Recently, after spending the weekend talking to other business owners, social media folks and marketing leaders in different industries, I visited a client’s restaurant for a very late lunch on Monday. It was perfect timing. As it happened, we ran into the bakery manager who was testing out some new treats, and she let us taste a new chocolate concoction. The dessert she was letting the staff (and lucky bystanders and restaurant consultants) taste was great, and the experience of testing something as it was created and developed was amazing–especially something for the bakery case!

But even better than the dessert was the reminder of a concept businesses often forget to use. To be successful, we must LEVERAGE.

What does LEVERAGING mean?

One can be over-leveraged financially, and that’s not a good thing. But in this case, I’m referring to “leverage” as the ability to move faster or grow more quickly or make sales more efficiently by spending in the currency you have. In every business there is something – whether intellectual property, food, room nights, beverages, event tickets, etc. – that are worth more outside of your business than within.

Leveraging Food Costs in the Restaurant Biz

For a restaurant, that means spending in food whenever possible. Instead of spending $1400 for a magazine ad where ROI is difficult to measure, why not spend $100 in food costs to reach a specific target customer group? Not only do you spend less in overall dollars, but you may be simply using food costs that would have been wasted anyway since food waste is a very real portion of any restaurant’s overall budget.

With that in mind, what if you took excess cookie samples to the law office around the corner or gave away one free pastry tray a week to a deserving office in your neighborhood. What if you gave away a free appetizer through a daily drawing or simply offered dessert samples throughout the lunch and dinner hours to existing guests as leverage to make the upsell?

Recently, one of our restaurant clients ran a last-second Twitter promotion targeting college students. To help spread the word quickly, we offered a free pizza for the first person to re-tweet the message. It turned out that two tweets basically tied due to a technological blip, so we gave a way two free pizzas instead. Let’s assume that the pizzas hold about $4 in actual food costs (not counting wait staff, business overhead, etc. when considered as a menu item). In this case, the folks who won the free pizzas brought in groups of 6 and 12 respectively leading to a direct ROI of more than $200 in additional sales on our $8 in leveraged food costs. This doesn’t even count the other sales they helped generate through their social media participation.

Other Ways to Leverage In Business

Business owners can leverage any asset that is of more value outside the business than within. This means your time, expertise, food costs, employees time and skills, etc. are all fair game. I believe that, as business owners, one of the most critical things we can do is to leverage our time. As an example, I use social media to convert more clients and maintain a much larger network reach than I could have imagined five years ago before Facebook and Twitter.

Marianna and I leverage our time to create opportunity for you. An airplane ride like this one (I am currently flying back from Florida) is filled with getting blogs written, e-mails returned and photos cropped, edited and tagged – tasks that don’t require the Internet. It’s amazing the things we can do when we steal time from a wasted time category and turn it into profitable activity.

It’s great how the little moments that were formerly wasted, can be used profitably, but that also means that as business owners, we must make a real point to relax and turn off sometimes. Some of you know that I can’t seem to free myself from my cell phone at any given time, but we all know there’s a time for disconnecting and turning it all off.

I took a little vacation this month, where you weren’t able to get me by phone, email, Facebook, or Twitter…  I leveraged that time to recharge, stop thinking about old work, spend time with my family, clear my brain, eat some good food, and return–and turn back on!–ready to find opportunities for new work!

How can you use the concept of “leveraging” to improve your business today?

Photo Credit: shortlake

So, that’s me today. I’m looking at the core of our business – and our short and long-term goals as we stare straight in the face of rapidly approaching and VERY full-scheduled fall season. Here are some of the questions I’m asking – maybe you could/should ask them of your business, too.

1. Am I actually targeting my message AT my target audience?

2. Do I know what my target audience needs most that I can provide?

3. Am I providing an experience and result for my target audience that overwhelmingly, clearly and simply fills their greatest need?

4. How can I communicate better, more clearly, more simply?

5. Am I pushing out information (bad), or am I building meaningful relationships (good)?

6. Am I stepping up to the plate when my customers need me? Am I responding quickly enough? Am I accessible enough? (This is a major priority for us.)

7. What elements of how I spend my time each day really add value to MY clients – and how much of it is wasted (on my own interests, curiosities, vanity or admirations of others or just useless information consumption or time wasting)?

8. Am I forging relationships with customers that I want?

9. Am I willing to turn down relationshps that aren’t a good fit?

10. (My most primary and often asked question of myself.) What do I want my business and life to look like in six months? Am I doing the RIGHT things to make that happen?

Here at Team HALO, our purpose for existing is to encourage and equip communities of all sorts to achieve their goals. We target one primary market: people who build communities. Who are they? They are managers and board members of downtown districts, Main Street organizations, and small business/merchant alliances. They are the passionate owners of small businesses and restaurants. They are commercial developers that revitalize old areas – or create entirely new “places.” They are pastors of churches. They lead the charge for causes using the structure of a non-profit organization. We want to meet, know and work with people who are on a mission, who hold within them a passion, who have an energy for what they do – and most importantly, who want to find others who will care so they may connect with them, engage them, share with them, convert them, retain them, and grow them. We are the Team that makes that happen, and as of October of this year, we will have been doing that for TEN years.

How we get to that same endgame looks a lot different than it did ten years ago. And it will for you, too. That’s why this whole goal-setting and goal-monitoring exercise is so important.

The problem with me is that sometimes I look over my shoulder or across the room at my colleagues – sometimes with a bit of jealousy and sometimes with a bit of pride. I want to be something that they are, or I want to speak at a conference where they speak, or I wonder why they “just don’t get that yet” or why anyone would do what they said when they are so off base. I find myself slipping into the very terrible trap of looking either up or down at others – and not looking FORWARD for the good of my customers. We all do that as business owners. Again, that’s why this exercise is so cathartic.

In a client meeting this week, I found myself repeating a phrase that I have been using for a LONG time. “Don’t copy your competitors – Go where your competition ISN’T.”

So, today, while I won’t bore you with the answers to all of my questions above, I can tell you that we’ll be forging ahead into territory where our competition ISN’T. We’re in this to be accessible – not snobby and elitist. We’re going to insist on solid, sharp strategy – not just the use of certain marketing tools. We’re going to lead the charge to help our clients adapt and embrace new technologies in way that is simple, understandable and produces a measurable return on investment. We’re going to constantly expand our service offerings and go deep into our target market. We are the coaches that will bring BIG WINS for your downtown, your small business, your non-profit.

What about you? How often do you evaluate your goals? Does it help you stay on track with your life and business?

Related Pages:

Marianna Hayes: Marketing Speaker Page

Market Analysis for Downtowns

Team HALO Coaching Services

In the coming weeks and month’s you’ll see lots of new information, new Team HALO members announced, and some great new services that we’ll be offering to help you business or organization.

Bear with us as we add all the functionality that we are adding to the site. Our web site is the culmination of planning and strategy that was developed based on talking to some of our customers, and figuring out what they needed to find, and what they need to know about our business.

- Andy Chapman

But the Palmer House and my family's rural Mississippi location have something in common. Neither have high-speed Internet. This made the conference not so tech-friendly. I assumed that we'd have access to wireless internet – or at least cell phone service so I could do a little blogging, Twittering and the like from my blackberry throughout the conference. I was wrong. Se la vie, I will learn from the experience and press on with my notes which will provide you with reading material on this blog for days and weeks to come.

Small business tip #1: Don't make promises to blog readers that you can't keep. I made assumptions about Internet accessibility – and I was wrong. I didn't do my homework as thoroughly as I should have before making promises. It's a simple thing – and probably easily forgiven. However, it is a good note for business overall – don't assume anything. Do your homework. Under promise – and over deliver.

The bottom line of business and non-profit managing in today's world can be summed up in one demanding word: CONNECTED.

In order to do your job best, you must be able to leave the office. Your job, after all, isn't to RUN the business or non-profit, it's to make it better overall, more profitable, productive, successful. Times such as conference attendance, vacation days, continuing education seminars or workshops, and market/buying trips are just a few of the reasons why extended absences from your business or office might be required. Yet, gone are the days of turning on the "out of office" auto responder on e-mail account and changing our voice mail and disappearing for a week. We are required to stay connected – or risk losing business in an already soft economy.

Here is my checklist for successfully managing those "out of office" excursions:

• Plan ahead (this was covered partially in my previous post). Plan ahead for success while away – and for your business to succeed without you. This means that you should have a team meeting in advance of your departure explaining where you are going and why. Your team should be empowered to make emergency decisions on your behalf (such as returns, fixes, etc.) to a certain budget. They should be empowered to take messages and explain when you will return messages. Callers, customers, etc. should be educated about your absence in a way that serves as a marketing message and builds intrigue and curiosity with customers (in a good way), rather than just leaving them hanging. Basically, you want to empower your team and setup systems that will minimize contact with you while you are away.
• Have a Blackberry/iPhone/etc. and know how to use it. In today's world, the quickest way to take care of issues is to return a text message or send a short e-mail reply. For those communications that break through the gatekeepers back home, direct as much as possible (use your voice mail as a directive) to your e-mail and text message in boxes. Often, a ten minute phone call can be answered just as easily with a 5 second text message. The time you free up working in this capacity between sessions at a conference or by checking it twice a day while on vacation, is worth the extra $50 a month for an unlimited data and text plan.
• Prior to making hotel reservations, check their policies, fees and availability on high-speed, WIRELESS, Internet. Some hotels are still requiring you to plug into the wall for high-speed Internet (reference a recent trip to Boston where the Sheraton on the Back Bay – a very nice area – still had wired high speed on most floors of the hotel). Many nicer hotels charge $12-$18 per day for Internet access. Not only that, in many hotels, the wireless access and bandwidth is limited even when you pay. Don't just take the hotel's word for it (they will not admit their bandwidth is limited or that their reception is spotty). Do a Google search and check travel web sites to get the real scoop so you know what to expect upon arrival.
• Check ahead of time for local free wi-fi locations. Pack your laptop along with printed directions, phone numbers and hours of operation for 2-3 easy to access wi-fi venues. This is often far easier to manage than hotel Internet connections.
• Own and know how to access a back-up e-mail account through a free web-based service. We use GMail. This will allow you to access your e-mail from a hotel business center or other Internet connected computer even if your own technology fails you.
• Pack your laptop, phone charger, and a USB flash drive to ensure that no matter what tech challenges may come while you are traveling – you can access and transfer files and make connections as needed.
• Check your travel schedule and plan ahead of time for one hour per day to return phone calls, answer more weighty e-mails, etc.

Have other travel tips to share? Feel free to comment…

The most important factor is to make sure that when you are away from the office or your small business that you turn it into an opportunity – and not a threat. Think strategically and take action ahead of time to ensure that you are able to be productive and able to do what you are away to do – all while maintaining customer loyalty and a consistent customer experience back at the office. (In other words, maximize your return on investment where you are going – and at your office at the same time.)

Here is how I broke down the planning: logistics, action items tied to goals, contacts and packing.

For me, the list proved to be a bit daunting. I am a perfectionist, and on occasion bite off more than I can chew. This conference wasn't the only thing on my plate after all. I have small business owners that I consult each week and projects and other speaking engagements to manage. Knowing all of this, I must say I did a fine job of making my lists, then editing myself.

I cannot state this any more strongly for those planners among you: there are plans that will save the world – but require the moon's sacrifice in order to happen. And there are the plans that work, that achieve real, measurable results – because, quite simply, the plan was edited into reality.

I am a journalism student by training, so with list in hand, I took out my trusty red pen. I found it helpful to actually categorize my action items by those tactics that would produce the most bang for my buck with no regard to my personal comfort level. Some of the items would require me to get outside of my actual personality in order to produce the greatest results for the least effort. (Now that is what I call LEAN THINKING.) The categories led me to basically edit into oblivion every tactic that wasn't an all-star. What we ended up with, I believe (and I may be wrong), we've ended up with a more flexible schedule that will allow us to take advantage of opportunities as they present themselves while securing PRE-conference certain appointments and plans that have us well on our way to achieving our target objective.

Let me explain:

Tactic that got the red ink:
- Drinks and appetizers for a large group of folks, many of whom we don't know. Would have required a fair amount of planning, organization and time spent inviting, etc.

Instead…
- Made lunch appointment with a state coordinator to discuss upcoming opportunity to speak for the first time in this state.

We did set some meet-ups and lunch dates in advance of the conference, all scheduled for the first two days. This leaves us time to build new relationships over a meal, coffee or drinks later in the conference schedule, if needed. We used the list that the conference provided of registered attendees as well as our existing contacts in order to schedule valuable encounters.

We also took the time pre-conference to promote our attendance at the conference on social networking sites like Facebook, LinkedIn, Plaxo, and Twitter. We also offered some valuable information and information of our attendance via the Main Street members only listserv to which we are members. Even now, you can follow the conference at the Twitter hashtag we created at #MainStreet09.

We have an on-site goodie in store, too… stay tuned, so you don't miss valuable small business owner survey results that will be available to conference goes FIRST, before we post it on our web site.

Small business tip: Making plans BEFORE you get to the event in order to maximize your time AT the event.

P.S. For real live blogging of the actual conference sessions, etc.
check out the official conference blog which is very well done so far
at Main Street Live 09. You can get an insider's perspective as the staff of Michigan Main Street live blogs the conference on their blog (What can we say? They are our star student!). And you can follow the conference on Twitter at #MainStreet09.

Hopefully, that statement doesn't highly offend those of you reading this, but this is a key point to attending a conference, trade show, market, etc. where lots of folks you know or need to know are also attending. As we (Team HALO) live blog this event throughout the next few days, you'll hear us talk a bit about the content of the conference – mostly from interviews conducted from attendee viewpoints, some of our own application (it is our blog after all), and possibly some speaker interviews. However, most importantly – and of most value to you – our small business constituency – will be our play-by-play application of our success and failures as we seek to make the most of the opportunities that present themselves this week. It is our goal to do all we can to meet, greet, find follow-up opportunities, etc. so that we can most efficiently and effectively help you, the small businesses across America that call Main Street your home. Our live blogging will mostly consist of the steps we've taken to achieve our goals – and the steps you can also take to achieve yours in similar circumstances.

So, let's dive right in… what are our goals for this conference, after all? As with any business venture, great or small, we will never know if we've arrived or how best to get to our goals if we have no road map. Goals are specific and measurable and targeted – when accomplished, they add up to success. Let me put our strategic planning in perspective for you:

Context: For the first time in three years of attending this conference (I know, we're young tikes still at this Main Street stuff), we are not presenting. We originally had a scheduling conflict and were not planning to attend this year at all. Then, at the last minute, plans changed and opportunity availed itself. We had approximately two weeks to plan our trip and set our goals.

We could not set goals without admitting that for one year concluding about six months ago, our business suffered periods of inconsistency in service stemming from personal matters that are now resolved. Having taken steps to protect our business from these sorts of issues again, then restructuring our business entirely to meet the demands of a new economy and the budgets of small business owners, re-defining our mission with laser sharp precision and marking the past six months as evidence of the measurable results we provide (not to mention the other eight great years prior to the fumble), Andy and I confidently went about the business of setting goals and a budget for attending this conference. With no presentation to prepare and no scheduling limitations (I must admit this left me feeling quite liberated), we set a primary objective and five goals for our conference attendance.

Target objective (basically the same as our 2009 mission statement): Open doors that allow us to encourage and equip hundreds of Main Street businesses towards success and profitability in 2009-2010.

Here are a couple of our goals for achieving that outcome through conference attendance (we can't give away all our secrets, can we? Maybe later.):
1. Meet and secure follow-up opportunities for further discussion (relationships are all we are looking for – not business deals) with three targeted people of influence (we identified them and set a plan for meeting them).
2. Leverage our attendance at the conference to raise awareness for our work with Main Street businesses across social media networks and at the conference in general.

Small business tip: Both budget and goals should be well researched and
well defined prior to making any firm commitments like registration
fees, hotel reservations, etc. Wise business owners (and non-profit execs) test the waters as
much as possible PRIOR to spending any money. A target objective with 3-5 measurable goals sets the framework for success.

Stay Tuned: Next post will give you a sneak peak into our pre-conference planning.

P.S. For real live blogging of the actual conference sessions, etc. check out the official conference blog which is very well done so far at Main Street Live 09. You can get an insider's perspective as the staff of Michigan Main Street live blogs the conference on their blog (What can we say? They are our star student!). And you can follow the conference on Twitter at #MainStreet09.

Question:
Which Facebook option is better for my business or organization? A PAGE or a GROUP?

Answer:
Facebook defines groups and pages differently, and upon reading their definition – and having intimately used both – our official position is to follow the Facebook rules for best success.

This means that if you are the official representative of your Main Street program or the owner of your business or the executive director of a non-profit organization, etc. then it is advisable that you start a PAGE that allows others to become FANS of your organization or business.

If you are a volunteer or individual seeking to raise awareness and support for an organization, topic, issue, etc., then you should start a GROUP page and invite folks to join your group if they are like minded.

To give an example of how to properly use GROUPS, a group of businesses or citizens could band together, name a leader and promote a GROUP on Facebook to rally citizens to participate in ongoing efforts to hold local officials accountable. This group of citizens is an UNofficial collection of like-minded people pursuing a goal. There could be many of the same sorts of GROUPS pop up, even within the same community, and that is allowable under Facebook rules. GROUPS are basically a free speech forum to meet and gather likeminded individuals.

As for PAGES, Facebook contends that they must be "official." Therefore, there will only be ONE Facebook PAGE for the Michigan Main Street Center, for instance, because they are the official organization and promoter for Michigan Main Street programs at the state level. Similarly, Swagger Gifts' Facebook PAGE will be the one and only because she is the official owner and promoter of Swagger Gifts in Cary, North Carolina. And there will only be one Team HALO Facebook PAGE, and we will administer it, because it is our official presence on Facebook.

Facebook PAGES provide a lot of promotional flexibility, professional image and communication features handy for those pursuing strategic marketing vs. the GROUPS option. But never fear, if you've made a GROUPS page but would now choose the PAGES option, Facebook will help you convert it, just ask them.

More information is available on this Facebook Help page under PAGES. (You will likely need to be logged in to Facebook to view any Facebook content including this and the links shown above.)

Small Business Marketing Tip: The bottom line is that you should be on Facebook with a personal profile and a PAGE for your official business or organization. Just get on there and start to learn the ropes. You should participate and encourage your employees to do the same (within reason of course). Your business will be better for it.

Soon, we'll address specific Facebook marketing tactics and strategies to give you an edge in your Facebook network. We also present this information in our small business seminar called Marketing Tactics that Will Work Right Now. 

Budgeting for Fluctuating Revenue | E-Myth Worldwide.

At a recent Q&A session with small business owners, Andy and I challenged these small business owners to tightly manage their businesses "above the line" and "below the line." It is a lean way of thinking that we have advocated for more than ten years, but never has this concept been more poignant for small business owners than it is today.

What this means is that in your small business, you can manage profitability in two primary locations on your Profit and Loss Statement…

As a small business owner, the first way you can create greater profits is by controlling your expenses: lower expenses for the same revenue equals higher profits. For us lately this means using Hotels.com for EVERY hotel stay in order to get every a free night for every stay. It also means the absolute best rates and free upgrades for last minute stays because they have a price-match guarantee. This saves at least 10% on hotel stays, but in our practice, we pay for the lower cost nights and exercise our free nights in pricier markets like an upcoming trip to Chicago, for instance.

It also means doing smart things like changing office light bulbs to energy efficient bulbs, turning the heat and air up or down a few notches, negotiating better rates for Internet and telephone service, selling expense yet rarely used equipment and much more. Look at every expense in your business and seriously consider if it is a requirement – and if so, what is possible at all to reduce its cost to your bottom line? Saving $20 a month x 12 month is $240 that would be a nice bonus for a valuable employee – or pay a lightbill one month when things are tight. It is cash in your pocket that you don't have to spend. Every nickel counts.

Above the line, you must manage margins on your products and services – you must minimize the cost of goods sold – the direct costs of the product, the people who produce or deliver the product, etc. without sacrificing quality, service or customer experience. For us, this means making the decision to outsource specific tasks instead of hiring a new employee. Employee costs are rising, but outsourcing has never been more affordable. It is less expensive to my customer – and increases our efficiency and customer service to have some tasks outsourced. It also means negotiating with vendors who provide you with the good and services you re-sell…things like shipping, payment terms and other seemingly "minor" details can cost 10% or more on the bottom line. Take the time to negotiate these issues and maintain healthy relationships with all vendors to assure that you retain the privileges far into the future regardless of what other obstacles your business may face.

Most importantly, you can do none of this if you don't have a written account of your income, cost of goods sold and overhead expenses. You must do this – and with this, you can prepare a budget and cash flow projection for the months to come. Here at HALO Business Advisors, when we have assisted a client with the preparation of one of a cash flow projection and the client accepted it based on the goals THEY set for their business, we have NEVER had a client not achieve this cash flow projection. It is truly one of the most concrete and fulfilling elements of our coaching relationships – because we know how well it works – and we never grow weary of watching our clients' succeed.

Small Business Tip: The bottom line? Make the greatest margin you can make on the goods and services you sell while spending the least amount on the overhead expenses of your business. A constant and watchful eye on these two points of your finances will assure profits at the end of the year.

Nina Kaufman at womenentrepreneur.com wrote a great checklist if you’re considering the renewal or beginning of a commercial lease for your small business:

Look Before You Lease – WomenEntrepreneur.com.

For us, this hits close to home since we leased our own office space in downtown Main Street district back in the early fall of 2008. Since then, I’ve been very thankful for the wise negotiations Andy made which followed many of Nina’s rules in the aforementioned article… Here’s how it played out in our world:

1. We negotiated to lock our lease rate for three years in 12-month renewable periods. We are only married to this space for one year – but we also know that we can budget the exact same rental amount per month for up to three years.
2. We negotiated to get discounted rent for a few months while we completed needed renovations to the building – a win/win for both our small business and our building owner. He got some needed renovations – we renovated to meet our needs – and the reduced rental costs per month helped ease our cash flow during this transition period.
3. We did a close inspection of the building prior to starting negotiations. We made a list AND photos of every problem we found. We itemized those problems that had to be fixed and those we could live with. But having the list gave us negotiating points throughout the process.
4. We seek to keep a great relationship with our landlord. We are landlords ourselves – owning property and having to make similar negotiations from the owner side of things in other communities. A well-negotiated contract is good. What’s even better is when it’s combined with an open, clear and frequent ongoing relationship between renter and landlord – lessor and lessee.

There are unique challenges today – like tight credit and rising health insurance costs – but entrepreneurship offers benefits like no other gig on earth. There is the reward for your hard work, the control you can hold over your own destiny, the flexibility and passion that you can enjoy in your work.

If you think with your pocketbook, take a long hard look at your investment portfolio… if you were to invest some of your savings into an entrepreneurial venture – as well as a good chunk of your heart and soul – you would have far greater control over your investments – and your future – than any stock broker can provide. There are businesses for sale with solid track records – and like so much of the marketplace – it’s a buyers market.

For some ideas…check out www.bizbuysell.com.

Wall Street Journal blogger Kelly Spors pontificated on entrepreneurial stats this morning, and it’ll be interesting to see how the cookie crumbles as corporate America continues to downsize…

Independent Street : Will Economic Hard Times Result in More Entrepreneurs?.

For me, I am more passionate than ever before – and I am seeking new ways to refine my entrepreneurship skills and create an information pool whereby more of you may also be successful entrepreneurs.