Archive for the ‘The state of SMB’ Category

How to manage your staff in a rough economy.

It’s no surprise that in tough economic times, many businesses’ knee-jerk reaction is to lay off workers. Salaries and benefits are a huge part of any enterprise’s bottom line so in many ways, it makes sense.

Unfortunately, job cuts bring with them other costs: severance pay, administration costs and legal fees, not to mention the knowledge and skills costs a company loses when employees are terminated. And there’s another set of factors even more difficult to measure:

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“In the face of layoffs, remaining staff often experience lower morale and productivity, higher levels of absenteeism and job-related stress and a loss of faith in the business. Your best employees may start seeking other opportunities. And, when business does improve, the costs of finding and training new employees are very high.”

Canada Business Services for Entrepreneurs makes these three practical suggestions:

1. Think long-term: Recruiting new employees is expensive and can damage relationships with customers, so try to avoid layoffs if you can. Instead, reduce employee costs through work reorganization, multi-tasking and learning new skills.

2. Recognize and reward: Acknowledge employee contributions one-on-one and in staff meetings. Offer incentives tied to your business reaching its goals. Give low-cost perks like days off or access to a coveted parking spot.

3. Keep it positive: Despair and negativity can spread like wildfire. Give your staff continual feedback. Offer flexible scheduling, job sharing and reduced workweeks. Have a strategy to deal with stress and conflict.

If you do have to cut staff, Whole Foods founder John Mackey suggests you use the ‘pull the Band-Aid off quickly’ philosophy:

“It’s important to make the cuts deep enough so you won’t have to do it again soon. Your employees will forgive you one round of layoffs. But if you do it a second time, you will lose their trust as people start thinking, My God, when am I going to lose my job?”

That’s just one of the 8 useful tips Inc.com offers here.


What has worked for you?
Share your experiences below!

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Posted by Lynnette in The state of SMB on July 27th, 2010

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Of horoscopes, weather forecasts… and taco trucks

Let’s face it: if we were better at predicting the future, more of us would be a lot richer. Not wiser, maybe, but definitely richer.

And while I sometimes wonder about the value of forecasting, I still can’t help watching weather reports and checking my horoscope. This week “my daily routine will be injected with a dose of inspiration,” in case you were wondering.)

Which brings me back to how Canadian small business owners and executives say they’re feeling about the future. According to STAPLES Canada’s latest Small Business National Quarterly Index 71% predict their business situation will improve in the next 6 months – up from 58% in March. 

So what really is in store for small businesses in the short term? Here’s one mind-blowing paradigm-shifting prediction that should give us all pause for thought – or inspiration: 90% of your sales will come from word of mouth or digital promotion by 2011.

Here’s one of my own:

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Earlier this year, the roving Kogi Korean taco truck made news by broadcasting its whereabouts – and marketing itself to adoring LA foodies – almost entirely on Twitter. I bet some creative Canadian entrepreneur will harness the power of free social media just as effectively – unless of course, one already has…

What are your predictions for 6 months out? Let me know and I’ll post some of your most interesting comments in an upcoming post.

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Posted by Lynnette in The state of SMB on November 18th, 2009

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To the goal-setters go the spoils

One set of numbers from STAPLES Canada’s latest Small Business National Quarterly Index is particularly intriguing (at least to me): the results on challenges facing small businesses. Why? Because in spite of the newfound optimism evident throughout the rest of the survey, these figures haven’t budged much at all.

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When you think about it, though, the consistency in responses makes sense. Because, whether or not we’re in a recession, entrepreneurs are always trying to find new clients, generate leads, reduce costs, manage cash flow and hire qualified new employees. They’re all simply goals of any living, breathing business.

As the recession winds down, there are a couple of other challenges you may want to consider too – goals that may not be top of mind but are, in many ways, just as important: 

  • Take stock. Review and adjust your product lines and customer bases to prepare for the shifting competitive landscape.
  • Go digital already. Diversify your customer base by leveraging the internet and electronic media for purchasing, marketing and selling your products.
  • Experiment. Do your homework and don’t be afraid to “forego the familiar and embrace the risks that can lead to higher rewards.”

Which reminds me of some goal-related words of wisdom from the inimitable Seth Godin:  

“The thing about goals is that living without them is a lot more fun, in the short run. It seems to me, though, that the people who get things done, who lead, who grow and who make an impact… those people have goals.”

What challenges do you see for your business? What goals are you setting to meet them? 

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Posted by Lynnette in The state of SMB on November 17th, 2009

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You survived the Great Recession of ‘09

Now what?

“What doesn’t kill you makes you stronger,” my grandfather used to say. (Note to self: OMG, I’ve started quoting my grandfather.)

He was right, of course.

According to economist Sherry Cooper, small businesses are benefiting from newfound confidence as they learn lessons from the downturn and focus on the future. They’re more prudent and conservative, but also more self-reliant, understanding the temptation of venture capital or building too fast can often be too good to be true. Small businesses left standing after the Great Recession have learned how to cut costs, increase productivity and focus on strategic growth opportunities – not just because it was good business, but because they had no choice.

Welcome to the rest of your business life.

So you’ve survived. You’re wiser than before. But probably pretty strapped for cash too. (Gramps didn’t have a clever saying for this part.) So what sorts of smart, inexpensive opportunities can you start taking advantage of while times are still a bit lean? Joanna L. Krotz and Elizabeth Walker at Microsoft Canada have tons of great marketing ideas to consider.  Here are a few:

Make every customer feel special. Always add something to the purchase, whether it’s a hand-written note to a consumer or a recommendation on the latest greatest business book to a business customer.

  1. Create business cards that prospects keep. How about a good-looking notepad with your contact info and tagline on every page? Or a free or low-cost trial offer on the back, real estate that’s valuable and often wasted.
  2. Combine business with pleasure – and charity. Spearhead an event, party or conference for a cause you care about. That puts you in the position of getting to know lots of people and shows off your small business leadership skills.
  3. Quickly stand out by occasionally sending personal … letters to customers and prospects too. Just make sure the letter delivers something customers want to read.

 Got survival stories of your own? Discovering new opportunities in this post-recession economy?

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Posted by Lynnette in The state of SMB on November 16th, 2009

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Canadian small businesses catch their breath

For roller coaster lovers out there, you’ll know this to be true: after all the dread and screaming and arm-flailing, there’s that brief shining moment near the bottom when the brakes come on, the car slows down, everyone around (including you) falls silent and you exhale. You know you’ve survived.

But while you can count me in to get back in line at the amusement park, there’s nothing fun about what happened to businesses this year and last. Is there anyone out there who wants to go back on that ride?

We spoke with over 650 owners, employees and executives of small business to compile our most recent  STAPLES Canada Small Business National Quarterly Index. And nearly half told us they feel current economic conditions are good or very good – up from 31% in March. In other words, entrepreneurs across the country collectively just exhaled.

 In fact, as 2009 comes to a close, Canadian small business owners are more optimistic than they’ve been all year. And results from the survey, conducted by the friendly number-crunching folks at Angus Reid Strategies, seem to confirm reports that our economy is growing again – thanks in large part to small businesses.

It turns out, they not only suffered less damage than any other recession in 65 years. Small biz outperformed big biz – big time. Cold comfort if you’re one of the many who’ve been hit hard – half of Canada’s small businesses say they’re still cutting costs to cope with recession pressures – but pretty good news for 2010. Phew.

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Posted by Lynnette in The state of SMB on November 13th, 2009

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