Category Archives: goals

6 New Year’s Resolutions for Small Business Profitability

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Succeeding in small business requires constant attention to detail and a willingness to adapt along the way. With a new year upon us, what better time to aspire to make your small business more profitable than ever before?

 

How can you get there? Here are six steps to put you on the right path.

 

  1. Evaluate your processes and systems and identify which are providing efficiency and which are holding back your productivity.

Specifically consider replacing manual processes that consume a lot of time with solutions that can automate them and that integrate with the systems your business uses. Accounting, sales, marketing, etc…where can you find efficiencies?

 

  1. Take a close look at your expenses.

Go line by line on your expense report and ask yourself what’s necessary and what is not. What’s driving up your business costs but not giving you a return on your dollars? Be honest, and consider kicking “nice to have” but unnecessary expenses to the curb in the New Year.

 

  1. Assess your pricing.

If you’ve grandfathered clients into rates from years gone by, it may be time for an increase. If you decide to raise your rates, make sure you’re providing enough advance notice to your clients (review the contracts you have in place!) and provide an explanation as to why you’re increasing pricing. And of course, thank them for their understanding and for the continued opportunity to work with them.

 

  1. Remain objective.

As the year begins and moves forward, question yourself and those you work with (employees, vendors, project partners, etc.) when things aren’t progressing as you had hoped. Are your expectations too high? Do team members have too much on their plates? Are those involved not pulling their own weight? Do your products and services need improvement? These are tough questions that need to be asked and answered honestly for you to gain an understanding of what you can do better to improve your business results.

 

  1. Take action

After figuring out what changes could benefit your business’s bottom line, you’ll need to make a plan and follow through on executing it. Write it down, breaking it down into clear, actionable steps and tasks. Then, share those action items with those you’ll depend on to help you succeed.

 

  1. Take responsibility.

As the owner of your business, change starts with you. Take responsibility and set a positive example for others to follow. By demonstrating enthusiasm and dependability, you’ll facilitate a company atmosphere that has a firm foundation of cooperation and accountability.

 

If you need guidance in making 2016 the best year yet for your small business, contact us at Portland Maine SCORE. Our certified mentors are knowledgeable about all aspects involved in starting and running a business.

 

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Is Email Marketing Worth the Investment?

With social media, texting, and other instantaneous ways of marketing your products and services, you might be wondering if anyone really pays attention to emails anymore.

Statistics say they do.

  • According to eMarketer, 69.7 percent of internet users say email is their preferred method of communicating with businesses.
  • And Salesforce Marketing Cloud’s 2015 State of Marketing report shows…
    • Seventy-four percent of marketers believe email produces (or will produce) ROI.
    • Seventy-three percent of marketers agree that email marketing is core to their business

How Could Email Marketing Help Your Small Business?

You can use email marketing to fulfill a number of objectives. For example you can…

  • Introduce new products and services.
  • Announce special offers, promotions, and contests.
  • Provide tips to help customers use your products and services more effectively.
  • Share industry news that will affect your customers.
  • Share event highlights.
  • Introduce new team members.
  • Highlight recent awards or press coverage your business has received.

You can get the most from your email marketing efforts when you integrate them with your other online marketing strategies. For instance, you can share links to your blog posts and other pages of your website in your email marketing messages, share your email marketing message links on social media, and incorporate links to your social media accounts in your email marketing messages. All of those things will boost the visibility of each platform you’re using.

Small Business Email Marketing Platforms

Several small business email marketing solutions exist. Some are free, and some have fees (which typically start out small and increase as you increase the size of your mailing list).

As you explore the options, consider these things:

  • Your budget
  • The frequency at which you’ll be sending email marketing messages
  • Your level of comfort in using technology tools (some platforms are more user-friendly than others)

Most importantly, know the rules and regulations set forth by the Federal Trade Commission for email marketing. There are laws in place to protect people from unwanted solicitation emails. Fail to comply with them and you could find yourself paying a hefty fine. No small business owner needs that!

If you’re considering making email marketing part of your business marketing strategy but don’t know where to begin, talk with a SCORE mentor. At SCORE, we have a team of dedicated volunteers who can help guide you in your marketing efforts and help you with all other aspects of growing your business.

5 Common Mistakes When Starting a Business

Starting a business comes with a learning curve – often a steep one. There’s a lot to consider, research, and execute. It’s not surprising that new entrepreneurs make mistakes along the way.

According to Alan Shaver, a SCORE Portland Maine mentor for the past 15 years, there are five key mistakes many new startup business owners make.

If you or someone you know is starting a small business, knowing what missteps to watch for can help you avoid getting your business off on the wrong foot.

Top 5 Mistakes New Business Owners Make

 1.   Underestimate the time, effort, and energy required to start and run their businesses.

“They don’t realize it will be as all-consuming as it is,” explains Shaver. “They underestimate the demands it places on them, particularly how it will impact their family relationships and their financial resources.”

He says a lot of people going into business fail to estimate that accurately, so he encourages new entrepreneurs to connect with existing business owners in similar types of businesses who have gone through the process. That can serve as a helpful reality check.

  1.  Fail to conduct sufficient research about the industry and their type of business.

Without researching the business arenas they’re entering, new entrepreneurs often don’t have an adequate understanding of what they can expect.

Shaver explains, “A lot of people don’t want to do that kind of work, but it’s necessary to understand their business and the industry in which they’ll operate.”

“SCORE counselors direct them to various resources to enable them to learn a great deal about their proposed business and its industry.”

One that Shaver regularly shares is an online resource available at the Portland Public Library, Reference USA. It offers a wealth of information to help new business owners understand the metrics, price points, margins, and more that are usual for their types of business. Reference librarians can also assist new entrepreneurs in researching their industries.

  1. Understand the potential limitations of their business.

Will your business be able to sell enough to meet your income needs? Does your location provide an opportunity for growth? What qualifications do your employees need?

The above are tough questions to begin to answer unless a new business owner does financial projections and talks to others in the industry to learn from their experience.

“I had worked with a client who had a successful restaurant with a strong clientele, but his location wasn’t large enough,” shares Shaver. “As a result, he couldn’t turn tables fast enough and couldn’t achieve the revenue goals he wanted to. Sadly, he closed his business. If he had done more homework about the efficiency of a venue his size, he might have chosen a different location and remained in business.”

Similarly, but fortunately with a more successful outcome, Shaver also worked with a thriving coffee shop client who decided not to open another restaurant because he did his due diligence and projected he wouldn’t turn a profit until after three years.

According to Shaver, SCORE mentors help new entrepreneurs tackle challenges like those. They can facilitate connecting new business owners with existing business owners, and they also point entrepreneurs to the Financial Projections template on the SCORE website. By taking advantage of those resources, startups can make better decisions.

  1.  Fail to develop an adequate business plan, specifically the financial projections. 

“A lot of people allow themselves to be overwhelmed about creating a business plan,” says Shaver. “At SCORE, we encourage them to do it in small steps – to tackle it in reasonable workable bites.”

According to Shaver, seriously thinking about your business finances is crucial.

Will you make the money you intend to – or need to – make? Will you be able to pay back your investors and lenders?

Only by preparing realistic financial projections can you determine the appropriate capitalization and most efficient operation of your business.

“Business plans help you measure your own progress against your goals. It’s important to remember a business plan is not cast in concrete. You can change it as you learn more, but it’s essential so you can track if you’re achieving what you set out to do. And if it isn’t working, you need to explore why isn’t it working.”

SCORE provides tools to help entrepreneurs development business plans (such as templates for the narrative portion and financial projections) and offers workshops to guide them as well.

  1. Neglect to review and understand the financial performance of their businesses.

When new business owners don’t obtain financial reports and pay attention to them from the outset, there can be disastrous results.

Shaver warns, “If you don’t look at financial results regularly or faithfully. You don’t really know the score. You’ll have no idea if you’re winning or losing.”

“When small businesses are not winning, they need to figure out why – before they run out of money.”

Shaver encourages new entrepreneurs to reach out for assistance from SCORE counselors to understand what their financial statements reveal about the performance of their businesses.

Bonus Tip:

This doesn’t apply to all entrepreneurs, but if you’re going to have a partner in your business, Shaver recommends getting a written agreement in place from the beginning.

“It’s absolutely essential to have a written agreement that defines ownership and responsibilities. Do it upfront because waiting until there are disagreements or problems in the business relationship is too late

About Alan Shaver

  • Shaver has been a SCORE Mentor for 15 years. He leads several workshops at the SCORE Maine Chapter in Portland.
  • Now retired, he was a corporate lawyer with a large law firm in New York and had a private law practice that served New York and Connecticut. For ten years, he was also a partner in a franchise auto service business in Maine.
  • His areas of expertise include business planning, financial projections, and business funding.
  • One of Shaver’s SCORE clients, Garbage to Garden, was nationally recognized by the SCORE organization as “2014 Outstanding Green Small Business.”

 

Respect Your Competition

You launch your business in a growing niche market. Out of the blue, a friend tells you about a new similar product or service. After your initial shock, do you obsess about losing your edge or embrace the opportunity? At SCORE, we say “FEAR not your competition!” The right move is to transition into discovery mode. Knowledge about similar businesses may add a creative spark to your thinking or confirm that you’re bringing an authentic solution to a customer want or need at precisely the right time.  Continue reading

Find Your Business Mentor

Whether you are starting or growing a business, it pays to have a mentor on your side. What is a real business mentor? Someone with more experience than you…someone who offers not only knowledge and support, but also perspective and insight. A mentor should be a savvy business veteran who can help you navigate business challenges. Mentors do plenty of cheerleading, but their real value is in the objective, unvarnished advice they provide…they often tell you what you need to hear about your business (not necessarily what you want to hear). Let’s be clear, mentors aren’t parents, friends or even supportive investors…they need to be much more objective than that.

The benefits of a mentoring relationship are compelling:   revelant perspective and advice, skill improvement, networking contacts and encouragement.     Here’s how to find the right mentor for you:

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