTS THAT GET RESULTS

—ALAN MELTON

Do you feel awkward or afraid when going to business networking events? You are not alone! Many people avoid networking events, and they miss out on valuable opportunities. Simply showing up at a networking event with your business cards is not enough. Successful networking requires planning and strategy. Here are some tips to reduce your stress and make your networking effective.

What is your advice for small-business 3. Be ready to describe your ideal client. 3 owners? And how is that advice distinctly Know how to describe your prospects in terms important for small-business owners? of demographics. For example, “My clients are young married couples who live in working-class 1. Go with the plan to help others. The best neighborhoods in Charlotte, North Carolina.” way to set yourself at ease while networking is to focus on other people. Go with the mindset 4. Have a goal. You are attending events to that you are there to give. make contacts that will be mutually beneficial. Decide in advance whom you want to meet. 2. Have a 30-second commercial. Be ready to Arrive early and note the names and companies briefly describe the benefits of your product on attendees’ name tags. Position yourself or service (how it impacts your clients’ lives), without food and drink to meet attendees as not the features (what it does). Describe they arrive. what makes you unique and better than your competition. ForwardLine: Key Steps to Small-Business Success

5. Get introduced. Another advantage of Remember that people do business with those arriving early is being able to ask the host to they know, like, and trust. Serve your business introduce you to some of the guests who may contacts well and you will be on the road to be a good contact for you. Find out facts about great clients and referrals! the guests for conversation builders. What guidance can you offer to business 6. Don’t get into cliques. Remember your owners struggling to overcome obstacles goals for the event. Don’t waste major time with in mastering your advice? people you already know. Spend a few minutes Go in with the plan to give. Help as many with everyone you meet, but move on. You can people as you can and ask for nothing. This will say, “Excuse me, I need to freshen up my drink.” take pressure off of you to sell and can lead to new clients. 7. Take your business cards and a pen.

However, don’t offer your card too quickly. If you Do you have any personal stories or meet someone who would be a good contact anecdotes to share related to your advice? for you, ask for their card. Once you have ended your conversation, write down details on their I have won many new clients I met through card. This will help you later to remember facts networking by helping them with a business or about them and will aid you as you begin your personal need. One business owner needed help next conversation. When people ask for your getting organized. I helped her, she became a client, card, provide one. But don’t give them more and has referred thousands of dollars’ worth of other than one unless they ask for more. clients to me.

8. Be a good interviewer. Watch how newscasters interview people. Listen twice as much as you talk. Keep good eye contact while the other person is speaking; don’t look around 4 the room. Nod your head, smile, and laugh where appropriate. Interject short responses from time to time to relate. Offer affirming and sincere compliments. Most people will ask what you do, but if they don’t, briefly describe how you benefit clients.

9. The most important thing: follow up! If you don’t follow up with your new acquaintances, you will have just wasted your time at the event. Send a card or make a phone call, inviting them for coffee or lunch to deepen the relationship. Anything else our small-business owners should know?

I like Zig Ziglar’s famous quote, “You can get all you want in life by helping enough other people get what they want.”

Go in with the plan to give. Help as many

5 people as you can and ask for nothing.

—ALAN MELTON

www.smallbusinesscoach.org Facebook: SmallBusinessCoachAssociate Email: [email protected] Twitter: SmalIbizcoaches

6 ForwardLine: Key Steps to Small-Business Success

NETWORKING IS STILL KING

—ROBIN CORRAL

What is your advice for small-business owners? How is that advice distinctly important for small business owners?

There is no substitution for networking, meeting people face-to-face and shaking hands. In this increasingly digital world, making human connections has become essential because there is more noise going on than ever before. Never underestimate how valuable it is to pick up a phone, set up lunch dates, go to networking events, and just introduce yourself to a business.

What guidance can you offer to business owners struggling to overcome obstacles in mastering your advice?

With everything moving to a digital platform, 7 we often forget what it means to establish face-to-face contact. Skype, Zoom, GoToWebinar, and similar platforms make it all too easy to close ourselves off. Set aside a specific time every week with the goal of meeting three new people. Go to a networking event, find a local business group related to your industry, or just go to three new businesses that might benefit you and introduce yourself.

www.actioncoach.com Email: [email protected] LinkedIn: robincorral ForwardLine: Key Steps to Small-Business Success

Anything else our small-business owners should know?

For some reason, networking is often a hard thing for people to do. It will make you uncomfortable and maybe even scare you to some degree. That’s good. You need to push yourself past that and master this skill, because once you do, it’s almost impossible not to benefit from it in the long run. CREATING A STRENGTHS-BASED COMPANY CULTURE

—RIEVA LESONSKY

Once upon a time, employee What is your advice for small-business evaluations focused on identifying owners? How is that advice distinctly employees’ weaknesses and coming important for small-business owners? up with plans to improve them. A strengths-based company culture takes Today, however, the pendulum has a more positive approach. It focuses on swung the other way, and recognizing each employee’s strengths and businesses are increasingly creating applying those strengths productively at work. strengths-based cultures. Strengths typically come from our natural talents or ways of thinking and looking at the world. By cultivating those talents and combining them with training, you can enhance employees’ strengths.

9 ForwardLine: Key Steps to Small-Business Success

Why have a strengths-based culture? Of course, you may not want to wait to find out your employees’ strengths. If that’s the case, There are many reasons to value a strengths- you can also identify strengths by conducting based workplace culture. For one thing, when aptitude tests, getting 360-degree feedback employees have jobs that use their strengths, from other employees about each person’s they can be more productive right off the bat. strengths, and asking employees to identify That helps your small business get an edge what they think are their own strengths. With on competitors. input from all these sources, as well as the person’s previous work history, you should be In addition, research has shown that a able to put together a pretty good idea of an strengths-based culture leads to greater individual’s strengths. employee satisfaction. According to Gallup, employees who report being able to use their Once you’re aware of your employees’ strengths at work every day are 8 percent more strengths, you can tap into them to assign tasks productive and 15 percent less likely to quit and projects at which employees are likely to their jobs. They’re also more likely to say they excel. You should also use your employees’ enjoy what they do each day. strengths to help chart their career paths with your business. Don’t be too wedded to Finally, a strengths-based approach to the specific job descriptions or roles; be flexible and workplace is extremely well suited for the team- give employees opportunities to apply their based work that most companies do these strengths at work outside their core job duties. days. Just like a football team, Help them discover how to impact the essence a workplace team with a mix of of your client’s product or service—not just the strengths is more effective than one that’s product features. Let them make your culture all quarterbacks. unique and better than your competition’s.

How can you create a strengths-based Also, don’t let your judgment of their strengths 10 culture? become stereotypes. There are a couple of things to be aware of when creating a To develop and enhance your employees’ strengths-based culture. strengths, you first need to define their weaknesses and growth areas. You might learn First, don’t grab hold of stereotypes and turn what your employees’ strengths are simply by them into strengths. Not every millennial working with them for a period of time. For employee is a whiz with social media; not every example, before I became an entrepreneur, I female manager is inherently empathetic managed a group of employees who worked and collaborative. together for many years. Eventually, we got to know each other’s strengths so well that pretty much everyone on the team could identify who would do best at a specific task. Second, just because an employee is strong This is where employees’ views of their own in one area doesn’t mean they can completely strengths and career paths become important. ignore other areas that are important to their Talk to your employees to make sure they’re jobs. You still need to require employees to satisfied with what they’re doing and to get attain a reasonable level of competency at all insights into how they want to grow. Then you their duties—otherwise you could end up with can ensure that everyone on your team has the overly specialized employees and a bunch of chance to step outside their strengths from round holes with only square pegs to fill them. time to time.

Finally, be sure that your embracing of employee strengths doesn’t devolve into pigeonholing people. For example, suppose you know that certain employees at your graphic design firm are more creative than others. 11 It’s tempting to give all the most challenging design jobs to those employees, but if you do that, your less creative workers won’t have a chance to learn and grow. Not only will they be less satisfied at work, but your business will lose their potential contribution.

www.smallbidaily.com Twitter: Rieva 12

Have you seen business owners struggle to master your tips? What advice have you given them to overcome obstacles? All the time. It’s something business owners have to take the time to do. Creating a company culture is all too often overlooked by business owners. IT’S CASH FLOW, STUPID

—BARRY MOLTZ

It was reported in the presidential election of 1992 that James Carville, Bill Clinton’s campaign manager, had a sign posted in their Little Rock office that simply stated, “It’s the economy, stupid.” This was a reminder to everyone working on the campaign that the only thing that the race was about was the economy. The campaign should focus on this one point.

What is your advice for small-business bills when they were due, my employees and 13 owners? How is that advice distinctly vendors still wanted to get paid on time. My important for small-business owners? employees were not very interested in taking my accounts receivables in trade for their In 1992, I started my third business after failing salaries or promises that I would pay them in in two others. This time, I scrawled my own a few weeks. What I realized is that sales do sign and tacked it up in my office. It read, “It’s not pay bills. What your income statement cash flow, stupid.” It became my daily mantra. says about profits in your small business can Starting out in my first business in the 1980s, be meaningless. Only collecting the cash from I thought that the only thing that mattered sales in a business means something. Cash is was to sell your product. I reasoned that if you the gasoline that makes your business engine make sales, you make money. This worked work. Without cash, your business literally great until customers didn’t pay me on time suffocates. Cash is not only king but every other or at the same rate as my business expenses face card in the deck as well. Most businesses grew. Even if my customers did not pay their ForwardLine: Key Steps to Small-Business Success

fail because they run out of cash leaked Other ideas to bring more cash into your through losses or other poor management business are: practices. Cash shortages have driven Divine • Get your customers to pay with credit cards. and United Airlines into bankruptcy. This way, you get money you can use in your checking account the next day. There are many things to do to improve your • Give customers discounts for paying their cash flow in your own business. First, have bills sooner. With interest rates low, you may your accountant or your bookkeeper construct offer a half percent discount for paying within a cash flow statement for you monthly. 10 days. Most basic accounting software packages can produce a standard report in its most • Ask customers to pay a deposit or an basic form. Learn what every positive and advance for services before you perform negative number on the statement means. them. This is industry practice in consulting Unfortunately, like me, most business owners companies. utilize this tool only after they run into cash • If practical, bill your customers as soon as you flow problems. perform the service or deliver the product. Don’t wait until the end of the month to send In financial terms, cash flow is defined as cash them a statement. receipts minus cash payments received over • Be diligent about collecting your a given period of time. It’s really the flow of accounts receivables. State a specific date money in and out of your business. It is this that the payment is due. Call soon after the rate of cash inflows and cash outflows that bill is sent out to make sure they received it essentially determine your business’s health. and ask when it will be paid. Follow up early and often. You have a right to be paid within There are many knobs you can turn to improve terms, so don’t be timid about asking for your cash flow. Collecting your receivables your money. faster or getting extended credit from your 14 vendors will boost your cash. Selling inventory • Alternately, try to get 60- or 90-day terms in faster and keeping your inventory levels lower which to pay your bills. will also accomplish the same thing. Buying • If your vendors allow it, pay your own bills inventory only to have it sit for months on your after 30 days with credit cards. This gives you shelf waiting for customer orders can take a lot 30 more days to pay until your credit card bill of cash out of the business. comes due.

• Track your inventory carefully. Know what sells quickly and what never moves off the shelf. Know how long your customer will wait for a product and still be satisfied. Finally, remember that a real customer is only What guidance can you offer to business one that pays their bill in the agreed time owners struggling to overcome obstacles frame. Don’t extend credit to a customer that in mastering your advice? has not proven they can pay in a timely fashion. Learn to read a cash flow statement My good friend always reminds me that a and make cash flow forecasts. business transaction isn’t really complete until the check clears the bank. In the long run, it only makes business sense to sell something to a customer that you know will pay you. Doing work for a customer when you question if you’ll ever get paid is not a sustainable business model. It is much better not to have done that work at all and instead spend your time finding real paying customers.

A business transaction isn’t www.barrymoltz.com really complete until the check clears the bank.

Do you have any personal stories or anecdotes to share related to your advice?

Yes, I lost $1 million off the sale of my last company because I did not understand cash flow (and I have an MBA from Northwestern!). HOW TO ALLOCATE YOUR TIME AND RESOURCES FOR IMPACTFUL MARKETING

—LAUREN HONG

What is your advice for small-business the sun and try to be everything to everyone. owners? How is that advice distinctly Look at how you’re currently getting customers. important for small-business owners? Put energy into knowing your audience and marketing in ways that are working to reach Marketing is like a shiny object. At first that audience. glance something looks great. You turn, and something else looks great. Another thing looks What guidance can you offer to business great. You can end up doing everything and owners struggling to overcome obstacles nothing at all. in mastering your advice?

If you want to move the needle, my biggest I’ve seen a lot of business owners trying to tip is to stick with what works and talk to your do everything and trying to make everything target market. Don’t try to do everything under perfect. I see them going to events that cost

16 them time and money. They aren’t getting I’ve watched them constantly adjust their leads and their target market isn’t there. I see marketing, messaging, and tighten their them doing a lot of everything and nothing customer experience to better tailor it to whom at all, because it isn’t focused. It’s like tossing they serve. They constantly looked at how they spaghetti on the wall and seeing what sticks. could tighten things and really scale. They were always asking, “How can we make this better?”

I would look at what is working and keep doing and they took action on it. more of that. For example, if you attend a regular networking event and you’ve received Take this same “How can we make it better?” qualified leads from it, keep going to that philosophy and apply it to marketing. How event and lean in. Or if you’ve made a good can you make your time and resources relationship with a referral partner, what is it stretch further by focusing on what’s moving about them or their role that helps them send the needle and what’s reaching your target you qualified leads? Find more people that fit market? Put your energy behind that. that profile. If your Yelp reviews bring people 17 17 in, maybe consider creating a campaign to get Anything else our small-business owners more reviews. Focus on what works and put should know? energy into that. Put the other items on pause. Just as your business will scale, your marketing will scale too. If you’re bringing in a ton of new Do you have any personal stories or prospects, make sure you’re well positioned anecdotes to share related to your tip? to take care of them. If you have unhappy One of our first clients started with an idea customers leaving because of the experience, it in a coffee shop. Less than five years later, can backfire. Be careful to ensure you can keep her company is now in a 5,000-plus-square- your service level as you scale. foot space with a team of 30. Over the years,

outandaboutcommunications.com PRODUCT MARKET FIT

—VIVIAN SAYWARD

Customers want your product—at least you think so!

You have an idea for a great new product that helps solve a problem in our daily lives. Is it feasible? Can you make it work? Will people buy it?

These are questions that go through the minds Here are some simple steps we follow to see of all innovators/entrepreneurs as they set what makes a product “fit” for the market and about starting the process of “disrupting” the thus gives it a better chance to succeed. We 18 market with their new product. But how do you know nothing is a sure thing, but at least going go about making sure as much as possible that through this process helps you make informed your idea truly has “product market fit”? decisions earlier rather than later, when time and money have been spent! In the course of establishing my business,

Vivacity Sportswear, time and again our team 1. Who is your customer? Sounds simple, has gone back to these core questions as we right? But can you tell me who they are? Where develop new offerings for our customers. I’ve do they live? Where do they shop? What car also applied this approach to our private label/ do they drive? What do they like to do for fun? contract manufacturing customers as we help Where do they hang out on social media? Can them develop and manufacture their new you give them a name? Sketching out a profile products for their respective markets. of a customer (or avatar) really helps you put in perspective how to approach this market. ForwardLine: Key Steps to Small-Business Success

2. What is your customer’s pain point? Once 4. Create a prototype. Please do get help from you’ve identified an issue with current products a professional technical designer. Getting a in this space, what does your product offer that sample done from a friend of a friend is okay can alleviate this problem? Is it just you who and maybe less expensive initially, but it will thinks this is a problem? Talking to people take more time and you may end up spending who fit your customer profile is so helpful. more money trying to get a good prototype. In the past, I’ve talked to retailers and other This also takes time: Please be sure allow for customers just to get more feedback. The more more time to review and make sure you have data, the better. something that is functional and meets your expectations. Never feel the need to rush 3. What is your value proposition? How is something to market—the last thing you want your product going to help your customer? is for the prototype not to work after you have What makes it more special/unique/valuable shown it to potential customers. than other solutions currently in the market? Once you have determined that yes, your 5. Test the prototype with a sampling of your customer has a pain point that your product target market. Feedback is gold, especially can resolve, how are you going to differentiate at this early stage. A focus group is always a yourself from others in the market? Maybe your good way to get valuable insights. This does product is so revolutionary that its attributes not have to be a formal affair; coordinating an speak for themselves. However, this is often event at which a group of representatives can not the case. Really do your market research: see and test out the prototype is one approach Who are your competitors? What are they to get good information. Make sure you are doing? What are they not doing to address the prepared with basic questions and facilitate the customers’ pain points? If your product can conversation to get valuable feedback. address these issues, then you can move on to the next step!

19 ForwardLine: Key Steps to Small-Business Success

6. Rework/redefine your prototype based on Anything else our small-business owners feedback—go or no go to market? This step should know? is extremely important. Do note that your first I have seen a few businesses rush the process of prototype can go through numerous updates getting a product with limited success. We all want —you can spend a lot of time on this step but to get things done ASAP, but you really need to be that’s okay. If it still makes sense and you are methodical and patient as you are developing and getting positive feedback, then it may be time refining your product. This does not mean it has to to take the plunge! More on that later. be perfect—you can start off with a good product for the market and continue to refine as you sell and get feedback from customers. Companies do this all Going• through the time; software updates are examples of that. • Recently we had a product development customer this• process who was so anxious about getting out his new

• technical apparel item—he wanted to do one helps you sample and then get it to market without testing • it. We really worked hard to show him what a make• informed mistake that would be, especially after he had given us a design package done by a “friend” that was • decisions earlier incomplete. Eventually he acquiesced, and he is • rather than later, now happy with the final product.

when time and vivacitysportswear.com Email: [email protected] money have Facebook: Vivacity Sportswear Twitter: VivacitySport 20 been spent! Instagram: vivacitysportswear SMALL-BUSINESS SUCCESS STORY

Company: Pretty soon, she was receiving rave reviews Topanga’s Finest and requests for her delicious jerky. As the business started to grow, her husband, Joey, Cofounders: left corporate America to help her build the Joey and Naomi Benghiat company. Over the past few years, they have Website: grown the business to be a premier provider topangasfinest.com of delicious, high-quality, gluten-free jerky!

Facing a big order, Joey and Naomi needed fast access to working capital to meet Naomi Benghiat’s passion for jerky inspired fulfillment requirements. With funding from her to create Topanga’s Finest, a gourmet ForwardLine, they quickly received the jerky company. She started making jerky in capital they needed to meet the order! her kitchen in small batches, using a family 21 recipe that had been developed over 20 years. With her dehydrator she experimented with flavors and gave them to friends and family to try out and give her feedback. ForwardLine Growing your business is our business www.forwardline.com

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