Features - January/February 2010

What I Know Now

Readers share their biggest business lessons

Lesson learned. How many times have you told yourself that since starting your own business? In most cases, small business owners start with a money-making idea--not a customer service model or a sales strategy they’d like to try out. Figuring out what sells is step one. For everything else, it’s learn as you go. Sometimes the lesson is learned the easy way, as in, "What a great idea--Why didn’t I think of that?" Other times the lesson is the only thing separating your business from failure, as in, "I will never let myself make that mistake again." On the following pages, you’ll find business advice from fellow MyBusiness readers. Learn from their mistakes--and their aha! moments--and start implementing these ideas in your business today.

Customer Service

Help customers find what they need--even if there isn’t much profit at the time.
Bev Goff, Education Station, Bellefontaine, Ohio

No matter what you think might happen, always be honest with customers.
Alan Lowe, Lowe’s Pellets & Grain, Greensburg, Ind.

Take care of your existing customers as if they were brand-new."
Robert McClintic, Bob McClintic & Associates, Grand Rapids, Mich.

Firing customers is more important now than it has ever been. Spending 90 percent of my time for 10 percent pay is no way to grow.
Mike Broady, Car Port Auto Repair, Ellsworth, Maine

I learned that it takes a certain kind of person to do customer service, and in my case, that person’s not me! Instead, I delegate that responsibility.
Larah Duncan, Speedy Automotive, Show Low, Ariz.

It’s better to under-promise and over-deliver.
Chris Mayle, Perry Pools and Spas, Norwalk, Conn.

Be candid and immediate in communicating bad news, whether to clients or employees.
Greg Barton, ATL, Mesa, Ariz.

The personal touch keeps my customers happy even though my prices may not be the lowest.
Chas Whiteside, Ana-Lab Corp., Kilgore, Texas

Respond to a client the same day as a request, even if you don’t have all theinformation the client needs.
Nancy Yale, Cruise Resort & World Travel Inc., Fairfield, Conn.

Call your customers to resolve sticky issues. Even in this Internet age, a real voice goes a long way toward maintaining good customer relations.
Roland Edwards Jr., Palooza Toys, Milford, Pa.

Every time you answer the phone, smile. It comes through in your voice.
Ernest Adams, Nutmeg Justice of the Peace, Leyland, Conn.

Offer a 100 percent satisfaction guarantee. It sends a strong message, and customers rarely return things.
Margot Tohn, Park It Guides, New York, N.Y.

HR & Staffing

Be fair and consistent with policies, and reward success and improvement.
Audrey Rehnert, Merry Maids, Bethlehem, Pa.

I’ve learned how tough it is to decide when to add staff. I find myself in a tough spot between being able to afford an employee and knowing that by not adding someone I’m limiting my ability to grow.
Erik Mehr, Erik Kitchen Design, Avon, N.J.

People don’t change. Accept them for who they are or look for someone who fits your requirements.
Brian Mahin, Mahin-Walz, Inc., Minneapolis, Minn.

Hire people to make up for your weaknesses and focus on your strengths.
Eric Bishoff, The Bishoff Financial Group, Columbus, Ohio

The owner’s attitude has a major effect on the attitude of employees."
Mike Smith, Discount Wheel & Tire, Lumberton, Texas

I have learned the importance of better screening potential employees and keeping documentation.
Steve Gillihan, Poplar Bluff Monument Works, LLC, Poplar Bluff, Mo.

Find a balance of accessibility yet detachment in leadership.
Tyeis L. Baker-Baumann, Rebsco Inc., Greenville, Ohio

Hire slowly and fire quickly.
Hewitt Harned, Southland Woodworks, Myrtle Beach, S.C.

Employees, no matter how wonderful as individuals, do not have the same commitment to the business as the business owner.
David Majercik, Williamsburg General Store, Westhampton, Mass.

We’re all strange--some more than others--and your ability to work with different types of weird is the key to any business.
Blake Woodard, Woodard Insurance, Fort Worth, Texas

Pay attention to company morale and keep things positive.
Michael J. Orlich, RLE Technologies, Fort Collins, Colo.

Surround yourself with quality people, empower them, make them accountable, and you will have an engaged workforce that helps the business succeed.
David Van Ahn, Heartland Investments and Insurance, Des Moines, Iowa

Take your time when hiring. No matter how pressed for help you are, it will pay off in the long run.
Brian Reichart, Good Times, Estherville, Iowa

Be meticulous in creating the culture you want, and be diligent in weeding out those who don’t fit.
Croft Elsaesser, American Clay Enterprises, Albuquerque, N.M.

As much as you would like every employee to think like you, this will never be the case. Employees have their own opinions. Accept them and play up their strengths.
Renee Rouleau, Renee Rouleau, Plano, Texas

Hire people you like and who are genuinely nice, caring individuals. You can always teach procedures and duties, but you can’t teach someone to be a good person.
Elizabeth Hostler, Greensburg Bed & Biscuit, Martinsburg, W.Va.

Hire the smallest number of people necessary to realize your objectives. Anything more is simply ego or poor resource management.
Mark Britton, Avvo Inc., Seattle

Finance & Accounting

Having benchmarks and goals is non-negotiable. You have to know where you are going and how well you are doing getting there.
Lynn Stieglitz, Milan Center Feed & Grain, New Haven, Ind.

In a tight economy, customers and banks operate much differently.
Thomas Rector, Rector Communications, Muncie, Ind.

Pay attention to inventory and accounts receivable in good times and lean times.
Elmer Stobel, Clancy Supply Inc., Portland, Ore.

Hire your own attorney when entering into a business partnership. Making money makes everyone happy, but losses will cause you plenty of heartache and pain--tenfold if you don’t have people on your side.
Ron Whitehead, Ron Whitehead Builder LLC, Homosassa, Fla.

Get a lawyer to look at all contracts before signing.
David Preston, David Preston Insurance, Amarillo, Texas

Learn how to file claims in small claims court and how to follow through once you have received the judgment.
Jeannie Schubert, Atlas Specialized Transport Inc., Lakeville, Minn.

Understand what your true operating costs are and include these costs in every project.
Sam Moosa, Anytime Services, Asbury, N.J.

Cash flow is king. All the receivables in the world are worthless if you can’t pay your bills or make payroll.
Greg Strange, CounterTop Solutions Inc., Broken Arrow, Okla.

Figure out how to manage cash flow, not just for today or this week, but for the next month and year.
Dave Leskovec, Fan 4 Life, Twinsburg, Ohio

Put together a well thought-out business plan. I would be so much further ahead if I had a business plan from the beginning.
Christopher M. Bennett, Advantage Lending Group Inc., Bluffdale, Utah

Forecasting is a very inexact science."
Pete Turner, Cleaning Enterprises Inc., Phoenix

It’s worth the money to hire a good bookkeeper and an accountant with a proven track record. But even with a strong, professional financial team, it’s crucial that you understand how to read your balance sheet and to be in control of your finances.
Wendimere Reilly, The Health Chic Inc., Haines City, Fla.

If it’s not working, stop throwing money at it."
Steve Mongeon, John Lopez Welding School, Bakersfield, Calif.

You have to spend money to make money, but you also have to pay close attention to your budget. It’s a balancing act.
Kimberly Monson, The Fashionette, Glasgow, Mont.

Don’t try to do your own payroll. Leave it to the experts.
Bob Duthie, Duthie Learning, Nashville, Tenn.

Pay off business debt quickly, or it will sink you.
Fred Morton, F & M Morton Co., Portland, Ore.

Keep your credit report clean so that you have credit available when you need it.
Joan LaGuardia, LM Engineering Inc., Youngstown, Ohio

Bill in advance.
Janet Driscoll Miller, Search Mojo, Charlottesville, Va.

Have someone more qualified than you double-check your numbers.
Brad DeGraw, Tocayo LLC, Mesquite, Texas

If you’re a sole proprietor, you are missing out on lots of possible deductions and protections. You may be small, but you still need to be protected.
Karen Moehr, Moehr and Associates, Tucson, Ariz.

The hardest lesson I learned in the early days of my business is to never capitalize the business using credit cards.
Maris Somerville, Somerville Associates Public Relations, Los Angeles

Business Ownership

Join a trade association where you can share ideas and learn from fellow business owners.
Kirk Brown, Buck’s Shoes, Fremont, Neb.

What works today may not work tomorrow." George F. Poppe III, The Poppe Agency, Metuchen, N.J.

Don’t panic. If you must, do it quietly and by yourself.
Thurston Atchley, In Phase Services, Chattanooga, Tenn.

Standard business principles will not apply to every business.
Joseph D. Miller, The Comic Store, Lancaster, Pa.

Don’t make hasty decisions. Take time to think things through and from all angles."
Tona Wachtstetter, Doyle & Wachtstetter Inc., Clute, Texas

I’ve learned the importance of being involved in organizations that monitor and track government activities that are harmful to my business.
Mike Mitternight, Factory Service Agency Inc., Metairie, La.

Getting to the desired outcome may take an entirely different path than planned.
Tommy Sporleder, RT3 Enterprises, Windsor, Colo.

Things will always take twice as long and cost twice as much as you think.
Gary Anderson, Go Kahuna, Baton Rouge, La.

Always do your best. The client may not know the difference, but you will.
Pablo Solomon, Musee Solomon, Austin, Texas

Always be 100 percent honest and fair with customers, employees and vendors. Not only will you sleep well, but it is also a great way to build a business.
Brett Moore, Moore Tire, Higginsville, Mo.

Say thank you a lot--even when you don’t want to.
Anthony Migyanka, Mobile Money Minute, Irving, Texas

Don’t fire--or hire--based on one success or failure. Business has ups and downs; learn to continue without making emotional decisions.
Courtney Caplan, Caplan Miller Events, Austin, Texas

Be involved in your community. Volunteer your time to assist on committees and events, and give in-kind contributions where possible.
Terry Neese, Terry Neese Personnel Services, Oklahoma City, Okla.

Sales & Marketing

Keep your eye on the ball. Change and refine your products and services by listening to your customers, the economy and your gut. Then act on it.
Mark Howard, Lucky Dog Creative, Phoenix

There are some jobs you shouldn’t take.
Kevin G. Page, Page Engineering Consultants, Warren, N.J.

Price right at the beginning. If you discount the initial setup, the client will always be looking for that discount.
Carol Mitchell, Carol Mitchell & Associates, Port Richey, Fla.

Cold-call selling--the least attractive form of sales--is often the most effective.
Bill Bracco, Kiva Enterprises, Tucson, Ariz.

Increased sales don’t always mean increased profits if you aren’t careful with expenses and margins.
Scott Mildenberger, J&J Affordable Furniture, Hamilton, Mont.

Do not cut your price just to make the sale.
Rob Wright, H L W Builders Inc., East Fulton, Mo.

Do at least one marketing activity every day, preferably at the start of the day so you can be sure it gets done.
Stacy Karacostas, Success Stream, Seattle

You have to sell your whole business, not just your product. Focus on overall value, not just price."
Dave Bartlett, Bartlett Instrument Co., Fort Madison, Iowa

Becoming obsessed with what competitors are doing only takes away from the time you’re developing your own business. With any great opportunity comes competition. Be aware of your competition, but not obsessed.
Anderson Schoenrock, ScanDigital, El Segundo, Calif.

Get your face on camera: Add video to your business. Video allows the customer to quickly know, like and trust you."
Erin Huggins, Syner-G Studio, Los Angeles

Recessions are a great time for small businesses to advertise and build market share. Your competition backs off, thereby creating opportunity, and placement rates for ads are cheaper.
Larry Cohen, Glyphix, West Hills, Calif.

Your business name and logo should say what you do. I chose a cute name and ended up changing names and branding three times. Do it right the first time.
Dida Clifton, TheOfficeSquad.com, Las Vegas