Mary Schmidt Marketing Troubleshooter

“Small Business” “Mom & Pop” “Home town businesses” These folks generate almost all the jobs in the U.S. and pay most of the taxes (Big companies in many cases pay no taxes, and the percentage of those that do continues to decline.) And, yet, the “little people” often don’t get much respect. Why? I hate to say it, but they (I should say “we” since I’m a hired brain micro-biz) are sometimes our own worst enemy.

As I note frequently in this blog, small biz has many advantages over big - if we choose to see (and act) that way. So, here’s an “oops, there I go again” checklist for all of us. Note that these things happen in really big companies too - small is a state of mind.

You’re thinking (and looking) small if:

1. You “save money” by doing it all yourself.
You don’t hire professionals to help you with your business plan, financials and legal requirements. I mean, gee, there are all those templates on the Web, for everything from quick sure-fire business plans to press releases. Oh, and you can “simply” file a patent online these days!

The Oops Factor: You don’t know “what you don’t know.” This often means much more costly trouble down the road - often sooner rather than later. You could unknowingly infringe on a big company’s patent or trademark (and it’s got the money and attorneys to bury you). Your self-crafted business plan doesn’t interest investors (”What do you mean you want to know my go to market plan? I told you I’d ’seek third party channels!’ What are they? Ur, um…”) An employee sues you for discrimination and you’ve got absolutely no clue why. You forget to do a quarterly tax filing (or pay much more than you should).

I personally learned this lesson the very hard way. Several years ago, I didn’t ask an attorney to review a consulting contract. (I mean, I negotiate big kahuna contracts for a living, right? What’s so hard about this one?) I flat missed some crucial detail and lost out on literally millions. You can bet the first call I now make in a large deal is to an attorney that specializes in stock compensation and contractor relations. And, I don’t price shop.

2. You “protect” yourself from your customers.

The Oops Factor: If you’re posting signs telling people they’ll be towed or harsh warnings about your strict “no returns” policy, “Absolutely no refunds!” or shoplifting (gosh, must be a high-class joint) - you’re very likely losing more business than you’re gaining. Of course you’ll never know it, as most people won’t march into your store and tell you they’re not going to buy from you because your signage is offensive. (Maybe me if I’m feeling particularly cranky that day, but I’m not your average bear.)

This also applies to threats on invoices re interest charges. Nobody pays them anyway - especially big companies. If a customer is slow pay, call and see if you can work something out, personally. I’ve done this with several clients - most folks really want to do the right thing, if you give them a little room (and dignity) to do so.

(P.S. Invoices - even past due ones - can actually be great marketing opportunities.)

3. You write and print all your marketing materials.

The Oops Factor: Sure, you can do this if you’ve got the experience, knowledge, equipment, and time. But, all too often small businesses end up with the “made by loving hands at home” look. Those Microsoft templates? Nice idea, but…give a canned PowerPoint presentation or tri-fold brochure with that “handshake/partnership” clip art to a big kahuna prospect and you’re toast. Even if you make it to the negotiating table, you’re marked as amateur and easy game. (I know because I’ve been on the Mr. Big side of the table.)

This also applies to web sites and writing for the Web, but that’s fodder for a whole series of blog posts.

4. You “nickel and dime” people.

The Oops Factor: Of course, none of us want to just give away our products or services, but we also don’t want to look: a. Desperate; b. Tacky. Restocking fees. The aforementioned invoice interest charges. Charging so-called convenience fees for credit card charges or online payments. All can make you look both desperate and tacky - not a winning market combination.

Here’s a real-world example. There’s a local professional association that offers on-line registration and payment for events. Great! Doing this, you get a little edge on the bazillion other competing events, you get paid upfront, and you fill the room (maybe even SRO, which is terrific PR!) But, oops, sadly not in this case. When I click on the association’s link they tack on a “$2.34 convenience fee” Whose convenience? Mine or theirs? Wow, they’re so hard up, they need that additional 2 bucks and change (down to the penny? Oh dear.) So, I don’t sign up and I don’t go to the event. In addition to my adversion to tacky, it’s the principle. C’mon, folks. We all know that credit card companies and online payment processors charge fees. Simply factor it into the price to begin with or plan to make it up with walk-ins, on-site payments.

And then there are the local small businesses that I love. They truly go the extra mile so I drive extra miles (and sometimes pay extra) just to support them. So, it is very possible to be small without thinking small!

Tag: entrepreneur sanity check