Small Business Center

“It is time to rework work. Let’s get started,” declares the authors of the new business book Rework by 37signals founders Jason Fried and David Heinemeier Hansson.

They want to change how businesses are run, and to borrow a segment title, “Make a dent in the universe.” They are definitely knocking on the universe’s door.

I read a review copy, and was inspired to rework my own thoughts on entrepreneurship and business strategy.

What Worked Well in Rework

This is a book you don’t want to judge too quickly. On first blush the short content seems gimmicky for a book claiming to have a revolutionary outlook.  The chapters cover an arc of business growth with intriguing names:  Takedowns (addressing the barriers to starting a business), Go (Getting started in business), Progress, Productivity, Competitors, Evolution, Promotion, Hiring, Damage Control, and Culture. Within each chapter is a bold statement, a short page or two of explanation, and a memorable image, all with a ready-for-e-book feel.

Ah, but what seems lacking on the surface can be fulfilling when examined.  Rework will pleasantly surprise you once you delve in.  This book offers simple been-there-done-that advice  — and it is anything but shallow.

It distills the typical business subjects to essentials, then offers inspired suggestions with a sharp imaginative eye. Here’s one piece of realistic advice that rings true:   entrepreneurs should seek alternative means to get their business  exposure besides major media publications.  In the “Forget about the Wall Street Journal” segment they write:

“Pitching a reporter at one of these place is practically impossible… you’re better off focusing on getting your story in a trade publication or picked up in a niche blog.”

The Takedown segments get the ball rolling, with sharp headlines throughout the other chapters.  Hansson and Fried explain why Meetings are Toxic and Press Releases are Spam.  Especially powerful was the segment on the “Myth of the Overnight Sensation”:

“It’s not the whole story.  Dig deeper and you’ll usually find people who busted their asses for years to get into a position where things take off…. Trade the dream for overnight success for slow, measured growth…. You have to do it for a long time before the right people notice.”

I loved the musings on “Learning from Mistakes is Overrated”:

“You might learn what not to do again, but how valuable is that?  You still don’t know what you should do next…. Evolution doesn’t linger on past failures, it’s always building upon what worked.  So should you.”

Every idea proposed shows imaginative ways to spur you to intriguing decisions.  Example:  letting your customers outgrow you:

“When you let customers outgrow you, you’ll most likely wind out up with a product that’s basic….  Small simple needs are constant. There’s an endless supply of customers who need exactly that.”

Steps in the growth process are turned on their head without being dumbed down.  Tips such as “Hire managers of one” will re-imagine the hiring process for leaders.  “Resumes are ridiculous” says resumes are “filled with action verbs that don’t mean anything.”

Rework relies on the authors’ perspective, who deliberately set about creating a small business and avoided being bogged down by external factors such as venture capital or extensive research.  That’s the perspective of this book.

References to outside sources to support their views do appear, like in the overrated mistake learning example (it mentions a Harvard study on entrepreneurship and failure).

Readers are cautioned to de-emphasize traditional tools for early efforts — “Your Estimates Suck” dovetails into the concept that not having a plan is okay. It is based on the authors’ experience.  These ideas are valuable for startups or small businesses with a few employees.

What Might Have Worked Better

In a few instances subjects contradict or need more explanation than a page or two.  A tip to “Pick A Fight” – calling out your competitors – seems to contradict a later query “Who cares what they’re doing?”  which is about ignoring your competitors.  Moreover, the Audi example in the “Pick A Fight” segment breaks a marketing rule to never mention your competition (doing so can remind your customers of the competition’s advantage over your product).

Miscues are rare, though.  In a brisk and comfortable pace Rework experiments well in reframing business.  It offers  practical steps for establishing culture, strategy, and productivity.

Who Should Read Rework

The advice in Rework fits small service firms with simplicity at their operational core.  Refreshingly the authors own up to their perspective, offering no apologies for its honest language, or for the fact that it is written mostly from the 10-year experience of running a 16-employee software firm.

Rework may not fully appeal to firms with engineered products or joint ad-hoc projects that want more detail regarding processes.  Managing a joint project between businesses can require coordination to make a profit.   Such joint collaboration is not deeply covered, a particular point given the increased tendency to coordinate small businesses remotely together.

Rework is right for entrepreneurs and small businesses that offer services and are intent on steady solid growth and profitability.   If you have a services type of business, this book will be ideal for you. The flexibility to scale advice, coupled with clear explanations, is what makes Rework a rousing success in its mission.  In its originality Rework has found a clever way to stir the entrepreneur in everybody.

One frustration I hear from a lot of small business bloggers is that they feel like no one’s reading. They see the big subscription numbers of pros like Darren Rowse or Brian Clark and they’re discouraged that their numbers are just nearly breaking into the hundreds. And then they stop blogging completely. Because, if only 100 or so people are reading your blog, what’s the point?

The point is the 100 people!

As a local business, you don’t need to become the biggest, most well-read blog on the Internet. You just need to connect with your audience and the people on the Web who could become customers. If you’re a local hardware shop in Detroit, Michigan and you’re able to connect with100 people who live in your area – that’s a pretty significant number. There are lots of benefits to being a ‘small-time’ small business blogger. Here are a few more.

More Intimate

Yeah, so you’re probably never going to have the readership that Darren Rowse has at Problogger, but a smaller audience allows you to really get to know the people who are in your community. You get a better understanding of what your customers want, who they are and you can form real relationships with them in a way that bigger bloggers have a difficult time doing. You can reach out to the person who comments regularly on their blog and get to know them on a more personal level. You may even be able to tie the online person with the real-life customer so that you’re better able to target them. Playing to a packed stadium may feel great, but it’s those coffee shop environments that introduce you to your real fans.

More Engaged

At my other blog Outspoken Media last week I encouraged all the lurkers to leave a comment and tell me why they lurk instead of participating and how I could help bring them into the conversation. The response I received from people who had never commented before was amazing. And while reading over their replies, I noticed that many feared commenting on posts that had tons of comments or where they didn’t feel a connection with the blogger and the audience. They were looking for a place where (a) their comment would be heard and (b) a place they could establish a connection. Niche small business blogs are where many commenters enjoy hanging out. It allows them to get to know the blogger and really feel part of the community. Rather than feel like an anonymous person, now they know their voice will be heard and they feel more invested.

Better Signal

Having a smaller audience that you can get to know allows you to target content directly to their needs. There’s no trying to please a bunch of people who will never impact your business – you only have to worry about being useful to your customers. You can write content specifically designed to answer questions they’ve asked, respond to trends you’re seeing, and really talk to the people who matter to your company. It’s a lot easier to get to know your community when it’s made up of tens of dozens instead of tens of thousands. And the matter you know them, the more relevant content that you can create. Content that will get them off your blog and into your store.

As a struggling blogger, I know it’s hard to see the A-listers with their tens of thousands of readers, but for a small business, getting the attention of 100 of your most interested customers is nothing to turn your nose at. Imagine if you had 100 people in your store asking you product questions. Your blog is your customer service desk on the Web.

There’s plenty to watch in today’s small business news roundup from Small Business Trends. Here are links to the highlights from the news and blogs we follow.

Operations

How do you get more customers even in a tough economy? How about setting prices based on value not cost? Sound crazy? Read on. BusinessWeek

Let’s make a deal. Being successful in small business is about getting what you’re worth, but the key is to make sure you’re giving as good as you get. The Toilet Paper Entrepreneur

87% of business owners are satisfied with their jobs. A recent poll suggests business owners enjoy the highest job satisfaction (even over doctors and lawyers.) The pollsters suggest it’s partly because business owners make more money.  While that’s true in some cases, it’s not true across the board.  We at Small Business Trends think that a large part of the satisfaction comes from feeling in control … and being self-sufficient. Gallup.com

Marketing

Where is your online traffic? They’re on Facebook, LinkedIn and Twitter and it’s time to go get them. Here’s how. America’s Best Business Practices

How is your business standing out from the crowd? Are you a helpful book or an annoying direct mail flyer? Open Forum

Why your business really needs a blog. We know, we know. You’ve heard it all before.  But John Joyce explains why you really can’t afford to neglect this most important marketing tool. The Small BizNest

Startup

When should an entrepreneur say no to a paying customer? When doing business with the wrong partner could cost you much more. The Rise to the Top

How do you grow your business on a budget? One word: Magnets! Small Business CEO

Legal

Long Time Coming. The SBA under the Obama Administration has finally proposed a rule to implement a law increasing the share of federal contracts to women-owned businesses  … a decade after it was passed. NYTimes.com

Watch out for “unethical tax schemes”. A recent IRS e-News bulletin warns about schemes specifically targeting home business. While we at Small Business Trends believe you should get the deductions you’re entitled to, don’t fall for tax schemes that seem “too good to be true.” IRS.gov

Policy

Should small business people be calling the shots? A poll finds 51 percent of Americans believe the business community makes better financial decisions than Washington. Rasmussen Reports

How will health care reform really affect your business? Business owners have been screaming for years about the rising cost of healthcare/insurance.  But could the cure be worse than the ailment?  Learn what Washington’s prescription for a healthier America will cost you, according to the NFIB

Washington to the rescue? Really? Congress has OK’d more money for popular SBA backed loans and the media is again portraying small businesses as needing a bailout. But one community banker has a different view. The video is more interesting than the text story — watch it. CNNMoney.com

The Cadillac health care tax. OK, it’s not a tax on your car. But the health care plan being proposed may actually hurt those small businesses already offering coverage. Kaiser Health News

Learn more about what’s important to your small business today. Here is our latest roundup of the news articles and blogs we’re reading and what’s important, from Small Business Trends.

Policy

Will small business really be better off with another layer of government regulation? Some small businesses have come out in support of a new Consumer Financial Protection Agency.  The U.S. Chamber of Commerce opposes. Entrepreneur.com

The road to patent reform runs through the Eastern District of Texas. VC investor Brad Feld runs this op ed about patent litigation in the U.S. and how it could strangle innovative small to medium sized businesses. Feld Thoughts

Employer-provided health insurance remains in proposal.  Excerpts from President Obama’s  remarks on his health care program today.  “The proposal I’ve put forward … builds on the current system where most Americans get their health insurance from their employer.” National Review Online

Tech

Want to know how other small businesses are using social media? Here’s a cool graph with stats and some other information. Mashable

Some things are just too good to be true. Free hosted phone service for your small business may be one of them. Be sure the company will still be around when you need them. SmallBizTechnology.com

Credit

The problem with small business – is it really lack of credit? In this interview, Senator Carl Levin (D-Mich.) insists he was told by one small business owner that lack of customers or sales was not the problem but only lack of credit due to lack of capital in the banking industry. How many small business owners would agree? TalkRadioNews.com

What do you need to buy a business? Before you even think about trying to secure a loan or other financing here are some things you may need to consider. Business.gov

Marketing

So, what do those little stars next to some Google search results mean? They may be an important factor in your Website’s positioning in the future and an important consideration when marketing your presence online. Wayne Liew Dot Com

New Hampshire small businesses are bucking a trend and exceeding the national average in exporting overseas. How that state’s small to medium sized companies are fostering growth and how other entrepreneurs can imitate their success at marketing abroad. NashuaTelegraph.com

What marketers really can’t stand about advertising agencies. Lack of communications, industry knowledge and insight into clients’ needs top the list in this report. American Association of Advertising Agencies

Who are you following on social media? If you’re just checking your own brand, you may be missing the boat. BetterCloser.com

Operations

Small business payrolls showed a 2% increase in hiring and slightly larger paychecks. From the SurePayroll Small Business Scorecard for February 2010. Data based on thousands of small business payrolls. SurePayroll.com

Despite the best laid plans, your product or service will someday fall short of customer expectations. Roger Breisch, Executive Director at the Batavia, Illinois Chamber of Commerce draws on 25 years of business experience  about when the worst happens. Oops…There Goes My Worldview

What if there were a simple and complete guide on how to keep your customers happy? You’re in luck! Ken Beaulieu has seven tips that should keep customers and clients sticking to you like glue. FuelNet.com

Steer clear of the usual tax preparation pitfalls by keeping good records. Tips from the Associated Press to keep your business out of trouble at tax time. Associated Press

The secret to turning your business into one you can sell. John Warrillow draws on his experiences building his business, which he sold a few years ago. Small Business Trends

Can you really get something for nothing these days?  The good news is that, yes, you can.   The great group of guys over at Magntize have offered Small Business Trends readers the opportunity to throw their name into the hat for a chance to win a complimentary pro account at Magntize. 

Magntize is a site that helps you to introduce yourself to the world.  As the guys at Magntize say, “Sure we all have blogs and accounts with various social networking sites. There are places to post photos, upload videos, chat with friends, edit your resume, or update your status… These sites are fostering conversations among folks all over the world, but if someone wanted to know more than 140 characters about you – where would you tell them to begin?”

In short, Magntize makes launching personal websites so easy your grandma could do it. The challenge for most people is that designing a personal site, coding it out, purchasing a domain, and setting up hosting is completely overwhelming. The guys at Magntize have set out to make it a much simpler process for you.

The free pro account at Magntize includes:

• Your own domain (http://yourname.com)
• Custom email forwarding from your domain (email@yourdomain.com)
• Access to our Premium themes as well as the custom-designed Magntize iPhone version of your site.
• A personal aggregate RSS feed that combines all your web activity into a single stream

This is part of a new giveaway program we have implemented here at Small Business Trends.  Each month, we hold a randomly chosen drawing and give away free stuff to you.  There will be something different that is of interest to entrepreneurs and small business leaders every month.

This month, we have 3 complimentary pro accounts at Magntize to give away.  The winners will receive a pro account credited for 12 months of free service and one domain name registration.  This particular drawing is open to anyone, anywhere in the world.

TO ENTER: Visit the Small Business Trends giveaways page

DEADLINE TO ENTER:  Midnight PST (3:00AM EST)  on March 21st, 2010

Be sure to bookmark the giveaways page, where we list each month’s contest or drawing. We’ll also include discounts and special offers. Check back often to see what’s new.

How’s the first quarter of 2010 — and the rest of the year — looking for you and your business?

Are you primed and ready to make money this year?

Have you put a plan in place to promote your business and maximize your success?

Here are ten quick, easy-to-implement things you can do that will guarantee your online business will be making you money this year:

Write down your personal affirmation for the month and the year.

The goal here is to help you step back from the hustle and bustle and stay focused on what’s important to you.

Get your story, idea, product, or service announcement out into the marketplace seven different ways, all at once.

Choose from these options to make a powerful impact:

1. Press release
2. Blog post
3. Facebook
4. E-zine blast
5. Email announcement
6. Videocast
7. Downloadable audio snatch
8. Free e-book
9. Podcast
10. Teleseminar

Use free classified ads to promote your business.

If you have a knack for writing short ads, you will be able to increase your site traffic by using free (or pretty darn cheap) classified ads. Place ads where you know your target audience will see them.

Introduce yourself to three potential referral sources.

A nurturing referral relationship can be quite profitable. So think of professionals who would be good referral sources for you. Then make contact with them today.

Add three success stories to your website.

You already may have testimonials from your clients on your website. Now create a space for their before-and-after success stories. Remember to include a link back to their sites so everyone gets some love.

Add a tantalizing promotional “special” to your email signature space.

Put a brief promotional line about the special product or service that you are giving away (or offering at a reduced rate) this month.

Write each of your clients and customers a personal, hand-written “thank you” card.

Thank them for sticking with you through the 2009 recession. Be sure to include a coupon they can use for a special product or service.

Offer a deal, such as “buy-one-get-one-free.” This will increase your sales!

Follow up with all your 2009 leads that showed an interest in your product or service but didn’t buy.

Call (don’t email) them and see if they now have a need for anything you offer. 

Let your clients know about something big you’ll either be doing or offering in 2010.

Here are some big ways to make an impact and get their attention:

• Book launch
• DVD training program
• Keynote speaking engagement
• Public seminar
• Corporate training program
• Boot camp
• Mentoring and apprenticeship program
• Weekend retreat
• Television show
• Membership website program
• Special teleseminar series

As a business owner with an online presence, you need to offer special buying opportunities throughout the year. This list will help you do just that.

Implement one idea each day. You’ll not only be promoting your online business, you’ll also be making certain it will be a success this year.

Editor’s Note: this article was previously published at OPENForum.com under the title: “10 Things You Can Do to Make Your Online Business Money” It is reprinted here with permission.

In order to provide users with the absolute most relevant search results, Google is doing its best to provide a more local, a more social results page. The days where location doesn’t matter on the Web are over. Over the past year we’ve seen a strong push from Google to improve results by showing users what’s located closest to their neighborhood, be it a physical neighborhood or simply the neighborhood where they “hang out” on the Web. First they began automatically personalizing results by IP, then it was real-time and social signals. And they’re not slowing down.

Let’s look at two new advancements made by Google last week and how it may affect small business owners.

More Local

On Friday afternoon Google launched ‘Nearby’ search option. The new feature will allow users to filter their search results based on a geographic location that they can set instead of appending location names directly to their search. For example, many users have grown accustomed to performing searches like [New York City pizza] or [Denver plumber] in order to receive local results. Now they don’t have to. Instead, searchers will be able to refine their search by their default location or a custom one by using the Search Options panel that appears on the left hand sidebar. It, arguably, makes search easier.

The feature is live on the google.com domain but if you’re not seeing it, Google has pre-defined some searches for people to test out.

For example, Google listed the following search examples:

[things to do on st. patrick's day] – In the Minneapolis region
[food blogs] – Near you
[farmers market] – Near the city of Ithaca
[dmv] – In the same state as Tucson

More Social

Back in December Google announced it would integrate real-time search into its search results. The change instantly put live news, tweets, and blog posts directly into the search results and gave small business owners yet another reason to be proactive about monitoring their online reputation. Well, last week Google added another prominent source to pull content from and display in its real-time search results – Facebook. While Google won’t be pulling information from your individual profile, it will publish official updates from Facebook Fan Pages, profiles generally created for celebrities, major brands and, of course, local businesses.

This is a pretty cool new addition from Google because it gives small business owners another way to dominate the search results for their name. And because Facebook will only pull updates that the owner of the page creates themselves, there’s less of an online reputation management headache to worry about. You control what Google may or may not see about you. You can make sure that customers find out about special deals, events, and whatever’s going on at your business.

What Does All This Mean?

It means you need to start thinking differently about how you market your site. It used to be that location didn’t matter. Google ranked sites based on the relevance to a particular keyword or phrase. More and more we’re starting to see Google giving more prominence to information that is relevant based on other factors.

Local is more relevant. You need to ensure that Google knows where you’re business is located. That means getting the proper local citations, making sure your Local Business Listing is accurate and that you localize your Web content by using a complete address.

Social is more relevant. If you haven’t created a Facebook Fan page for your business, now’s the time to do it. Google is pulling this information into the search results and using it when someone searches for you. Use this to your advantage. Make sure you’re sending out valuable information and that you’re also letting them find a profile that is well-built and user-friendly. We’ve previously shared tips on how to get the most from Facebook Fan pages and how to get people to join your Facebook Fan page, which may be worth another read. With Google consistently turning up the social knob and updating its idea of relevance, you need to make sure your relevant in 2010’s version of search.

Obviously most people know me as a cartoonist, but I’m also a stay-at-home dad. I quit my last day job soon after my son was born and I’ve been juggling diaper pins and ink pens ever since.

Usually the two roles don’t intersect. I know a lot of cartoonists that get material from their families, but I prefer to have work be work, and Dad be Dad .

But, to be fair, occasionally they can’t help but overlap, such as the above cartoon which came about after a routine checkup at the pediatrician with my daughter.

(And, to be fair, “object permanence” is inherently funny.)

We hope you’re enjoying your daily small business news roundup here at Small Business Trends. Here is the latest from news sources and blogs we are following regularly.

Marketing

What can Lego teach us about guerrilla marketing? Shane Gibson talks about giving away real value and offering a variety of options in the digital world. Closing Bigger.net

Does your business really need customers? Here’s a completely different way to look at and treat the people you serve each day. Walt Goshert

Self-Development

How to create your own online business training. Whether you attend an accredited business school or design your own “personal MBA” with online and other resources, the key to a good education is the information you take away. Copyblogger

Learn better speaking skills with seven simple steps. When it’s time to do a presentation for your small business, some simple advice will help you shine. MarketingProfs Daily Fix

Tech

Google Translate breaks the online language barrier. Think Skype is something? Joel Libava will tell you about one more tool that will increase your small business’s global reach. The Franchise King

New mobile devices may challenge Apple products. What will a Sony line of products offer by way of small business tech tools? WSJ

Operations

Want to make more money from your small business while putting less time in? Who doesn’t? But the key to success may be much more than simply increasing your efficiency. Bloggertone.com

Embarrassed by your profit margin? Remember, profitability is a sign of a healthy business and of good value delivered to your clients and customers. MyProjectTracker

Does your small business need a lawyer? Better read this first. Open Forum

Do you take notes while meeting with clients? Or when having any kind of important business meeting where issues are being discussed and hashed out? You should and here are some more tips on how to do it right. Sales Tip A Day

Startup

A great business is about more than a great idea. When it comes to launching your next venture, you’ll need plenty of hard work and the right skills. 37 Signals

Actions speak louder than words. What’s the difference between talking about that startup idea and making it happen? The answer is simpler than you think. Chris Brogan

Ever dream of launching an online retail store? Entrepreneur Cristian Dorobantescu talks with one small business owner about his experiences in the competitive world of e-commerce. Entrepreneurship Interviews

Policy

Are more loans really the key to recovery? Or is easy credit what got us into this mess in the first place? Cato Institute

More sales not government incentives are the key to economic growth. Businesses are happy about any tax breaks, but a $15 billion jobs bill won’t create new hires on its own. WSJ