How to survive and thrive in a tough economy:  It’s not the big things; it’s not the little things.  It’s both the big things AND the little things that will make it a slam dunk.

Example:  Recently, a friend needed a new alternator for her car.  I shopped it around.  One place charged me $37 to do a diagnostic (since I wasn’t sure it was the alternator going in) and then said they could replace it for $460. 

Business # 2 said they could look at it, no diagnostic charge, and if it needed a new alternator, the cost would be $370.

Business # 3 said they’d look at it, no charge and, if the work was necessary, the cost would be around $350. 

Business # 3 got the business based on the cost and because we knew them from previous work.  That was the big thing.

Now for the little thing.  A piece of molding on the driver side door, by the window, had been loose for some time.  About a week after the alternator work was done, we noticed that the molding had been fixed – at no charge and without even a word about it from the shop. 

Ding!  Ding!  Ding!  Talk about a neat, little five-cent extra that warmed our hearts and cemented our loyalty.  That was a little thing that made a big difference.  So, guess where we’ll be going for ALL our future repair work? 

The moral to the story:  Work hard, make money, have fun, and remember that it is both the big things and the little things that make you successful.

P.S.  Giving credit where credit is due, if you live in the Kewaunee County or Door County area of Wisconsin, the name of the shop is Sahs Auto, on County S between Algoma and Sturgeon Bay.  Check ‘em out.  

Want more biz tips and support?  Visit www.TheFreestyleEntrepreneur.com.

We love to talk about our products, our services, our business, ourselves.  Sure, the prospect needs to know who we are and what we do.  However, if he or she has to fight to get a word in edgewise, the sale is in serious jeopardy.

A better way: 

1. Know when to shut up.  Once you’ve told your story, practice keeping your mouth closed.  Bite your tongue if you must, but zip it.
2. Ask probing, inviting questions.  Get the prospect talking about what he likes or what she does.  Questions like, “Tell me about that,” or “What is your biggest challenge these days?” give the prospect the opportunity to tell you things you might not otherwise learn. 
3. Listen.  This involves more than just being quiet.  Pay attention to the words and their nuances.  Learn to listen so hard that your ears ache at the end of the meeting.

Now get out there and work hard, make money, listen, and have fun.

I’ve noticed that, of the many successful business people I’ve met over the years, perhaps half of them keep a little notebook in their shirt pockets.  Tell them something of interest or when they think of a potentially good idea, and they pull out the notebook, scribble a few notes and then go about the rest of their day.

 Personally, I’ve found that carrying such a notebook has helped me “remember” tons of neat ideas and information that would have otherwise been lost.

On the personal side, I tutor a fellow who, when I met him, was functionally illiterate (reading below the first grade level) and believed he was stupid.  As part of the tutoring process, I gave him a little notebook and told him that the difference between smart folks and the rest of the world was that the smart folks write down important info.  He now jots down everything he needs to remember (and yes, his reading skills have jumped to about the fifth grade level so far) and is more reliable than most people I know when it comes to keeping appointments and recalling info. 

Sooooo, work hard, make money, have fun, and keep that notebook handy.

John Ingrisano

The Freestyle Entrepreneur

204 Lakeview Drive

Algoma, WI 54201

(920) 559-3722

February 8, 2010

 Here’s the kicker:  While everyone else is looking to squeeze them on pay, think ahead a year or two.  Find the best and offer a fair wage.  You’ll be laying the groundwork for your company’s success for the next decade. — JRI   

———– 

“Don’t be cheap when it comes to pay.  Attract better talent with better pay — not a lot more, but slightly more than the rest.  You’ll reduce turnover, enhance morale, attract better talent.”    – Russell J. Riendeau (Finders Keepers: Attracting and  Retaining Top Sales Professionals,  Addicus Books, Inc., 2001.

Whether you are pro or con on all the bailout ideas coming out of Washington, this seems to be a pretty interesting deal.  If your business is struggling (lost customer base, saw an increase in costs, or a reduction in working capital or employees) you may be eligible for up to $35,000 in loans.

Here’s the overview: 

1. The loans are interest-free, with repayment deferred for 12 months. 
2. Loan payments can be used to make principal and interest payments on existing loans over a six-month period.
3. Loans are approved on a case-by-case basis.
4. Loans are available from SBA-participating banks.
5. Loans will be available until allocated fund are depleted or September 10, 2010, whichever comes first.

The ultimate goal is to take the pressure off your finances and enable businesses to redirect their normal cash flow from loan repayment to investment in their business, such as inventory expansion, covering payroll, etc., Kok said in an email release on May 18. 

If you are based near the Fox Valley in Wisconsin, contact Hometown Bank at (920) 731-9025.  Otherwise, talk to your own lender for more info.

And if you get a chance, let me know how it goes.  — JRI

The two biggest culprits, especially with small businesses, are indifference (not my problem) and ignorance (I don’t see a problem).

These days, neither argument is good enough.  Under new rules that took effect on November 1, you could be liable for security breaches at your business.  Above that, it just makes good business sense to provide quality security for your customers.

The irony is that most security errors can be easily avoided.  Many consultants I’ve talked to pointed out that most breaches were the result of mundane mistakes and oversights.

What to do:  Most security issues are basic and require little effort to address.  Here is what you need to do now and some ideas on how to do it. 

1. Remember that most emails are not secure.  Never send credit card and other sensitive info via email.   
2. Create a credit policy.  It should include how data is collected, handled, stored and disposed of.  
3. Be careful if you create a do-it-yourself website.  You and your customers could be at risk if you build in credit card payment options that do not comply with DSS (Data Security Standards). 
4. Train your employees about how to handle secure information.  Make them aware of how to protect data.  
5. Conceal sensitive information.  Example:  Do not include your customers’ entire credit card number and expiration number on receipts. 
6. Store information properly.  Do not leave paperwork lying out on the open on desks.  “You wouldn’t leave a pile of cash on your desk,” says Biewer, “but people leave sensitive and valuable information lying around all the time.”
7. Do not store credit card numbers or other sensitive information on your web server.  This makes it vulnerable to hackers.
8. Monitor all transactions for fraud.  This often requires little more than verifying signatures and checking a second piece of identification.

Just as you would not leave your doors unlocked overnight or leave your own credit card sitting out in the open, accept that you must be ever and always vigilant against hackers and other data thieves.  It’s not just the law these days.  It’s also good business sense.

(A version of this article first appeared in the October 2008 edition of NEW North B2B Magazine.)

1. Push December billings into January, as long as your clients/customers have no objections.  This moves what would be 2008 income into 2009.  If you are cash shy, borrow on your line of credit and repay the loan in January.  Imagine you would normally receive $10,000 in December.  If you are in a 35% tax bracket, you can defer up to $3,500 in taxes into 2009.  
2. Pay as many expenses as possible in December.  This increases your 2008 deductions, further reducing taxes.
3. Make your January state quarterly payment in December.  It isn’t due until January 15th.  However, by paying it by December 31, you can take the deduction for 2008.  (Note: Do not do this for your fed quarterlies.)
4.  Pay your home and other property taxes by year-end.  Under the same principle, you can deduct those property taxes in 2008.     

Take these four simple steps and save thousands of dollars on your 2008 taxes.  

Work hard.  Work smart.  Make money. Have fun.

John R. Ingrisano

The FreestyleEntrepreneur

www.TheFreestyleEntrepreneur.com

Let’s call it like it is:  Tough times ahead!  No, I’m not a doom-and-gloomer.  Far from it.  I am an optimist.  Besides, I truly love the challenge of tough times.  They seem to bring out all the best business instincts in me.  

All I’m saying is that it pays to be ready … mentally ready.  I know some SBOs who want to argue about how bad things could get.  Some nervously keep telling themselves that everything will be okay.  I hope so, too.  But they’d better not stick their heads in the sand and hope for the best.   

Just as bad are those biz owners who have already started wringing their hands and talking about how they may not survive, how the coming times will be worse than the Great Depression, etc., etc.  They’ve already quit and are climbing into the lifeboats, even before the Titanic has left port.   

I’ve always believed it was wiser to hope for the best, but plan for the worst. 

My position?  Keep one eye on the macro-picture (how Washington, Wall Street and the world are looking from week to week) and the other on the micro-cosm (your markets, products and competitors).  Then adjust your plans, dig in your heels, and keep on swinging.  And swinging.  And swinging.  No whining.  No excuses.  No alibis.

That way, if things get really bad, you are in the best possible position to weather the storm.  If things only get kind of bad for a short spell, you’ll come out this economic funk positioned to blow the doors off your competition and send your sales, your profits and your business to new levels.

For me, the formula is simple:  Work hard.  Make money.  Have fun. — jri 

“If a man gets tired and has a good alibi…

he’s likely to accept defeat.”

        –    Maxwell Perkins

In the meantime, a breed of so-called “customers,” better described as predators, is on the prowl.  These folks are more euphemistically referred to as bargain hunters looking to take advantage of cash-hungry business people.  They mostly bring bad business, and from my experience, bad business is worse than no business at all. 
 
They’ll drive you crazy, waste your time, and leave you with little if any profit.  Here are a few examples:

The thief.  This predator is looking for a freebie.  As a consultant, I’ve found that this is the prospect who wants to see the proposal, the outline and as much detail as possible before committing.  During lean times in my younger days, I’ve darn near given away the store in hopes of getting the contract.  More often than not, they took the idea and then did the project themselves.  What to do:  Call the thief’s bluff by saying something like, “I can give you a quote for preliminary research, which will be taken off the final bill if the proposal goes to contract.”  

The friend.  This is the customer who knows you’re in a cash flow crunch and tries to convince you that he or she is willing to help you meet your cash flow needs by taking product off your hands…at a loss.  What a pal.  What to do:  At the very least, split the difference.  Remember, this predator still needs your product, so turn the tables.  “I can’t give it to you for that price, my friend, but I will give you X percent off my regular price.  That way, we’ll both come out ahead.” 

The teaser.  This is a variation of the friend, but one that tempts you with the casual bit of information that goes something like this:  “Well, I only need one now, but I’ll in the market for another 50 by August 1…that is, if the price is right.”  What to do:  Explain that, “I can give you a fair and competitive price today.  Then, when you’re ready to act on the next 50, I know I can beat anybody else in the area.”

Everyone wants a bargain, but that doesn’t mean you have to let them roll you, pick your pocket, and leave you for dead in an alley.  Remember that the predator who shows up looking to squeeze you today will definitely return tomorrow, but only to squeeze you a second time.  Predators are not loyal customers.  They want just one thing — another deal that adds up to a win for them and a loss for you. 
 
That’s bad business…and that’s worse than no business at all. 
 
John R. Ingrisano
The Freestyle Entrepreneur
www.TheFreestyleEntrepreneur.com.