Ideen is pleased to post a guest blog by Vicki Tinnel, one of our associates. Hope you enjoy it!
Mom & Pop Shops: The Next Generation
With the fall of Lehman Brothers in November 2008, an unsuspecting American public watched as the markets took one of the quickest downturns towards recession in decades. Companies froze, organizations folded, pensions all but disappeared, and industry after industry scaled down to skeletal capabilities -- basic operational functions. What that translated into for the US workforce was an unprecedented spike in unemployment. Suddenly, the market was flooded with qualified, experienced people of trade and education, with no 8am-5pm office to call home. However, in accordance with American resiliency, an astounding number of these brave, former W-2 wage earners turned to their own resourcefulness and skill sets. Rather than wait for someone else's company to provide their income, insurance, & retirement, these people chose to create their own businesses. The government took notice, not only sustaining all the existing tax benefits in place for launching an independent operation, but also by signing into law the American Recovery & Reinvestment Act of 2009, under the watchful eye of the US Small Business Administration. This allowed these "accidental entrepreneurs" to receive tools to start, grow, & succeed through resources such as grants, loans, waived interest and fees on credit services, expanded educational opportunities, and more.
Today, there now are more home- and Internet-based businesses than ever before, all competing against each other and larger corporations. Innovation and ingenuity are on the move, and the face of the American economy is evolving yet again.
So...what does it take to succeed in this new generation of business? Several things have to be synchronized: branding, efficiency, and the type of personalization that will convert satisfied customers into loyal customers.
There are several myths involved with branding, and they are about as authoritative as most myths. Entrepreneur sites several: "good branding is too expensive," "word-of-mouth is what you really need to be successful," "I don't know how to do the social networking thing," and probably most common, "my products & services are so great, they're all I need to build my business."
The problem with these ideas is that they assume the buyer is open-minded and by virtue, eager to find you. The truth is, however, according to Consumer Reports, the average American is exposed to over 274 advertisements daily. That's over 45 messages from other businesses before breakfast!
We've all seen it before...companies with inferior products or services get the attention and get the sales, simply because they are recognizable. Also, considering that "fear of the unknown" is one of the greatest drivers of human behavior, that boils down to, for better or worse, people go with what they know. Period. Word-of-mouth truly is invaluable to expanding a customer base, and a strong brand is well worth the price.
Additionally, in order to thrive in the current arena as a small business, implementing efficiency and personalization at the highest level is an absolute essential. "One size fits all" is obsolete. Even if the product offerings are standardized, every client needs to feel as if their package was tailor made to fit their needs and provides solutions for their unique issues. On top of this, the general public's patience for service delivery is becoming more and more rare. They want it their way, they want if yesterday, and they want the whole experience to surpass their expectations. Delivering at this level is what makes or breaks a reputation and solidifies a brand image.
Although there is undeniably high first-year failure rate for new small businesses, using these techniques and sprinkling a healthy dose of ingenuity, perseverance, relationship building, and sound business practices can spell success for the entrepreneur. But with the Great Recession upon us, is this really the time to put all these pieces together and launch? Consider Chic-Fil-A, which started as a local family-owned restaurant in a small suburb of Georgia in the year after WWII ended. The origins of Apple began in the garage of a penniless college dropout. And in 1971, Starbucks was nothing more than a corner coffee house owned by two teachers and a writer that didn't even serve lattes or cappuccinos. Fearless Americans have proven time and time again that not only can you survive, you can grow and thrive during hard times. And create an enduring, successful brand.
