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20 Business Lessons You Don't Want To Learn The Hard Way
“Get a finance person by your side because you absolutely need to know your numbers.”
- You can’t do everything on your own. Building a team is essential because there are only so many hours one person can devote to a business. Exactly when you reach that limit depends on your other obligations. If you’re a young single person, you might be able to do everything for a year or two. But if you have a family, your dedication will eventually hurt those relationships. Build a team that can carry on when you’re not around.
- You may think your product is perfect, but your clients won’t. Listen to user feedback: Your opinion may not be the best one. The key takeaway here is “release your product early and release it often.” You won’t know if you have a great product until it’s in the field and users are beating it up. It’s like some of the contestants on American Idol. They think they’re talented, and their friends and family think so, too, but when they get on a bigger stage, their flaws become obvious.
- Do one thing really well. Entrepreneurs try to be everything to everyone, but it’s hard to be the store that sells bait and baby toys and vintage Beatles albums. Specialize, and you can charge for what you do provide. That said, if there is a skill or service that would make your core product better, provide it.
- Get paid before you hand over a project to a client. This is especially important if you provide a service. Once you turn over that contract or website or design project, you won’t have much bargaining power. When I was a graphic designer, I watermarked all my projects and hosted websites on a private domain until the bill was paid.
- Undercharging is not sustainable. You think, “I don’t need to charge $150 an hour, I can charge $70 and make way more than I was making as an employee!” But you might find out a short time later that your “great” rate is unsustainable. By the time you pay taxes, employees, business licenses, insurance, etc., that $150/hour is looking more realistic. Compete on quality, expertise and your niche focus (see #3) instead of price. When competing on price alone, the clients who are price-shopping will always leave for the person or company that undercuts you.
- Patience and flexibility help you survive the lean times. ShortStack started out as a side project at my web and graphic design studio. We weren’t a software development studio, but when a client asked us for a software product, we didn’t say no. We were patient, scaled slowly — partly out of necessity — and it allowed me to build with company without debt.
- Build for your actual market. All of my software-building experience so far has been in answer to a demand. It is purely opportunistic. If you’re an app developer and you think “Wow, I think xx industry could use xx,” you might be disappointed. Put another way: I would never start a restaurant without having worked in one…for a long time!
- Never enter a partnership without a buy/sell agreement. No matter how well you think you know someone, you just don’t know when he or she will want to retire or do something else. Even if it’s on amicable terms, know how you can get rid of one another when it’s time for one of you to move on.
- Be grateful. Appreciate loyal customers who show you there is a demand for what you do. There is no dollar amount you can put on brand advocates. Good will translates to loyal customers.
- Look after those who look after you. We offer referral commissions at ShortStack, but it’s very much under the radar. We want people to recommend the product because they like it, not because they’ll say anything for a dollar. If we notice someone said nice things about us publicly, we might send them a t-shirt as a thank you. If they do it again and again, we might say, “Hey, you should become a referrer and earn a percentage of the business you send our way.”
- It’s not a sale until it’s paid for. This sounds obvious, but I’ve known small business owners who get very excited about orders and/or meetings with prospective clients. But until the money for those products or services is in the bank, it doesn’t count.
- You’ll make more money being “wrong” than proving you are right. Rather than fight with an unhappy customer and say, “You’re using it incorrectly,” or “You don’t know enough CSS to use our product,” we just refund their money. In the long run, these people consume so much of the support team’s time and energy that it’s more cost effective this way. They’re not our ideal client, and that’s OK.
- People don’t leave companies — they leave management. This lesson goes for both employees and customers. A manager will lose staff if the employees think they’re not being listened to or valued. Customers will stop using your products or services if they are dissatisfied with them. The quality and reliability of your products and services is a reflection of management.
- The way you present your business should be a reflection of your audience. If you have serious clients, be serious. If you have hip, fun-loving clients, have a sense of humor. You have to find your niche and build your content to suit them. For example, Constant Contact CTCT -1.23% and MailChimp do essentially the same thing, but their marketing content reflects very different client bases.
- Agree on scope in advance. Have a clear contract before work begins. Once a project goes beyond the documented plan, charge for it. If you agreed to build a website with 10 pages, but soon the site is 20 pages, the client should pay you for them. If your contract makes that clear at the outset, it is easier to control scope creep.
- If your company sells a variety of products, make sure you know how to use/operate every single one of them. It might sound like a tall order — depending on how many products your company sells — but learning to use what your company sells will help you look at things with fresh eyes.
- When you think you’ve tested your product enough, test it some more. Never release a product until it has been tested and tested and tested by people who don’t work for you.
- Understand how social media networks work. When Twitter was first available for businesses, I’d see people use it like an ad in a newspaper. If you go on a channel and use it the wrong way, it could do more long-term harm than good.
- Save up. You can operate at a loss for a number of years but you can only run out of cash once. Have a rainy day fund that has at least two or three months’ operating costs in it. And have a line of credit available, even if you don’t plan to use it. Having a CPA look at your books once a quarter is also a must.
- Always let the CFO
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# 1. Bitrix24.com
If you need a collaboration tool your staff are most likely to adopt with relative ease and minimum training, take the social intranet route.Bitrix24.com is the fastest growing social intranet that’s free for businesses with 12 employees or less. The application comes as a combination of several different work tools like CRM, project management, real-time streaming, activity planner, file sharing, to name just a few. As it is cloud-based, access can be anywhere, whether using your computer or smartphone. An upgrade to unlimited users starts at $99 per month.
# 2. GotFreeFax.com
In this era of e-mail and instant messaging, you’d think fax machines are no longer relevant. But if a LinkedIn survey as reported by Mashable is to be believed, fax machines are still in until 2017 steps in.As you might have already guessed from the site’s name, GotFreeFax.com is an online service that allows you to send up to three pages of fax for free (maximum of two faxes per day) to any number in the United States or Canada. The site also offers premium pay-per-fax service should you need to send more.
# 3. RememberTheMilk.com
RememberTheMilk.com is an online productivity tool that assists in task and time management. Remember The Milk essentially functions as your all-in-one task manager, electronic calendar and to-do list. Aside from allowing you to share and split tasks with other people, the application can be integrated with GMail, too.The pro account is priced at $25 for one year and comes with exclusive mobile app features and Microsoft Outlook integration.
# 4. Kolab.org
Kolab.org is an open-source group collaboration server that allows for sharing of notes, e-mail access, calendar organization, task management, address book maintenance, news aggregation, phone sync and journal integration. Kolab is secure, scalable, reliable, mobile and professional, ensuring productivity every step of the way. As a whole, the application requires some getting used to. But once you get the hang of it, the hassle can be all worth it.# 5. WaveApps.com
Formerly WaveAccounting.com, WaveApps.com is an accounting software that’s fast, simple and easy to use, offering unlimited invoicing and expense tracking. 100% free for small businesses with nine employees or less, it’s accountant-approved and specifically designed for non-accountants. You can also securely connect your bank and PayPal accounts or other sources of data, and your transactions are automatically imported into the accounting software.# 6. PRLog.org
To make your business presence known, one surefire route to take is through the distribution of press releases. PRLog.org is a site where you can dispense press releases for free. And if you feel you don’t have the necessary expertise to create a killer press release, the site provides instructions on how to write one, even how to embed videos where necessary.# 7. Weebly.com
One cardinal business rule is that businesses should have their own websites to boost their market presence online. Weebly.com is a free website creator that doesn’t require website creation expertise. Until you’re ready to go for more complex and/or self-hosted sites that would require monthly or yearly payments, Weebly.com is a good alternative.# 8. Join.me
For those meetings or web conferences on the fly, Join.me is a simple-to-use teleconferencing application that allows you to review documents and designs, train staff, do product demonstrations – basically to get everyone apprised of company updates. You can do transatlantic web conferences and presentations, too.# 9. IFTTT.com
IFTTT.com, which is short for “if this, then that,” functions like a computer program repeatedly uttering if/then logic all day long. With IFTTT, you set up “recipes” to assist you with task automation. For a recipe to work, you have to have a channel, a trigger and an action. Examples of channels are Facebook, e-mail, Evernote, LinkedIn, just to mention a few.#1. Sponsor a Local Children’s Sports Team or Sporting Event
There are good reasons for choosing to sponsor a children’s sports team:- You get bonus points for caring about the health of future generations
- You earn the trust and loyalty of the local community
- An Australian study has shown that 68% of children involved in sponsored sporting events recalled all their sponsors and nearly half recalled the sponsors of their favorite professional sports teams
#2. Do Some Charity Work
Another great way to draw some attention to your company, and do some actual good while you’re at it, is to get involved in a good cause. There are tons of great charities you can get involved with, and you can do it in a number of creative ways – from simply donating money to a non-profit organization, to sponsoring events and utilizing social media to grab people’s attention.Pictures can say so much more than words, and raising awareness through high-quality pictures, some strategic social media posts and a few donations can make a huge difference, while improving your corporate image at the same time.
#3. Have Your Customers Do Some of the Marketing for You
People like to get involved in things like contests, particularly if it something fun and creative. You can take advantage of the basic human desires to try out new things and share their experiences with others, by throwing a contest that requires customers to do a bit of promotion for your brand.The way you approach this will depend on your niche – e.g. if you sell musical instruments you can offer prizes like guitar lessons, gift cards or concert tickets to people who send in the funniest music-related picture where they can be seen wearing a t-shirt with your company logo. People get really excited about these things and the buzz they create can be quite significant. The younger generations place a whole lot more trust in user generated content than other forms of media.
#4. Educate the Public and Give Some Free Advice
An important fact of become the go-to option for your particular type of products and services is to establish yourself as an expert in the industry. If you have been in the business for a while, you’ll be able to provide the general public with some insights, and you can also give them a detailed overview of your products and services.A lot of people only look for specific goods and services when they absolutely need them or have some money to spare, so a lot of them will need basic information on the subject in order to make an informed decision and spend their hard-earned money wisely. If you provide this information, e.g. on your website and blog, customers will flock to you.
Aliexpress.com
has become the leading destination for small scale importers looking to
buy goods at wholesale prices from China. Aliexpress is one of the
subsidiaries of the Alibaba Group which dominates internet-based
commerce in China. In fact, in 2012, Alibaba’s portals handled sales of
up to 1.1 trillion Yuan ($170 billion), more than its competitors (eBay
and Amazon.com combined). The Alibaba Group is estimated to be worth
between $55 billion to more than $120 billion.
DHgate.com
is a business-to-business (B2B) e-Commerce website connecting
China-based small and medium enterprises with buyers overseas. The
website is a fast trading marketplace where users can order
Chinese-manufactured products directly through the site. The company has
been in business since 2004 and is backed by investors KPCB, JAFCO and
Warburg Pincus.
iPmart.com
(started in 2001) is a huge wholesale market that ships products from
China, USA and Malaysia. Unlike Aliexpress.com and DHgate.com which have
a wide range of products, iPmart.com is focused on electronic gadgets
like mobile phones, game consoles and their spare parts and accessories.
If you’re interested in technology products, iPmart.com is the place
for you. You can visit its homepage at www.ipmart.com
as consultancy fees. You can start a real estate consultancy with an
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