100 Ways to Be a Better Entrepreneur (Part 5/6)

100 Ways to Be a Better Entrepreneur (Part 5/6)

Learn how to run and grow your business more effectively and efficiently.

Provided by Entrepreneur.com

67. How'd I Do?
How can you improve if you don't find out where you went wrong and what you did right? Always ask for feedback. If you want to improve your sales presentations or your relationships with customers, ask them what you need to do to maintain and increase their business. While a great learning tool, asking for a customer's opinion is also a good way to show customers you care and are willing to work at solving problems. Asking for feedback can also save a customer relationship. While dissatisfied customers don't always complain, they very rarely buy from you a second time. 68. Listen Up!
One of the most important things you can do to become a better to seller is to become a better listener. You should be listening at least 50 percent of the time.

Improve your listening skills by taking notes, observing your prospect's body language, not jumping to conclusions and concentrating on what your prospect is saying. Also, track how much talking you're doing. If you're talking twice as much as your prospect, or more, it's time to take the backseat and listen.

69. Learn From Your Mistakes
While there's no way to completely avoid making mistakes, there are still plenty of ways to get the most out of the mistakes we do make. Here are three methods to deal with your mistakes:

·        Put your ego aside. It's easy to get angry or frustrated when things don't go your way, and hold on to the idea that it's someone else's fault things went wrong. But there's only one way to find out what the problem was-ask the customer. Listen to what they have to say and see if there's still time to save the sale.

·        Use a setback as a setup for future success. Let your errors be the motivation for making improvements the next time around. You've put in a lot of time and effort-and if you don't learn from what went wrong, all that time is wasted.

·        Take a proactive approach. Read everything you can about your profession, industry, products and services. Meet with people who have particular skills and talents and share information with them. Keeping your mind fine-tuned helps you eliminate making future mistakes.

70. What Not to Do
To sell smarter you need to eliminate all those things that waste your, and your customer's, time. How can you work more efficiently? Try steering clear of these time-wasters:

·        Dealing with people who can't make the buying decision. Make sure the person you're speaking to is a decision-maker. Don't be afraid to call the higher levels, even the president of your target company.

·        Working without a priority list. Make a top 10 list of your biggest accounts and a top 10 list of your biggest prospects. Look at this list every day to keep yourself focused so you can spend your energy on getting the best return on your investment.

·        Relying on technology rather than on relationships. Sales are made from relationships, and it's difficult to establish relationships on a computer screen. Keep e-mails short-remember they're great for passing information but can never take the place of one-on-one communication.

Protecting Your Business

71. Preparing for the Worst
In case of an emergency, such as a flood, fire or earthquake, it's tough for even the strongest of us to keep a level head. So why worry about what's going to happen to your clients, contacts and important documents in the heat of the moment? Why not start planning for disaster now? Here are four things to think about:

·        Business-interruption insurance and records reconstruction are good policies to look into. Although disaster insurance can be costly, it may also be worth checking out.

·        Be sure to back up all your crucial data and keep those files off site in a safe place. And be sure to check on them from time to time.

·        Make copies of important paperwork such as customer contracts, employee information and legal documents, and keep those off site as well.

·        Make sure that each of your outside vendors also has a disaster plan in place. You don't want your business adversely affected because one of your vendors hasn't planned ahead.

72. Peace of Mind
Just as you wouldn't drive a car without insurance, it's best not to open a business without some type of coverage. So where and how do you begin? Just follow the steps below to get your business covered.

·        Find an agent. Locating an agent to help you identify the right insurance at the right price should be a high priority for every new business owner.

·        Types of insurance. After you decide on an agent, sit down with him or her to consider what types of insurance you may need. These might include property, liability, auto, workers' compensation and business interruption insurance.

·        Research your options. As with any buying decision, comparison-shop insurance policies and coverage and make sure you understand what you're comparing.

Lastly, here are some general rules for insurance coverage:

·        Consider buying a combination policy that covers both property and liability coverage. This could save you some money.

·        Look for a small-business insurance package that includes a full range of coverage. This is often much cheaper than buying coverage from several different companies.

·        See what your trade or professional association, chamber of commerce or other business association offers for group insurance coverage. The buying power of a large group may mean lower rates for you.

73. Why Can't We Be Friends?
You just lost one of your employees-does that mean clients are soon to follow? It could if you didn't make employees sign a noncompete agreement.So what is this magic contract? What does it do? Who should sign it?

A noncompete agreement is a formal contract between you and your employees in which they promise not to use information or contacts pertinent to your business in a competing situation. This could mean going to work for a competitor or starting a competing business of their own.

Which employees should sign noncompete agreements? While the prerequisites vary from business to business, the following is a good general list. (The term "employees" in this list represents executive level, management, supervisory and non-management personnel that are relative to that example.)

·        Employees involved in research or product development.

·        Employees involved in the design, fabrication, engineering and manufacturing process.

·        Employees who service products made and sold by your company.

·        Sales and service employees who have regular contact with customers or sensitive customer information.

·        Employees with access to sensitive business information or trade secrets.

·        Most importantly, employees who have sufficient information about your business that would allow them to start a competing business.

74. Get It in Writing
If you're doing business with someone, whether as a client or a provider, you're going to need a contract. Ideally, you'd have a top law firm at your disposal to hammer these things out for you, but the reality for most entrepreneurs is that they have to do these things themselves.

So what should a contract say? Here are the essential elements of a business agreement:

·        The parties to the agreement. In other words, your business name and the name of the other party, whether that's a customer or a vendor.

·        What each party is going to gain from the agreement. This is referred to in legal vocabulary as consideration.

·        The main terms of the contract. For example, what each party is promising to do. Obviously, it's extremely important that this part of the contract be very specific and include such things as the work to be performed, the price to be paid for the work, how and when payment will be made, when the work will be completed, how long the contract will be in effect, and whether either party is "warranting" anything.

·        Execution. Be sure both parties sign the contract and that the person signing (if he or she is representing a company) has the authority to sign.

·        Date. This is the date the contract is signed.

·        Delivery. Make sure each party receives a copy of the final signed agreement.

75. It's the Thought That Counts
Assets such as intellectual property, trade secrets, pricing formulas, customer lists, business plans, recipes and the like are typically the foundation upon which a company is built in a business world full of copycat competitors.

Here are five ways to protect the ideas, designs and plans that make your business unique:

·        Patents, copyrights and trademarks. These are legal filings that document your ownership and create certain legal protections to help you protect your property. Have your attorney assist you with these applications.

·        Confidentiality or nondisclosure agreements. These documents commit a party to keeping specified data and information confidential and out of the hands of unintended parties. Always consult an attorney on this.

·        Employment agreements. These agreements stipulate that all company assets are proprietary and that unauthorized disclosure of confidential information such as pricing formulas, customer lists and other data and information is prohibited.

·        Computer passwords, safes and locked file cabinets. When used properly, they can restrict access to proprietary information.

·        Data backup. Back up everything that is important. Digital documents should be backed up on a server that's in a different location or on a zip disk or CD that's kept offsite along with copies of important physical documents. Absolutely do not attempt to store anything important in your head.

Who Should You Be Marketing To?

76. The Military Market
The armed forces are a massive market, says Christopher Michel, president of Military.com, a San Francisco-based military affinity marketing company that connects public- and private-sector clients to military audiences. With about 3 million active armed forces members and reservists, he estimates the tangential markets of veterans, family members, defense workers and the like to be as high as 50 million.

Serving the special needs of this mobile, family-oriented audience is one way to get their attention--and their dollars. Training companies (which may qualify for reimbursement through military education benefits) as well as relocation services, financial consultants, consumer goods shops and furnishings retailers are some businesses that are a natural fit, says Michel.

Saying you're patriotic is all well and good, but lip service isn't going to cut it. Michel counsels his clients to back up "thank you" with some sort of discount or tangible benefit, such as a free gift, or even going beyond the call of duty and hiring veterans or support reservists to work in your company. And the best way to reach this market, says Michel, is word-of-mouth. Because of the close communities on many bases, people talk to each other about companies that support military members, so the word spreads quickly.

77. The Hispanic Market
Some 38.8 million Hispanics live in the United States, according to 2002 Census Bureau estimates, and their influence is huge and growing. Hispanics control about $653 billion in spending power, and that number is expected to top $1 trillion by 2008, according to the Selig Center for Economic Growth at the University of Georgia in Athens.

Entrepreneurs can find numerous niches in this vast market. Populations of Americanized, predominantly English-speaking second- and third-generation Hispanics are on the rise. This group wants to be marketed to as part of the mass market--not as a separate entity, says Luis Garcia, president of Garcia 360°, an advertising firm in San Antonio, Texas, specializing in the Hispanic market. So speak to cultural differences subtly in your marketing messages (for example, cast a Hispanic family in ads--complete with grandparents in the home, which notes the large family influence). Consider using Spanglish, English mixed with Spanish words or phrases, to communicate to this market. Don't be superficial, though: Garcia recommends getting into grass-roots campaigns by sponsoring Hispanic community events or charities.

Opportunities exist in nearly every industry segment--from food and entertainment to financial services and Web services. Adding new flavor lines to existing food products, for example, is one way to enter this market. Or partner with a manufacturer in a Latin American country to distribute its products here in the United States.

78. Boomers
Baby boomers-the 80 million Americans born between 1946 and 1964-have a lot on their minds these days. Their kids are going off to college. They're watching wrinkles and stubborn pounds pile on. They're worried about retirement after losing $8 trillion in the stock market. And their parents are passing away, leaving some boomers with inheritances to manage.

Their life changes can be your gain. Boomers comprise half of the $7 trillion in consumer spending every year, says Ken Gronbach, president of KGC Direct LLC, a Higganum, Connecticut, company that specializes in generational marketing. The key to capturing boomers will be helping them feel comfortable with themselves--because their worst fear is turning into their parents. Aging "is very painful for them," Gronbach says.

Boomers will spend whatever it takes to boost their confidence, feel more secure and recapture their youth. Opportunities abound in retirement and financial planning, spa and fitness, comfortable clothing, motor homes, luxury homes, low-maintenance pets and classic cars.

79. Seniors
For many seniors, the golden years represent a period of relaxation--a breath of fresh air after a lifetime of work and responsibility. For today's entrepreneurs, meanwhile, the golden years also mean a golden opportunity. Visible on the horizon is an unprecedented demand for senior care and other senior services. During the next 30 years, the number of people 65 and older is expected to double, and the number of people over age 85 will triple, according to James Firman, president and CEO of The National Council on the Aging. "There will be a huge expansion in the need for services to help people stay at home or in whatever facilities they're in," he says. The senior-care industry will "definitely be a major growth industry."

According to Steve Barlam, president of the National Association of Professional Geriatric Care Managers, 60 percent of those seeking a care manager's services are managing their parents' care from a distance, while the remainder live nearby but don't have time to handle all the arrangements. In other cases, there's a conflict between family members, and an objective third party is needed. This translates into a growing need for products and services to help this "sandwich generation." These can range from providing senior day-care centers to in-home care services, companionship and even in-home beauty services.

80. Women
Marketers of any product or service can adopt a service philosophy that delivers the product design elements and customer service that women want. Once you translate these expectations to your market niche, you'll win the hearts and pocketbooks of women.

Women's earning power is escalating: They comprise over half of all college students and about 38 percent of small-business owners, according to 2002 figures from the Bureau of Labor Statistics. A February 2002 study by Prudential Financial found that, of the 400 American women surveyed, 37 percent live in households with incomes of $50,000 to $100,000, and 12 percent live in households with more than $100,000 in annual income. Nearly half of adult women are solely responsible for saving money for their households.

So what can you do to make sure you attract women to your business? Try these tips:

·        Get the little stuff right, and the big stuff will take care of itself. Women develop a collage of impressions about a business from a hundred small factors. Everything from its cleanliness to the design of the shopping bag gets a woman's attention. Smart business owners turn this to their advantage by investing in small amenities women can appreciate.

·        Women have so many work and family responsibilities, they don't have time to research and ponder every buying decision. Offering carefully selected choices will have women choosing your business over an overwhelming A-to-Z plethora.

·        Whether buying for themselves or for the businesses they own or manage, women make final purchasing decisions based on their relationship with the seller, not on statistics and quantitative data. Given a choice between two nearly identical products, women are likely to decide based on customer service and the ongoing relationship with the vendor.

Work/Life Balance

81. Chill Out
Unfortunately, building a business doesn't come easy. There are tough choices to make, a million things to do, and stress, stress, stress. Before you pull your hair out, take a deep breath and try these tips for reducing your stress:

·        Create a master list of goals. Break your larger goals into realistic short-term goals, and break short-term goals into realistic steps you can take immediately.

·        Remember, happiness is your end game. Instead of stopping when you become frustrated, simply decide on the best action you can take, and take it.

·        Evaluate and learn from your actions. At the end of the day, congratulate yourself for what you've accomplished, and let go of what you have not.

·        Realize you don't have to do this alone. As you grow your business, many tasks become routine and can be accomplished by someone else. Develop a list of these tasks, and delegate them so you can concentrate more on growing your business.

82. Get Out of Town
Everyone needs a break, even entrepreneurs. But if you're just not comfortable leaving your business in someone else's hands for a few weeks while you sip cocktails on the beach, take baby steps. How about a mini-break? For some business owners, it's easier to get away if they think of their trip as a long weekend rather than a full-fledged holiday.

If you do manage to get away, it might still be difficult to leave it all behind. On vacation, set clear limits on how long you'll work-if at all. Remember, you need to get away from the office, not bring the office with you. So schedule your vacation time, delegate what you can and just go.

Here are some easy ways to make your vacation dreams into a relaxing reality:

·        Vacation during the slowest time of the year.

·        Take three-day weekends as mini-vacations.

·        Discover new, fun activities close to home.

·        Turn off that cell phone and leave the laptop behind.

·        If you must work, limit it to just one hour a day.

·        Throw caution to the wind. Just go!

83. On the Home Front
For homebased entrepreneurs, making the distinction between home life and work life is the most difficult because work takes place in the home. To maintain the stability of your home life, and, possibly, your sanity, follow these seven tips to keep your office from completely invading your home.

·        Clearly differentiate your workspace from the rest of the house.

·        Set definite work hours.

·        Have a signal that makes it clear when you don't want to be disturbed.

·        Learn how to say, "No, I'm working now," and stick to it.

·        Use a separate business phone line.

·        Soundproof your office.

·        Have a separate outside office entrance.

84. Watch the Clock
There are never enough hours in the day. While you can't slow down time or make the day longer, you can make the most out of the 24 hours you do have. Use these five steps to take the crunch time out of your workday:

·        Plan tomorrow today. At the end of each workday, take a blank sheet of paper and write down everything you must accomplish tomorrow in the order the tasks should be done. The next day, you won't have to decide what to do first, and crossing off the things you accomplish will give you great satisfaction.

·        Learn to prioritize. All your daily activities can be broken down into three categories. The first, the "A" list, represents prospecting for new business. Next is the "B" list-growing and expanding current business. This includes activities that build on existing relationships and generate more business from current clients. Lastly, there's the "C" list, nonselling activities that include writing reports, proposals, follow-up letters and thank-you notes.

·        Don't waste travel time. One of the most valuable time-management tools is the tape recorder. When driving, speak into a recorder, dictating notes and reminders of things you have to do. The next best travel tool is your cell phone, which you can use to make or return calls when riding to a destination.

·        Don't put off 'til tomorrow . . . One time-management expert's favorite tip involves eliminating procrastination. To get his staff ready to go first thing each morning, he suggests they spend 20 minutes on the ride to work listening to motivational tapes and then get started making calls as soon as they get to their desks.