The SBAM Power Boost

Ring ring (or whatever noise your phone makes)

Seth's Blog: How to answer the phone.

The only reason to answer the phone when a customer calls is to make the customer happy. If you're not doing this or you are unable to do this, do not answer the phone. There is no middle ground on this discussion. There are no half measures. Saving 50 cents a call with a complicated phone tree is a false savings. Think of all the money you'll save if you just stop answering altogether. Think of all the money you'll make if you just make people happy.

This posting is a good reminder that technology should be our servant, not our master. Does your phone system, answering machine or whatever, serve to improve your customer service? Or does it frustrate customers and drive them away? Don't let technology deprive your small business of its most important competitive advantage: the personal touch. Michael Rogers

Additional link:

The flip side: how to win customer service phone battles

Oh, that's a cute message! Let me forward it...

The AppGap � � Fighting Internal Spam that Hurts Productivity - Web apps for work; reviews commentary; Work 2.0, Web 2.0, Enterprise 2.0.

What if employees were limited to say a hundred emails a day. And if they went over that limit they were charged 25 cents per email sent. What would that do to the organization? Would it mean more meetings? More stopping by each other’s desks? Better and more efficient uses of the corporate intranet? A reduction in knowledge sharing? Increased productivity as employees would be spending less time cleaning up their inboxes? It is hard to know but it might be one way to fight what I’m going to call “internal spam” just as private email systems fight public spam. This doesn’t get much attention but I’m willing to bet it hampers productivity and fuels laziness.

Comment -- Charging employees 25 cents an email would certainly get folks thinking about whether to mash that "forward" button. But maybe the large question to answer as a small business owner is whether your employees are fully motivated and engaged in their jobs. If they are, you probably don't have to worry about them wasting time on emails. Michael Rogers

Cut and trim 'til your expenses are slim

Creative Cost-Cutting Tactics For Small Biz - Forbes.com.

Serious cost cutting means looking everywhere--even at the very packages that you send through the mail. Aaron Rubin, chief executive of karatedepot.com, an online karate-equipment retailer, cut costs by switching from the free boxes used by the United States Postal Service to lighter, bubble protected plastic envelopes. While he has to pay for the envelopes, the difference in weight is so significant that it costs him less than using the free boxes. "If you get a package down from one pound, one ounce to less than one pound, the saving for priority mail is over $3 per package," says Rubin. Sharing office space can save more than a few bucks.

Tyler Jorgenson, a real estate broker in Chino, Calif., recently renegotiated his lease to include a provision for subleasing. He's now renting out 65% of his location and charging two tenants enough to cover his entire rent. One of the conditions of the deal is that Jorgenson pays for the utilities and Internet connection for the whole office (which he would have to do anyway if he didn't have tenants).

Here in Michigan, it's hard to believe that small business owners can cut any more than already have over the past year. We're out in the field doing surveys right now for our January 2009 Barometer. I fear it will find worst-ever reports of sales, profits and employment. With that kind of economic pressure, entrepreneurs will be forced to become even more creative in slicing and dicing their costs. Michael Rogers

Cut expenses, get more revenue: simple, right?

OPEN Forum by American Express OPEN | Small Businesses Feeling the Pinch.

A quick economic recovery would allow small businesses to use cash and existing lines of credit to meet their costs. To do this, small businesses are going to need to be cautious regarding their outgoing expenses that are not immediately generating income in the short term. This may mean that they need to reign in unprofitable aspects of the business or control other expenses, such as personnel or marketing costs.

Small businesses are going to struggle during the current crisis due to a increased difficulty in getting reasonable rate lines of credit, which is going to impact their ability to weather the crisis as as well as their ability to adapt or expand their business during this period, both of which may be necessary in order to weather this crisis.

I've heard from community banks and credit unions that say they have plenty of money to loan to qualified small business owners. Of course, "qualified" is the key term. Still, even if you don't qualify right now, it's worth establishing some banking relationships you can tap when the economy does turn around. Michael Rogers

Are age stereotypes preventing you from getting the workers you need?

So how old is old? - The Goodwill Blog.

A local community college is holding an “Employ the Older Workers” job fair today. Participating employers will be there to interview “older workers” interested in jobs in health care, customer service, and hospitality. The job fair, I read, is for those age 40 and older looking for jobs.

Did you catch that? 40? FORTY!! Maybe it’s just me, since I hit the big FIVE-OH earlier this year…but I’m really disturbed that 40-somethings looking for a job may be considered old. Sure, 40 is old if you want a job as a professional football player. But seriously. Swimmer Dara Torres at age 41 can win three silver medals at the Beijing Olympics-but my 42-year-old neighbor is so old that she needs a special health fair to find a job?

I think small business owners, because they are likely doing the hiring personally, are less likely to age discriminate than are corporate recruiters. Small employers need to hire talent, regardless of age or any other factor. So, they focus on job skills, period. Even in this economic downturn, there are small business owners who are crying out for quality employees -- and they are eager to consider someone in a non-standard age group (aka "old"). Michael Rogers

Additional links:

Older workforces requires variety of recruitment strategies

Small Business Labs: Survey on Working From Home

Small Business Labs: Survey on Working From Home.

The Council of Smaller Businesses (COSE) is the small business division of the Greater Cleveland Partnership, which is one of the nation's largest metropolitan chambers of commerce.

COSE recently conducted a membership survey focused on better understanding home based businesses. The results show that many home based businesses are stable, profitable and full-time small businesses. The results of the survey are not surprising to those of with home based businesses.

Here are a couple of interesting data points from their results:

• 70% of the respondents had been working from home for over 5 years
• 41% said they started their business because they stopped enjoying working for someone else
• Only 21% said they started their business because they lost their job
• Only 12% said being a home business hurt their ability to attract customers

This study may help dispel some of the negative stereotypes about home-based businesses. They're not just a person stuffing envelopes at their kitchen table because they got fired from their "real" job! In fact, I think the phrase "home based" business is a bit of a cliche. Does a real estate appraiser who works from a dedicated office built into his house really fit the image of a "home based" business? Or is she more accurately characterized as a sole proprietor? Shameless plug: "Focus", SBAM's member-only magazine, in December begins a regular advice column for sole proprietors. Michael Rogers

Additional link:

COSE home-based business report

There's still time to get valuable public recognition for your small biz

SBAM.

The nomination deadline for the fifth annual Michigan Celebrates Small Business (MCSB) recognition program for entrepreneurs and supporters of small business has been extended to Nov. 21. In addition, the application deadline for the Michigan 50 Companies to Watch has been extended to Dec. 12. Nomination forms are available now at http://www.michigancelebrates.biz.

I've been involved with Michigan Celebrates Small Business for five years as the media liaison. Let me tell you -- this is one fantastic event! Being an award winner leads to tons of great free publicity for your firm, your products or your services. There's no cost to apply -- click over right now (or at least, before the Nov. 21 deadline) and get yourself nominated. Michael Rogers

They're buying our stuff overseas

Exports are an Opportunity for Small Businesses � The Moutray Chronicles.

One of the few bright spots in the economy right now are exports, which were up an annualized 5.9 percent in the third quarter. Imports, meanwhile fell 1.9 percent on an annualized basis. Clearly, exports have helped to keep our economy much stronger than it would have been otherwise, and small businesses - which in 2006 accounted for just less than 30 percent of all known export value - have been a part of that.

Earlier this week, I asked small business owners on Linked In to comment on how aggressive they have been in pursuing exports. Most of the responses suggested an aggressive posture towards international trade, or at the very least, a desire to do so.

Interesting personal blog by the guy who is Chief Economist for the Office of Advocacy at the U.S. Small Business Administration. It would seem like Michigan small businesses, thanks to our proximity to Canada, would be very well positioned to take advantage of international trade opportunities. Yet, we hear from our members that many small business owners don't recognize the opportunities and/or don't have the expertise to aggressively export. Michael Rogers

Additional links:

• International Trade Administration (trade.gov)
• National Small Business Association International Trade Brief

Nothing ventured, nothing gained (that is, no venture capital, no capital gains!)

TherOx shows how companies can be forced to move | Freep.com | Detroit Free Press.

TherOx's 14-year journey from start-up to a company on the verge of obtaining FDA approval for its cardiac system shows promising technology does exist in Michigan. However, the state often has a hard time capitalizing on it because of a lack of significant venture capital. Stories of promising start-up companies that stay in Michigan and eventually hit it big -- like HealthMedia Inc. in Ann Arbor, just acquired by Johnson & Johnson just acquired -- are still too rare.

This interesting Free Press article notes that the lack of venture capital in Michigan forced TherOx to work with a Silicon Valley venture firm. That firm force TherOx to move out of Michigan to California. SBAM has recommended a number of state policy changes to increase the capital available for entrepreneurs. Read more at the link below. Michael Rogers

SBAM's Entrepreneurial Policy Agenda

Putting a sheen on the silver lining

The Financial Crisis's Silver Lining - Scott Anthony.

The fundamentals of a compelling new growth business haven't changed: A problem that can't be adequately solved, a solution the customer considers better than current alternatives, and an attractive, sustainable economic model and expansion plan. It's hard to argue that it is going to get tougher and that the bar for success is going to get higher. But there remain ample opportunities to be seized by those who don't freeze.

Nimble and innovative Michigan small business owners should be able to take advantage of the opportunities that will pop up during this downturn. Did you launch an innovative new product or service in 2008? Enter it in the Innovation Awards contest! Info at the link below. Michael Rogers

Michigan Celebrates Small Business Innovation Award