Things are so bad here in Michigan, the state with the worst economy in the nation, that General Motors is talking about buying Chrysler – the Big Three become the Big Two.

So are these such terrible time economically? For some, yes. For others, and I’m not talking about the extremely wealthy, no. But that’s not how it’s being talked about. If you just pay attention to all the Henny Pennys writing for newspapers, magazine and the web and listen to their banter on TV and radio, our economic sky is falling.

Now I’m not going to say that the U.S. economy is all good and well. Truthfully, it hasn’t been for at least two, maybe three or four, decades. At least since the early 70’s we’ve been loaning out our future and falsely inflating our economy. Just look at how housing prices and the cost of goods has risen since 1980. All this goes to say that we are, collectively, in an economic crisis here in the U.S.

But does that mean you are facing an economic crisis? Is your business suffering in the same way that Lehman Brothers or Washington Mutual Bank have? I don’t think so. These institutions are part of the reason the economy is where it is. You, on the other hand, are the reason there’s some soundness in the economy.

You see, small businesses are the backbone of the U.S. economy now. Can we compete with Walmart, Ford or Pepsi – no. But we don’t need to either.

I have a number of close friends that work for large corporations. Most of them are scared they’ll loose their job because of the economic conditions. But the other side of the coin is that I have a large number friends who are self-employed or own small businesses who are doing quite well – and plan to continue that way.

The difference? When you work for a large corporation you’re at the whim of Board and Shareholder decisions. These companies need to make huge sums of money to meet their massive expenses – including your salary and benefits. Ultimately, you have almost no control over any part of that how the company chooses to use it’s resources.

It’s in economic times like these that the small business owner and those who are self-employed have an advantage. The first advantage is that your revenue needs and the size of your expenses are much, much smaller than large corporations. Second, and perhaps most importantly, you have the flexibility to change strategies to fit the economic times. And third, you have direct control over the decisions and direction of your company.

Being self-employed or running a small business gives you advantages just not possible for larger corporations. Hence, if you’re smart, you can actually grow your business in times like these. Here’s a few suggestions on how:

• Redefine and refine your niche market
  Even in great economic times, refining your niche can be the key to a lackluster business and an explosive one. Get clear on what problems you really solve for people with your products and services and make sure you’re offering them to the people who KNOW they want them.
• Position yourself correctly
  Positioning is simple – what does your market believe you do. You can have the best products and services in the world and have a niche all to yourself. But if you can’t clearly communicate to that niche what you can actually do for them, in ways they understand and want, then you’ll likely find yourself struggling.
• Spend less money and more time on marketing
  If you need to cut back on expenses, consider reducing your ad dollars. But only do this if you have a plan to replace what you’re spending in dollars with what you’ll be spending in time. For instance, word-of-mouth marketing is far more powerful than any ad, and can cost very little. Start with your current and past customers.
• Look for opportunities
  There are opportunities for business all around you. By opening your mind – along with your eyes and ears – to new possibilities, you can reach into new markets or segments of your niche in ways that can make your more successful. Remember, being small, you can often turn on a dime.
• Ask for referrals
  I mentioned above that word-of-mouth marketing is one of the most powerful forms of marketing you’ll ever use. So massage it along a bit by asking your most satisfied customer to refer you other people they know you can help. A good start is to ‘coach’ them a bit in how to share their story of working with you to the friends and colleagues they feel could benefit from working with you.
• Give something away for free
  I don’t mean give away your services, I mean create something of value – a report, a workbook, an audio series, etc – and pass it around. It’s a great way to find yourself in front of new people who your materials can help. And if you knock their socks off with what’s giving for free you’ll have them thinking, “If (s)he gives that much for free, what will I get when I’m paying them?”
• Get some help
  Sometimes the best money you’ll ever spend is contracting with someone who can help you make your business more solvent in times like these. Often a fresh perspective from someone who can help guide your ship can make all the difference between success and closing.

These are but a few ideas for growing your small business in tough economic times. Just remember, there are other folks out there that are doing just fine too. Some of them are looking for your solution to their problem. They just don’t know it yet. Help them learn it.

But please, don’t get lost in the media storm of fear. What they’re mostly talking about is corporations. Sure, it trickles down to all of us at some point. Yet it’s possible to come out ahead when times get tough. The biggest thing you need to do is tighten up the reigns a bit and focus on even greater clarity. And if you’re like most don’t expect to do it alone. Get help.

So tell me, how is the economy affecting your business? Is it hurting or helping – and why do you think it’s the case? More importantly, what do are you doing about it?

Let’s talk…

(note: image from brentbat on Flickr,  some rights reserved)

Certainly you can approach your business as though it’s a set of skills you learn and then implement. Yet I’ve found, for myself at least, that running my business like this has no life. You can create success and make tons of money, but what’s the end game?

For me, having my own business is about living life. I utilize my business to aid me in creating the lifestyle I want. My life is not, however, my business just as my business is not my life. What my business gets me is an opportunity to live the life that I – and my family – want. And for us, that’s the end game.

So I tend to approach business as being from part of my lifestyle. Which means I bring everything I know into my business. Certainly that includes marketing strategy, business development, and sales. Yet it also means I look at business with an eye toward spirituality, life purpose and philosophy.

Now I don’t see spirituality and philosophy as being something to push through business – as many are doing today. Their approach is to create spirituality in business – and that’s fine for them. It’s simply not how I approach my own business.

My approach is take the teachings, the lessons and the knowledge I’ve gained studying philosophy or practicing spirituality and live them inside my business. So words such as integrity or honesty have meaning to me in my business not because they seem like ways to gain an advantage over the competition or generate more sales. Rather, applying these concepts in my own inner life is the foundation in which my business is built. For me, it can be no other way.

So often, when I look to solve a business problem for myself or a client or I want to make some part of my business model better, I turn to philosophy and spiritual teachings. And just this past weekend I opened again, for the first time in years, Sun-Tzu’s The Art of War. And the first passage I read included:

Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.

Now, of course, Sun-Tzu’s writing about military strategy in The Art of War. But the book really presents a complete philosophy for managing conflicts and winning clear victories. For instance, Sun-Tzu writes, “Supreme excellence consists in breaking the enemy’s resistance without fighting.“

So consider the gem I rediscovered in considering strategy and tactics. What Sun-Tzu offers is so fundamental that there is no debate that can deem his words untrue.

If we go off and just implement our ideas without forethought or planning, we end up failing. Sure, we may gain some success in the short term, but in the long run we’ll either find out selves in a cul-de-sac or out of steam.

And if we spend so much time on planning and trying to forsee all the pitfalls and possible road bumps along the way, we may move forward, but the pace will be painfully slow. So slow that we could find ourselves questioning whether we belong doing our business or not.

There is a fine balance between planning and implementation. The two dance together in a healthy, sustainable business model. You want to be planning and visioning for the future, and at the same time you want to be implementing your plan so that your business can build some momentum and so you can learn what in your strategy works or not. Then, you will grow at a pace that’s sustainable.

How are you managing and balancing your strategies with your tactics? And what have you learned from it?

And perhaps as interesting…do you use the wisdom of those who came before us to help you gain perspectives in  your business? If so, how?

Let’s talk about it.

(note: image from jocuristrategice.ro/)

Yet what we seldom hear about are the business lessons that led to that success. Lessons that weren’t born from knowing exactly what to do and succeeding. But business lessons that were forged out of trying something and having it not go the way you want. Business lessons that come out of failure.

Failure provides an immense opportunity. Sure, success provides opportunity as well. But I’ll venture to guess that if you consider the most valuable lessons you’ve learned in your business, they come from things that didn’t work. Or at least didn’t work the way you expected.

The opportunities failure provides are much different than the opportunities found in success.

First off, when you’re successful it’s easy to get complacent. It’s easy to stop learning, to rest on your laurels, or to just try to repeat what made you successful over and over again. But when you fail, you’re forced to changed. You’re forced to evaluate and reevaluate why what you tried didn’t work. The lessons you take away from trying something and having it not work can be invaluable to your business.

Secondly, success provides stability – which can be great – while failure provides uncertainty, unease and hunger. Have your first major setback in your business and you’ll find out how much you really want to be in business. And that’s a good thing to know.

Lastly, failure is what leads to success. Before you can succeed, you have to try. And in the trying comes a likelihood of failing. But failure simply means you tried. Everyone’s heard the famous quote by Thomas Edison when he talked about all the failure that led up to inventing the incandescent lightbulb:

“I didn’t fail ten thousand times. I successfully eliminated, ten thousand times, materials and combinations which wouldn’t work.”

I don’t his outlook as some trite sound bite about how sexy failure is. Rather, I see the brilliance in setting a goal and working toward that goal, regardless of the odds. I see the perseverance it takes to be successful – as a parent or spouse, in life and in business. I see the hope that Thoreau expressed so well when he said:

“If one advances confidently in the direction of his dreams, and endeavors to live the life which he has imagined, he will meet with a success unexpected in common hours.”

The key here is ‘advances confidently in the direction of.’ That’s how to approach your business. That’s how to fail well. And that’s how to meet with ’success unexpected in common hours.’

What are your thoughts?

(note: image from eyesplash Mikul on Flickr,  some rights reserved)

Is your business feeling the crunch of a slow economy?

Last week a client of mine, Kim (name changed to protect the innocent) told me that her business had slowed almost 40% over the past 18 months. As we talked, she explained that she’s doing nothing different with her advertising and marketing – “what worked 18 months ago just isn’t working as well now,” she said.

The reason, Kim felt, is that people have less money to spend.

That certainly makes sense. All our living expenses are on the rise. Groceries cost more, utility bills have increased – in some places dramatically – and the price of a gallon of gas is through the roof. So it only makes sense that consumers have less to spend on what they may perceive as ‘non-essential’ services.

When I asked Kim what she was going to do about it she said, “Well, I’m going to have to cut back on my business expenses.”

“What’s the first place you’re considering cutting back,” I asked?

“My advertising and marketing is my biggest expense. I just don’t think I can continue to pay for print ads in local magazines. And I should probably look at how much I’m spending on Google Adwords. And maybe I need to look at sharing my office space with someone else.”

Interesting strategy I thought. Kim’s ideas were to cut the things that were costing her business the most money. Yet cutting her marketing budget would also affect her ability to reach new clients. She seemed stuck.

Trimming fat from your business is smart in lean times. But it can also send your business into a downward spiral which leads to going out of business. When revenues are low, you cut back on marketing – which brings less clients, which, in turn decreases revenue further leading to more cutbacks. You can see, a few cycles of this and you’ll be out of business.

What small business owners seldom think of in lean times is growth. But look at the example of big business and wealthy people. They’re often the most active when the economy is slow. Investors often buy in when times are lean. And they all make a killing in the long run.

The small business owner, if they want to stay in business, needs to take a similar approach. In lean times, sure, cut back on unnecessary expenses. Readjust your books so you can loosen up some cash. But even more importantly, get active. In other words – sell.

Seems like a simple solution, right? Times are tough…sell more. But seldom do small businesses in slight downturns think of this. Or if they think about it, they don’t actually follow through on it.

Yet the key to coming out of a difficult financial period -  be it your own business cycle or that of a slow economy – is to focus on growing your business. Utilize all the selling techniques you know about to stir your way out of stagnation.

Remember that marketing is most effective when you’re solving problems for your clients and customers. Refine your marketing to meet potential customers where they’re facing problems. It might be that you have a perfect solution for their needs.

So how is your business in this economy? Do you have a growth strategy for slow times – whether you face them now or not? What would it be?

Let’s talk about it.

(note: image from Pulpolux !!! on Flickr, some rights reserved)

The answer is always quite simple, really. So simple that it can be answered in one word – change.

Albert Einstein defined insanity as “doing the same thing over and over again and expecting different results.“

Yet how many of us can say that we’re not doing something insane with our business? How many of us keep trying the same things again and again hoping that somehow the results will be different than before?

Well, the only way to different results is to do things differently than before. If you want to grow your business, you have to introduce something new into it. You have to do something, even ever so slightly, different. In other words, you have to change.

My dear friend David Bullock gets this. Not only does he get it, he’s an expert at finding what you can change in your business to give you better results.

Below is a short video (1:20) of David talking about how to take your business to the next level. Here’s an excerpt:

“So if you’re in your business and it’s not working for you, guess what! You have to step back from it and look at it from a very different level to get it to work. If you don’t do that your business just kind of sits where it is.”

David continues: “Going to the next level really means you really have to do something differently, but not different. So you may have everything that you need right now to make your business do exactly what you want it to do. But it’s a matter of you packaging and repackaging what you already have; putting a different a different value on it for it to go to the next level.”

So if you look at your business, what changes, even little ones, can you make right now that will affect your bottom line? What can you do differently right now? And how would you see your results changing?

Let’s talk about it.

(note: image from red betty black on Flickr)

I’m guessing you can begin listing a dozen things right off the top of your head. I know I can – clear vision, business plan, marketing plan, metrics, proper positioning in a highly refined niche market, branding, marketing message, growth strategies, solid business structure, etc. The list just goes on and on.

But one thing is missing from my list – and maybe yours. Rocky Balboa knows what it is. It’s what made him successful as a boxer – and yes, I know he’s a fictional character. That one thing…perseverance – steadfastness in doing something despite difficulty or delay in achieving success.

In the movie Rocky Balboa (Rocky VI), he gives a speech to his son who’s struggling with finding his own identity and success in the world. I won’t bother setting up the scene because the movie isn’t the point. But what Rocky says to his son is a pretty remarkable way to look at business and life…(UPDATE 4/28 – VIDEO LINK FIXED)

…I don’t care how tough you are, It’ll (life) will beat you to your knees and keep you there permanently if you let it. You, me, nobody is gonna hit as hard as life. But it ain’t about how hard you hit, it’s about how hard you can get hit and keep moving forward, how much you can take and keep moving forward. That’s how winnin’ is done.

Now if you know what you’re worth, go out and get what you’re worth. But you gotta be willing to take the hits and not point fingers saying you ain’t where you want to be because him or her or anybody…

Okay, so it’s a little overdramatisized, but the message is solid.

When you’re building and growing a business there will be setbacks (hits) – plan on it. Know they’re coming. Because success doesn’t come in trying to avoid the hits. Success comes in being able to take the hits you can’t avoid and continue on. “That’s how winnin’ is done.”

What hits have you taken in your buiness and what have you done to overcome them? Or, if you’re stuck a bit, what have you tried to do that hasn’t kept you moving forward?

(note: image from MSN UK, Ask The Expert series)

But this friend of mine – whose name I’m not going to mention – hasn’t made much of her business. Well, I should say businesses.

You see over the past twelve years or so she’s had, maybe, eight businesses. All have focused on providing some array of services based on her varied background. Each one has taken a somewhat unique approach to helping people overcome various problems in their lives. And each one could have probably been quite successful.

But here she sits, more than a decade later, struggling to make ends meat. She keeps wondering how she’s not successful when she has all these great ideas of how to help people and make money doing it. Yet she never sticks long enough in one business concept to see it become successful for her.

Can you relate? Early on in my work, I could. I used to bounce from idea to idea thinking this was the next great one – the one that would build my empire and let me retire at thirty. But thirty came and went and I was still just meagerly successful in the work I did. And now, meeting the woman I would marry, I knew I’d have to be responsible for a family.

Then I decided to take a long look at where I’d been and why I wasn’t successful. Like my friend, I felt I was pretty intelligent, honest, kind and had a good mind for business. I also knew how to run a successful business – how to organize and structure my time, create a clear marketing message, and reach people who I could help.

What I was missing was the commitment to a single business. I liked being able to change what I did on the spur of the moment. And like my friend, I’d be jazzed as I started with a new idea. This would last a few months and I’d get tons done toward my new direction. Then I’d enjoy a few months of the challenge of trying to make money off my new direction. And then, when the real work was needed, I’d get bored of my business and begin thinking of something new.

The problem, however, wasn’t that I was bored with my business. It was more that I hadn’t made the commitment to being successful. I could do all the preliminary work and begin making a living – that was easy and fun. But when it came to rolling up my sleeves and do the work it took to be successful, I’d turn to a new business idea. So, like my friend, I was always in the start-up mode and never engaged in the work it took to really be successful.

I’m so grateful that I figured this out. And I’m even more grateful that I chose a business and began building it with the idea of long-term success. What’s interesting is that in my commitment to one business idea, I’ve been able to be just as creative as when I was bouncing around. But now I have a successful business and the revenue to show it. And I have plans for a huge expansion in the coming months (stay tuned).

Unfortunately, my friend hasn’t understood that she needs to commit to a business idea yet. She continues to struggle financially as she scrambles month-to-month with the work she’s doing. There are probably many reasons for where she is. Even though I know her story well, I don’t want to be presumptuous.

And, just like everyone else, at some point she’ll either have to find one business concept and commit to it or stop being self-employed. Of course, she could always marry into money.

What I’ve taken away from all these years of business experience is that you have to give your business a chance…a chance to succeed. Some will succeed more, some less, some not at all. But it takes time to find out which ideas you have will. So commit to the one you feel has the best chance and go after it. Make the commitment. Put in the work. Get really serious about seeing it through. And see where it takes you.

And if you get stuck, ask yourself what’s one thing inside me and one thing outside me that’s holding my business back from being successful?

Do these stories sound familiar to you?

Are you watching a friend go through the same experience?

So, then, what is that one thing for you – for them? And what’s your strategy to overcome it?

Let’s talk about it…

(note: image from PhotoLab XL on Flickr)

Neither had I. But since hearing Seth Godin speak about his book, The Dip: A Little Book That Teaches you When to Quit (and When to Stick), last year it’s constantly been on my mind.

In The Dip, Seth suggests that all successful people know one thing before they become successful – they know when to quit. They know when to recognize when what they’re doing isn’t going to generate success. So what do successful people do? They quit. They quit doing what’s not leading them toward success so they can put their efforts into things that can lead to success.

As with Seth’s usual approach, he uses The Dip to talk about how to become the best in the world. This seems to be his new way of saying do something remarkable. But the core message is the same – be great to those who think you’re great. In other words – find your niche and become known as being great to those who you interact and work with.

So how do you know if you’re doing something you should quit? Well, according to Seth you need to know when your business is in The Dip – “the long slog between starting and mastery.” It’s in The Dip that you decide whether it’s worth the effort and reward of climbing toward success or whether you should quit.

Now this doesn’t mean that if you’re a business coach you need to stop being a business coach. It could, but doesn’t need too. Rather, it means deciding if what you’re doing as a coach, your approach and your marketing, for instance, are going to be worth pushing hard through The Dip. If so, continue. But if not, consider quitting so you can take a different approach.

I’ve been working with this idea of quitting for the better part of a year. What I’ve seen in my own business is that I’m much more focused toward what will bring me greater success. Now, when I find myself in a dip whose slog isn’t worth the effort, I quit. Which means I quit a lot. And I’m more successful because of it.

I’m sure not everything you’re doing in your business is worth the slog. So have you ever considering quitting? Why or why not?

Let’s talk about it.

(note: image from Gabba Gabba Hey on Flickr)

It’s always interesting to compare the words success with it’s perceived opposite – failure:

Success: the accomplishment of an aim or purpose

Failure: lack of success

source: New Oxford American Dictionary, 2nd Edition

Those definitions make sense, right? Failure is the opposite of success – would you not agree? But is it always true?

If you think of success as a destination – a place to arrive too – I can see that not arriving at that destination could be thought of as a failure. Yet framing success and failure this way leaves no room for growing and learning. And it leaves even less room for trusting the process.

So how can we learn and grow if we don’t try things; have experiences? I’m not so sure we really can. I mean, I can read books, watch videos and attend seminars and playing tennis. I could become a virtual encyclopedia of playing tennis. But all that knowledge means very little when I hit my first forehand out of the playing area.

You see, I’m a huge proponent of the process. The process is all those steps you take when you move from idea to action. It’s the experience of putting what you know – and don’t know – into play and seeing what happens. It’s the place where real growth happens.

Ralph Waldo Emerson once said, “Do not be too timid and squeamish about your actions. All life is an experiment.” I couldn’t agree more.

Yet, somehow, in our modern life, we’ve seem to be overridden with ideas of perfection and doing it right (or not doing it wrong). We can’t fail. And we look poorly at people who do. We don’t see someone gaining valuable experiences toward success. Rather we see someone who failed. Heck, we don’t even acknowledge the bold and scary move of putting your ideas into action. Instead, we cower behind our false sense of safety; looking out to sea from the comfort of our park bench.

For me, success is about being in the game. It’s about not giving up. It’s about continuing to move toward the next step in the process – even if that next step is in a completely different direction.

About failure, Ben Franklin Thomas Edison said, “I haven’t failed. I’ve found 10,000 ways that don’t work.”

About success, Booker T. Washington said, “Success is to be measured not so much by the position that one has reached in life as the obstacles which he has overcome.”

And about the process, Franklin D. Roosevelt said, “It is common sense to take a method and try it. If it fails, admit it frankly and try another. But above all, try something.”

What do you say? What does success – and failure – mean to you?

Liz Strauss asked me

And so kicked off our one2one conversation.

So what am I doing behind my blog?

When I’m not rubbing the swollen feet of my pregnant wife, chasing around my two young kids, or working on our kitchen remodel, I can usually be found parked behind my Mac Pro plugging away at work.

The work…of course, I design websites – for about a decade now. But more often I coach my clients to use their websites to grow their businesses. So you could say I’m a web designer – plus.

What I do is bring together knowledge of the internet, web coding, design and usability with the skills of a business coach, marketing strategist and just, plain overall problem solver. Basically, if you’d like to solve your business problems through the internet or take the next leap in your already successful business, I’m your guy.

The past year or so, I’ve been spending more and more time coaching and consulting with people on how to use social media (blogging, social networking, social bookmarking, etc) to expand their reach, grow the conversation and build a community around their business.

Liz, as you already know, I’m all about helping people. That’s truly what makes my heart sing. Thus, the way I see my business is that I help people uncover, develop and grow their dreams. Everyday that’s what I do with every client – step-by-step.

The truth is – I really love people. And I get such joy out of seeing people who are struggling begin to touch peace, happiness, beauty and love. Yes, I’m a sap too. But it’s literally what moves my being. For a while I helped people through alternative healing. Now, I guide my clients to similar outcomes through their business.

I could go on and on because I really love what I do. But I won’t. Why? Because I’d like to leave some space to hear from you…what do you do in the back room behind your blog?

And since this is a one2one conversation…to Liz (and you too…):

What’s one, core thing that makes your heart sing? Could be anything. But something that really blows your heart wide open.

If you’re reading this, I’d love to hear your answer too.