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Going the distance in small business

Managing to go the long haul in small business may be one of the most difficult things to accomplish.  The number of small business start-ups that don’t make it past the first five years is astounding.

In the last few weeks, I have noted the retail and manufacturing locations of a small start-up for lease indicating they didn’t make it.  That’s unfortunate.

This particular start-up was like many others.  A guy had an idea.  He saw a niche that he didn’t think was being filled and he thought he could make it work.

Unfortunately, if the niche isn’t being filled, there’s a good chance that there is a reason for the void.  That’s not always the case, but it is an important one to consider.

I talked with this business entrepreneur many times.  He wanted to partner with us in a few areas, but we never found a way to make it work.  He had some creative approaches that could have worked.  One thing he attempted to do was to give customers a discount for allowing him to add his logo to everything he produced for them.  His idea was that getting exposure was important.  I don’t know all the details, but the exposure-for-discount tradeoff is one thing that couldn’t be sustained.

While getting exposure is critically important, controlling cost of goods may be even more critical.  And that is something small business owners frequently overlook.

If cost of goods is too high, there never will be cash flow to cover operating costs.

Making the long haul requires a consistent approach to marketing and exposure that must make sense for your particular business.  Screaming advertising can’t be maintained over the long haul.  And, discounts that undermine cost of goods ratios eventually erode the business model.

Going the distance requires consistent customer service and quality product.  It may not always provide the lowest price but will provide the best value.  Making small business sustainable is a lot more complicated than it appears.

Are you going hungry today?

I suspect that anyone reading this is not one of the one in six Americans going hungry today.  That’s why you need to read it.

CBS reported in a Sunday morning news feature that 49 million Americans are unsure of where their next meal is coming from—almost one in six Americans including 17 million kids.

Food banks are stepping up to address this need.  A network of food banks will deliver 3 billion pounds of food this year making them the largest grocery store chain in the country.  Those food banks deliver food to 63,000 agencies – community kitchens, kids’ cafes, churches and other organizations, according to the CBS story.

The idea for food banks began in 1967 with one man’s idea to collect excess food from supermarkets or famers where it was going to be thrown away.

The problem then and now is getting the donations from those who give freely to the people who need it.

Organizations like Feeding America and Second Harvest Food Bank are meeting a growing need to address the challenge of people going hungry in America.

I avoid getting political in my posts, but I’m going to get close here.  Rather than fretting over the expanding role of government, we must embrace food banks and other agencies that are making an impact.  Every place we pitch in and make a difference is one place the government doesn’t need to.  That gets us back to community – people helping people – rather than government creating a program.  Perhaps it is the way Thanksgiving really started out – neighbors joining together to help others in time of need and being thankful for it.

Who are you going to help today?

Forget what’s in your wallet; figure out what’s on your calendar

How important are the things that are filling up your calendar? Yesterday, I needed to check something on my August 2008 calendar. Several notes I found there sidetracked me. I was struck with how the importance of particular events changes with the perspective of time.

In August last year, I was meeting one morning every week with a great friend for prayer and Bible study. Now, he’s a Navy officer in Pearl Harbor, Hawaii. I didn’t see that coming. Last August, I had lunch with a friend two weeks before his untimely death. I didn’t see that coming. It seems that the least significant things on my calendar were those regular events – deacons meetings and such.

The important events on the calendar seem to be the relationship events – not the routinely scheduled events.

The questions are obvious. What are we doing today that will have a major impact on tomorrow? What are we doing today that we have no clue how important it will be later?

For me at least, it is time to slow down and focus more on the relationship factor. Next week, I’m taking my canoe out for a two-day river run with a friend before he heads off to graduate school. About three years ago, I ran this same river with a guy who later became my pastor and is now tearing up New York City for Christ. The time on the river was two days of non-stop theological discussion and challenging debate. I expect no less this time.

We may not know the importance of our calendar events, but God does. The challenge for me is to let God control my calendar. Dang, there goes one more thing that I don’t get to control.

Saving or wasting marketing dollars — Part 2

How do you know when a marketing piece is well designed?

Design is so subjective that it is difficult to know the right way to go.  We see some clients paralyzed by asking too many people for their opinion.  If you get too much input, how do you weight the differing opinions?

Good, quality design is clean and simple.  Good quality design reflects the personality of your organization.  Or, it may reflect the tone of the message you want to convey.  And, the approach of the design may depend on how you plan to use it – a billboard will be significantly different from a brochure.

No matter what your presentation, your design is subordinate to your message.  The design helps covey the message.  The design generally is not the message.  If your design overpowers the message, the design is not effective.

An experienced, professional designer is invaluable in putting your marketing materials together. Trust a professional designer to develop an approach that works for you.  It will be worth the cost.  And, with the right design, your marketing dollars are more effective.

With a proven design team, you should be able to present a concept of your marketing objectives and then let them show you what works.

Take time to look at some of the MediaWorks design samples in the portfolio at www.mediaworksdesign.com.  Talk to us about how we can make great impressions for you.

A failsafe investment plan

There are tons of scripture references about storing up treasures in heaven, giving to others and having freedom to serve others.  I’m specifically bouncing off of Galatians 5:13 where I read this morning.

Over the years, I have spent time investing in others and have been richly rewarded just by the friendships that have grown from the time spent with other men.  This is fresh to me now because of a meeting last week with a guy I have met with consistently over the past three years.  Last week was probably our last meeting as he is moving half way around the world.  That has played out so often with guys moving off.

When you start investing in someone, you never know where that investment will take you.  I can look back in just the last few years and name halve a dozen or so guys I have invested in and been richly blessed by them.  The investment has paid radical dividends.

The application is that spending time with other guys is a choice.  It is a decision on how to spend time available.  It has to be a conscious, deliberate choice.  Sometimes you will invest and think that nothing came from it.  You may never know what benefit there was.  Other times, you’ll realize the blessing.

At the end of the day, you can look back and say that you thank God for every remembrance of those you have invested in.   They will be a blessing to you.  Some day, those remembrances will be the stock you can trade on.

Any financial advisor will tell you, the best time to start investing is now.