Spiga

Small Business Failure Nuts

Writen by Robert A. Kelly

Pardon my enthusiasm, but a large part of your small business' success is somewhere else. Namely, out among the company's important external audiences.

How they perceive you, and what they believe about you and your business, directly affect your chances of success. And that's because those perceptions usually lead to predictable behaviors, good or bad. So they're pretty important!

Now, here comes the public relations professional who tests the opinion waters, then decides whether, on your behalf, s/he needs to create, change or reinforce that opinion about you and your company. This is important because it will affect the message content you prepare aimed at those perceptions.

Next, s/he'll attempt to reach, persuade and move-to-actions- YOU-desire those very people whose behaviors affect your operation the most. And we're talking about actions like neutralizing a rumor, clarifying incorrect perceptions of your service quality, or reinforcing awareness of your organization's contributions to the local and regional community.

Now, of course, you and your PR counsel agreed up front, at the beginning of the program, on the behavioral changes you would like to see occur. So, it's a simple task to review together just how successfully the public relations effort on behalf of your small business is, or is not going.

As you may suspect, I do not give up easily when it comes to how public relations can help a small business succeed.

So, who does what to get us to this point?

First, you list those two or three groups of people, i.e., key external audiences, like your prime prospects, or certain segments of area residents, or influential community leaders, and others if appropriate to your product and service offerings.

You need a basis from which to evaluate opinions about you and your small business. So you need to take the time to interact with members of these key audiences to find out how they perceive you, especially any areas of potential trouble. This is the information gathering phase of the program.

Only then can you and your PR person decide just what opinions need to be recreated, or changed, or simply reinforced. This becomes the PR objective to be achieved in a realistic, mutually agreed upon time frame.

Now, we prepare messages most likely to persuade both those harboring misconceptions, or no perceptions at all about you, and bring them around to your way of thinking.

Remember that bad perceptions can lead to bad behaviors and, fortunately, vice versa!

At this point, you need to select the communications tactics - "beasts of burden," I call them - that will carry your carefully crafted messages to the eyes and ears of each target audience. In other words, how will you reach these important people?

You and your PR counsel have a wide choice of tactics. Everything from personal meetings with members of each target audience, your periodic speeches, emails, newspaper and radio interviews to promotional events, awards ceremonies, news releases, and many others.

As time passes, you must continue to speak with members of your target audiences watching and listening carefully for signs of awareness of your business and its role in the marketplace and in the community. Stay alert as well for a growing receptiveness to your messages by prospective customers.

These are indications that reflect local feelings about your organization. As your public relations counsel will tell you, progress in this regard will be directly proportionate to how much effort and attention you personally give to the outreach program.

The good news is that when public relations modifies behaviors among groups of people important to your organization, the effort may be pronounced successful when those altered behaviors help you reach your managerial objectives.

Which is why the title of this article remains, "Small Business Failure? Nuts!"

Please feel free to publish this article and resource box in your ezine, newsletter, offline publication or website. A copy would be appreciated at bobkelly@TNI.net.

Robert A. Kelly © 2005.

Bob Kelly counsels, writes and speaks to business, non-profit and association managers about using the fundamental premise of public relations to achieve their operating objectives. He has been DPR, Pepsi-Cola Co.; AGM-PR, Texaco Inc.; VP-PR, Olin Corp.; VP-PR, Newport News Shipbuilding & Drydock Co.; director of communications, U.S. Department of the Interior, and deputy assistant press secretary, The White House. He holds a bachelor of science degree from Columbia University, major in public relations.

Visit: http://www.prcommentary.com; bobkelly@TNI.net

A Small Business Consultant Can Help In Many Ways But One Thing He Cant Provide

Writen by Kelvyn Peters

A consultant must remember that the business belongs to the client. There is always a danger that the consultant will take a dominant position to the detriment of both of them.

Let me tell you a story of when this was forgotten…

It's not often a small business consultant will admit to a failure in a small business but my first adventure into small business consulting was a failure. I closed the business within two years.

In 1980 I had planned to offer Mom-and-Pop sized businesses cheap but effective small business help. I saw many who badly needed something to pull their businesses out of the doldrums. But consultants were asking minimum fees of $3,000 which they could not afford.

My thinking was that if I computerized and systemized my services I could offer a low-cost service which would rejuvenated their enterprises. They, of course, would be so thrilled that they would retain my firm to do their general tax and accounting work.

Like the curate's egg I was partly right. Kelvyn Peters CPA and Associates still retain clients from that era who still think I'm wonderful (but expensive). My small success blinded me for a while to where my plan was doomed to fail.

The first trap was that the 'oomph' for the business had to be supplied by the client. It did no matter how passionate and excited I was in improving a sick business if the client had no excitement. The punch and the drive to run a business have to come from the owner. The consultant can only steer that drive in the right direction.

The second pitfall was in not realizing that small businesses are sometimes run by 'small' people. Nice people; generous and kind people who you'd be glad to have as friends…but people with low horizons who are comfortable where they are. They know they should be concerned about their business. Everybody tells them so.

But in their hearts they are not.

When these people engaged my services it was because they felt they had to. The bank or a creditor had advised it. Sometimes a well-meaning son or daughter had said, "Pop you've gotta get some help! You're killing yourself here!"

However, what had to be done made them so uncomfortable that they just did not do anything and fell by the wayside. (probably blaming the consultant).

If they retained our services they became high-maintenance clients phoning us (no e-mails then) before they made almost every new decision. Sending out a mailbox drop? Please design and produce it for me. A monthly newsletter? Could you do it for me because you are so good at it.

This normally would have been great except in this case they could not pay for the service and felt it should be included in the initial fee. We lost heaps of money providing these extra services without charge.

My staff said I was too good-hearted. I do not agree. Here were people really needed our service and they couldn't pay for it. How could we let them sink alone.

We could not continue and had to close the service…and the world continued. 'Mom-and-Pop' businesses still need help but now we know how to interact with them so that neither of us is burned.

The third problem is one I discovered only yesterday from a book called Success Engineering by Phil Gosling.

In the book he tells of clients who on the face of it believe in what he tells them. They seem eager to follow his suggestions. and seem eager to do what he tells them. They attempt to do every thing he suggests, but things just don't work for them. They work for everyone else but not for them. I experienced the same thing.

I felt that they were psychologically sabotaging themselves because of their fear of the unknown. Phil has a completely different explanation which he explains in his book.

So now our number one criteria for accepting a new client is that they should have the passion and persistence to see it through. An ailing business shows signs of improvement week by week but sometimes it will be two years before vigilance can be relaxed. Those two years are too hard to deal with for some people. They would rather surrender.

Previously, I have said that to me accounting wasn't boring or dull. I am passionate about being an accountant. I have an excitement about helping people because I can make a difference to their lives.

If my experience and knowledge is added to the excitement and drive of a business owner we, together, can really make things happen. Dreams really will come true.

Keep the dream alive.

About The Author
Kelvyn Peters is one of Australia's longest-serving Tax Agents. He was registered in 1962 and became a CPA in 1964.

Kelvyn served on many charitable boards including St Aubyns Hospital, Alzheimer's Association and Older Peoples Advocacy Service. As a young man he won the Outstanding Jaycee Award three times. He is a compassionate, generous man who loves people. That's why he is so skilled at helping people in trouble.

Kelvyn Peters was Mayor of Kingaroy Shire Council from 1982 to 1987 and campaigned as the 'Young Man of Action". ver 20 years later he still regards himself as a 'Young Man of Action'. He is a director of Restaurant Catering Qld Inc the peak employer representative in Queensland, and has advised the hospitality industry for many years.

His specialty is moving in to rescue a sick business. Kelvyn has spent over 20 years experimenting and researching methods to help small business in ways that are affordable. He has perfected it with local clients now he are going global and he is only an email away.

http://www.profitstrategies4business.com

Factoring Invoices Financing For Small Businesses

Writen by Marco Terry

Peter owns a successful business that is growing quickly. Like many businesses, Peter's company has good commercial and government clients that buy regularly from him. And since Peter is really good at his business, his clients have been purchasing more and more products from him. His business appears solid.

But some cracks are starting to appear in the foundation. He's been close to missing payroll twice. He's delaying supplier payments. Even worse, he chose not to bid for a major government contract because he couldn't afford to. That's true – he couldn't afford to bid for new business. He was afraid of having to add more employees and buy more materials.

How can that be?

Like most business owners, Peter extends terms to his clients. They usually pay him in 30 to 45 days. But, since Peter runs a small business, his suppliers demand that he pay them in 10 days. Plus employees need to be paid every two weeks.

In summary. Peter has clients that want to pay in 45 days and suppliers/employees that want to be paid in 10. Since the company does not have a lot of money in the bank, the math doesn't work.

Is there a solution? Yes, Peter should consider factoring his invoices to fix his cash flow. Factoring will provide him with the necessary cash to pay suppliers and employees, while eliminating the 30 to 45 day wait to get paid.

Invoice factoring works as follows:

1. You deliver the product or service and invoice your client

2. You send a copy of the invoice to the factoring company for financing

3. The factoring company advances you up to 90% of the invoice. You get immediate funds

4. Once your client pays the invoice, the transaction is settled

With factoring, Peter will be able to meet his current obligations. His company will also have enough cash on hand (or liquidity) to bid on new job proposals, allowing him to grow the business and take it to the next level.

Commercial Capital LLC

Looking for a factoring company? We can provide you with a factoring financing quote. Please Marco Terry at (866) 730 1922 for a free quote or go to our commercial finance website for more information.