Micro Tips for Micro Businesses

Today’s tip: Service with a smile

There are hundreds of books written about customer service and many of them offer tips and “secrets” to serving customers. The only secret is to treat your customers with respect and give them what they paid for. That’s pretty simple, so why are their hundreds of books written about customer service? Because there are hundreds of ways to show respect and to serve a customer.

• Smile! A smile can really make you seem friendly, warm and caring. Friendly people attract people.
• Shake hands. Offer your hand when first meeting a potential customer. This might make you feel uncomfortable because teenagers don’t usually shake hands, but watch adults in the business world. They frequently offer their hand when being introduced. Practice on friends or your family if you need to get comfortable shaking hands.
• Look them in the eye. Making eye contact shows confidence if even you don’t feel confident! Looking directly at someone also is a sign of respect (if you’re not staring!).

I was giving a workshop on teenagers and micro businesses at a homeschool convention when a 12 year old boy came up to me after the program, extended his hand and said, “Hello, I’m Jack. I really liked your presentation.” I was immediately impressed by Jack because he offered his hand to me.  Although he was young and very small in stature, I knew in an instant that this young man would be good at whatever he set his mind.  Adults are very impressed by a handshake and a smile.

Carol Topp, CPA

http://MicroBusinessForTeens.com

Find Micro Business for Teens on Facebook!

• Expand upon your interests. “Find a task (or) work you like and that is in demand,” says Lucas Rice, 18, who runs a successful landscaping business in Loveland, Ohio. “With my business, I like to be outdoors and to work with my hands, which was one of the reasons I chose landscaping.”

• Price wisely. “Feel around and see what other companies are charging,” then price competitively, Rice says. “When you’re starting out, go a little lower on price in order to start capturing some customers.”

• Make taxes less taxing. Save every work-related receipt. Those expenses could become tax write-offs. IRS.gov has details on dependents, such as children, filing tax returns.

• Don’t overinvest in supplies/equipment. “Allow your business to grow, and then grow your equipment into your business,” says Rice, echoing advice he was given by others. He invested in his first riding mower at age 12 (bought at a yard sale with savings from a newspaper route) and as his customer base grew, he conservatively bought more equipment.

• Promote your business and yourself. “Seek business; do not wait for it to come to you,” says Rice. “I go and welcome new people in the neighborhood and offer my services and give out business cards.” Archer promotes herself and her products on the Web, as well as through fliers she places into shipments to customer

Lucas is one smart kid.  I know him personally; he’s one of my business clients!

The Kauffman Foundation conducted an online survey of 2,438 youth ages 8 to 21 about entrepreneurship. It shows that four in 10 young people would like to start their own business in the future, while another 37 percent believe starting their own business is a possibility.

Those who want to have their own business say their top reasons are

• to use their skills and abilities (92 percent),
• build something for their future (89 percent),
• be their own boss (87 percent),
• see their ideas realized (81 percent)
• and earn lots of money (85 percent).

In the United States, 63 percent of respondents in the Harris survey already believe that, if they work hard, they can be entrepreneurs. Twenty-five percent of the youth believe that entrepreneurship is a more desirable career opportunity than other options.

Fact sheet on Youth Entrepreneur Survey

I like their reasons. Starting a micro business and being an entrepreneur is about so much more than just making money-although that’s a nice perk!

But why do only 63% believe they can be entrepreneurs? That’s only a little over half! Is it because of fear, lack of encouragement or lack of understanding what an entrepreneur really does?

And only 25% believe entrepreneurship is a more desireable career choice that others. That’s pretty sad. Maybe these students see only the negative side of too many failed businesses and not the potential of entrepreneurship as a viable career choice.

• Offer something for free: You can offer your time or a low cost item for free. People really enjoy getting something for free.

• Offer discounts or coupons: Offer 10% off the second purchase or make a coupon good for a discount if the customer purchases a bundle, like buy 4 for the price of 3.

• Listen to your customers as they explain what they need. You may be able to sell them additional services. If you are hired to babysit, offer to clean up the kitchen also.

• Be a hard worker: Do more than expected and you’ll find your customers will do word of mouth advertising without being asked. If you are hired to mow the grass, ask if they would like the edges trimmed also.

• Clean up after you are finished. Leave the house or yard better than you found it and you’ll be asked back again and again.

I was contacted by a TV producer from PBS’s Biz Kid$.  She is looking for teenage entrepreneurs to showcase on the show. If you are reading this blog, she wants your story!

Here’s what she wrote:

Hi Carol,

I came across your website while researching stories about young entrepreneurs. I am a TV producer currently producing Biz Kid$ – an award-winning PBS series where kids teach kids about money and business. The series helps young people understand the basics of making and managing money, and how to start their own business.

Biz Kid$ is produced by the creators of Bill Nye the Science Guy and has aired on over 90% of PBS stations, reaching over 115 million US households.

Biz Kid$ includes short profiles of young entrepreneurs from across the country. We are always looking for interesting business stories about young business owners. I would love to enlist your help in reaching out to teen entrepreneurs, and possibly showcase their business stories on Biz Kid$.

Please visit our website for more information: www.bizkids.com. I look forward to hearing from you.

Regards
–
Shilpa Singru
Associate Producer
Biz Kid$, Seattle, WA
www.bizkids.com
425-286-3567

So can you help Ms. Singru?  Are you a teenager with a business?  PBS might put you on their show.

Contact her directly or email me and I’ll forward your story to her. Be sure to tell me if you get picked for the show!

Go check out an episode (or several) now.  You’ll learn a lot and maybe get encouraged by what other teenagers have done.

Biz Kid$ shows

Record keeping is extremely important to the success of every business. Small businesses that keep good records are more successful in the long run.

Micro business owners should keep record keeping simple.

Here are some great tips to help:

• Use duplicate checks

• Separate your personal and business checking accounts

• Do not mix personal and businesses expenses

• File your receipts by category, not date

• Use the memo line of a check to explain the expense

• Keep a mileage log even if it’s just a calendar with the destination noted. Look up mileage using Google Maps or Mapquest

• Keep a calendar of appointments

• When buying equipment that you will use for longer than a year, make note of the date and total price including sales tax and shipping. Your accountant will need this information to calculate a depreciation deduction.

• Estimate the business use percentage on items that are both personal and business such as Internet usage, cell phone usage.

• Count your inventory at the end of the year

• Keep records of income such as sales slips, deposit slips, invoices for services

• Use a petty cash account and balance it frequently

• Get a W-4 form from every independent contractor you hire before paying them. A W-4 form records their legal name, address, EIN or SSN and is needed at tax time.

• Record who paid you on your bank deposit slips. Use carbon-less copy deposit slips.

Carol Topp, CPA

• Apologize when something goes wrong even if it is not your fault. Apologize that you couldn’t cut the grass on Tuesday because it snowed 4 inches!  The customer will appreciate your concern and maturity. Never make excuses. No one wants to hear you blame someone else. Just apologize.

• Answer calls or e-mails within less than 12 hours. Sometimes your competitor will get a job because they called back first.

• Fill orders quickly. No one likes to wait so don’t let orders sit for more than 24 hours.

• Show appreciation through cards, saying thank you and remembering special events like birthdays.

• Stay in touch: Consider a newsletter or an e-mail note to your customers. Tell them about new services or offer a coupon.

A Kingdompreneur:

1. Follows all the laws of the land
2. Treats employees and everyone that comes into contact with their business with the love of God

Do you see your business as a place to show love to people or your love for God? Why not?

This podcast on Blog Talk Radio called My Fathers Business has pretty helpful information for using your business to further love and faith.

Here’s some of their recent topics:

What is a Kingdom Entreprenuer?

Qualities of a Kingdompreneur-Courage

Qualities of a Kingdompreneur-Perserverance

15 Things Retailers Should Never Say

Negative Customer Service Phrases to Avoid

By Shari Waters

Shari has a great list of 15 things to never say to a customer.  Most apply to a retail business, like a store in a mall, so I edited her list to those that most apply to teenage micro business owners.

Is the Term ‘Small Business’ Demeaning?

Do you consider yourself a small-business owner? Or does that phrase make you cringe? Often, the terms entrepreneur and small-business owner are used interchangeably — but that’s not quite right either. Clearly, not all entrepreneurs are small-business owners and not all small-business owners are entrepreneurs. Still, there has to be some way to distinguish big businesses from, uh … not big businesses.

Is there a better term? Anyone got a suggestion?

Here are some of the comments:

Does it really matter what people call as long you are getting satisfaction from what you are doing and you are convinced that you are making a significant contribution to the economy?

When people ask me what I do, I do not say I own a small business, I say I own my own business. Nobody really cares if you own a small or big biz, they only care what you can do for them on a personal level.

the term small business is not demeaning; I think many people would rather be self-employed. I think society would be better off if there were more small business owners.

Entrepreneur in French has 2 meanings:1) It means being “un chef d’entreprise” or the head of a business. 2) It defines somebody who undertakes. From the verb Entreprendre.So all business owners are Entrepreneurs both by being business owners and undertakers.

I also agree the term is just way too broad. I suggest a new name for really small businesses (say, self-employed or freelancers up to 5 or 10 employees) be referred to as micro-businesses.

I really like that last comment about micro businesses!

No way is the term micro business demeaning!

Most people admire you when tell them that you started and run a micro business.  They will probably ask you how you did it. Be sure to send them here!