A bit more than 50 percent of small businesses fail in the first four years, according to the Small Business Trends study. But remember: half of the new businesses also survive. So how do you make sure you’re in the top 50 percent of survivors? Business consultant Janice Janssen says it takes four key strategies, as we explain in this issue of Promotional Consultant Today.
Strategy 1: Systems, Protocols, Processes. You often hear “The business isn’t successful because there are no systems in place” or “Not everyone is following the proper protocols.” Many times, I’ve heard employees say they didn’t know there was a protocol in place, or they weren’t trained on the rules.
Your systems determine how you want your business to run. The process outlines the steps to get it done. Creating a system of accountability means that each team member understands what the job is and who is responsible for making it happen.
Ideally, every process should be written down. It may seem overwhelming, but it will be helpful when training a new team member. Standard operating procedures serve as important guardrails for your business. Document these procedures, review them on a regular basis and adjust them as your business grows.
Strategy 2: Know Your Numbers, Know Your Business. What does it cost to open your doors? Is your payroll within normal limits for your industry? This may seem like a no-brainer; however, many of the businesses that fail do so because someone else had a better handle on their numbers.
What numbers are important? The obvious answer is your revenue and expenses. But look deeper and make sure you understand what is coming in and what is going out at all times. If there is something suspicious, ask and make sure that you are comfortable with the answer, and ensure that all spending is accountable.
Strategy 3: Don’t Skimp On Marketing. The purpose of marketing is to let people know that you have something that they need, that makes life easier, faster, better. It’s not enough to just open your doors and expect the masses to come flooding in.
Internal marketing is customer service and customer experience. The look of the office from the moment a customer gets out of the car is marketing. Is there trash they have to step over, or a strange odor in the office? Take a look at your customer onboarding process from the viewpoint of your customer. What does the customer experience? What can be improved?
External marketing is how you tell people about you throughout the community. Your website, advertising, social media profiles and community involvement are all forms of external marketing. You need to be aware of how you are reaching and acquiring new customers based upon what you are doing, how much it costs to acquire a customer and how to determine the return on investment for everything you do. At the same time, have a method for customers to let you know if their experience with your company did not meet their expectations. This may require a survey or even a follow-up phone call.
Strategy 4: Communication. We all know how to talk, but do we all know how to communicate? Effective communication is much more than merely transferring information Clear written and verbal communication is important in any business.
Written communication includes not only formal contracts or return policies, but also letters for hiring, performance reviews and memos. Written processes have a strong value in their ability to thwart any barriers to providing excellent customer service. Anything that is discussed outside of the normal business processes should be documented to protect the business owner and the employee or customer.
Verbal communication with employees can be directives that take place at team meetings. It is through these meetings that the team understands the vision of the business and what the owner expects of their participation as an employee. Team meetings are an effective way to review processes to ensure that everyone is completing tasks in a consistent manner. Updates determined as a team are then documented. This keeps everyone on the same page.
Communication with customers is just as important to document, to avoid a “he said/she said” type of situation. If a promise is made, it should be written down. The number one frustration in most businesses is lack of communication. If employees don’t understand their roles, it can lead to the loss of good employees or to poor employee performance.
Source: Janice Janssen, RDH, CFE is the co-founder of Global Team Solutions (GTS), a business consultant and a highly-regarded professional speaker. Her acumen in the area of office management solutions makes her a real asset to her clients across the country.Janssen is the current treasurer of the Academy of Dental Management Consultants (ADMC), and is a Certified Fraud Examiner (CFE).