Sustaining Employee Morale

If you have grown your company to the point of having employees and you have made good hiring decisions, you will want to keep them.  Employee turnover is expensive due to the time required to advertise, hire, and train new employees.   For most people to stay in a job, they have to feel valued and a sense of accomplishment.  The value can be monetary – you are paying them well for the job they are performing or it can be a combination of decent pay along with other incentives such as sincere praise, a sense of self-worth, or other perquisites.   As mentioned in another posting, it is part of building and maintaining important relationships; although this time, the relationships are between the employer and employee.

Years ago, Rock Hill Printing and Finishing Company (aka The Bleachery) was a big employer in the area.  Each year to show appreciation for their employees, The Bleachery held an event they called the Bleachery Christmas Tree.  According to an archived Herald article, Rock Hill Printing and Finishing started holding the event in 1944 for the five thousand children of their employees. They gave age-appropriate, inexpensive toys to the children of their employees.  It was an exciting event for the employees and their children.   I know because I was one of those children in the 1960’s who lined up to go down the row with my bag to get my toys.  The Bleachery would play popular Christmas music (Rudolph the Red-Nosed Reindeer, Here Comes Santa Claus, etc.) through speakers for the crowds.  Santa was on hand for the children to see as well.

In this example, the employer showed appreciation for their workers and help them feel satisfied with their job.  While this example may be extreme, many employers continue to provide bonuses, parties, and other incentives during the holiday season to show appreciation for their employees and help to recommit them to their work.  What perks do you give your employees or does your employer give you?

 

Build Your Facebook Community

Do you have a Facebook page for your business?  If not, why not?  It’s an easy marketing tool to implement and the cost to you is the cost of maintaining it (posting and responding to posts).  Think of it as an alternative to expensive print or television advertisements.

Facebook has more than 850 million users as of 2012.  If you just tap into a small percentage of those users and get them interested in your business, think what it could mean for your business.  Currently, I am reading a book entitled Likeable Social Media by Dave Kerpen.  It is a great little book about how to use social media for your business. 

Kerpen discusses the fact that most companies use their Facebook page to spout at their customers rather than engaging their customers in conversation.  He suggests engaging them in conversation about almost anything whether related to your business or not.  The idea is to make them post on your website in an authentic way because as they do, it shows up on their news feed and their friends (potential new friends for your company).  The more often your business name shows up, the more likely it is to be remembered.    Showing up in people’s news feed also provides you an opportunity to convert them to “friends”  by liking your page.  Once they are friends and if you can get them to talk to you, your business name is spread further (on their news feed) when they communicate with you.

So, how do you engage your Facebook friends as a business?  Say you had a home-cleaning business, you might post cleaning or organizing tips.  Take advantage of holidays for making suggestions.  Or, you might ask about their favorite activities once they have all their cleaning chores done.   The point is to get them to post on your page and build an online community so they respond to you and talk to one another. 

Build the number of friends you have by asking people to like your page on all of your print materials, by posting a friendly sign on your front counter if your customers frequent your establishment that asks them to “like” you (your business) on Facebook, and in every electronic communication (email, blog posting, etc.).  Hold contests to increase the number of “friends” you have on Facebook.  Kerpen gives a great example of a restaurant who did this by offering a free appetizer to anyone who shared its Facebook page with their friends and asked them to like the restaurant’s page and if the restaurant’s friend total reached a goal of ______ number of friends, all of the friends would get a free appetizer.  This contest resulted in an increase in patronage to the restaurant as “friends” came to take advantage of their free appetizer but they also ordered additional food and beverages.

Don’t be afraid of negative comments but do respond to them quickly.  Apologize, if possible, and tell them you will communicate with them off-line through personal email and then do so.  Take steps to follow up and correct the problem. 

Check out Kerpen’s book.  It has some great tips, and get going with building your own Facebook community.

The Quandry of Start Up Funding

On Friday, I attended a business administration advisory committee meeting.  The advisory committee is a diverse group of business people from the service area who come together twice a year to provide input to the technical college about programs, new technologies and processes being used in their businesses,  and student interns or graduates’ (employees) skills (strengths and weaknesses). 

During the discussion of programs, I mentioned that the entrepreneurial programs are a concern because the placement rate (percentage of completers employed) is lower than preferred.  Despite the fact that many entrepreneurial students have a business idea and develop a business plan during their curriculum, they often do not have the funds and lack the credit to borrow money to start the business. 

One of the committee members suggested that the college develop a student incubation program where students could work on their business with support from the faculty and the college.  It was also discussed that students from these programs have excellent skills that apply to any business so regardless of where they may be employed, it could be said that they are employed in their field.  Both suggestions were good, actionable points. 

Along this vein, it also made me think about how individuals fund their new businesses.  Some people are fortunate enough to have savings that they can tap, they have something of value they can sell, or they are confident enough in their idea to refinance their home and use the equity.  Others borrow from family members.  While not advisable, some risk takers use credit card debt to finance their start-up.  Starting a new venture part-time while working another job also works for some people or taking on a partner.

Some people get more inventive such as restaurateurs sell naming rights to chairs, wear t-shirts advertising different businesses for a fee, pre-selling services and providing a coupon to the buyer, etc. 

Small business administration loans are also an option.  Venture capitalists or angel investors may be interested if you can demonstrate a sound business plan with high growth potential.

 

Marketing Thoughts for Restaurants

My husband John and I used to frequent a wonderful restaurant that was showing signs of neglect. It was wonderful because the food was excellent, and they had the best salad bar anyone could ever want. The salad bar was stocked with the usual greens, tomatoes, onions, peppers but also included pepperoncini, beets, pickled okra, olives, anchovies, and more. It was a treat to go to the restaurant even though there were few others that seemed to share our opinion because the place was never packed. Perhaps that is because of the carpet was worn and the booths needed to be re-covered. However, the atmosphere was good.  It had nice lighting for a romantic dinner, was always perfectly clean, had great customer service and good sound buffering.

Several nights as we sat there looking at the sparse crowd but completely enjoying our scrumptious food, we began talking about ways the couple could increase their clientele.  For instance, if they chose specific groups such as school teachers, college professors, attorneys, CPAs  and offered a special to them – ten percent off or free dessert on a rotational basis – at least for a while, it would bring in new customers to learn how great the food and atmosphere. 

Likewise, there are some great restaurants in Old Town but, again, most of them are lacking a strong customer base.  I suggested to one of the owners that he package pints of his homemade pimento cheese and deliver them (or get college students to deliver) to the fire departments and police department on Christmas Eve or some other holiday when the fire fighters or officers are working and away from their families.  These guys love good food, and they would love the attention!  And, most of them have wives that they take out to dinner….   They also talk to their friends and family - not only face to face but also through social media outlets such as Facebook. 

Sampling is a great way to let people get to know how wonderful your product is and once they are hooked, you have them.  Plus, the extra effort to think of them on a holiday would likely begin a new relationship.  Just a thought….

Now, back to the top.  The restaurant that I began the posting has not been in business for more than 10 years.   Anyone remember it?

SBDC is a Great Place to Get Started!

When getting started with a new business, some people may not know where to turn for assistance.  Small Business Development Centers such as Winthrop University's SBDC is a great place to start.  The Winthrop SBDC is managed by several professionals - Larry Stevenson, Carol Daly, Forrest Norman, and staffed by MBA students.  These students bring you energy and enthusiasm for your new endeavor in addition to fresh knowledge that they have acquired through their program of study.

At the SBDC, you can get help with your particular type of company - all the details of how to get started.  They will also help you develop your business plan and financial projections, assist with marketing materials, provide honest feedback and advice, assist with completing loan applications, and more.  They also host seminars and workshops to help you increase your skill level. 

Whether you live in Rock Hill, South Carolina, or not, you can find a SBDC in your area.  In some states, the centers are called Small Business and Technology Centers.  These centers are funded through the United States Small Business Administration so the assistance is generally FREE!

Furthermore, the SBDC will continue to provide you assistance when you need it as you grow your business. 

Lifestyle Business Versus Entrepreneurial Start Up

Sometimes people ask about the difference between a small business owner and an entrepreneur.  The truth is that there may be no difference at all.  On the other hand there may be a big difference between a lifestyle business, sometimes called a "Mom and Pop" business, from an entrepreneurial start-up.  In a lifestyle business, a person decides to go out on her own to earn a living but really isn't interested in hiring more than a few employees, if any, to expand the business.  She just wants to earn enough money to make her life comfortable, generally serve the local market, and may provide her with some flexibility.  Painters, roofers, hair stylists,and consultants often fall into this category.

The entrepreneur starts small too but is innovative and has a vision for expanding the business, finding financing, and hiring as many employees as needed to provide goods or services to her market. The market may be regional, national, or global. Therefore, the chief distinguishing characteristic is one of scale. An entrepreneur tends to be a visionary risk taker. If the business fails, she will often regroup and try again.  A person who starts more than one business in her lifetime may be called a serial entrepreneur. 

Either way, we need both types of business to grow our communities.

Is Chamber of Commerce Membership Worth the Price?

If networking should be about developing relationships with others, is there any value in spending the money on local chamber of commerce memberships?  I believe the answer to that question is “YES.”  Chambers tend to provide many opportunities for you to get to know others.  They host seminars, ribbon cuttings for new businesses, after-hours events, and more.  And, they have many committees where you can likely plug in to add some value AND get to know your co-committee members.

The key is not to just go to the events to introduce yourself, hand out a business card, and ask for everyone’s business on the spot.  One of the leaders in our town, who is also an entrepreneur, shared a story about a lady who was running a new small business who came up to him at a chamber event, introduced herself and her business, and proceeded to tell him that he needed to switch from the company that he was currently using to her company.  She made such a poor impression on him by badmouthing her competition that he said he would never have done business with her.


While you should introduce yourself, your business, and hand out that business card, now’s your chance to start getting to know the person.  OK.  Don’t monopolize his time but do take a few minutes to find out something about the person and his business.   Take a moment soon afterwards to make a note on his business card so that you can remember something about him.  More than likely, you will run into each other again and have an opportunity to get to know one another a bit better.   Perhaps follow up with a lead for the other person or make an introduction. Find a way to add value to him instead of vice-versa.  Soon, you will have a new friend.

Chambers also advocate for small business through the local political and state legislative process, monitor what’s going on, and will help keep members aware of topics that apply to them.   So, plug in to your chamber of commerce.  Just keep in mind that you can’t just join and display the membership plaque.  You have to work it by attending events and getting involved.  The leads will follow.  Too busy to get involved?  What a great problem to have!  However, whether you own your own business or work for someone else, one of the keys to success is getting out there and building your network so don’t seek excuses not to get involved.  You can pick and choose which events to attend but you should be attending some.  Work the events into your schedule a few times a month.  While it may take some time, in the long run, your chamber membership will pay off.