Small Business Perspective

January 6, 2009
Americans Still Trust TV, Newspapers for Credible Information

Even if you weren’t a “news junkie” before the economy took a turn for the worse, worries over the country’s financial health may have you craving news. In fact, poll after poll in the recent presidential race showed that the economy is top of mind right now for the majority of Americans.

But with so much information out there, how do you determine what’s news and what’s just noise? Where do you turn for credible information? Americans, it seems, turn to television and daily newspapers for their news, and consider both media to be the most credible sources of information, according to a recent survey of more than 1,000 adults. Respondents said they get nearly 35 percent of their news from TV and 23.5 percent from daily newspapers.

What’s more, they’re turning to these media because they view them as highly credible, the survey indicates. Asked to score each medium’s credibility on a scale of one to 10, consumers gave television a 6.6 and daily newspapers a 6.3, according to the survey conducted by Opinion Research Corporation’s CARAVAN Services.

Radio, online sources and weekly community newspapers ranked in the middle of the list for credibility, with free weekly shoppers at the bottom scoring just 3.5. The credibility scores corresponded with the amount of news and information people say they receive from each media source each month, with television and daily newspapers ranking as the top two sources. People reported getting just 1.6 percent of their monthly news and information from magazines, the survey showed.

What does this mean for businesses? From a marketing perspective, it tells me that continuing emphasis still needs to be placed on trying to get a company featured in editorial content of industry and mainstream newspapers, and that the power of television continues to play a significant role, with online news sources slowly but surely continuing to creep up in significance. Newspaper ad rates continue to be exorbitant, but television not so much. My two cents? It has always been the rule of thumb to go after newspaper placement with public relations and television presence with advertising, and it continues to be this way. If you want to be seen by your prospects and clients as a reputable business people can depend on, you need to get yourself into these media outlets through strategic, creative public relations and advertising as long as people continue to trust newspapers and TV as credible.

- David Menzies is president of Menzies Consulting, Inc., an Apex-based public relations and marketing consultancy. With over 17 years professional communications experience, Menzies is a former print newspaper editor and is currently editor and publisher of ApexBusinessNews.com.

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December 15, 2008
Avoid Large Holiday Expenditures in Year-End Biz Dev

It’s the time of the year when everyone starts making new year’s resolutions for their personal life and businesses start to see how their Q1 is shaping up. It’s a tough time to get a clear representation of what type of reality a business will encounter, as most potential clients — especially prospects of professional service organizations — are quick to point to the calendar and say “next year” to any proposition for contracted services.

The smart business owner has planned for this holiday slowdown in advance to insulate his or her bottom line while new customers await on the other side of midnight December 31st. Unfortunately, many new business owners may not have realized this and are surprised when nothing shakes-out after Thanksgiving.

For some, this surprise ushers in shock, disbelief, and insecurity in their belief that their business endeavor is going to work, especially in these troubling economic times. Here in Apex, the local business community and Chamber of Commerce are very supportive and I have personally witnessed long-time business owners mentoring newbies to wait it out at the end of the year.

The key to any business at this time of the season is to put a cap on end-of-year expenditures. Sure, big holiday parties are great rewards to good customers and fine opportunities for new business development, but there are other more cost-effective ways of staying in front of people without shelling-out big bucks on reserving a restaurant, buying food and drink, gifts, etc. These include:

* Pens, coffee mugs, koozies and other paraphernalia with your company’s name, contact info and web address. Clients L-O-V-E these and their exposure value continues well beyond the holidays. A good local source for such items is Marketing Depot USA, a member of the Apex Chamber of Commerce; their selection is wide and prices are reasonable.

* Press releases about a service, product or event such as a holiday donation to charity. Sure, I’m biased as a public relations guy, but you can do these yourself and, if picked up in a local newspaper or radio/TV outlet, the rewards can be big.

* Mailing holiday cards to clients and prospects. Make sure you sign these yourself as a business owner and send first-class rather than bulk mail. Whenever possible, personalize with a reference that your client will recognize, such as thanking them for purchasing X service or meeting with you on Y date.

* Thank-you phone calls. Pick up a phone and call your best clients and hot prospects. Much like a holiday card, these personal touches hit folks at a time of year when the majority of them are in good moods anyways, leaving them with a good impression of you as they move into 2009.

* Cookie drops. Either buy some nice cookies or bake them yourself, place them in a nice, inexpensive box, and hand-deliver them to your favorites. Make sure you can get past the front office to your key contact, or — if you have a lot of interaction with the front office personnel — leave it with them as a treat. Down the road, you’ll have a better chance of a receptionist going the extra mile to track down that C-level executive you’re trying to reach.

Remember, good cheer doesn’t have to be expensive, just honest and personalized. Your clients and prospects will recognize this for what it is and respect you for it.

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December 4, 2008
Healthy Competition Helps Everyone

Here in the Peak of Good Living the community is pretty excited over a couple of new restaurants opening up in the town’s historic Salem Street downtown area.

Anna’s, a pizzeria located in a prime corner location where a flower shop once stood, and the Salem Street Pub (or “SSP” as people are calling it), a cozy little bar/restaurant that opened where the wildly popular Salem Street Soda Shop once stood, have now both been open for business for a few solid weeks. Both have seen their share of patrons, and both are hearing good reviews from customers all around town.

Last night, I visited the SSP in part to grab a quick drink with my wife to recap our week, and also out of curiosity to see how they were doing business-wise. Wednesday nights are a good barometer for restaurants and bars, as they are not seeing the crush of the weekend party-goers just looking for anyplace to drink and eat, but rather clientele choosing to go out in the middle of the week to a specific location.

The bar area had three couples hanging out, and a few individuals stopped-in to grab drinks and food. There were about three tables with 3-4 people ordering dinner, and a steady — if not heavy — stream of people coming in and out. Overall, not crowded, but not empty, enough to legitimize being open for sure.

After finishing our drink my wife and I headed over the the Peak City Grill across the street, a fine dining establishment with a pretty popular bar which pretty much could be viewed as the nearest competitor for SSP. Peak City’s bar had a few more people that the SSP, and the table service crowd was about the same.

What does this say about the state of restaurants in downtown Apex and about competition in general? Pretty much that those who say the entrance of a competing business in an area will decimate an existing one aren’t paying close attention. Both of the establishments I was in last night were doing pretty good business for a Wednesday in a small town, but the interesting thing beyond the activity was the product. At the SSP, beers were $4 and wings were $8 (for eight wings), and the bartender was talking about how next week they were going to begin offering drink specials. At Peak City, beer and wings were the same price, although you got 10 wings for $8. Additionally, Peak City had some drink specials going on that I hadn’t seen there in the past.

Both businesses obviously are doing their homework with regard to pricing, without one undercutting the other, and are offering similar specials. Both have friendly, attentive staff and nice atmospheres. And both are drawing good numbers of people downtown, which increases foot traffic and exposure for all the businesses there.

The lesson to be learned for small businesses is not to fear competition, but embrace it. For new businesses coming in, research your competition and price your products/services accordingly without seriously undercutting them to avoid unnecessary animosity and unhealthy karma among patrons (word of mouth about new companies coming into a community to force existing ones out can kill your prospect pipeline). For established businesses, use new competition as a wake-up call to get feedback from your clients, review your service offerings, and overhaul or enhance your customer experience.

When businesses compete in a healthy manner, everybody wins.

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November 27, 2008
First Steps to Forming Your Business

According to the Small Business Administration, there are more than 24.7 million small businesses in the U.S. Many have propelled their success by leveraging their talents and contacts, along with helpful resources available to small business owners. With some smart planning and the right tools in place, you might find that along with building a business, there’s time left over to grow other parts of your life as well.

* Networking
Social networking sites are a great way to connect with other small business owners who understand the issues you’re facing everyday and to secure strong contacts before starting your business. One option is Bank of America’s Small Business Online Community (smallbusinessonlinecommunity.com). It’s a free and open forum where small business owners can exchange business ideas with their peers and industry experts in real time. Others include Opportunity World Magazine’s Small Business World (www.small-business-forum.co m) and Startup Nation (www.startupnation.com). For many small business owners, the rise of such sites has been a critical resource for obtaining sound advice, best practices and lessons learned.

* Business Plan
A business plan is a great way to organize your ideas into a well-thought-out plan so that your business is positioned for success. If you’ve never written a plan before, simply go online and search “how to write a business plan” and you’ll find a myriad of informational sites. Having a business plan will also give you a better chance of securing funding.

* Bookkeeping
A small business can be complicated and the last thing you want is disorganized piles of paperwork. Create an invoicing system for orders and stick to it. Some small business owners have utilized online invoicing systems. Many financial institutions offer small businesses an online invoicing tool that enables users to create and send invoices in minutes, while seamlessly integrating with a customer’s online banking account.

* Advertising and Marketing
Advertising and marketing are key components for attracting customers and building a business. Creating a website, sending out press releases to applicable publications and networking are all key to getting the word out about your business. Make contacts and draw in customers as soon as possible because your business simply won’t survive without them.

* Payroll
Approximately 75 percent of small business owners handle their own payroll, which can be time consuming and complex. Consider using a product that can provide online payroll solutions where you can pay all your employees by direct deposit. It will save a lot of time and will keep you from making incorrect calculations on employee withholdings.

* Passion
It is essential to find something you are passionate about. Small businesses, especially in the start-up phase, require a lot of dedication. If you’re going to dedicate all your energy, it’s best to choose something you know you’re going to enjoy.