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Posts Tagged ‘Small Business’

Style V. Substance: Which Matters More?

Saturday, July 31st, 2010

Remember back in high school, when the guys with the coolest cars got the dates (at least that’s how I justify my lack of dates back then)?  Then you flash forward 15 years later, and those “cool car” guys haven’t moved out of their parents’ basements (and still drive the same cars that they did in high school).  While the guys who had nothing better to do than study (as they weren’t going out on dates) now have good jobs.  It plays out with regularity with every generation — style wins the battle, but substance wins the war.

While substance is the valued trait at work and in our personal lives (or at least it should be), it seems with buying decisions we lose all grip on reality and defer to the “better looking” product or service.  Why am I going with this and why does it matter?  This shallowness really impacts small business and could be a security threat for online shoppers.

For small businesses that want to have an online presence, but can’t afford a top-line web designer, the choice is often to go with a standard design template.  So if you’re selling the same product, but your site doesn’t have the same pizazz as a competitor’s, and all other things are equal (like pricing and product), we as buyers will go with the “cooler” site. 

Why?  Because it conveys legitimacy.  If someone spends a lot on a site, they must have a lot of money because the site is successful, and therefore safe. 

And here is where the security threat comes in.  Just because a site looks better, doesn’t mean it’s safe.  In fact, those same “cool guys” from high school (that are living in their parents’ basements) have plenty of time to dedicate creating fraudulent/less trustworthy sites than a successful offline business person.  So once again, we go with what looks better, and don’t take the time on the businesses with substance. 

What’s the solution?  Well, this is KikScore.com’s blog, so you probably have a guess what I think is the answer.  But I’m open to other suggestions.

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Kebabs, $18 Wine & Customer Service – A Small Business Story of Feeding on the New Competition

Tuesday, July 27th, 2010

This is a story about one of my my family’s favorite neighborhood restaurants and what they have done to respond when the competition has literally moved right next door.  My wife and I love middle eastern food. I could easily live on a meal plan of  hummus, lamb kabobs, donner platters and falafel for lunch and dinner…..yes, call me crazy but I really like good middle eastern food.  So one of our favorite restaurants is called Pasha Bistro and is literally right down the street from our house (and one of KikScore’s offices!).  So my wife and I either make the trek over there or order out from Pasha Bistro almost once a week.  And we are not the only ones.  We have close friends in the neighborhood who also love Pasha Bistro too.  So much so, that on a recent night out at a spring bbq, a number of the attendees spent way too much time talking about what were our favorite menu items and even discussing a comparison on Pasha’s fantastic and extra garlicy hummus versus other more watered down hummus from lesser take out places (Mike, yes, that includes Lebanese Taverna the place he drags us all each time he is in DC- by the way for anyone with real taste buds and not from Fargo, Pasha is so much better than that Taverna!).  Bottom line, if you are in DC and especially in Dupont Circle, check Pasha Bistro out you will not regret it.

So what’s the point to this story?  Well the big talk in the neighborhood this summer in DC has been, Did you see who moved right next door to Pasha Bistro? Well that formerly empty location next door to Pasha Bistro was only known to me as the nasty bar where I had to watch the Red Sox complete their inevitable come back from a 3-1 series deficit in 2007 and beat my Cleveland Indians to advance to the World Series. It is now a brand new Mediterranean restaurant called Agora.  Take that Pasha Bistro the owners of Agora must have thought when they opened up in newly renovated digs, right next door.  The two restaurants are so close that a diner eating on the patio at Pasha can literally reach over a small patio fence that separates the two restaurant’s respective patios and swipe his bread in the hummus dish of a customer at Agora.

So when you were the only Middle Eastern restaurant on the block (17th Street) for years and build up a large and loyal following, what did Pasha Bistro do in response to Agora’s arrival right next door?  Well all of us small businesses and startups can take a lesson from what Pasha Bistro did to fight back against Agora over the last few months since its opening:

1) Beat them with customer service – So Pasha Bistro typically has good customer service when we eat there or order take out from the restaurant.  But when we visited Pasha after the “new neighbor” arrived, the service was amazing.  Every little item related to our dining experience seemed like it was focused on by the wait staff at Pasha.  They greeted us even more warmly then ever, they fawned over us before, during and after dinner and they truly looked after us.  The Pasha Bistro staff clearly went the extra mile and made that dinner out even more enjoyable that on previous occasions by being just so amazingly customer focused.

2) Emphasize your strengths – So when the competition moved in, it was almost like Pasha said lets ignore those Turkish invaders on 17th Street.  Pasha did not get distracted by trying to introduce new food dishes and entrees to compete.  Instead, Pasha cooked the same food the same way and the dishes remained first rate, the customer service (which was already a highlight) only got better and Pasha focused on one main ingredient, keeping their customers happy.  These were (and are) Pasha’s strengths and what the ownership did was played to those strengths every day at dinner when new and returning customers came to dine.

3)  Focused on your target market – The invading restaurant clearly was pushing more of an “upscale” dining experience that even included a chef standing outside decked out in a head to toe white chefs outfit with that funny hat. It would have been easy for Pasha to abandon their target market and try to go after the more “upscale” diners.  Instead, Pasha remained loyal to serving their target market of casual middle eastern dining.  There was no white table cloths or stuffy waiters – Pasha just said keep it casual and keep it good – real good.

4) Create unique offerings that keep your loyal customers happy – Following up on the last point, Pasha actually said from a strategic perspective what can we do to further solidify our customer base?  Pasha created a great, every day special that appeals to all diners (that especially like to have a drink with dinner!) and that is an $18 special for any bottle of wine, any day of the week including weekends.  And no, Pasha did not fill their wine list with Boone’s Farm or Mad Dog and try to sell that for $18.  They largely kept their same wine list with good wines and applied this great discounted offering for any dinner.  With this new deal, they got my wife and I hooked and a bunch of my other friends in the neighborhood too.  The $18 a bottle wine offer was a great competitive response by Pasha Cafe to Agora that allowed Pasha to lock in their customers and give us something new to keep bringing us all back.

5) Do not freak out when the competition moves in – From all of this, the one thing is clear and admirable: Pasha Bistro did not freak out when Agora moved in next door. They could have and in many instances you hear of small businesses and startups that freak out when they get a little competition.  The learning from here from Pasha’s experience is they took a deep breathe and said lets go on the offensive, but lets also be smart, targeted and tactical about going on the offensive against Agora.  That is the key here, Pasha mounted a competitive response to the new entry and now Pasha just needs to sit back and keep executing on their response to Agora.

What do you think about Pasha Bistro’s response to Agora?  Please tell us your stories of responding to a competitor moving next door.

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Unless You’re in Minnesota, Trust is Important

Friday, July 16th, 2010

Minnesota is many things.  The birthplace of Bob Dylan, Prince, and Kevin McHale.  Home of the Vikings (and Brett Farve).  It is also my home state and I just returned from a 10 day visit home.  Why 10 days?  Because when you have one vacation each year you want it to last as long as possible.  And nothing seems longer than 10 days in Minnesota.

Now to my point.  When visiting the Land of 10,000 lakes, it’s striking at how accommodating and polite everyone is (whether they actually are sincere is another question and not something that really matters).  But tied into that is how trusting everyone is.  Repeatedly I noticed people leaving their computers at the Starbucks table and my parents don’t lock their doors when they are gone all day.  Trustworthiness (or at least the absence of mal-intent) seems to be part of their DNA.

This seems to extend to e-commerce.  I was quietly watching my mother shopping online.  She was looking for some odd knitting equipment (did I mention there is nothing to do in Northern Minnesota?) and she had no hesitation visiting unknown sites.  After I explained the dangers of blindly visiting sites without any security software (and this may be the reason why her computer runs slowly) she seemed shocked that anyone would be less than honest.

As with all things related to Minnesota, the awareness of online danger will spread – probably in about 3 more years.  To give you an idea of the information delay, Minnesota still seems to be getting over the grunge look (I had to tell a few folks that Soul Asylum wasn’t a “with it” band anymore).  So, unless your target market is selling deer tick spray online, promoting trust on your site should remain a top priority.

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Top 5 Android Applications for Small Businesses

Wednesday, July 14th, 2010

 

I have had the Sprint HTC EVO 4G for a little over a month now and recommend the 5 Android operating system applications below for small businesses to use on any Android phone.

Exchange by Touchdown- This application integrates with the desktop version of Microsoft Exchange and automatically syncs your email, calendar, contacts, and tasks wirelessly with minimal setup. I really like this application because it cleanly separates my work and personal email and is works just like I am sitting at my work computer.  This is actually the only application on this list that isn’t free and does cost $20 per license after a 30-day free trial.

Jorte- This is a calendar and “to do” list application that I think works much better than the calendar tool that came with my Android phone.  This application seamlessly integrates with multiple Google calendars and also gives you over 10 different widgets to add to your homepage in order to better access your events and tasks.

Google Voice- Google created the Android operating system so it would make sense that they have some of the best applications for the platform and the Google Voice app is no exception.  This application essentially replaces your default carrier-provided voicemail while adding a bunch of great features.  You can create custom voicemail messages for any of your contacts, get voicemail messages transcribed and texted and/or emailed to you, visual voicemail, and also can be used to place extremely cheap international calls all over the world.

BuzzBox- This application can be configured to provide any RSS feed directly to your phone and comes pre-loaded with hundreds of the most popular feeds for you to choose from in many different categories.  This application also comes with a handy widget for automatic updates and quick viewing.

Fring – This application integrates with Skype (and many other IM/chat applications) to bring video conferencing to your mobile phone for free.  I actually prefer this application to the included (and highly promoted) Qik application on the HTC EVO because it is easier to use and has less latency.  I would recommend using the video chat feature while connected to 4g or wi-fi but it works great and automatically imports your existing Skype contacts for easy calling.

What is your favorite Android application and how much more do you like Android over the iPhone 4?

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Contractor Choices — How Can they build trust online?

Wednesday, July 7th, 2010

Summer sun brings external home improvements.  Usually, these are self-driven so you as a homeowner, can plan, schedule accordingly and select a contractor that suits your needs.  Unless, of course, you live in an HOA driven community that forces such improvements upon you.  Welcome to my world… There is a team of painters going from block to block (I live in an urban rowhome community) painting the exterior of our homes.  The process started with a power wash, then caulking, then they are now covering windows with tarps and then finally painting.  In watching the row across from us, the entire process is very lengthy.

The thing is, I had no option to ‘vote’ on which painting company was selected.  So how do I know I can trust these guys?  I just have to deal with the process set forth and hope for the best.  Now I trust my HOA to an extent, so I can feel somewhat comfortable that the end result will be Ok.

But, an online survey of all homeowners would have been a more ideal approach.  Each homeowner could have reviewed the list and looked at the painting company websites to cast a vote.  Different painting company websites may have had specific trust seals that could have swayed homeowner decisions.  The HOA could then have made a decision based upon feedback and cost and worked from homeowner recommendations.  We are a tight community, and value each others opinions.  But alas, we were not given this opportunity.  Not only would this have been a great exercise for my community, but also would have helped to build trust online for the given painting companies that offered up a bid.

If the company doing the work right now does a stellar job, I may go and post some comments on their website in support of them – so they may benefit positively… or negatively if they do a poor job.  How have you helped a contracting or service provider build trust online?

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Pricing in Trust: Baseball Tix and Lessons to be Applied

Tuesday, July 6th, 2010

This week I’m spending time back home in the lovely state of Minnesota.  In addition to spending time at my parents’ lake place, I had the opportunity to visit the Minnesota Twins new baseball park.  Because it is the first year in existence, tickets are hard to come by.  In such situations, you ask yourself a question.  Do I go to StubHub.com or do I buy from a scalper on the street.

Now the benefits from buying from a scalper is that you can be spontaneous, negotiate a bit, and also avoid paying any “service” fees tacked on by StubHub.  So, with these advantages, why did i go with StubHub?  One simply reason: trust. 

A few years back, i thought i scored some great seats, only to learn that my tickets were fake.  So from that point on, I’ve been pretty wary of scalpers — opting for the certainty of getting legit tickets (and paying more for that certainty).  It seems that the same could be said for other businesses.  Competing solely on price is a war of attrition.  But if your service or site provides additional safety or features surrounding trust (or giving greater security that the shopper will get what he thinks he’s paying for), you can command a premium for identical goods. 

I’m sue there were other business lessons to be drawn from my baseball experience, but after 4 beers, this was the most obvious one for me to conclude.

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Bad Calls at the World Cup: Any Business Lessons From This Pain?

Tuesday, June 29th, 2010

My KikScore partner, Travis, challenged me to find any good that has come from all of the terrible calls made during the World Cup.  Not one to turn down a decent challenge (sorry Raj, but that White Snake challenge was weak at best), I am presenting the business lessons from the referring debacle that is the World Cup:

1.  Any Press is Good Press:  Let’s face it, all the terrible calls (and the video replays of the terrible calls) prove the point that there really is little difference from being famous versus infamous.  Either way the event is well known.  For the first time since 3rd grade, I’ve been paying attention to soccer — and so have a lot of other non-soccer fans.  People unfamiliar with the sport are now watching the games, learning the rules, just so they can talk about the bad calls.  The business lesson here is obvious.  Getting the word out trumps pretty much everything else.

2.  The Best Team Doesn’t Always Win:  England should have trounced the U.S.  The U.S. should have beaten Algeria.  But that’s why you play the games.  And sometimes the best team doesn’t win.  Same goes for products and businesses.  Sometimes the best service becomes a niche player.  And sometimes a third party (a referee, a very litigious individual, or a government) intervenes and makes the decision for the marketplace.  Just like soccer matches, your product has to survive in the real world, which isn’t a completely efficient marketplace of ideas. 

3.  Anger enough people, and The Rules Will Change:  The flip side of my first point is that if the current rules set in place promote incompetence and anger enough people, tradition will be sacrificed and the rules will change in an attempt to prevent a recurrence of the same issue.  So there is no instant replay for FIFA games.  With all the anger about the blown calls, there is now serious talk about creating instant replays.  Same goes for business.  If you creat enough ill-will, the rules will change for your business.  Just ask Goldman Sachs.

Feel free to share any other business lessons learned from this outbreak of bad calls.

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Is a Start Up the Same as Gambling? I Hope Not

Thursday, June 24th, 2010

This week I’m in the city of New Orleans for a conference.  I’ve never been before and it has been eye-opening.  As with anything, there are pluses and minuses.  The minuses — the weather and 3 inch long cockroaches.  In fact I just left a fancy dinner, barely eating my food because one NO’s finest cockroaches scurried across my table. 

The upside to N.O.?  First, if I lived here, I would lose a lot of weight — as I don’t eat sea food.  The second: they have a great casino dowtown.  Last night I played blackjack for 2 hours, and I was thinking about joining a poker game. 

You often hear that starting a new business is a gamble.  Well I certainly hope that’s not the case.  I get the point that starting a business involves risk, but risk doesn’t equate to risk for me (so long as it’s a calculate risk).  Last night, as I was playing cards, it seemed pretty clear that most of what was happening was pure chance — no strategy.  I mean, you could have a betting strategy, but if you followed it perfectly, it still gets you to a coin-flip chance of winning. 

I don’t envision the same type of discipline (or lack thereof) with starting a small business.  Sure, you still may go bust, but that doesn’t mean strategy was essentially pointless.  With a business, a good team and idea should get you a better than toss-up chance to succeed.  Whether you recognize if you have a good team or idea is another story.  By the way, I lost $100 last night…so I hope I’m a better business person than gambler.

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Don’t quit on me!

Wednesday, June 23rd, 2010

When starting a small business, everyone wears multiple hats and jumps in to assist where needed.  As your business grows, you work to hire people to fill specific roles so that:

1) the founders can focus on more strategic direction

2) to drive the business forward

3) effectively execute on key initiatives.

You proudly get your entire team staffed up and people are working hard in their roles and the business grows exponentially – everything is on the up and up, customers are fascinated with your product line and you have a backlog of requests to implement… and then, somebody quits.

So this perfect (well at least manageable) entourage you have created to implement your product roadmap now comes to a screeching halt, or at least imposes a very large mountain to navigate around. To keep business moving, you must revert back to wearing multiple hats, which in turn impacts growth and forces you to re-prioritize efforts, at least until you can back fill.

In larger companies, the back fill process can be lengthy and daunting.  What tends to happen is until the position is refilled, the tasks of the resigning employee are dumped on other employees… it becomes a juggling process to continue forward momentum.

While you cannot 100% prohibit turnover from happening, you can implement processes to ensure smooth transition in the event and also back fill (or redistribute effectively) so that you don’t end up pushing further resources out the door from overload.  People leave for a variety of reasons, but when building a team for a small business and growing your company, retention can be critical.  Then again, sometimes, that resignation is music to your ears

How do you motivate your team to stand by you? What transition plans do you have in place in the event of a mutiny?

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When Virtual and Real Worlds Collide

Tuesday, June 22nd, 2010

Last night the real and virtual worlds kep colliding.  How did it start?  With a happy hour.  Which is always a nice way for the evening to start.  My good friend from my old workplace was in town.  He was there for a conference and met with some of the attendees after the first day. 

Here comes the first collision.  I didn’t get a call from my friend that he was in town…instead he tweeted me the location.  My wife and I showed up. 

The second collision was that most of the happy hour attendees knew each other from social media.  When I was asked how I was connected to the happy hour, my answer of being a former co-worker of the organizer seemed so antiquated.

I’m having a very nice time at the happy hour — talking technology, KikScore, other businesses (like BumperTunes.com).  At the end, as I was leaving, I realized that I knew the Twitter handles of people instead of their actual names. 

As we decide to go to dinner after the happy hour, we of course jump on our available smartphones and make a reservation on OpenTable.  We go to dinner and my buddy proceeds to take pictures of the food and outline what his Yelp review i going to be of the establishment. 

At the end of the night, we said goodbye and then my friend thanked us on Facebook and Twitter.

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