5 Essential Marketing Questions to Ask Yourself

Counselor Henry Rodkin

I cornered counselor Hank Rodkin and ask him how to be a really effective marketer.   (He’s a marketing prof at DePaul University and one presenter of our Sales and Marketing Workshop.)  He shared 5 essential marketing questions to ask yourself:

1. Is it Customer-Centric?
Your product or service must be what the customer wants in terms of value, need, utility and convenience of access. Wal-Mart is every day low prices while Costco is a treasure hunt, Target is aspirational, Walgreen is a fill-in store, etc.

2. Does it use customer knowledge and insights?
Only by understanding identifiable buyer segments and their behavior can you focus on factors critical to your sales success. Hispanic households have fewer cars and they shop locally, therefore success will be from a different set of “standards.”

3. Is it driven by competencies to meet customer needs?
Create a product or service, or more generally a business, that relates to your specific buyers’ attitudes, tastes and needs. If you have a “treasure hunt store” like Costco, customers will look for special and unique offerings…and buy them!

4. Is it based on an objective of building/growing brands via innovation?
Only your customers and prospects can tell you what they want and need… that changes, so you have to keep asking over time. Don’t ever try to force your beliefs into your customer’s pocketbook; they will tell you what they want by simply not coming in if you don’t have what they want.  Proof: remember “Your Father’s Oldsmobile?”

5. Does it elevate emotional benefits?
If buyer truly wants and needs your product or service, and if you communicate it thoroughly in and out of your business setting, and continue to do so, you will win! But don’t ever forget that today’s communications can include a variety of techniques unheard of just a few years ago…

Learn the details at his workshop — he’s teaching in February, March and May.  Or come in and talk to a counselor about your marketing challenges.  You can book an appointment online at any one of our 15 locations at this link.

Peg Corwin

Other marketing posts:

7 Keys to Effective Guerrilla Marketing

8 Deadly Marketing Mistakes

Where Can Chicago Startups and Entrepreneurs Get Loans Today?

We all knew the credit crisis was going to affect small business lending, and now we now see the evidence.  Here’s the latest from the SBA, angel investors, microlenders and banks in the Chicago area.

SBA Loans in the Illinois Area

SBA Backed Loans Dry Up screams the Wall Street Journal headline.  Business Loans Endangered, says Entrepreneur.com.   I checked in with Steve Konkle, Economic Development Specialist at the Illinois District SBA office to get the regional view.  He says that the total number of loans is dropping in Illinois, “but in the last few months, the average size of a loan backed by the SBA’s 7(a) program has increased significantly.”  Bottom line: existing businesses are getting more financing than startups.  Stay up on the facts:  current press releases from the SBA. See especially, New Ways for Small Business to Access Capital.

The Angel Pipeline

Don’t look to angels unless your business plan is recession-proof. Ron Kirschner, M.D.,  President of Heartland Angels, cautions entrepreneurs that “Considering our macroeconomic environment, more companies with revenue models relying on advertising as opposed to the direct sale of a product are not likely to find investors knocking at their door. The ones with products or services that are recession proof or are positioned to grow in the upcoming environment are more likely to be considered more seriously by private investors (and any other entity with money!).”

Microlenders

According to Susan Spector, at the microlender ACCIONChicago, “we have money to lend.”  They’ve seen a huge boom in business, she confides.  They offer loans over prime which now start at 11% interest.  For startups, they lend $15,000 and for existing businesses, up to $25,000.  Apply online at this link.

Community Banks not Big Banks

Konkle, who is a liaison between banks and the SBA, also sees a trend to more lending by community banks. This is confirmed in the Journal’s Small Firms Get Local Loans and an article from Florida Small Businesses Go to Community Banks for Loans.

I have many bankers calling SCORE Chicago, stating that they are still lending!  The truth however is a bit more nuanced.  Yes, it is important to note that banks still want to lend.  However, risk managers are now ascendant and have the power…and the responsibility…to make sure problem loans do not increase.

Remember that banks need to raise equity when loan defaults increase, and increasing they are.  As a result:

• Banks are raising the level of credit scores for new applicants.
• They spend more time looking for collateral they can turn to IF the loan defaults.
• They really don’t want “story” loans that have to be explained, e.g. my payments are late because….

So small businesses need help when they apply to make sure their business plans are solid and their stories, credible and clear.  SCORE Chicago can help.  Make a free confidential appointment with a counselor at one of our 15 Chicago area locations today.

More on Financing?

5 Keys to A Successful Loan Application My post on this blog

Top SBA Lenders, from Crain”s Chicago Crains Chicago Business

Finding a Small Business Bank Loan Fox Business

Business Plan page SCORE Chicago website

See Peg Corwin’s recent Delicious bookmarks on loans and financing.

Larry Pelka

Late arriving comment from a banker: “At National City Bank, we are still lending,” says Jason Chess.  “Most banks have recently seen their lending dry up, but our Small Business Banking division is truly “business as usual” right now.  One major change recently is the minimum credit score required to obtain financing.  Of course it depends on the deal, but a typical borrow really needs to have a credit score of about 700 or higher.  Our minimum desired credit score was 680 a few months ago.”

SCORE Chicago is a nonprofit organization and resource partner of the Small Business Administration.  Volunteer experts offer free email counseling on business plans, loans, marketing etc., for startups and small businesses.  Click here to submit your email counseling request.

Manage and Track Your Time for Success

Time can be a small business owner’s best friend, or worst enemy. It all depends on how you use it. There just never seem to be enough hours in the day to get things done. As a business operator, time is extremely valuable to business owners-especially if you bill for time. Wasting time can be extremely harmful to your bottom line.

To operate efficiently, your business may need systems for managing time and keeping track of who’s working on what and for how long.  Most successful small business owners are also successful time managers. And they tend to share certain strategies.

One of the most basic time management devices ever invented is the simple “To-Do” list. Each day, jot down all of the things that need to get done, all on one sheet of paper.

You can also number or check the ones that are highest priority “must-do” items. As tasks are completed, cross them off. This can help you focus on getting them done one at a time, and also gives you a sense of accomplishment.

Delegating more work can also help ease your time crunch. Many business owners accustomed to “doing it all” find this exceedingly difficult. But even if you are a sole operator, you can pass off tasks to others, via outsourcing, for example, to free up time for yourself.

Periodically analyze how time is spent at your business-and not just your time, but everyone’s. Divide the day into small time blocks and record what you, or others, were doing in each block. Now compare this real use of time to your goals, expectations and mission priorities. If they do not align, you’ll need to take action. One step might be to set clearer time-management goals for yourself and your employees.

Banish procrastination from your place of business. Growing, successful businesses don’t put things off. Even a simple “no” response to something on your to-do list can extinguish that item and let you move on.

A variety of technology solutions are also helping small businesses track and manage time. For example, Workarea.com is an Internet-based time tracking system that can provide billing information to the second. The system includes a time clock, time sheet, expense tracking, address book and the ability to access it all via cell phone or PDA.  If you use Microsoft Outlook for email, you can also tap its time management capabilities.

The TimeClock Plus Small Business Edition, lets you turn any PC into a time clock. Employees can sign in or out with the keyboard or mouse, and easily allocate hours and costs to specific jobs. And TimeTiger.com is a computer-based to-do list that shows all the items you could be working on.

To learn more about time management issues facing your small business, contact SCORE “Counselors to America’s Small Business.“  SCORE Chicago is a nonprofit organization of more than 100 volunteer business counselors who provide free, confidential business counseling and training workshops to entrepreneurs and small business owners. You can set up an appointment at one of our 15 locations by clicking this link. Check our website www.scorechicago.org for details on our workshops or resources on topics of interest.  Call 312-353-7724 for further information.  Not from Chicago?  Visit SCORE.org.

Related Posts:

6 Questions to Organize The My Week, with Peggy Duncan Looking Over My Shoulder

SuiteMinute: Computer Tips, Tricks and Strategies to Make Work Easier

10 Tips on Time Management

Know the Value of An Hour

Tips from Professional Organizer Karen Ussery

Working from Home Challenges:  Manage Your Schedule Wisely

7 Keys to Effective Guerrilla Marketing

Mike Sullivan, Entrepreneurial Hall of Fame

SCORE counselor Mike Sullivan lifts up his sleeve to display a tatoo on his arm when he presents his workshop Market Like a Guerrilla, Sell Like a Gorilla. Why?  Because it is just the dramatic, inexpensive, attention-grabbing technique he preaches.

I sweet-talked Sullivan into giving me his 7 Keys To Effective Guerrilla Marketing:

1.  Be creative.  Use the expected in unexpected ways. For example, work to get a feature article written on your business and pass it out with marketing literature.  Having an independent source describe your business has lots more credibility than your own materials.

2.  Differentiate yourself from the competition. If your competition uses direct mail, set your business apart by using hand-stamped envelopes and hand-written addresses. Just hire an inexpensive temp to personalize that 500 piece mailing. Does everyone else ship in a brown box?  Use white boxes instead to be perceived as cleaner than the competition.

3.  Find novel ways to reinforce your message. Do you use tape to package and ship your product?  How about having that tape printed with your business name, website address and phone number?

4.  Make a splash to draw attention to your message.  Sometimes you just have to show off a tatoo that says MOM to make your point — most people are working with other people’s money, OPM.  When you have your own business, you are working with MOM, my own money.

5.  Harness the power of humor. “Will it blend?” videos on YouTube are Sullivan’s examples here.  Will the Blendtec blender blend an IPhone? See the precious IPhone ground to bits before your eyes.

6.  Phone answering as marketing. Never underestimate the power of how your phone is answered.  Personal versus voicemail.  Friendly, warm and inviting versus monotone, mechanical and off-putting.

7.  Use cross-marketing to enlist others in promoting your message. For example, if you sell women’s fashion at retail, why not recommend a dry cleaner whom you feel will do the best job on quality garments?  The cleaner can reciprocate with story signage promoting your boutique.

Guerrilla marketing, says Sullivan, is getting the maximum marketing impact with minimal resources.

An entrepreneur at heart, Sullivan started an import/export company in college that helped pay his tuition.  Having started a business in his home and selling it 25 years later to a South African Company, he feels he can relate to most entrepreneurs regardless of where they are in the process.  In 1992, Sullivan was inducted in the Entrepreneurship Hall of Fame.

Come hear all of Sullivan’s advice on how to “Market like a Guerrilla” on April 3, 2009.   Or talk to a SCORE Chicago counselor for more marketing advice to grow your sales.

Don’t Let Office Clutter Clog Up Your Efficiency

For many small business owners, a cluttered desk or office is a sign of success. Things are good, so there’s more that has to be done. But it doesn’t take much for office clutter to go from a source of pride to a serious, potentially overwhelming problem.

According to professional organizer Chris Perrow, most business owners are on information overload, working long hours without thinking much about simple productivity issues of how and why things get done. “When they stop to analyze the situation, they often find much could be delegated, eliminated or done at a more efficient time,” she says.

The key to eliminating clutter is to have a system in place to keep that helps you get and stay organized. Organizing Coach Carol Halsey suggests a five-step approach to dealing with office paperwork that she calls DRAFT, for Discard, Refer, Act, File and Table.

1) Discard-If it’s something you’ll never retrieve again, trash it, don’t file it. Your files should be a “resource holding tank,” not a dead storage place.

2) Refer-If someone else needs the information or can handle it for you, pass it along.

3) Act-If it requires action by you, do it now. It’s inefficient to delay and handle the paper a second or third time.

4) File-If it’s important and you will truly need it later, file it in a proper filing system that allows you to find things quickly.

5) Table-If it’s something you’ll need in the near future (but not today), place it in a simple follow-up system for easy, quick access.

Because organizing is such a pervasive challenge, there are a number of resources available to help you improve both daily habits and overall efficiency. Some helpful and inexpensive books include Organize Your Office by Ronni Eisenberg, File…Don’t Pile by Pat Dorff and the Office Clutter Cure by Don Aslett. You can also find specialized one-on-one assistance from the National Association of Professional Organizers’ automated referral service. You can search for a professional organizer by location or specialty (e.g., home, type of business, special skills, etc.).  For organizing tips and further resources, see also the website of time management and efficiency expert Peggy Duncan.

To learn more about operating your small business more efficiently, contact SCORE “Counselors to America’s Small Business and its local branch in Chicago. SCORE Chicago is a nonprofit organization of more than 100 volunteer business counselors who provide free, confidential business counseling and training workshops to entrepreneurs and small business owners. You can set up an appointment at one of our 15 locations by clicking this link.  Check our website www.scorechicago.org for details on our workshops or resources on topics of interest.  Call 312-353-7724 for further information.

SCORE Counselor Reaches Out to Hispanic Community at Erie House

While manning a booth at the Navy Pier Business Fair a few months ago, Carlos Bastidas, a volunteer counselor at SCORE Chicago, met Aurora Dawn Reinke, a consultant to Erie House, and was asked to come to brief its clients on business plan preparation.

Erie House, located on west of downtown Chicago, was founded approximately 135 ago. Today, it provides educational opportunities to the Hispanic community.

On October 21, 2008, Carlos gave a two hour presentation on business plans. Since the students were Hispanic, he spoke in Spanish.  Because the students were grouped in four teams creating plans for four different businesses, Carlos focused on planning for those specific businesses.

Even thought their plans had to be written in English, the students appreciated the Spanish language presentation.  They had the chance to hear explanations of difficult points in their native language.

Carlos returned on October 24, 2008 to share with the same students his personal experiences in the US as an immigrant.

“This was very gratifying,” said Carlos, “since I had the opportunity to convey to all of them that, with hard work and dedication, many of the barriers that we Hispanic immigrants face, due to language and culture differences, can be broken.  One day, we all can be successful beyond our imaginations.”

Because Erie House clients were so receiptive and appreciative, Carlos intends to stay connected with this organization.  He also plans to involve other SCORE counselors in future events.

“I am convinced SCORE can provide a great contribution to the people that go to the Erie House.  They have a tremendous thirst for knowledge and a desire to improve their lives,” he says.

If you would like counseling in Spanish to start or grow your business, please fill out this form and Carlos will contact you.

- Peg Corwin

Related Posts:

10 Reasons Why Small Businesses Fail: In Spanish and English

What’s A One Page Business Plan Good For?

Bob Paul, SCORE counselor at Grayslake branch

Maybe Oprah likes one page business plans, but SCORE Chicago is less enthusiastic.  (Oprah’s magazine features one page business plans in an article “Your Great Idea, An Idea Whose Time has come.” “I’m skeptical of one page business plans, say SCORE Counselor Bob Paul, who teaches the monthly Business Plan Workshop in Chicago

The one pager makes a nice summary, says Paul, and includes important components – especially the mission, the measurable goals and action plans.

But it misses the analytical part of planning – especially the Strengths, Weaknesses, Opportunities, and Threats (SWOT) of the business.

• Who are my target customers? Is the market growing or shrinking? What are the environmental and competitive threats and opportunities? Do customers want what I will be selling?
• How prepared am I to start this business? What are my strengths and weaknesses? How do I take advantage of my strengths or correct my weaknesses?
• What issues emerge from my SWOTs assessment that are critical to my success? Does the SWOTs assessment change my direction or emphasis?

If the one-page approach somehow answers these questions first, Paul agrees, then it is fine. If it does not, you can end up with a wonderful sounding one-page plan for a business that builds a factory in the middle of New York City to manufacture manual typewriters.

Have you tried a one page business plan? Has it gotten you where you want to go?  Please leave a comment.   Update:  Great discussion going on in the comments to this post.  Don’t miss them.

You may also be interested in: 

How Long Should A Business Plan Be?

Is A One Page Business Plan a Business Plan? Poll Results And SCORE Comment

5 Keys to A Successful Loan Application

SCORE Chicago is a nonprofit organization and resource partner of the Small Business Administration.  Volunteer experts offer free email counseling on business plans, loans, marketing etc., for startups and small businesses.  Click here to submit your email counseling request.

Train Yourself On and Off Line for Small Business Success

There are many things to know about building a successful small business-from marketing and tax issues, to technology, finance, human resources management and more. Most entrepreneurs don’t have expertise in all of those areas. That’s why individuals interested in starting or expanding a business have been tapping into training programs at a record pace.

For many business owners, learning opportunities and training programs are becoming vital steps to planning, launching and growing a business. During one recent 12-month period, a record 2.5 million people sought help from one of many U.S. Small Business Administration (SBA) training and assistance programs.

Seeking help is simply smart. No business owner can be adept at every aspect of operating successfully. Plus, conditions change, so keeping yourself informed is vital to long-term success.

SBA Training

The single most popular program in America is probably the SBA Small Business Training Network/E-Business Institute, which registers nearly a million users at its Web site each year. The Small Business Training Network is a Web-based conglomerate that can link you to online courses, workshops, publications, learning tools, information resources and access to electronic counseling and other types of technical help.

Free online courses are offered on about 75 topics in areas such as business startup, growing your business, home-based business and re-engineering your skills. Sample titles include: Growth Strategies; Analyzing Profitability; Building Your Brand; and, Understanding Business Insurance.

Local SBA-sponsored training events are offered nationwide. These range from breakfast talks on local economic conditions, to brown-bag networking lunches, loan seminars, startup workshops and free business assessments.  Click your state on the Web site map for a calendar listing dates and event details in your area. In addition, dozens of top colleges and universities offer business training courses you can take online. Most of these require a fee.

SCORE Training

SCORE Chicago also offers inexpensive workshops to help you start or grow your business.  We have a basic certificate series and special workshops on topics like global trade, internet marketing and franchising.   Check our website www.scorechicago.org for details on our workshops or resources on topics of interest.

SCORE also offers online training, and courses are groups in three areas:

Starting Your Business

Developing a Business Plan
Conducting a Marketing Analysis
Analyze your Competition
Targeting Your Market
Maintaining an Agile Company
Creating a Competitive Advantage
Creating a Strategic Plan
Determining Your Business Legal Structure
Protecting Your Business with Patents, Copyrights, and Trademarks

Managing Your Finances

Preparing a Cash Budget
Preparing a Balance Sheet
Managing Your Cash Flow
Running a Profitable Company
Creating a Profit and Loss Statement
Analyzing Your Financial Ratios
Protecting Your Business with Contracts
Assessing Your Company’s Financial Needs
Partners and Investors
Valuing a Business

Foundations of Marketing

Pricing Products and Services
Building Your Brand
Promoting Your Business
Advertising Your Business
Building a Web Site
Personalization Strategies to Attract and Retain Customers
Identifying Your Sales Strategy

SBDC Training Program

The Arkansas Small Business and Technical Development Center offers online training classes for small business for $30 each.

Professional and Trade Association Training, and Corporate Webinars

Many coporations, trade associations and even the IRS also offer online courses and webinars.  The IRS has even done a series of training videos. Companies are using webinars to educate potential clients and generate leads.  For example here are one firm’s series of webinars on search engine optimization of a website. YouTube has many training videos, too.  Click this link for list of 100 webmaster videos on web-related subjects.

To learn more about training opportunities for your small business, contact SCORE.  SCORE Chicago is a nonprofit organization of more than 100 volunteer business counselors who provide free, confidential business counseling and training workshops to entrepreneurs and small business owners. You can set up an appointment at one of our 15 locations by clicking this link. Call 312-353-7724 for further information.

5 Keys To A Successful Loan Application

SCORE counselor Larry Pelka

If you want to have the bank fund your loan application, understand these 5 keys:

1. Don’t confuse the business plan with the loan application. While elements of the business plan are a part of the loan application, they are separate documents.  The SBA web site has an excellent online course in how to prepare a good loan application, and here’s the registration link.

2. Recognize that your cash flow forecast will determine the loan amount you seek. While you will want some leeway, the bank will make sure the two match.  You can’t ask for an amount that doesn’t reconcile with the cash flow forecast.  This puts even greater emphasis on the accuracy and completeness of those forecasts.

3.  Request a loan term that matches the loan’s purpose.  For example, if the proceeds is for a piece of machinery that will last for years, request a term longer than four years to pay it back.  If your request is for inventory and receivable financing, request a line of credit that can be used and paid back on a regular basis.  Remember, you can mix the kinds of loans you need.

4.  Highlight your experience in the loan application. Lenders take great solace in the knowledge that their borrower knows the in and outs of the business.  There is no substitute.  Mention your experience throughout the application.

5.  Get a  complete personal credit report to check it for errors before you apply.  A poor credit report can kill a good application.  If there are fixable problems, correct them now!  Don’t be surprised.

Do you have a question about your loan application?  Please post a comment. Or set up a confidential appointment with a counselor from SCORE Chicago.

Links to financing programs and loan resources: SCORE Chicago’s Business Loans and Financing page.

Related Posts:

Personal Guarantees, Then A, B, and C Pockets for Family Assets

Loans for Women Entrepreneurs

Use Temps Wisely to Fill Workload Needs

If sales are up and you are expanding, you might be thinking of hiring more help. But if you think like many other small business owners, you’ll be cautious about taking on the additional overhead and long-term commitment of more full-time employees.

To test the waters, you might want to consider hiring temps until you are sure the growth wave will stick. Now the challenge becomes finding good temp candidates-people with the right skills and who really want temporary work.

Small companies, as well as large ones, are relying more and more on temporary workers these days for one key reason: flexibility. According to the American Staffing Association (ASA), there are about 2.3 million temp and contract workers in the U.S., and about 2,100 new temp jobs are being added every business day.

For small businesses seeking part-time or temporary help, temp agencies are a good way to go. They handle the sticky parts that you’d rather not deal with, such as advertising, recruiting, paperwork and other chores, leaving you more time to concentrate on other things. You’ll pay for that help, but most business owners find it an amicable trade.

If the work is of the type that needs supervision under your direct control, temps are probably better than independent contractors. Your odds of success are best if you use resources and solutions that specialize in placing temporary workers, rather than those that offer it as a sideline.

StaffSeek is a useful and free online service that can help you quickly find a temp staffing agency perfect for what you need. The site is run by The American Staffing Association (ASA), an employment industry trade group based in Alexandria, VA.

Select your state, the skills you need, including office, clerical, professional, health care, technical and industrial, and the type of arrangement you want, such as temp or temp-to-permanent, and click “search.” StaffSeek will deliver a list of agencies, locations, phone numbers and the types of employment placements they offer. ASA members operate over 15,000 offices nationwide.

Another option is Net-Temps.com, a Web site that specializes in placing temporary workers. The “Employers” section lets you post a job, search candidates or request help from staffing specialists. You can search a continuously updated supply of temp job seekers, locally, regionally or nationally.

Other leading firms offering temporary staffing solutions for small businesses include KellyServices.com, Manpower, Inc. and Olsten Staffing Services.

To learn more about human resources issues facing your small business, contact SCORE “Counselors to America’s Small Business.  SCORE Chicago is a nonprofit organization of more than 100 volunteer business counselors who provide free, confidential business counseling and training workshops to entrepreneurs and small business owners. You can set up an appointment at one of our 15 locations by clicking this link.  Check our website www.scorechicago.org for details on our workshops or resources on topics of interest.  Call 312-353-7724 for further information.