Posts Tagged ‘small business’

Are Small Businesses Repeating I.T. History?

Friday, September 11th, 2009

George Santayana is credited with the quote, “Those who fail to learn the lessons of history are doomed to repeat them” (the original is quite different). After 20+ years working in Corporate America for Fortune 500 companies, it pains me greatly to walk into a small business and see that even the most basic of the lessons learned by the large companies have generally not been implemented in smaller businesses.  The IT environment and work processes remain undocumented. Many still don’t have an effective data backup scheme…definitely no business continuity plan.  I believe this is happening for three reasons:

Small requires less mentality. The term “small business” now suggests a home office or small office, something substantially less than the government definition of 500 or fewer employees. In some local economies, small businesses represent more than 50% of the area businesses.  Of those 75% or more have fewer than 10 employees, and most have only one or two employees. These businesses drive the economy and employ more than 50% of the workforce.  Service providers and business owners alike seem to think that small means less is required to manage and maintain them from an I.T. perspective.  In reality, these businesses require processes and protection that are as robust as those of the Fortune companies. How do you view your small enterprise?  Do you see it as a long-term, growing business concern?

Lack of awareness. Part of the problem stems from the plug-n-play simplicity with which most computers and applications integrate into daily operations. This often hides the complexity and criticality of the operations they support. Consequently, most small business owners are simply unaware of the risks I.T. poses to their business. What are your business critical processes? How dependent are these processes on I.T.? Can your business survive if the computers and network are not available?

Conscious decision. In some cases, no matter how important it might be to take action, the business owner simply does not have the financial wherewithal to implement a suggestion from the I.T. service provider. It might be less expensive to allow the business to close after a significant I.T. failure than it is to protect against the problem. That’s a decision you, the business owner, will have to make.  Are you armed with enough information to make an informed decision?

How do you view your business? Are you aware of the risks I.T. poses to your business? Have you done what you can to reduce or eliminate those risks?  This is the first post in a series.  I hope you will return as we explore the risks for startups and established businesses, possible solutions and then share your experiences.

Best wishes for your success!

Leslie

Leslie Knight is a small business consultant with over 20 years of experience in Information Technology management in Fortune 500 companies.  She applies her experience in Corporate America saving them millions to smaller entrepreneurial enterprises. She is also the author of Navigating the I.T. Minefield.

To download “When Disaster Strikes” from Navigating the I.T. Minefield: Straight Talk for the Small Enterprise, go to http://bit.ly/zAcdl.

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Brag on Your I.T. Service Provider

Thursday, September 10th, 2009

I see and hear about a lot of the I.T. horror stories from clients, friends and other consultants.

I would like to hear a few people brag on their I.T. service provider. What stories do you have to share about how they helped your business?

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Turn Every Client into a Referral Source

Wednesday, September 9th, 2009

Every once in a while, I find a good book that will help a small business owner and I’ll use my blog to share. I first read this book five years ago and it is still relevant today. I hope you find it useful. ≈ Leslie

In today’s economy, we are all looking for ways to increase business without increasing our expenses. Yet we all overlook the one free resource available to us: our clients. How would your business look if every client became a referral source? What would it take to turn every client into a referral source?

I highly recommend for your reading The New Art & Science of Referral Marketing. Scott Degraffenreid has a 100% success rate of increasing the referral business of his clients without incurring ongoing out-of-pocket expenses. In this book, Scott reveals why referrals work better than all of the traditional advertising media and then explains how to build your message to drive referrals.

So, what are those elements of a business that make it easy for someone to refer a product or service? It’s the N.U.D.E. model – Novelty, Utility, Dependability, Economy. While I won’t go into great detail about each one, suffice it to say that all four elements must be present and their perceptions managed to drive your business based on referrals. A N.U.D.E score of 315% can result in at least one referral from each of your customers. The good news is that if often doesn’t take much to reach 315%. At that level, the referrals alone can sustain a business. Who doesn’t want that?

Viral Referral Marketing in action: I have had the pleasure of listening to Scott teach and getting to know him over the years. I also know that most businesses struggle with marketing and generating referrals. So here we have an example of NUDE: Novelty…the NUDE method itself (even established businesses can develop a perception of novelty); Utility…knowing people who have a need; Dependability…Scott’s reputation as I perceive it. Economy…I fully expect a favorable return on my investment and effort. I probably know 100 new people that can benefit from Scott’s expertise within my Twitter following and elsewhere. Considering the people I know and they know, at the first two levels alone, 10,000 people will hear about Scott and his book in a very short period of time. That’s the power of Viral Referral Marketing and the N.U.D.E model.

Reader Comment: In The New Art & Science of Referral Marketing, Degraffenreid “quantifies the power of word of mouth and lays out the main characteristics of a word-of-mouth message needs in order to reach runaway levels. It shows how to change your product and message to something people will want to talk about. This is priceless. At $1000 it would be a bargain.” – George Silverman, author, “The Secrets of Word of Mouth Marketing”

To purchase a copy of The New Art & Science of Referral Marketing please visit http://bit.ly/JrWBq.

Best wishes for your success!

Leslie

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