Good business ideas

"Is this a good business idea?"

It is a question we are often asked after discussing a business with a prospect.

The answer is often difficult, not because we want to avoid disappointing the prospect, but that we don't know whether it would work or not.

If a town does not have a certain type of business, does that mean there is not a big enough market for that business (and so it would not stay in business) or does it mean no one has tried it?

I would hazard there are people right now running successful businesses, who if they had brought me that very business idea, I would have recommended against it.

So if you are looking for me to peer into the future, I cannot.

What I can say is that the questions I ask, the issues I recommend you research and the items you have to discover on your own, will be ones whose answer will make your business more successful, and you more capable.

Many people try to learn a foreign language or a musical instrument; most fail. But if you ask me whether it is a good idea to try to do so - I can only give you insight into what it would be like, not what it will be for you.

If over the holiday(s), you get inspired or come up with an idea for a business, come on by and let's discuss it. You might discover that it is a good idea and one you want to pursue or that on investigation, it is not one you want to pursue.

Either way, have a nice Thanksgiving!

Retailing Management, Spring 2010

I will be teaching at Oklahoma State University this Spring semester, Marketing 3613 Retailing Management. We will be discussing many different topics relevant to small business management and ownership. If you are a student at OSU, I recommend signing up. And if you are interested in auditing the class (taking it for no credit), let me know!

Car Wash

I was in Oklahoma City last week for a meeting, and in the underground parking garage I noticed two stalls had been converted to car wash stations. If you wanted you could pay to have them wash your car while you had it sitting in the garage and you were in the building.

Their stations looked to have a hose hooked into the fire sprinkler water system (the floors already have drainage.)

I have seen car washes and oil change at airport parking (Fine in Tulsa does this), but I had never seen it in a nondescript parking garage in downtown.

Shows there is always a way for a creative business idea to get started.

Getting Your Work Done

In the book, The Five Disfunctions of a Team, p148, the conversation turns on a VP who is always helping out however he can to the group, but in the process is not getting his responsibilities done.

The result is the president of the company saying, "I want all of you challenging each other about what you are doing, how you are spending your time and whether you are making enough progress."

As an entrepreneur, I know you have a bias for action: "get it done!" is your mantra. But it is important to be sure you are doing what you need to do, not what needs to be done.

This can be hard for someone who comes up from the ranks; a baker often finds it easier to bake than to manage the bakery.

Still, start your week or day or even hour(!) by asking yourself what is the most important thing to do, not the most urgent. Be sure your employees also recognize the difference. This will make you more productive and also allow you to release some of those duties you dread, but feel you have to do (or no one else will).

Keeping up with Trouble

Two weeks ago, my wife broke her arm falling on a slick floor. Since then she has had to be operated on to get the bone set, have a cast put on, and is handling all the other difficulties involved with a broken arm on her dominant hand.

Thankfully she is healing and I have been able to accommodate the changes in my schedule without too much trouble.

Most small business owners do not have that luxury of rearranging their schedule. Someone in the family gets sick, or has an accident or other issues - all of these cause the owner to be pulled away from the business. Yet, being away from it can cause other problems to creep up.

You can't avoid the possibility of someone being sick; what you can do is have a plan for your being out. Are there certain duties you do regularly that you could train another person to do (in your absence)? For example, scheduling employees, or ordering food items. Do the employees know what they need to be doing while you are out? Who makes decisions when you are unavailable?

Now is also the time to have your key tracking financial numbers worked out - so if you are distracted or not able to read through all your normal work activities, you can still keep up with the business. Whether table turn for a restaurant, sales/employee hours or whatever ratio is relevant to your business, now is the time to work that out.

Having processes in order will not avoid all the difficulties, but it will mean that when you are out, there is a lessor chance of major problems arising.

Starting the day off right

Every weekday morning, about 7:50am, in office buildings throughout Japan, managers and their teams get together for a brief overview of the day. When I lived in Japan, this meeting was announced by a bell, and ended about 10 minutes later with everyone saying they will work hard together that day.

The meeting gives the team a chance to fill everyone in on who is going where, doing what, and what is important to be handled for the day.

The meeting participants speak one at a time round-robin, starting with the most junior employee and working up to the manager.

I liked this type of a meeting, and recommend it to small businesses. Once you have more than one or two employees, it is amazing how disconnected the owner gets from what his employees are doing each day. Many times I have spoken to exasperated owners remarking they can't understand why their employees are not doing what they are supposed to!

A daily quick recap meeting allows the entire team to know what's going on:

• When the phone rings for Sam and he is gone - everyone knows where he is - and why he is out of the office,
  
• By getting a sense of what his team is doing for the day, the manager understands where to better place staff or arrange schedules,
• Each team member is able to show that his or her work is important,
• There is a sense in which saying what you will get done out loud, motivates you to get it done.

Try adding a short - very short - daily recap meeting and see if it helps overall communication in your company. You may be surprised at what your employees are doing each day!

Hiring the right person

To continue with a theme from my last posting, finding the right employees for your organization will be critical as you grow.

Know who you want and need - but also be knowledgeable about what the market will demand and adjust accordingly.

Here is an example. A technology incubator in a mid sized southern city is looking for a CEO to head the incubator. Their press release says the

"candidate should have 10 or more years of professional management and leadership experience, preferably in the incubation industry, strong fund raising skills and financial management expertise, a successful entrepreneurial experience and demonstrated success in program development and implementation, marketing and administration."

The first thing that should strike you is "wow, this would be a pretty heavy hitter - successful entrepreneur, 10 years management, strong fund raising with demonstrated success". Second, think of how many organizations are looking for this type of person - pretty in demand person. Third, what would it take to get this person to come on board?

Then you get to their next sentence,

"A new CEO will get a mid-five figure salary, benefits, and incentives for fund raising"

Huh? Mid-five figures is what, $50,000? A successful manager, 10 years experience in any sort of technology company - entrepreneurial, take charge person, looking for a new challenge. Your probably making $100k, plus bonuses right now.

Why would you take this job?

Anyone in the incubation industry with 10 years of management experience is going to be making more than that already.

I am sure they are limited in what they can pay, but why ask for all the above if that is all they can offer? They'd be better off saying:

"Ready for a second career working with entrepreneurs? We are looking for a middle aged manager with a technology business background who wants to work with new businesses. We can't pay what you'd made at ABC, co. before they laid you off, but it is a fun environment. Come talk to us!"

At least that might get you someone close to what you are looking for.

If you are a small business, maybe you cannot afford to pay for the talent you need. But you have to give in on something to make it worthwhile to get the right person. You have to be creative: you are not IBM!