Q: Do you know of any strategies that seem to be working especially well for small businesses in this economy? — Alan A: I do hear from lots of small business owners and they do seem to have a few things in common. For one, they are definitely trying and experimenting with new, affordable business strategies right now. There seems to be a lot of trial and error going on out there. Secondly, and paradoxically, they are not forgoing the tried-and-true as they ride out the recession, the worst of which seems over. Here are a few of the new ideas that I have heard about that seem to be working well these days: 1. Make some new online friends. Social media is busting out right now for a reason — it’s working. If you still think Twitter is hogwash and that it is nothing more than a tool for Ashton Kutcher to build buzz, you are wrong. Twitter has become a valuable business tool that is allowing small business owners to connect with people in ways they otherwise could not. Think of Twitter as a conversation. You can either choose to engage in it and be part of the discussion or you can watch from the sidelines as the people who are participating make new friends and business associates. Who do you think will get more business? Twitter is not the only game in town. LinkedIn is a fabulous business tool, as are Facebook and others. The important thing is that you engage in this new online world. It will make a difference. 2. Focus your efforts where you will get the highest return. We have all heard of the “80-20 Rule,” which states that 80 percent of your business comes from 20 percent of your customers or products. Savvy small business owners are using this these days to boost business. At a time when there is little room for error, being more effective makes a lot of sense. If this means hiring an assistant to handle your more routine tasks, then so be it. With the high unemployment numbers right now, there is no shortage of very capable people who can help you. Or call the local university and hire yourself an intern. Either way, freeing yourself up to spend more time growing your business and less time answering emails can be a very good move. 3. Keep your overhead low. Cut costs, lower your rent, get new bids on phone service and maybe turn an employee into an independent contractor. 4. Be great at something. People hire you because you do something very well. Especially in an economy like this one, being great will be rewarded. Here’s a simple, but significant, example: We use an occasional housekeeper whom we love, which is no small thing as my sweet wife is a bit of a clean freak. We have been through several housekeepers over the past few years and then we met Nona. After Nona has been to the house, it is immaculate and spotless. Not surprisingly, we have recommended her to several friends. Nona is a reminder that people patronize your business because you perform a needed service or you offer a needed product. If you do those things exceptionally well, they will continue to be your customers. Don’t, and they won’t. Editor’s note: “Ask the Expert” is a small-business advice column written by Steven Strauss, one of the nation’s leading small business experts. His articles first appear each week in USA Today. The new edition of his book, “The Small Business Bible,” can be purchased online at www.amazon.com. Should you have a question for “Ask the Expert,” please contact Strauss by e-mail at sstrauss@MrAllBiz.com.
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