Posts Tagged : Becoming a Destination

The #1 Problem with Small Businesses

My Mom used to tell me to not take on too many responsibilities: “Don’t bite off more than you can chew,” she used to say.

If you’re an independent business owner, this advice doesn’t apply to you.

On top of having created your business, you are now responsible for overseeing all the operations of it, envisioning its future, aligning your team with your vision, and making the major decisions that impact its well-being.

You are more likely to bite off more than you can chew, and then, chew it.

So imagine my surprise when years ago I sent out a survey to hundreds of chambers of commerce and downtown organizations with a single question:

“What is the number one problem with your city’s small businesses?”

When the answers came rolling in, I didn’t have to tabulate the responses. From across the country, one word was universally repeated: Apathy.  Overwhelmingly, I was told business owners in their cities and towns were apathetic to improving their businesses, and this included not wanting to update the look of their businesses, improve their product lines, step up their customer service, and a variety of other complaints, all grounded in the basic belief that owners didn’t care enough to improve their business operations.

I’ve always disagreed with that survey.  Here’s why:

First, I think it’s easy to look at a business from the outside-in and make incorrect judgments about it, especially if you’ve never been self-employed.

Second, I believe business owners generally function in a perpetual state of being overwhelmed, juggling too many tasks in too little time, all the while running their businesses. I think the outside world forgets that independent business owners have other things to do besides running their businesses, like being a caring parent, spouse, partner, volunteer, and community leader, while still sleeping enough, exercising, eating right, and maybe, sitting down and taking time to think.

Third, today’s business owners are engaged in a daily learning curve of monumental proportions. Number one, they are responsible for staying abreast of the changes in their industry. But on top of that, they have other issues to think about, like analyzing, judging, and committing to which new technology tools would be most advantageous to their business. For example, should they use Woobox, Gro Social, North Social, or Social Campaigns to get more Likes on their Facebook page? Most business owners would answer that they don’t know.

What owners do know is they ARE passionate about their business, and the majority recognize they AREN’T experts in a host of categories including financial analysis, store design, social media, marketing, advertising, and publicity, just to name a few.

Owners will also be the first to tell you what changes they know they should be making in their businesses, but they’ve delayed implementing, not because they don’t care, but in that big priority list that is ever present in their minds daily, they don’t have the knowledge, outside resources, finances, time, or sanity to tackle that challenge right now.

The truth is that I have rarely met an entrepreneur who doesn’t care.  I’ve met apathetic employees, landlords, citizens, shopping center developers, students, Colorado pot smokers and cats.  But not apathetic business owners.

So for those who look from the outside-in, you should understand when you meet owners like these who are battling to make their businesses better, that look on their faces is NOT the look of an owner who doesn’t care; it’s the look of being overwhelmed when you are the person who is expected to have all the answers, but you’ve really not had time to even consider the question.

Oh, here’s one other word of advice: If you want to help, please do not walk into their businesses and utter a cliché like “Work smarter, not harder” or “Work on your business, not in it.”  They’ve know that. They’ve heard it before. And they’ve thought that every night before going to bed and first thing every morning walking in their doors.

If you really want to help them, give them resources and assistance that make their lives easier.  Help them by providing solutions that will help their businesses leap forward.

And I guarantee they will reward your community with a business that everyone will be love.

Coming to a Town Near You: Destination Business Mobile Office

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Coming to a community near you: the new Schallert Group Destination Business Mobile Office.

Now when you bring Jon Schallert to your town or city to help your business owners, Jon’s going to be bringing his entire office with him. This allows you to have access to all of Jon’s resources right in your town!

Look for this little powerhouse coming to your city in the future months!

Quit Worrying About the Size of Your Marketplace

When I consult in communities around the country, I often hear business owners say things like: “My marketplace is too small”, or “There aren’t enough of my type of customers around here to support my type of business”, or “When more people move here, my sales will improve.”

When I hear words like these, I realize that the owners I’m talking to have not embraced the idea that their business can become a Destination. Instead, they are running a business that is location-dependent.

The truth is that no one can accurately measure the financial potential of a community today, and where your business is currently located does not have to limit the sales your business generates.

As for measuring the potential of your demographic area, an accurate measurement of its potential cannot be done. Sure, I know that there are really smart people out there who can run demographic numbers that show the statistics of a marketplace. But the problem is these statistics then are correlated to the potential dollars that can be spent in that same area.

Unfortunately, these studies do not take into account the potential impact of a business that makes itself a Destination, a business that is so decidedly different that it consistently pulls consumers from outside its marketplace.  In fact, every analysis of every marketplace focuses on who is living there, not the potential spending power of everyone who could buy there.

Here’s why any analysis of a marketplace falls hopelessly short of the real potential of an area: Let’s start with every shopper who is walking around with a credit card, giving that customer exponential spending power. Do you accurately know the spending power of the customers who walk in your doors? You can guess, but you’d be wrong. Even in today’s economy, some of those credit cards are still tied to home mortgage lines-of-credit, and even though credit card spending has declined, some consumers still have gargantuan impulse- buying power.

Then, there are the tourists, who also carry credit cards, who visit your area, and these consumers are never measured or factored into traditional statistics. Plus, studies don’t take into account consumers from cities outside of the traditional 15 miles who don’t think they can possibly find what they are looking for in their city, so they drive somewhere else, thereby participating in Road-Trip Retailing. And studies don’t take into account the spreading of the wealth that occurs when consumers in your city, who logically should buy from your business, drive illogically away to spend their money elsewhere.

Now, I haven’t mentioned consumers who spend money over the phone, via catalogs, with infomercials, on the Home Shopping Network, or via the Internet. Those numbers cannot be accurately measured; they can only be guessed at.

And let’s not forget those consumers in your city or town who walk in, and say, “We’ve lived here 20 years and we never knew you were here.” Suddenly, your business has discovered incremental business in your backyard.  And remember:  Don’t slap that walking-around-in-a-daze, advertising-avoiding, living-in-a-vacuum consumer. This person is your neighbor!

Add all these groups up and even the smartest statistician can’t tell you the potential spending power that you can capture from the consumers who you could lure to your business, IF you were marketing your business as a Destination.

Here are 5 simple tips that should give you piece of mind about the potential of your marketplace:

  • Worry less about the limits of your immediate demographic area.
  • Focus more on creating a business that is so different, that you literally remake the demographics of your marketplace, and the share of it that you claim for your own.
  • Don’t simply focus on the consumer walking down your street, or driving by.  Focus on a consumer hundreds of miles away, and make your business so different that this distant consumer longs to visit your business in person. If you position your business to capture  that person and keep him or her interested, the ones walking down the street will be easy to pull in.
  • Think about attending our Destination BootCamp and learn how to reposition your business into a Consumer Destination.
  • And one last thought: Your “marketplace” is always larger than you can imagine, and most of us don’t imagine large enough
Such a Big Change: A Letter from a Destination BootCamp Business Owner

This week I received a letter from a business owner who had attended my Destination Business BootCamp in 2011.  Normally, I just keep these letters for myself, but this one, I’m going to share.  When you read it, you’ll see why. There are parts of it that hit the emotions that every business owner in the world has ever felt.

By the way, I asked the owner who wrote this letter if sharing it was OK with him. He gave me permission to do so.

Our Destination BootCamp is a two and one-half day workshop. It takes me that long to cover my 14-step strategy for making a business a Consumer Destination. It’s not like when I speak at a conference for an hour. In the days I have with the owners in attendance, I can show them a different way to position their businesses to be successful.

Here’s a photo of the class. The business owner who wrote the letter was Louie Colosimo, owner of  Red Glass Oak in Central Point, Oregon. To see Louie’s amazing business, go to his website here: http://RedOakGlass.com.  His creations are amazing!

Louie had come to our Destination BootCamp with five other business owners from Central Point and with Tom Humphrey, the Director of their city’s Community Development Program. Tom had organized the group and Louie was one of the participants he had asked to make the trip to Colorado, as part of our Community Reinvention Program.

That’s all I’m going to say. Here’s Louie’s letter to me, in its entirety. I haven’t done any editing.

Thanks, Louie, for letting me share your letter. I hope it helps other owners realize that they can make changes to their businesses and turn a poor situation around.

Here’s Louie’s letter:

Dear Jon,

Short version: I want to thank you for all you’ve taught me.

Longer version: Last year, when Tom Humphrey asked me if I wanted to attend your Businessman’s Boot Camp, I was about a week away from quitting my business and throwing in the towel. Deep in debt, out of energy, and my best sales person was seriously drifting away, the future looked bleak at best. I’d even begun to ask around if anyone knew of a good bankruptcy lawyer. It was either quit or try one more time. Finally, I decided to go see you and give it one more shot. The least that would happen would be that I’d get a free trip to Colorado and escape the shop for a few days. I’m so glad that I did. You absolutely turned my life around. Not just my business life but my regular life (?) too.

But not at first.

On the first day of Boot Camp, or rather in the first two hours of the first day, my ass hurt from sitting. I kept shifting from side to side… left bun, right bun and back again. And you were so indefatigably cherry and positive. I kept thinking, “Christ, I should’a quit. At least with bankruptcy it’d be over and I won’t have to think about it.” But then, you showed “problem/solutions” and order began to creep in. My butt began to hurt less, then I forgot about it.

By the end of the first day, I was mostly a convert. I did my homework that night and woke to face the second day. You got better and so did I. By the end of the last day, I wanted to stay and stay and listen. You never wore down. You kept believing that we all could do it. And finally, so did I.  Not only were you telling me how to market better, but what I finally realized was that you were demonstrating how to do it in real time. I was your customer. You took care to treat me special, give me all the information I needed to understand your product, and see how many others managed marketing. You were able to define your business (on an elevator ride between the 3rd and 4th floor); you had your monument-al achievements, and best of all, you were proud of your accomplishments.

I knew that to stay in business, I had to market my product. But knowing that it isn’t the same as knowing how to do it. To me, marketing was like trying to grab a hold of a sand storm. There was no handle. No place to start. What do I do first, second, etc? And what you told us wasn’t the answers I wanted to hear.

Instead, you asked questions. Being asked a good question was so much more valuable than being told a general something, a fortune cookie solution. Right off the bat, you asked the hardest thing of all, for me to define my business in one sentence. I always thought that I had done that, until I really thought about it. Now that I think about it more, what you did wasn’t asking for a definition, but more like you challenged me to look at myself and my business the way the world does, from the outside looking in. I always looked at myself and what I did from the inside out. I was a glass blower! Now, I want the world to see me as a glass artist that creates hand blow art glass pendant lighting and inspiring standing chandeliers. So that’s how I define myself and it fits how I see myself. It was and is such a small shift in perception. Such a big change! I understood what I needed to do to keep on going. I’m still slipping and sliding, but now it’s in the general direction of where I want to go.

One last thought about trying organize a sand storm: I’ll be shoveling with the Taj Mahal in mind and realize that all I’ve got is a mud hut and it’ll come to me again that I can’t do it all at once no matter how I try. But, I can do something every day. And I do. Plus, I could bring some hot dogs, beer, a kite and enjoy the beauty and flow of it all.

The other day, I was talking to Tom Humphrey about you and I said that I’d like to hear Jon talk about stress relief, when business gets scary. Without a blink, he immediately gave me a “Jon” answer. He said, “Market better.”  Dorothy had a yellow bricks to guide her, but we’ve got Jon, which is a different kind of brick. When in doubt of the direction to City of “ahhs”, all I have to do is ask myself (or the Central Point team) what would Jon do to get there? When I left Colorado, I felt like all three of the clunks from the wizard of Oz all rolled into one: I needed to get a brainy plan, the heart to keep on going and the courage to stick it out. And I can. After all, Jon believes I can.

With the utmost sincerity and thanks,

Louis Colosimo
Art glass pendant manufacturer
Red Oak Glass.com
234 N. Front St.
Central Point, Or. 97502
541- 326- 8836

In Praise of Slackers

The last time I wrote in my blog, I wrote about complaining business owners who don’t make changes to improve their businesses.  If you don’t remember what I wrote, you can read it by clicking here.

Looking back, I was wrong about them.  I admit it!

I am now ready to embrace the complainers!  Here’s why:

My revelation on this point occurred when Alisa, our new Business Development Manager, left during the morning for a dentist appointment, but later returned a couple of hours later, resuming her regular duties.  Thinking about my own dentist appointments that are often filled with needles of Novocain shot into my gums, making it impossible for me to talk when I return to work, I couldn’t help but notice that she seemed quite functional.

So, I asked her: “How are your teeth?  Are you in pain?  Are you still OK to be at work?” But Alisa assured me she was totally fine.

She then said to me: “My dentist told me that if all his patients took care of their teeth like me, there’d be no need for her.  She’d be out of work.”  She explained that she took great care to clean and maintain her teeth after being told how important it was, and how her dentist appointments were non-eventful checkups absent of the pain I regularly came to associate with my visits.

We talked a little more and then, my light bulb moment occurred. It came to me in a flash that if everyone with teeth, brushed, flossed, and cared for them like Alisa, what a huge impact that would have on the dental industry! How would these dentist offices stay open, if all of their patients gave them nothing to do?

Let me use my dentist as an example.  I think my dentist’s office employs about 5-7 people, and I’d guess they are all pretty well paid professionals, all doing their work on people who don’t brush and floss as well as Alisa does. What if these people had no work?  For example, my dentist is a great dentist and a great guy, but I bet he doesn’t have any other marketable skills besides dentistry (maybe watch repair, with those tools he’s accumulated and his steady hand). But the rest of his staff? Not so talented.  I foresee “Will clean teeth for food” handwritten signs by the interstate.

Now, take this idea a step further. Multiply the impact if every dentist office in the country closed because everyone took care of their teeth like they should. Think of the massive unemployment problems that would result.  I bet most of these dental workers would be out on the streets, forced to selling their stash of free toothbrushes and mini toothpaste tubes. And think about that loss of revenue that previously circulated in our economy from people paying for dentures, implants, cleanings, oral surgery, x-rays…all of it gone!  What an economic downturn our country would experience, if everyone cared for their teeth like Alisa!

And that’s when it dawned on me that I’ve been looking at this the wrong way.  All those business owners who don’t attend my workshops, who don’t make their businesses unique and distinctive…these are people I should be thanking!  The owners who complain all the time and do little to help themselves while remaining stagnant, I should hug!  These owners are the ones who are maintaining the below-average business standards that allow the rest of my clients to stand out.  These owners are the people who set the low bar! These are the entrepreneurs who make it possible for any other company to look so good, by them being so bad at what they do.  These are the people whose poor service gets anchored in the minds of customers, so when my clients’ employees go just a little above and beyond the call of duty, their efforts seem Herculean.

I am the first one to admit when I am wrong, and I was wrong about the slackers.  It was wrong for me to have berated them.  The slackers, malcontents, and complaining business owners have done nothing wrong.  Granted, they haven’t done anything particularly right either, but they don’t deserve to be flogged into changing.

I’ve changed my mind!  Immobile owners like these should be praised. They should be encouraged to “Do nothing, move nowhere, change not!” Their businesses are perfect, in their most imperfect states, and the rest of the proactive business world needs them to maintain their business inertia.

So to all owners out there who are constantly working to improve yourself and your business position, do this: The next time you see one your business peers who fits this slacker/complainer description, don’t avoid them. Don’t look away. And certainly don’t berate them with those positive suggestions of change you typically heap on them. Next time, give them a hearty pat on the back and a cheery “Carry on!”

Their mediocre business is crucial to your creation of the Destination Business of your dreams. Without them, your challenges would be much more difficult.

Handling Your Great, Good, and Bad Ideas: A 3-Step Process, Part 1

Here’s something that’s critical if you are going to build a better business: learn to act on your great ideas, nurture your good ones, and discard your bad ones.

But this is easier said than done, especially for most owners of businesses.  You see, most owners are extremely creative people with ideas constantly popping up in their heads every day.

Do you recognize yourself?  If so, this blog post is for you.

I see it all the time.  Most owners keep lists and pages of their ideas.  Owners are great note-takers and list-makers. The problem comes finding time to act on those ideas.  Rather than devoting time to work on them (what companies call innovation time, or research and development), most owners work in their businesses and will do anything to NOT work on their ideas.  For example, some owners read trade publications, talk to business owners in their same field, and attend industry conferences, and when they return, they are thoroughly overloaded with more ideas, piles of notes and scribbles of thoughts, and magazines where they’ve highlighted every word in yellow.

Face it. You have more ideas than you need!  And I’m including the bad ideas you get from people who come up to you, knowing very little about your business, who say: “You should do this, if you want to make more money.”

Do the math, and collectively, you have some great ideas mixed in with a bunch of good ideas, about half-a-ton of not so good ideas, and a couple of hundred ideas that you don’t know if they’re good or not, and a few that you wrote down or heard that you don’t understand.

Then, I come around and tell you to reinvent your business as a Destination which really puts you in overload (it shouldn’t; my stuff’s the easiest).

Here is the first step in the process to help you handle your great, good, and bad ideas.

Today I will share the First Idea.  #2 and #3 will appear in this blog in the next two days.

#1 Step: Remember that there is only one you.

“There is only one you”.  What does that mean?  It means that you are limited in what you alone can accomplish as one person.  Your parents used to say “There is only one you” but they meant that you were like a shining star or unique like a snowflake.  And though you might have been and maybe are now, I don’t mean it that way.

Put another way: You are just one person trying to handle too much.

But, you might say, “Wait, it’s not just me!”  You might say this because you have a supportive partner or spouse or good employees who are likewise focused on your business.  Yes, this support is wonderful, but that makes a few more “kind-of-like yous”, and even though your spouse might be infinitely more talented than you and right on the same page, that only means there is at most, just one more than you.

And yes, some of you have brilliant people working for you.  They can take some responsibility for handling different ideas.  But deep down, you know that there is a reason your employees work for you and don’t have their own businesses.  They are not you, and some aren’t even like you. They don’t wake up in the middle of the night in a cold sweat, thinking how to make payroll the next day. They sleep at night while you are up thinking of the hundreds of ideas that caused you to sit up in bed.  They don’t agonize over that customer your business just lost, and that sale that just walked out the door.  Deep down, they are less committed.

Granted, there are other possibilities to have more people help you with your ideas.  You can delegate responsibilities to others (though most owners don’t do this real well because you have a tendency to be a little controlling, oh, snowflake that you are).  Yes, delegation is a possibility.

But let me come back to what I said: There is only one you.  And you know it, and for the most part, the really great ideas that are percolating around up there will have to be put into practice by you.

Tomorrow, we’ll cover the reality of having too many ideas, and what to do about it.

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