Last month, I recounted the lessons learned in the interview with Constant Contact and Shark Tank’s Kevin O’Leary. Here I continue with the balance of his best tips for the challenges small business owners face today. He focused on how business owners and entrepreneurs can navigate the downturn and prepare for America 2.0 —to thrive in the new normal.
According to O’Leary, the last 6 months have been brutal for small business owners, but he reminded us that the entrepreneurs of 2008 (the midst of the Great Recession) now represent 68 percent of the economy. Small businesses can thrive in a downturn. He feels that the companies that embraced change and particularly digital marketing, were able to deliver exactly where people are buying—on the internet. Here are more of his tips for entrepreneurs. If you missed my first 12 tips from that interview, you can find them here!
13) When looking to acquire a company, look for a company that has bad customer service but a good product. Acquire it and improve customer service, which is something you can always improve on. Once you have improved customer service, add reviews and consider increasing the price to 15% more. It has been a win for me.
14) When running a local campaign, set up a 60 mile radius and then test your digital ads and provide 800# tracking phone numbers. Then once you have perfected your digital campaigns and proved the ROI, expand out another 60 miles before moving to another state or area.
15) Viral videos rarely happen but promoted ones perform really well. Choose your target market and identify what platform or news groups they use, then promote your videos there. Get professional help if you need it.
16) When it comes to finding a good partner, look for a person or company that will offset your weaknesses. Look for people who have skills you do not possess. You do not have to like each other, you just have to complement each other’s skills. He says he will give up half equity to find that special partner.
17) Do not hire family and friends. Instead, base your hires on exceptional skills. Consider looking for hires who are willing to prove themselves first and are confident they will earn your respect before raising their salary.
18) Start selling outside your family and friends. Get out and sell to people who don’t know you and then then be quiet and listen to your customer regarding price, product and terms.
19) Wicked Good Cupcakes (a royalty deal of his) learned what customers wanted (from packaging to sugar content) by having a direct relationship with their customers (owned their own mailing list) and by listening to their customers’ ideas on how to improve and grow the company.
20) When asked when to take outside money, he said to consider equity crowd funding where you can sell shares to your customers but retain your ownership.
21) During a downturn, service your immediate regional customers and strategize how to keep your customers loyal. Create service videos and reinforce your brand and what they can expect of you today. Then add more loyal customers like them using your email and videos and digital media. Make sure past customers and their friends see your videos. Wait out the downturn to expand your overhead—survival is the key today!
22) When to stay or get out of small biz? He believes the magic number is 36 months. If your business is not consistently profitable after that—give it up. The best entrepreneurs are ones that fail and move on to a better business model or concept.
23) LinkedIn is a great source for finding the right employees for your business. It has become very smart about taking your employee requirements and delivering potential employees that meet those requirements and then deliver even more.
24) Consider getting an apprentice short-term who you can road test for the first six months using an attractive contract built for your success and theirs. For interns who boast their skills, we suggest they work with us for a 90-day trial period so they can prove it. Our internships work out well.
25) Before you buy or lease a building, remember office vacancy rates in the US have increased from 12-15% recently. It will likely not go back for some time. Consider if you need the space and minimize your commitment until the market turns back up.
26) Being an entrepreneur is a gut-wrenching, challenging, full-time job. If you are thinking of quitting your six-figure job, first assess your risks and realize that it’s a lifestyle change! Only one-third of people who want to be entrepreneurs are really cut out for it. And that does not mean they are successful. Nobody gets rich overnight or has the freedom to do what they want. Owning your own business takes a lot of hard, grueling work.
27) Selling your story on video should be a 15-second video showing the benefits of your product (with or without audio) and the rest of the video should be testimonials. Then test the video, the price, the imagery and the target market to see what works best.
Join my next webinar to learn more about marketing your business in America 2.0. If you need help creating a better marketing plan, contact us or call Tailor-Made Advertising at 310-791-6300.
Liz Harsch is the owner of Tailor-Made Advertising in Torrance, CA. Her firm provides marketing, training and consulting to identify marketing and media alternatives for business owners. As an experienced Marketing Director, Media Planner and Trainer, Liz has counseled and trained small business owners for Constant Contact, SCORE, SBDC, SBA, Cities and MWD and County outreach partners, APICS plus many Chambers of Commerce for over 10 years. She can be reached at her Torrance, CA office at 310-791-6300 or by email at liz@adteamla.com. You can also see her upcoming training workshops calendar at http://bit.ly/workshopscal .
