Monday, November 15, 2010

Doing a Little Good for Others

This December, even small businesses can be a big part of “doing good” for others. Ninety-five percent of businesses in Canada, and Brampton, are small. If each contributes even in a small way, it will have a big impact. 7500 small Brampton businesses donating just $100 each to charitable organizations could contribute three-quarters of a million dollars by year-end, an extraordinary amount of money! Why leave it to the big firms, when there is so much aggregate potential in the small business sector?

There is so much need in the world, both locally and internationally, that it can be a little overwhelming to choose a charity to donate to. There are many worthy causes; you can’t contribute to all of them, so just pick one, and trust that your fellow small business owners are doing the same. Together, the small business sector can make a substantial difference.

Everyone has their favourite charities; locally, I choose United Way (http://www.unitedwaypeel.org/ways-to-give.html). Internationally, World Vision’s “Equipment to Start a Business” / “Help a Family Start a Business” program resonates well with the staff and clients at the Small Business Enterprise Centre. (https://catalogue.worldvision.ca/Gifts/Forms/Gift.aspx?giftId=2949 )

There is no need to do anything elaborate. It can be as simple as making a one-time, on-line donation from corporate funds; it takes just moments. But if you like co-ordinating promotions or events that have a closer tie to your business, here are a few ideas:
• If you have a business with walk-in clients, collect loonies and toonies throughout the month of December from customers at your front counter.
• Host an open house or other simple event with non-perishable food for your local food bank as an admission fee.
• If making a larger contribution, encourage your suppliers and industry affiliates to match your donation.
• When invoicing, request an optional $5 donation that you will collect and forward on behalf of all of your clients.
• Hold a special sale from which 5% or 10% of the sales revenue becomes a donation.
• Include brief information about your good corporate citizenship on your website, flyers and other marketing pieces

Please don’t feel that you are too small to make a difference. Just do what you can, and know that it will accumulate in a very generous way. Start in a small way this year, and make it a tradition that grows as your business grows.

Growth Strategies for 2011

In the most basic of business models, there are just four ways for a business to increase its revenues:

• Sell more product to existing customers: “Do you want fries with that?”
• Sell more frequently to existing customers: i.e. book the next appointment before your customer leaves from the current one
• Increase prices (with much research and caution!)
• Find new customers to sell to: develop new customers

Some growth strategies that your business can consider for 2011 are:

1.Develop new target groups – tap into secondary and tertiary target customers you didn’t approach or focus on before (new messaging, pricing strategies etc. will need to be investigated)

2.Increase and enhance your marketing budget and efforts, keeping in mind these marketing principles:
•Know your target market – don’t try to sell to “everyone”
•7X Rule – you need to get your brand/message out seven times before it’s remembered (because of the overload of messages coming at us every day) therefore marketing efforts must be repetitive
•Marketing Tools: utilize at least 15 tools / year, including a variety of print, in person, electronic and promotions
•Marketing budget benchmark : During start-up year(s), plan to spend a minimum of 9-12% of your annual sales goal on marketing activities. Once established, spend 6-9% of annual sales goal on marketing. This is a very broad “rule” – adjust for your market, sector, customer, competitive situation etc.

3.Focus on high payoff products & services; reduce or eliminate efforts on low-margin items

4.Focus on high payoff customers; reduce or eliminate efforts spent on unreliable customers

5.Expand your geographical market, focusing on your primary customer types and best-sellers

6.Develop new uses for your product so you can sell more ie. bicycles are just for pleasure riding, but for exercise, commuting, courier services etc.

7.Leverage your existing customers by expanding your product/service line with new, related products/services

8.Develop strategic alliances so you don’t have to say “No, sorry, we don’t sell/do that” to potential customers
•Contra-marketing
•Subcontracting
•Paying commission on referrals

9.And finally: hire staff or subcontractors to perform routine tasks so you can focus on sales, marketing and other business development activities best in the hands of the business owner.