What’s in it for me? Big ideas for small businesses.
Striking out on your own in the world of business can be difficult – but that’s to be expected. One difficulty many small business owners don’t expect is a lack of information. There’s a wealth of advice out there – advice geared toward CEOs and MBA graduates. But as a boutique business owner, you don’t really need to read the latest Medium post on how to scale-up your 200-strong start-up. What you do need are smart business concepts tailored specifically to small businesses like yours, and explained succinctly and clearly.
The fact is, there’s no one-size-fits-all when it comes to business advice. Small enterprises face different concerns, challenges, and advantages to large firms. That’s where the blinks to Simple Tips, Smart Ideas come in. They’re filled with honest advice on the pitfalls and possibilities for small businesses.
Read on to discover
why you should throw away your business plan and draw up a business map instead;
what your company’s most valuable asset really is; and
why storytelling beats salesmanship every time.
Your business plan should evolve along with your business.
Architects don’t draw detailed plans for their buildings, only to throw them away once construction has started. Teachers don’t outline their curriculums at the start of the year, only to never glance at them again.
So why do so many small business owners put effort into creating business plans, then let those plans languish on their hard drives? Why don’t they revisit their business blueprint after their new enterprise has got off the ground?
The key message here is: Your business plan should evolve along with your business.
Instead, if you’re a small business owner, you should think of your business plan as a business map: a document that grows and changes with your business. Let’s talk about how to make one.
First, you need to set aside some time to bring your whole team together. Get a big sheet of paper and divide it into two halves: one side titled internal, the other external.
Use the internal section to pull together information about your team’s background, passions, skills, and talents. The more you can write in this section, the better. You’re after a portrait of your team that reflects more than just their professional personas.
Next, ask your colleagues to list all their past clients. Members of your team should drill right down to all clients they’ve ever served – including those who your colleagues encountered in after-school jobs and volunteer roles.
Then, ask your team members to list what services they’ve been paid for, to the same level of detail. You might be surprised by overlaps or synergies that arise. Right there, you’ll have pointers to potential new markets for your business.
Next up comes the external section. Here, describe your position in the market, and analyze your main competition. If possible, anticipate new market trends – as a small business, you have the agility to ride any trends that play to your strengths.
Finally, chart recent developments in your business, including both positives and negatives. You want to be looking at the last 18 months or so.
If you’ve followed this blueprint thoroughly, your end product will be far more than a business plan. It will be a totally unique map of your skills, talents, experiences, strengths, challenges, networks, and so much more. It will show you what your company – and only your company – can offer.
And most importantly, it shouldn’t be forgotten! Make time to revisit and revise your map throughout the year.
Understanding the value of your product is crucial to your growth.
Say you own a picture framing business. What do you sell? Frames, mounts, glass – right?
But what are your customers really buying from you? They’re actually buying a way to preserve treasured keepsakes and important memories.
The key message here is: Understanding the value of your product is crucial to your growth.
Too often, small businesses limit themselves by failing to fully grasp what it is they sell, and what they may have the potential to sell in future. This, of course, also limits their revenue.
Now let’s get back to our picture-framing operation. A savvy framer knows that she sells more than frames. She’ll constantly be looking for ways to double-down on the value that her business offers its clients. The shop may offer scrapbooking workshops, photo conservation services, or even host art exhibitions. These are all ways to expand revenue streams and the client base.
Now, think about your small business. Clients probably value it in ways that you haven’t yet considered. Solicit regular feedback from your clients, to better understand how and why they value you. And generate your own insights, too. This is something that Unipart, a car-parts distributor, did, with great results.
Unipart began by offering a distribution service. They supplied car parts to mechanics within an exceptionally fast delivery window. To do this, the team had to nail their logistics each and every day. They soon realized this expertise in logistics was something they could offer to clients. So Unipart opened a new branch focused on delivering logistics workshops to other firms.
Like Unipart, your company probably has untapped potential. But how can you uncover that potential? You need to get analytical. Think about which of the skills and services you could potentially provide that you aren’t currently offering. You could start by trying the S.P.I.C.K and Span approach.
S.P.I.C.K is an acronym for things people pay for: Services, Products, Intel or data, clients or customers, and Knowledge. You may be offering services, but a S.P.I.C.K and span analysis might reveal the potential to offer your clients more: data, intel, or products. And more offerings mean more revenue!
Your most valuable asset is likely to be your intellectual property.
Let’s do a stocktake of your assets to see which of them is the most valuable. Is it your cash? Your stock? Your machinery and equipment? Your workspace? If you’re like most small businesses, the answer is probably none of these.
The key message here is: Your most valuable asset is likely to be your intellectual property.
What exactly is meant by “intellectual property”? This could be a new invention, a process, or a design. There’s a staggering array of assets that can be registered by intellectual property – just check the encyclopedic World Intellectual Property Organization’s website. And for many small businesses, their most valuable asset is their intellectual property, or IP.
But let’s say you know exactly what your IP is. Why should you go through the process of establishing ownership? Well, for one thing, it would protect you if other companies tried to rip off your unique idea or product. But there’s another benefit. You can also license your intellectual property to others for a fee – or you can sell it outright as an asset.
Your IP will fall into one of four categories. Let’s break them down now.
The first is Copyright. By definition, this is granted automatically and without charge to any work that is recorded materially, whether on paper, in sculpture, on canvas, or otherwise. Books, for example, are copyrighted. But so are your pitch documents, instruction manuals, style guides, web content, and so on. To assert your copyright, simply mark your work with the copyright symbol, your name, and the date.
Second, a trademark is a symbol, like a logo or a slogan, that represents your brand, product, or service. A trademark prevents other firms from using your branding to sell their products. Unlike copyright, a trademark must be legally registered – and you’ll have to renew it every ten years.
Third, there’s a patent. If your business owns a product, process, system, or formula that is completely new, a patent can offer protection. It will prevent others from using your invention to their benefit.
Now, what if you own something that isn't completely new, but you've modified its design or appearance? This is where the fourth category comes in. Design rights protect the shape and appearance of your product so that your competitors can’t copy your work.
Knowledge is power, and knowing what your IP is will make your business powerful.
The small size of your business can be your strength – if you think strategically.
Remember the story of David and Goliath? The nine-foot-tall Philistine giant Goliath challenges the Israelites: if even one of them can defeat him in battle, the Philistines would forever be enslaved to them. Only the boy David steps forward. Goliath is twice his size – hardly a fair fight. But David swiftly dispatches Goliath: he uses his slingshot to get the giant right between the eyes.
If you’re a small business competing with big firms, you might feel like your size is a disadvantage. But remember – you have the potential to be the David among lumbering Goliaths.
The key message here is: The small size of your business can be your strength – if you think strategically.
There’s no doubt that it can be tough going toe-to-toe with large, powerful competitors that are trying to squeeze you out of the market. But if you’re a small business, you have something those big firms don’t: agility. Turn your size to your advantage with the help of something the author calls the OODA Loop. OODA is an acronym for Observe, Orient, Decide, Act.
You’ll start by observing. As a small business, you have the advantage of being able to act on trends quickly. But you can’t act on trends that you don’t know about. So, stay alert. Keep your business antennae up, and you’ll be far more efficient than your larger competitors at logging trends, behavioral shifts, and new opportunities.
Once you’ve observed the shifts and openings in your market, orient your business in relation to them. How can you position yourself to take advantage of these?
This is where you need to make a decision. And for this next step, speed is of the essence. Unlike large firms, your small business has a short decision-making process – you don’t need to seek endless approvals or get management to sign-off. So, be decisive: Are you going to respond to this trend or opportunity? If the answer’s yes, it’s time to act! Launch that product. Start that innovative service. Get that marketing drive off the ground.
Thanks to the OODA loop, you can identify an opportunity, position your business in relation to it, decide to act on it, and see it through – all in the time it took your larger competitors to schedule their first fact-finding meeting.
Maybe size does matter, after all.
Defining your revenue model and diversifying it will grow your business.
Think quick! What’s your business’s annual turnover? What about its profits? If you’re like most small business owners, you know these figures right down to the last cent.
Well, here’s another question: What’s your revenue model? In other words, what process – or what processes – need to happen for your client’s money to hit your bank account?
The key message here is: Defining your revenue model and diversifying it will grow your business.
You need to be on top of your revenue model, just like you’re on top of your accounts. And relying on just one revenue model means selling yourself short.
There are all kinds of ways to earn money. Let’s consider some revenue models you might be able to use.
One of them involves an access fee. If you’re a niche business, you likely have access to a niche market. Consider charging an access fee for connecting other businesses with your clientele.
Then, there’s an exclusivity fee. Have you ever pitched a service or product to a client, but the client asked for more time to think about it? In this case, you could charge the client an exclusivity fee in return for agreeing not to take the idea to their competitors.
The third model is based on what’s known as a first-look fee. Suppose your client wants to brainstorm ideas with you before signing a contract. In this case, charging them a first look fee would be a smart idea. Essentially, you charge the client for the ideas you’re bringing to the table – and you get paid whether or not you’re contracted.
The fourth revenue model is a license fee. Say you’re a small business manufacturing artisanal ice-cream in the UK. You know there’s a market for your ice-cream in the US too, but you don’t have the resources to expand there. If you give your recipe to a US-based manufacturer, they’d make and sell your ice-cream stateside – and you would, of course, get a healthy license fee in return!
The fifth and final model is a subscription model, which you could use instead of relying on one-off sales. If you’re selling organic cosmetics, for example, you could charge customers a recurring fee and, in return, send a box of eco-friendly makeup right to their door every month.
Why not read up on revenue models until you find some that fit your business perfectly?
Your business is only as strong as the team behind it.
If you’re heading up a small business, you’ve probably put a lot of thought into your team. You’ve combed through résumés, conducted endless interviews, and thoughtfully assigned roles – all so that you get the best group of people to support your business objectives.
But don’t forget – you need to support your team just as much as they need to support you.
The key message here is: Your business is only as strong as the team behind it.
Studies show that happy workers are more productive workers. So, how can you keep your people happy and motivated?
Well, you don’t set up a company for no reward – your team shouldn’t work without reward either. And rewards go well beyond salary. Reward your employees with team-building treats, like a weekly office, lunch, or an occasional Sunday BBQ. Perks like yoga classes, meditation sessions, and fresh fruit also come with an added bonus: they encourage your team to stay active and healthy.
But what if you’re a fledgling start-up on a shoestring budget? You probably have limited funds even for salaries, let alone for extravagant perks. Sweeten a lean salary package by offering your employees opportunities to share in profits or stocks, or partner-track positions. This tactic will ensure they’re just as invested in your success and growth as you are.
And remember, employee rewards and incentives don’t need to cost the earth. Simply schedule a time for everyone to have lunch together, or run professional development sessions where each employee takes turns teaching a skill to the rest of the group.
For many employees, the most incentivizing reward of all is a promotion. Promoting internally sends a message that you’re serious about your team’s professional development and advancement. This practice contributes to a culture of ambition in the workplace. And here, too, there is an added bonus. Promoting internally is generally more cost-effective than making an outside hire.
Help your employees shine, and they’ll work even harder to shine for you. It really is that simple.
When it comes to your clients, you need to keep the spark alive!
Flowers, chocolates, candlelit dinners – when you’re in the throes of new love, you will do whatever it takes to win over the object of your affections. Fast-forward a few years, though, and if you’re not careful, your romance could be replaced by routine. It takes real work to ensure a long-term relationship remains rewarding. Well, this also applies to your client relationships!
The key message here is: When it comes to your clients, you need to keep the spark alive!
So how can you keep your clients happy? Don’t let your long-term clients languish while you woo new ones. Instead, seek out feedback from long-term clients after every project – and if they suggest improvements, follow through on their ideas. And be generous with the feedback you give, too, even if it’s just a note saying how nice they are to work with.
On the other hand, you shouldn’t always bend over backward for your clients. Aim for a balanced relationship. Politely refuse outlandish requests, and give critique where you feel it’s needed. Remember: they hired you, not a yes-man!
You are probably careful about choosing the firms with which you work. So, make sure you choose your point of contact within each firm carefully, too. It’s always best to work directly with decision-makers. When your contact always needs someone else’s approval for ideas and budgets, it can waste your time and upend your plans.
Remember, bigger isn’t always better. Many small businesses dream of snagging that prestigious big client – but proceed with caution. When big firms work with small businesses, they have a tendency to throw their weight around. Make sure your contract terms are fair. If their contract is loaded down with legalese – and this is often the case – refer it to a lawyer before you sign anything.
Finally, let’s return to our romance metaphor. Don’t force the spark if it’s not there. You wouldn’t go on multiple dates with someone if you had no chemistry with them. Apply the same logic to your clients: if you’re not excited about going into the trenches with them – well, then don’t!
Your story will sell your business.
“Once upon a time”: four simple words that bring back childhood memories of listening to wondrous tales about talking frogs and beautiful princesses.
Storytelling is powerful magic – and adults aren’t immune to it, either.
The key message here is: Your story will sell your business.
Are you skeptical that storytelling is profitable? Then look up the profits of the latest Marvel movie or J.K.Rowling’s royalties. Storytelling sells, and when you sell your business to new clients, what you’re really selling is your story.
Take Selfridges, for example. It’s a UK department store with popular food halls, and many small artisanal food businesses dream of having their wares displayed there. But why do some boutique salad dressings make the cut, while others don’t? Of course, taste, appearance, and provenance all come into play. But, according to a member of Selfridges’s food buying team, the deciding factor is the story behind the product.
So, what is your business story?
In a nutshell, it tells the world where you come from, who you are, and what you do. It encompasses your inspiration, your challenges, your successes, and your hopes for your business.
Consider what parts of your story you want to share with your clients – and then shape those story elements into a narrative. The story doesn’t have to be long, but it should be authentic.
And make sure your marketing reflects your story. Say you’re a hairdresser. Anyone on the high street can sell stylish cuts and blow-drys. But only you can sell your story. Perhaps the inspiration for your alternative salon came from your adolescent punk years. Well, there’s your story right there. That’s what should be front and center on your website and social media, not bland price lists or formulaic content.
And, like in all good stories, there’s a twist: your business story shouldn’t just be client-facing. It’s equally important that you keep engaging with your story. It helps you remember what makes you special and supports you as you build a coherent brand identity.
There are all kinds of ways you – as a business owner – can interact with your story. Perhaps your sardine-import business was inspired by your Portuguese heritage. Why not decorate your office with distinctive Portuguese tiles, serve vinho verde at office parties, or sign off work correspondence with a cheeky Tchau?
Keep your narrative clear, and the story of your small business will almost certainly have a happy ending.
Final summary
The key message in these blinks:
Good things can come in small packages – and that includes your small business! With agility, flexibility, and passion on your side, the small size of your enterprise can be your biggest advantage in a crowded marketplace. As long as you’re clear on your unique business vision and your individual story, your capacity to connect with customers and clients is boundless.
Actionable advice:
Let’s take this offline.
These days, it’s more and more common for firms to conduct their businesses online. That’s why gifting clients a physical memento of your business can be so impactful. Whether you leave them with your brilliantly designed business card or send out a well-curated Christmas gift, a real-life reminder about your business can be that key point of difference between you and your competitors.
Got feedback?
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What to read next: The Job-Ready Guide: Employability Skills and Strategies for Career Success, by Anastasia de Waal
The blinks to Simple Tips, Smart Ideas are a blueprint for small business success. But even if you’re not an entrepreneur, you can still strategize your way to a more fulfilling and successful career. In The Job-Ready Guide, analyst and journalist Anastasia de Waal shares what employees need to know to carve out the career they want. From long-term career planning tips to advice on how to excel at every stage of the application process, the blinks to The Job-Ready Guide are filled with essential information on making your career work for you.