Small Business Suffering? The Solution Is Patience!

(New Nation Newspaprer, www.newnation.com)

December 2008
WITH THE onslaught of business programmes like Dragons’ Den and The Apprentice claiming to be the voice of UK enterprise, one really has to wonder if these images are helpful or damaging to real-time business situations.

Reports show many small business owners believe not enough is being done to help them to survive, let alone succeed in business, andthis has been made worse by the credit crunch.

The government seems powerless to enforce any measurable conditions or policies on the banks to help small businesses, even though they have been bailed out by the public purse during their time of crisis.

With an all party cry of ‘foul play’ towards the banks, it will be interesting to see how they respond to these new demands for fairer and moretransparent practices to increased lending over the next few months.Ampod Business Consulting and Training Services MD Yvonne Witter, who delivers training, networking events, business growth seminars and consultation to pre-start, micro and the SME business community on behalf of local authority regeneration departments, believes that the ‘small business owner does not get the respect as a major contributor to the economy that they deserve, especially from the banking system.’

‘The first problem is that banks define a successful business as one with potentially a two million pound plus turnover, with a large work force and will therefore, marginalise smaller, local enterprises,’ Yvonne says.

‘Secondly, while businesses remain categorised by the criteria set by the financial institutions, no one wants to talk to you and no one understands your business, so you are never in a position to have your demands met.’

It has been consistently more difficult for small business owners to raise capital because there is no connection between the small business owner and the banking sector.There remains a perception that if the bank is presented with a business plan that has the potential to make quick profits, they will be seen more favourably than a smaller business looking for funding of up to £10,000 to import a product, demand for which is unknown in the UK by the faceless banking sector.These businesses are met with scepticism and sidelined because of a lack of understanding about the cultural market conditions.

‘That is not to say that we should not be concerned with financial outputs but we have to look at the social and cultural, not just the financial drivers and motivators, for starting and running a business’ Yvonne continues. ‘Many small businesses do not fit into a mainstream model of enterprise, but combined, they contribute hugely to the GDP through tax payments and employment creat ion and community sustainability.’

Insurance firm RSA reported 470,000 small businesses have already ceased trading since the credit crunch began, but this has not dampened the desire for many to start and run a business. The current government intervention fuelled by the current global economic crisis sees multi-nationals falling by the wayside, which means there is hope and more opportunities for the small businessman to succeedas banks are now being forced to look at other areas of the small business sector to save the day.

‘There are many barriers which affect many different types of businesses, especially around micro finance opportunities and the high taxation of small businesses,’ Yvonne concludes.

‘But focus on what you are good at and never stop improving your product or service and reinvest into your business especially in the early years. Be patient!’

"Reputation and credibilty for your business" by J. Germain [2/2]

Reputation and credibilty for your business.

In the current climate reputaion is everything by Judith Germain / Developping Leadership

(Source: Start Your Business, December 2008) 

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Can social networking help you build reputation and credibility in your business?

It's important that businesses establish their networking/marketing strategy so that they can decide which social networking sites they should use or maintain a presence on.

Build your credibility by whatever means and keep open minded

Social networking sites like Ecademy can enable businesses to build reputation and credibility for their business quickly. This is particularly true of Ecademy's Life Membership Community, where building advocacy is made easier due to the nature of its composition. Ecademy encourages its members to network on and offline. Sites like Linkedln  can enable businesses to build visibility and connections quickly.

There are hundreds of sites to choose from, so finding a cost and time effective way to utilise them is imperative. Your networking strategy needs to be defined to ensure consistency of your message. The use of sites such as Ecademy can help businesses establish themselves as an expert in their area of expertise. To establish yourself (or your business) as an expert using social networking sites, you are required to be visible to their membership.

It is recommended that you blog and write articles frequently, in your area of expertise, (run and join clubs structured around your them and your personal interests (thus developing an individual reputation). How you communicate and articulate your thoughts on the public and private areas of the networking sites - will guide potential clients and advocates well. Inconsistencies or extreme views contrary to your 'public persona' will do you ill and could even prohibit your ability to gain business.

Freely providing advice to others without expectation of a return helps to build your reputation as an expert and provides an informative view on your character. (This is not the same as providing free consultancy!) Participating in one-to-ones to learn how you can help those in your network can be a positive enhancement to both your reputation and credibility. The return on this activity can be immense.

With the credit crunch still impacting most industries, you need to ensure that you focus your energies on delivering a consistent and compelling reason for clients to work with you; a well defined networking strategy will help you to achieve this for very little cash outlay.

It is a solid, credible reputation (not just increased visibility) that will carry you and your business out of the crunch and beyond. So, look at the way your brand is seen by others and ask yourself...based on the information available to me, would I hire me? If the answer is no, you still need to work at something. Judith Germain is managing director of Dynamic Transitions, a leadership company, which enables their clients to develop, nurture and maintain their reputation in their chosen niche.

Judith provides strategic mentoring for senior executives and business leaders, develops networking strategy and delivers innovative leadership programmes, leadership consultancy, training, coaching and mentoring to corporate clients.

To find out more information on how to bring your business forward in matters concerning HR, management or brand building.

"Reputation and credibilty for your business" by J. Germain [1/2]

Reputation and credibilty for your business.

In the current climate reputaion is everything by Judith Germain / Developping Leadership

(Source: Start Your Business, December 2008) 

In this day and age it is becoming increasingly important to be able to distinguish yourself from your competition so that you become the 'no brainer' choice in your chosen market.

Whilst there are many factors that can distinguish you from everyone else, the deciding factor seems to be the strength of your reputation and credibility in relation to your competition. This is especially true for smaller businesses and 'one man bands' in over-populated niches.

It is essential that you are consistent with what you say and do, especially on the internet where everything that is recorded there is of a permanent nature.

Brand reputation is becoming the ultimate decision maker and to ignore this trend will put your business and earning capacity in peril.

If we agree with the premise that potential clients will only buy high ticket value services from those that they trust, it becomes imperative that businesses consider how to develop, nurture and maintain that trust. The next consideration is to decide how to do this in the most cost-effective way for their business.

This may mean foregoing expensive marketing activity that only increases the business' visibility, but does nothing to lessen the risk of hiring the company.

This 'risk' perceived or otherwise, is continuously assessed by potential clients prior to them making the decision to hire you. The oft quoted maxim of 'the client needs to be 'touched' by you 7 times before they buy', is derived from this premise.

Credibility equals less risk

Lessening the risk of a client hiring you is especially important if the business has decided to use 'pull' rather than 'push' marketing as a strategy for their business. For example, 'push' marketing is where the business advertises its services to its target audience, unsure of whether they are looking for their expertise.

'Pull' marketing is where the potential client 'pulls' your services when he needs it - without specific advertisement. He might decide to use your service based on a referral from an advocate of yours. This means advertising spend has not been made to secure this client.

Those that rely on referrals or social networking to secure work will realise that the most cost-effective way to gain new clients is to use 'pull' marketing techniques to gain business.

First things first

Before building your reputation in your chosen niche you need to first understand your current position. An audit of your situation should reveal (amongst other things); your standing in relation to your competitors, whether your reputation is earning you enough referrals and if your business message is coherent across all your markets.

It’s important to ensure that your current business strategy (including networking strategy) is consistent with the reputation that you have and are building.

Reputation is personal in its nature, concerning itself with the character of the business (or person) and the intention of its (their) actions. It is essential that you are consistent with what you say and do, especially on the internet, where everything that is recorded there is of a permanent nature.

Inconsistency can be the biggest killer of reputation as it undermines the trust that is being established between the two parties. Credibility needs to be demonstrated and is based on your track record and competency. One of the ways to establish credibility is to ensure that your expertise and integrity is demonstrated regularly and effectively.

This can be done by providing expert opinion, a positive and strong personal brand, social proofing and having a strong trust account. This allows potential clients to sample your expertise enabling them to advocate your services or hire your business. If your business (and/or yourself) has a good reputation and credibility, it is more likely to be trusted by your potential clients, therefore increasing your revenue and sustainability. A trust account balance reflects the amount of trust in the relationship at any given time.

“It is a solid, credible reputation (not juts increased visibility), that will carry you and your business out of the crunch and beyond”

In anyone relationship there are two accounts. How we perceive a trusted relationship say one with a client; may not be the same as they see it. It would be wise to try and understand the balance that is held in each account.

Entrepreneur: Nadine Harding / Curl Harmony

Hair care harmony: How to keep your curls in harmony

Olivia Benson (Manchester Evening News)

AFTER years of `going straight' with her hairstyle, Nadine Harding decided it was time to stop damaging her locks. However, following a fruitless search for products to keep her curls in top condition, she decided to launch her own hair care range.

Nadine, a former chemist who studied at the University of Manchester, has set up Curl Harmony, which sells products that are handmade from natural ingredients and are designed specifically for Afro-Caribbean hair.

Twenty-seven-year-old Nadine established her Manchester-based business after being made redundant from her job at a scientific instrument manufacturer. She says: "I thought of the idea after looking for natural products to use on my hair. I'd been straightening it for many years using relaxing treatments which contain a number of chemicals and, as a result, my hair had become very dry and brittle.

"When I failed to find suitable products for Afro- Caribbean hair, I decided to have a go myself." With a £5,000 bank loan, Nadine set up a laboratory in her spare room and set to work sourcing the ingredients and making the hair care products.

Natural

The Curl Harmony range includes conditioners, shampoos, oils, clays and styling products which contain ingredients such as coconut oil, jojoba oil and shea butter. They retail from £7.50 to £14 and are sold through Nadine's website (curl harmony.co.uk), wholesalers and other internet outlets that sell natural beauty products.

Nadine says that Curl Harmony products are the only ones that contain natural ingredients, are handmade in the UK and are aimed at the Afro- Caribbean market. She says: "There are a number of specialist stores that sell chemical-free products but these are predominately imported from America, where they are very popular.

"There are also many products in the UK market that are aimed at Afro-Caribbean hair, but these contain chemicals. I believe that Curl Harmony products fill a gap in the UK market."

Nadine says the business is set to generate turnover around £16,000 in its first year, and already she is making a profit. She hopes her products will one day grace the shelves of mainstream retailers.