Marketing Small Business in Sacramento

Lessons from Companies Hit Hard by the Recession

2010-05-24T21:08:14Z

On Friday I had the opportunity to attend the Structures 2010 event hosted by the Sacramento Business Journal. I have come to enjoy attending the periodic varied themed events hosted by the BizJournal as they attract a generous mix of professionals. Friday’s event however was of particular interest. In recent years the event has celebrated local accomplishments in the building industry, sometimes highlighting developments in green building or public-private partnerships. This year however the BizJournal chose a more dour topic, the recession. Gone were the cavalier attitudes of “sitting out the recession” present at many business events. The panel assembled by the BizJournal was transparent and candid about the realities that face their industry and their individual companies. Of the architectural and construction firms represented neither was experiencing revenues half of what they experienced at their peaks in 2007. These businesses had some sobering advice that I think should resonate with any Sacramento Area business.

The local firms present where Carlton Engineering, represented by President Alan Carlton; Williams Paddon Architects and Planners represented by President Jim Williams. Also present was Tony Cooper, Founding partner of Shirlaws USA and Dennis Raymond, Principal at Raymond Business Advisors. Tony Cooper has acted as an advisor to companies struggling to survive the recession similar to Dennis Raymond who consults area businesses but also had the distinction of having worked for Irwin Union Bank which was liquidated by the FDIC in September of 2009. The topics covered by the panel ranged from the affects of a changing workforce on design to the future of the local economy and the effect on the shape of business.

The Economy – Is there an end in sight?
All of the panelists had realistic expectations regarding the economy. They all agreed that the peak economy was not only a realistic goal, but undesirable. Should production soon return to those levels, it would surely result in another collapse. Jim Williams comment was that the construction industry would “achieve stability when the industry looses capacity”. Under current conditions there are simply too many competitors in order to profitably divide the small amount of business. It is an uncomfortable reality across several local industries that in order to succeed some companies simply need to give up and find other industries or niches to compete in.
As for how the companies have managed to keep the right talent there was a surprising consensus regarding staffing. While Raymond commented that “people, innovation, and leadership are always good investments”, the entire panel agreed with Tony Cooper, “that when it comes to cutting employees, attitude comes before talent”. This can certainly be an unnerving reality for any worker who clings to specialty training or workplace skills for their future in the workplace.

The Evolution of the Workplace
Most professionals can point to evolution in the workplace. Gen-Y brings a new perspective and expectations just as technology has made telecommuting full or part time a reality for many organizations. Rarely do you hear somebody articulate so coherently and insightfully about the future of the workforce and it’s affect on workplace design. Jim Williams of William Paddon Architects and Planners offered just that. As companies seek ways to remain lean in real-estate coming out of the recession greater innovation in how the workforce gathers and interacts is going to be required. During one question Jim remarked that in many work places we go to our cubicles and “spend about half of our time emailing each other”. Jim obviously has some forward thinking notions of tomorrows work environment. His vision includes environments where “gathering places are going to be more important”, where workforces come together “to create the mission and the energy” that makes a company run.

Advice for Struggling Businesses
There are many companies and organizations still struggling through the economy. Nowhere to be found was any lifeline that things will be easy anytime soon. So what should a business be doing to make it? Jim Williams recommend that you ask yourself one simple question: “If you were going to start your business over again, would you do it like you are doing it right now?” The panelist’s comments reflected their openness, or perhaps the necessity, to consider measures they never before would have. For instance, Jim Carlton who for 27 years swore that a live person would always answer the company phone switched to an automated reception platform. Consultant Tony Cooper piled on with his comments that “you don’t go into a business to help old models work” and “if you’re working the model that lead you to success 5 years ago, you are going to whither on the vine”.

The panelists for the Structures 2010 event were speaking in regards to the beleaguered Sacramento construction industry. While construction is one of our heaviest hit industries, the panelists touched on some wisdom that applies across several of our regional industries.

If I had to highlight the overarching themes that effect local businesses it would be:

Practice Organizational Openness – Employee job descriptions should be more varied than ever. Everybody becomes a cost saver and innovator. Create lines of communication that breach traditional hierarchies.
Slaughter Sacred Cows- Holding to traditional business conventions may be keeping your organization from making necessary cuts.
Get Real – Do not waste time waiting for better markets to return. Build your business around today’s realities.

What lessons have you learned from your industry? What advice do you have for local businesses?

Focus on Social Media and Your Business Could Miss the Mark

2009-12-14T22:24:18Z

If you have been reading about communication and marketing tools over the past couple of years you are aware of the proliferation of new devices and platforms for marketing to and establishing community with existing and prospective customers. Studies continue to show that growing numbers of people are adopting the use of social networking and micro-blogging platforms for personal use and to “follow” or “fan” their favorite businesses. Social media will continue to grow and offer businesses perhaps the greatest value in time and investment to reach customers and successfully track the results of their efforts. Read this: your business needs a presence in social media.

As growing numbers of consumers and the businesses looking for their attention continue to migrate to online interactions there are some important thing for small businesses to keep in mind.

A significant portion of the population is not participating in social media

Our tendency as small business owners is to play to the crowd, appeal to the masses. Utilizing online tools whether they be social networking, a website, or an e-newsletter provides you with the ability to observe and track the response to your efforts. However, consider these statistics:

The following are those adults that participate in social media with a status update service:

37% of 18 to 24 year olds

31% of 25 to 34 year olds

20% of 35 to 44 year olds

Pew Research on Internet and the American Life August 18 – September 14 2009

While these are certainly some impressive numbers, it is not quite yet a majority of adults. As more businesses vie for the attention of these adults the online marketplace will grow more and more saturated and will require a more astute business owner. Consider the results of 50 percent of small businesses marketing to 40 percent of the adult online consumers (statistics regarding SMBs online from Internet2go and Merchant Circle study HERE).

Here are some tips for business utilizing social media:

Seek interactions that will drive foot traffic

This is likely an obvious tip, but necessary nonetheless. Networking and marketing online can lead to a great deal of interactive business. It is important to consider how through the use of interesting promotions or partnership you can bring people to your site. This could easily be accomplished through the hosting of a community event. Businesses are encouraged to make their space hospitable to community groups for gatherings. Recently I attended a panel discussion hosted by the SacPress at the Urban Hive. The Urban Hive has been a regular host for such events which helps make it a continually convenient location for freelance, creative, and solopreneur types looking for a collegial work environment. I would also point out the wisdom of the Sacramento Press utilizing other communal spaces for their events.

Another local business, Bella Fiore florist in Fair Oaks, recently had an in store contest that resulted in an online drawing. Guests who attended their recent artist showing during 2nd Saturday looked to an online announcement for the winner. A reverse of this would also be advised- have online submissions for an in-person drawing (must be present to win). Businesses would be advised to engage in these types of promotions that endeavor to create real world interactions.

Meet the people that you network with online – offline.

Social networking presents a variety of opportunities to interact with other business owner / managers. These relationships can be valuable as you consider opportunities for partnerships and cross promotion. Look for community events, trade associations, or affinity groups where you have the opportunity to meet these potential partners in person. Later this week I will be looking forward to an event co-hosted by the Sacramento Social Media Club and SacTweetUp. The annual holiday party, the HoliTweetup hosted at the Park Ultra Lounge (props to another small business opening its doors to community groups) will be an opportunity for professionals whose primary connections exist online to network in a personal environment.

Find unique ways to establish community with offline customers.

Remember all of those customers that are not engaged online. Customers who are not engaged online can often feel alienated if they are left out. Activities and promotions aimed at interacting with customers in a more traditional fashion can help your business build loyalty amongst these customers. This can be an important part of engaging customers in the way of their choosing. If you have customers that take business updates online, that is where you should make them available. Similarly, be sure you continue to cater to customers who may be more comfortable with collateral materials and the occasional mailer.

Have any other ideas about how businesses can target non-internet customers? Who do you see doing a great job at mixing their online with real world interactions? Name some names.

Ask the Readers... What do you want from local small businesses on social media?

2009-12-04T22:24:33Z

There have been recent reports online regarding the use of social media by small businesses. As fast as social media has gained in popularity, businesses have expanded their use of it. It appears as though most social media users are okay with this.

Many businesses have given it a try while others have found too difficult a platform. Some local perspective about Sacramento Press readers and thieir expectations on social media would be valuable to the local business community. Please, share your perspective with us.

What do you like from the small businesses you follow?

Who locally is doing a great job using social networking?

What advice do you have for those considering getting into the game?

Perhaps you dislike businesses butting into your social life. Tell us about that too.

3 Winning Strategies for Sacramento Area Small Businesses

2009-11-21T23:54:04Z

The Wall Street Journal featured a story recently that held some tremendous promise for Sacramento Area small businesses. The article titled “Three Best Ways to Win Community Support” outlines the some opportunities that small businesses can create or take advantage of. I think these are particularly ripe for those businesses around the Sacramento community.

First off, a recent trend in small business marketing has been to develop community around your products and services. Community is where loyalty comes from. It is why we have newsletters, a social networking presence, and why we all wish there was a bar where everybody knew our name. These tips will help you further to engage your customer outside the confines of your primary place of business.

The articles first recommendation was to hold a contest or event with local flair. Being a New York paper they pointed to the Nathan’s Hot Dog eating contest. Sacramento has an active community. This week my wife has our family signed up to participate in the annual Run to Feed the Hungry. The event is sponsored by numerous local and nationally franchised businesses and is a fundraiser for the Sacramento Food Bank. This is a great example of participating in events with local flair. My favorite new pizza spot in Sacramento is Hot Italian. As a fan on Facebook and recipient of their weekly emails I know that they participate in a lunch hour concerts held in the Freemont Park across the street. Another example may be a Second Saturday event. Monthly these events are hosted all over Sacramento with particular fervor in the Midtown area as well as some Suburban locations like the Fair Oaks Village. People who attend these events often are a good source of repeat business.

The second recommendation: Team up with other local businesses, especially those with complementary products. Every business is looking for that perfect partner. We often forget how teamwork works. One customer of mine is a local Max Muscle. The owner selected a site two doors down from a sports footwear store and shares the shopping center with a soccer supply store. Shortly after moving in the footwear store began to sell sports supplements. Now instead of stores working together to build a successful shopping center they are taking an isolationist approach. Why not offer complimentary products from other local businesses in your store. When local businesses win, we all win. A common mistake of marketing is also that it is done in sort of a self congratulatory manner. Working in community helps us to avoid this pitfall. It turns out that customers listen far more when we begin to talk about others. Find some complimentary businesses to partner with. Generate some conversation about each other. Begin a movement together! And that brings us to recommendation number three.

Join or start a grassroots business alliance. The Midtown Grid is a fantastic example of a business alliance in Sacramento. With a dedicated website at MidtownGrid.com these business has joined together in a variety of campaigns for mutual beneficial causes. One in particular is the Green The Grid initiative. When businesses set aside their own well being and put the community first they will experience the same in return.

I believe that most people want to shop local. Given the option of supporting a local business or not, I think there is a strong desire to participate in supporting a local economy. Show your community that your feel the same. Be a business that contributes to the community and see if the community does not give right on back. So host some parties, build some partnerships, and participate in a movement.

I am sure I have missed some well behaving local examples. What Sacramento Area business have you seen using these principles to better the community and grow their businesses? Please, include a link.