His business model with nonprofits spurs growth         

By Ashley Cisneros   

A slow economy didn’t stop Brock E. Fazzini from entering the saturated coffee market three years ago. Neither did the bankruptcy sustained by his parent company. Instead of being put off by a sluggish economic outlook, the 24-year-old CEO has led Fazzini’s Coffee & Tea to exponential sales growth. His secret: an unorthodox business model based on giving away generous profit percentages.

A natural businessman

Fazzini grew up in a business family in Frostproof, Fla. “No one in my family had degrees, but everyone had their own business, especially in real estate and development,” says Fazzini, who showed early interest in business as state president of the Future Business Leaders of America, an organization that helps prepare high school students for careers in business.

After studying at the University of Central Florida and Valencia Community College (admittedly taking only “fun” classes) and dancing two years in the Festival of the Lion King theater show at Disney’s Animal Kingdom, Fazzini moved to Jacksonville, where he eventually became a coffee master and a learning coach at Starbucks. He studied Howard Schultz’ book, Pour Your Heart Into It: How Starbucks Built a Company One Cup at a Time, as well as all of the company’s policy and procedure manuals.

“I admired [Starbucks founder] Schultz’ idea about bringing community into business and the notion of selling an experience,” Fazzini says. Coffee (and Schultz’ philosophies) got into his “blood” and never left—even after he joined Dixie Sales Company USA, Inc., a photographic film distributor. There his boss, Harry Shmunes (who is now Fazzini’s Coffee & Tea president and chief operating officer), recognized his passion and asked him to head up a coffee business, with backing from Dixie Sales. In 2007 Fazzini’s Coffee and Tea was born.

Sustainability matters

From the beginning, Fazzini and his team focused on selling wholesale beans and a tea line. “I also wanted my company to serve the highest quality coffee and revolve around community,” Fazzini says. Today, Fazzini’s Coffee & Tea offers 100% USDA Organic, kosher, halal, and Transfair-certified fair trade products. Cultivating an environmentally and socially responsible business was paramount to Fazzini. The company donates 10 cents for each product sold to the Trees for the Future Foundation (www.treesftf.org), which plants tree saplings in deforested rain forests. Fazzini’s Coffee & Tea has planted tens of thousands of saplings in Kenya, Guatemala, and El Salvador.

“Trees for the Future lets us choose the species of tree to plant,” he explains. “The type we prefer is called the moringa tree, which is extremely fast growing. Although it seems unbelievable, within nine months a sapling grows to be 20 feet tall. And almost every part of the moringa tree can be used for human and animal consumption—as well as for biofuels. Scientists claim this tree may solve the world hunger problem,” Fazzini says. “What is amazing is that planting trees in deforested areas has caused dormant species of plants to reactivate and grow. This replaces oxygen, improves the biodiversity in the region, and creates jobs.

“A lot of business owners think that they can’t afford to take up green initiatives, but purchasing coffee and tea from us allows them to play a pivotal role in planting trees,” Fazzini says. “We even recognize our customers for their sustainability efforts. When a customer’s sales reach the point of planting 400 trees, it gets naming rights to a new forest and we present a certificate from Trees for the Future.”

The role of nonprofits

In addition to being environmentally conscious, Fazzini is passionate about nonprofits. He serves on boards for the American Red Cross of St. John’s County, the Leukemia and Lymphoma Society and the Cultural Center at Ponte Vedra Beach. He also has served as an Ambassador to the Jacksonville Regional Chamber of Commerce, and chairs the board of directors for Oasis, the GLBT Center of Northeast Florida.

Fazzini leverages his relationships with nonprofits to align with their corporate partners. A corporate partner that uses Fazzini’s coffee service effectively increases its giving to the nonprofit because up to 50% of the profits from the coffee sold in its establishment go to the agency. In the Northeast Florida area, since July of 2009, all no profits that enter into a relationship with Fazzini’s are part of the HandsOn Jacksonville partnership. This relationship leverages charitable donations by Fazzini’s from 20% to 50%, depending on the nonprofit gifting structure under which the relationship falls.

Fazzini also offers nonprofits a customized Fazzini’s Coffee and Tea Web site. Just as with corporate sales, a generous portion of profits made through Web-site sales goes back to the organization. 

Judith A. M. Smith, D.M., president and CEO of HandsOn Jacksonville (www.handsonjacksonville.org), calls Fazzini’s business model “brilliant.”

“Brock’s company blurs the lines between the for-profit and nonprofit worlds,” Smith says. “His business model makes use of the access and relationships of nonprofits to move a business forward. There are a lot of good causes and good organizations that will benefit from this type of entrepreneurial philanthropy.”

Working with HandsOn Jacksonville helps Fazzini to familiarize as well as establish credibility with more than 100 worthy nonprofit organizations. Smith says that in 2009 Fazzini’s company contributed at least $20,000 to Jacksonville nonprofit organizations and in excess of $75,000 in-kind. Fazzini’s Coffee and Tea has earned residual and in most cases significant revenue for over 60 agencies. 

Fazzini says a total of 50% of the company’s  Northeast Florida sales profits go back to nonprofits—plus approximately 3% goes to reforestation projects. With nonprofits looking for revenue and companies looking for ways to give back, Fazzini’s model works.

Like many businesses, Fazzini’s Coffee and Tea has had its challenges, especially when its parent company was placed into Chapter 7 bankruptcy. “When Dixie Sales went under, Fazzini’s had to start over. All of our assets were Dixie’s, but we were so good at customer service no one knew. It was a depressing time, but in the end, it’s just another interesting part of who we are,” Fazzini says.

In the future, Fazzini plans to replicate the model used with HandsOn Jacksonville with other HandsOn Network affiliates located in target markets, such as Atlanta, Dallas, Houston, or Denver. “We want to start using this exact same model in other cities. We will grow due to our partnerships,” Fazzini says. “We’re adding values to a cup of coffee; we are doing well by doing good.”

Ashley Cisneros is a contributing editor to Jacksonville Small Business Advantage. She can be reached at ashleycisneros@gmail.com.

Fazzini’s business model: Unorthodox but successful

Fazzini credits the growth and success of his coffee business to an unorthodox business model: He gives away a large portion—53%—of his Northeast Florida sales’ profits. The model is based on three things:

• A partnership with local nonprofit organizations,

• A commitment to sustainability, and

• A desire to give back to the community.

Here is how it works:

Fazzini partners with HandsOn Jacksonville, an umbrella nonprofit organization that serves as a “matchmaker” between volunteers and projects benefiting its 95 members. HandsOn arranges for Fazzini to make semi-annual presentations to members to explain how his company can help them in their fund-raising efforts.

When an organization agrees to partner with Fazzini, an executive from the nonprofit arranges a meeting with a decision-maker at one of the nonprofit’s corporate benefactors. During that meeting Fazzini explains that by using his coffee and tea service, the company:

• Supports fair-traded, organically grown products;

• Provides Roasted to order coffees

• Helps reforest rain forests; and

• Gives between 20% and 50% of profits back to the agency, depending on its gift structure.

Fazzini says his model removes the need to advertise or cold call, but by partnering with nonprofits, he has achieved an approximately 95% success rate.

Some people run away from their problems. Not Jo Shott. She chases her challenges to the finish line.

Shott is a competitive runner, and when she’s in a race—or just running for the fun of it— the promise of finishing fills her with an exhilaration that is difficult to put into words.

“I love running,” she says. “I love the wind in my face and the feeling I get. I think it’s the endorphins. People think that running hurts and wonder why anyone would want to do that. I think it’s a matter of ‘it hurts so good!’ You get a runner’s high. You get so satisfied with yourself that you tested your own limits and pushed yourself to do better. The sense of satisfaction makes it all worthwhile.”

Because she loves running so much, it shouldn’t come as a surprise that she is co-owner of The Jacksonville Running Company, along with her husband Owen and friend Ted DeVos. Opening the business was a natural fit with their passion for running.

“We opened the store a year ago,” she says. “Although the economy was bad, we decided to go for it. Owen had a vision of what he wanted—something more than an ordinary running store. Ted had a financial background. We think we’ve succeeded, because despite the economy, we had a fantastic year.”

Their success may be partially due to their investment in technology and because they opened their market to more than dedicated runners. “We didn’t want to be just another running store,” she says. “Our passion is to genuinely help people. Our logo is ‘Fitting shoes to make you fit.’ We fit shoes by making a scan of a customer’s feet to see where their pressure points are. Then we put them on a treadmill and video them as they walk or jog, to show them why they may be having pain. We’re able to better fit them in the right shoes that way. We also have a mobile unit that goes to businesses and health fairs to work with people who wouldn’t go to a running store because they don’t think of themselves as runners. We want to help people get healthier.”

Although running is in her blood now, it wasn’t always. “I was a late bloomer,” she says. “I didn’t start running until I got into college. Most runners start early—when they are in middle or high school. My high school—University Christian—didn’t have a track and cross country team for girls. I’m athletic, so I played basketball for several years, but I wasn’t very good at it. I enjoyed the drills, though—running back and forth. I finally realized that I was more of a runner than a basketball player. When I enrolled at the University of North Florida, I started running every day for exercise. I would see the cross country team practicing, so inevitably I ended up running with them in order to have company.

“I did this for two years. Finally the coach said, ‘You come to practice more than the people on my team. Why don’t you join the team?’ I didn’t think I was good enough, so I turned him down. But, finally, he prevailed, and I joined the team my senior year.”

Her desire to have company while running had a permanent (and pleasant) result in her life: her husband. “Owen started running with the UNF team for company. We like to say that we ran into each other so we were meant to be!”

Owen is more than Shott’s husband and business partner. He is also her trainer and coach and has encouraged her to be a serious runner. “A serious runner is someone who has a goal—either time and/or a race. We put a plan in place to get ready for a race. It’s a process that lets the body get prepared.”

Shott has been running 5K races for several years, but she has recently started to run 10Ks, which are about six miles long. “I’ve been mentored by a lot of veteran runners who tell me, ‘Don’t try to compete in really long distances like marathons until your body has matured and you have been running a long time. Women peak in their early to mid-30s. I’m not there yet,” says the 30-year-old.

Although she does not usually run marathons, she did run in the 26.2 for Donna Breast Cancer marathon in February. “I really like running in races that have a cause, especially for women’s health, like the 26.2 for Donna. When you see so many people carrying signs that say ‘I’m running for…’ you get really inspired,” she says.

Shott also enjoys “off-the-wall” runs, such as the one she and her husband did with their dog. “the dog run was a lot of fun,” she says. “Another one that I really enjoyed was the Ragnar Relay in November.”

That relay race started in Tampa and finished in Daytona. Shott and her 11 teammates passed the other 50 teams and came in first. “It took us about 21 hours to run across the state,” she says. “We started about 1 p.m on Friday and finished about 10 a.m. on Saturday.”

Her next competitive race? “There’s a 10K in Charleston, S.C. I’m going with a group of girl friends and we’ll make a weekend of it.”

Jo Shott is one of three owners of The Jacksonville Running Company, www.jacksonvillerunningcompany.com, located at 9823 Tapestry Park Circle, Jacksonville, Florida 32246.

SIDEBAR

Before you want to start running…

Running is something anyone in good health can do, says Shott. So, if you want to start running, make sure your doctor gives you the OK. Once you have the green light, Shott suggests:

• Get a good pair of shoes. Make sure they are properly fitted for the kind of running you want to do.

• Start slow. Don’t try to run two miles the first day. “It will hurt and you’ll quit,” says Shott.

• Get a partner. “Having a partner gives you accountability,” she says. Ask someone to walk or run with you. You’ll increase your chance of success if you make yourself accountable to someone.

Experts tell us the economy is in recovery. They also admit that hiring will probably be the last economic indicator to improve. If you are uncertain if you should hire (or rehire) employees, even though business is picking up, consider an alternative: temporary employees.

These employees can be used for special projects or to address increased activity during a peak season or as business begins to increase. Temps supplement your regular workers; they go to work for you with the knowledge that the job will last only a short, specified duration.

Alex Campbell

Another way to hire and use temporary employees is “contract to hire.” This is a “try before you buy” option offered by staffing firms, says Alex Campbell of Capital Staffing Solutions (www.capitalstaffingsolutions.com). “It’s the best way to build your staff. You use a contractor (temporary employee) for an agreed period. If you like the contractor, after the contract is over, you can make an offer of regular employment for no additional costs.”

This type of temporary employment situation provides a win-win-win situation: You win, because you get a tried-and-true employee. The staffing agency wins, because it earned a fee while the employee was on contract; and the employee wins, because he or she gets to work for a known entity.

How to hire temps

Hiring temporary employees requires careful consideration. Here are several things you should do to ensure the best outcome:

1. Prepare a job description. The job description validates your need for extra help; it also identifies the skills, knowledge, and abilities needed on the job. Campbell suggests, “The better the job description, the better the staffing firm will be able to find employees who are a good fit for you.”

2. Find a staffing agency that understands your business. Some agencies specialize in particular industries; others may have recruiters who have worked in your industry. Once you find a possible fit, invite the recruiter to tour your business and talk with you onsite. Knowledge is power in making good matches.

3. Discuss your goals. As you explore the possibility of using an agency, discuss your business goals, long and short. “Find a firm that is interested in helping you work with your budget, interested in you hitting your numbers, and understands what you are trying to accomplish,” advises Campbell.

4. Negotiate the contract. Beware of sticker shock; you will be paying a premium to use the agency, so be prepared for it. The contract you sign with the agency should designate the responsibilities of each party, including outlining the hiring process (who will interview; who will make the final hiring decision). You’ll also want to make sure it indicates how the contract can be terminated; who is responsible for withholding taxes and payment of taxes for the employees; who is responsible for workers compensation insurance; and any benefits that will be provided by the staffing agency.

5. Don’t forget your supervisors. Your supervisors should understand how the temp process works, their role in selection and training, and their role in supervising the work performed by temporary agencies. They need to know who to notify in case of an accident and workers’ comp claim and how to handle problem employees.

Finally, supervisors should have a role in evaluating worker performance and give feedback to the temp agency about its performance. Your supervisors are in the best position to judge if the agency met your needs.

SIDEBAR

After the hire, what’s next?

Although by definition a temporary worker will only be with you a short time, that person(s) still needs orientation and training in order to accomplish what you need to have done.

Here are some tips on how to use a temp worker effectively:

1. Ask the temp to report late the first day. The beginning of the work week is often chaotic. On the first day, ask the temporary employee(s) to come in 30 minutes after regular starting time. This will allow you or your supervisor to give the attention the person needs that first day.

2. Orient the new employee. Although the person will only be with you a short time, give him an overview of the work that your company does, and go over in detail the job description. Make sure he can see how the job fits into the big picture. Give a tour of facilities; tell him where he should park, eat lunch, and take breaks. And then introduce him to fellow workers.

3. Assign a trainer or ‘go-to’ person. Tell the temp who she can go to for more information and additional how-to information.

4. Train. Even if the temp comes into your workplace with experience in a similar company, take time to train him on your equipment and—just as important—your expectations.

5. Check back. Don’t park the new employee and forget her. Check back during the day to see how she is doing.

6. Make the agency earn its keep. Although you determine the work that is done, the agency is responsible for any problem areas, such as attendance issues or tardiness. Don’t hesitate to call the recruiter and discuss the problem as soon as it arises.

When cash is short, consider invoice funding

Is this scenario familiar? Your customers are late in paying their invoices, making you short on cash, and the bank isn’t making any short-term loans. At the same time, your employees expect to be paid on time. What do you do?

You might consider a short-term option called accounts-receivable funding, suggests Chad Todd, regional vice president of AR Funding, Inc. (www.arfunding.com). “Accounts receivable funding is the oldest form of financing in the country,” he explains. “It accelerates cash flow.”

Accounts receivable (AR) funding (also called accounts receivable factoring) provides a line of credit against invoices, and that is what differentiates this source of finance from bank financing. “Traditional bank financing focuses on the business owner’s personal credit, the assets of the company, the kind of business the company is in, and the balance sheet in order to determine if it will lend money,” explains Todd. “Accounts receivable funding does not. Instead, it looks at your customers’ credit. The most important thing in this industry is who you are doing business with.”

What it boils down to is this: If you have good customers, you can get advances on the money they owe you.

How it works

Essentially, in AR funding, a business sells its invoices to the funding company. When a small business works with an AR financing company, it gets a portion of an invoice immediately upon origination. The business, at the same time, advises its customers to send payment to a post-office box. Although the invoice is made out to the business, it actually goes to the finance company. Once the invoice is paid, the business gets the remainder of the invoice amount from the finance company, less the finance fee.

“The value to our customers is that it they perform a service or sell goods today and invoice today, they can receive funding from us today. They don’t have to wait 30 to 45 days for the customer to pay them. In any business, you need money for payroll, rent, insurance, fuel, and other things. You need money; we eliminate the wait to get paid,” says Todd.

Pros and cons

As good as accounts receivable financing seems, there is one disadvantage: Cost. “Compared to traditional bank financing, this type of financing is more expensive,” admits Todd. “I always tell anyone interested in using accounts receivable financing to go to a bank first. If the bank can’t get you approved or will not provide you a line of credit, only then should we talk, because it is more expensive than a bank loan.”

On the plus side, however, is that this type of financing is available for startups. “We fund startups,” says Todd. “The most important thing to us is who you are doing business with. A startup will not have financial statements. But if it can give us a list of customers and how much are it will be invoicing them each month, it can get financing. We’ve gotten deals done with very little. We’ve done deals based on the articles of incorporation and an expected volume of dollars each month.”

Todd says that although AR funding is a very old type of financing, many small businesses have never heard of it. “We are admittedly a stepping stone for small businesses. And, we know we will only have our clients for perhaps up to 24 months, and then they will graduate to bank financing. We’re happy about that.”

By Robyn A. Friedman    

The staff at American Electrical Contracting Inc. believes in sustainability. They monitor the thermostat, use occupancy sensors to cut the lights in unoccupied areas of their 12,000-square-foot building, have energy-efficient lighting, and recycle not only the firm’s trash but also old lamps and wire removed from completed client retrofits.

Toby Williams

“We started going green about three years ago,” said Toby Williams, a manager for the Jacksonville-based residential and commercial electrical contractor, which has about 65 employees.

Going green has done more for American Electrical than just giving its staff a “doing good” feeling. The firm is saving money too. “Probably 10% to 15% on our energy bills,” Williams said.

American Electrical is just one of the multitude of small businesses now adopting green principles. According to a report released in November by Siemens and McGraw Hill Construction, corporate America has integrated standard sustainability practices—such as recycling, green building, employee engagement, and partnering with non-profits—into their cultures and everyday operations. The report found that 75% of firms view sustainability as consistent with their profit mission—a twofold increase over the past three years.

Not only do corporate executives view going green as a way to improve their bottom line, but more than three-quarters (76%) expect that sustainability efforts will help them attract and retain customers as well as drop the costs of doing business, the Siemens report said.

Ellen Leroy-Reed

“Small businesses can not only reduce their materials used but also see an actual profit increase from going green,” said Ellen Leroy-Reed, president of the North Florida chapter of the U.S. Green Building Council.

Of businesses that haven’t yet gone green, the most common reason is a feeling that it’s too expensive. But experts say that although there may be a higher upfront cost to do things the green way, over time companies usually save money.

In addition, small businesses can do many things to go green that cost little or nothing. For example, companies can reduce their environmental impact by implementing simple green practices such as printing on both sides of their paper or turning computers off at night. About $100 per computer per year can be saved if power management functions are properly used, according to Claire Woolley, an environmental specialist with Howard Ecker & Co. in Chicago.

Another common reason for avoiding sustainability, according to Leroy-Reed, is the belief that “going green is something only tree huggers do.”

“If we install aerated faucets in our building, we will use less water,” she said. “That’s not doing something for the environment. That’s not being a tree hugger. That’s just smart business.”

David P. Barley

David P. Barley, a CPA with Barley, Martin & Wild in Jacksonville, agrees. “In the past, managers improved the efficiency of their businesses by getting more out of employees, improving inventory handling and things of that nature,” he said. “Now businesses are starting to think how they can be more efficient with the use of energy.”

Barley suggests that small businesses compare the benefits of going green to the costs. “Yes, the cost may be more, but if you’re going to be able to reduce your replacement costs because things are more efficient, as well as reduce your energy costs, this outweighs the cost, lowers your cost of doing business and improves your bottom line,” he said.

Numerous tax credit and rebate programs encourage energy efficiency, both at the federal and state level. Many local utilities also offer financial incentives. A complete listing of all the programs and financial incentives is at the DSIRE (Database of State Incentives for Renewables and Efficiency) Web site, www.dsireusa.org.

What can your company do to go green?

Marie Hurst

• Recycle furniture and fixtures

. Marie Hurst, owner of GreenSpace Interior Design in Jacksonville, furnished her office with workstations and chairs no longer wanted by other firms. She also gets supplies from companies that are downsizing or going out of business. “There are a lot of corporations that close down, and nobody goes through to clean out the desks,” she says. “So you can get a ton of supplies—hanging folders, paper clips, staples—all that stuff is left behind.  I look at that as a great cost-saver to my business, plus there is the added benefit of preventing all those materials from ending up in a landfill.”

• Improve indoor air quality. Many studies have concluded that employee health and productivity improve with better indoor air quality. As air quality improves, so do asthma, allergies, flu, respiratory ailments and headaches, leading to less absenteeism. Consider doing the following to improve indoor air quality: Ban smoking in or near the office; avoid paint and cleaning supplies with volatile organic compounds (VOCs); change air filters regularly; increase the amount of fresh air inside by opening windows and doors; and test for radon.

• Incorporate green principles into your location if you build or renovate. LEED-certified buildings have lower operating costs—10% to 20% lower, according to Energy Star—and that increases operating income. Another plus: Some studies have shown that buildings with an environmental certification can sell for up to 16% more than a similar building without certification.

• Replace incandescent light bulbs with compact fluorescent lights (CFLs). According to the Alliance to Save Energy, CFLs use considerably less energy. An Energy Star-qualified CFL will save about $30 over its lifetime and pay for itself in about six months, while using 75% less energy and lasting about 10 times longer than an incandescent bulb. CFLs cost between $3 and $15.

• Turn off lights and computers when not in use. Even better, unplug dormant appliances to reduce stand-by power consumption. Power strips make it easy to switch off all devices in one fell swoop.

For businesses that haven’t yet incorporated green principles, the process may seem daunting. That’s why experts say to start small.

“Don’t look at this as a huge obstacle, or think you have to change every aspect of your business practices—choose one thing, make it a habit and then choose another,” said Leroy-Reed of the U.S. Green Building Council. “And then spread the word. If you’re a small business doing good things in your office, there’s no reason why your customers shouldn’t know about it.”

That too is good for business.

Robyn A. Friedman is a contributing editor to Jacksonville Small Business Advantage. She can be reached at RAFWriter@att.net or through her Web site www.everythingwrite.com

SIDEBAR

Survey: ‘Green businesses’ important to consumers

The “greenness” of a company earns its business for a lot of Americans. According to a recent Harris Poll, conducted online among 3,110 adults, 27% of those who are “most green” patronized a business because of its environmental activities, and 23% of that group avoided patronizing a business because of its environmental activities or lack of them.

And it doesn’t take a “tree hugger” to make a difference to a business. Eleven percent of those who were “least green” patronized green businesses, and 9% of the same group avoided businesses that were not environmentally concerned.

Respondents to the poll were divided into four groups—least green (23%), not very green (29%), somewhat green (25%), and most green (22%)—based on their responses to four questions (“describes me completely, very well, fairly well, somewhat well, not at all, very well/completely”):

• I am environmentally conscious.

• I am a conservationist.

• I am an environmentalist.

• I am “green.”

The most frequent environmental activities respondents engaged in during the last year included:

• Installed more energy-efficient light bulbs (63%),

• Purchased energy-efficient appliances (36%),

• Started paying bills online (46%),

• Switched to paperless financial statements (40%),

• Donated an electronic device for recycling (41%),

• Switched from bottled to tap water (29%),

• Installed a low-flow showerhead (17%) or low-flow toilet (16%),

• Made energy-efficient home improvements (14%),

• Bought a more fuel-efficient car (13%).

Everybody has to get dressed each morning. Jason Sadler is no exception. But what makes Jason Sadler different from everyone else is that he gets paid to get dressed. Sadler is the head honcho—CEO and founder, if you will—of iwearyourshirt.com, a company that can best be described as a walking, talking social-media billboard business.

The business is simple, Sadler told a group at a recent Knowledge Is Power workshop, presented by Jacksonville Small Business Advantage and sponsored by Venture Plex (www.usventureplex.com). “Basically iwearyourshirt is this: You buy a day; I wear your shirt for that day; and I promote it via social media. I take photos and put them on Flickr. I make a video and put it on YouTube. I do a live video show every day on Ustream. I share it all with my Facebook and Twitter friends. I put it up on my Web site. That’s my business.”

And business is good. He started as a one-man walking billboard in September of 2008 and then sold all but one day of 2009. “I actually sold every day, but one company was going out of business and asked for its money back, so I took a day off,” he told the group.

His pricing structure is as simple as his business model: In , on January 1, 2009, a company paid $1 for Sadler to wear its shirt—and to promote its brand. The price increased a dollar a day; the company that bought December 31 paid $365—2009’s top price. In 2010, Sadler raised his price to $2 on January 1, with an increase of $2 a day thereafter. But, for the extra cost, buyers get extra exposure: Sadler’s buddy in California, Evan White, wears the same shirt and does the same type of social-media promotions as he does.

The uniqueness of his business model has caught the attention of major news outlets, such as ABC News with Charles Gibson, CBS News with Katie Couric, Reuters, The Wall Street Journal, the Chicago Tribune, and the L.A. Times, to name just a few. What is extraordinary about his success is that he has never advertised nor has he ever hired a publicist. He has become famous in the world of entrepreneurship just by doing one thing— using social media.

“Using social media the right way is very easy,” says Sadler. “All you have to do is join the conversation; find the right platform; and—most important—be yourself.” He gave the group seven tips on how they could work social media to their advantage, just as he has done for iwearyourshirt.com.

1. Choose the social media sites that are best for you. Select the ones your audience visits, and make sure they are a good fit for your business. “A lot of people try to find new and interesting social media sites. There are thousands of them. The point is to find things that work best for your industry,” he says.

2. Adapt to your audience. Sadler says you can’t just push messages out on the various social media. “My friends on Facebook are very different from my Twitter followers. I’ve got 21,000 Twitter followers; I’ve got over 4,000 friends on Facebook. I get many more clicks from things I put on Facebook because they are my friends, and I’ve met maybe 30% of them, and I adapt what I say to them.”

3. Consider before you commit. If you are not using Twitter, which Sadler says is an extremely powerful tool (“I would never have been successful without Twitter,” he says), don’t just jump on it. Consider the people you are trying to reach; think about how you can tie Twitter into your whole marketing strategy. He suggests, “If you send out a flyer about an event, put on it, ‘Follow us on Twitter.’ Then give updates on Twitter.”

4. Interact with your friends. More than 75 million people have Twitter accounts, he says. “I have 21,000 followers on Twitter. I try to interact with everybody. Don’t just spit out messages; talk to people. The more you believe you are ‘high and mighty’ and everyone wants to hear what you have to say, the less people will want to hear about you. They want to be involved in the conversation.

Sadler emphasized the importance of interactivity by pointing out a company that gets 5 million unique views a day on its Web site, but only has 12,000 followers on Twitter. Why the discrepancy? “All they do is put RSS news feeds on Twitter,” he says. “They never talk to anybody.”

5. Attend to content, but don’t forget context. “Content is king,” says Sadler. “My business model is based on content, all of which is optimized for search engines. People can always find it, and it will live on the Internet forever.” What Sadler posts to the Web is also contextual. He explains, “I give the content a voice. I give it my own personality. People come to listen to me talk about it and to watch videos of me doing fun stuff. That’s what my followers want.”

6. Make the most of pictures. “I’ve taken over 1,600 photos for Flickr,” says Sadler. “People like looking at photos. It’s an easy thing to do.” Put them in your blog, Facebook, Twitter, in your e-mails.

7. Create videos. “I think video content is the wave of the future, the way businesses are going to grow audiences,” he says. To demonstrate its effectiveness, Sadler said a video he posted a week before already had 16,000 views. “I recommend that if you are thinking about creating video, just make it good. A good video has a change to go viral.”

Social media by itself will not do the job, however. “You have to put in the time,” says Sadler. “I work 10 to 12 hours a day. I try to answer every one of the hundreds of e-mails I get. …I have a highly engaged, focused community, and I know that on a moment’s notice I can ask people to do things for me because I deal with them every day.”

Jason Sadler, a Jacksonville native, can be reached through his Web site, www.iwearyourshirt.com.

By Linda Segall   

By viewing the old we learn the new — Chinese Proverb

It has been said, “The more things change, the more they stay the same.” Jacksonville Small Business Advantage talked with three retired small business people who reside at Taylor Residences, a community of adults age 62 or older, to discover if that adage is true. What they told us showed that although some things in the business world have changed (technology and workplace demographics, for example), others (such as credit problems and a need to work long hours) have not.

Louise Register, Connie DeLoach, and Ellis Touchton shared some “senior moments”—memories of their years running a small business— as a way to help a younger generation appreciate how business has changed as well as how to take a shortcut to success.

Our retirees

As co-owner with her husband (deceased) of Register Sod & Turf Co., a sod and landscaping company that was located, until recently, on Beach Boulevard, Louise Register, age 94, was active in the company for 47 years until she retired in 1985.

“My husband and I got into the business accidentally,” she said. “He didn’t like to work for other people, so he started landscaping and cleaning up yards for other people. We’d buy shrubbery and go down south to buy sod. People started coming over and asking to buy some of what we had, and pretty soon we were making enough to pay for our load. Then we began to get more landscaping material and developed a backyard nursery. We stayed in one location for 20 years. Sometimes we had upwards of 20 employees during the season.”

Connie DeLoach, 78, is a retired realtor whose business, First Class Properties, was located in Daytona. Like Louise, she “fell” into her business. She was a stay-at-home mother to her three children, but when the last of them went to school, she began working as a secretary in a property management office in Jacksonville. “I got my broker’s license, never thinking I would have the opportunity to use it.”

That changed when Connie moved to Daytona and began to work for a developer of Pelican Bay. “When the builder went under, the Pelican Bay advisory board asked me to stay as its property manager and agent.” For two years, she worked onsite. Then she opened her own office and ran it as a sole proprietor for a couple of years. As she grew the business, she hired agents and took in partners. She ran her company for 10 years before moving back to Jacksonville in 1992.

Although he was not a small business owner, Ellis Touchton was a vice president with Skinner Dairy Co., and worked for the company for 37 years. He achieved his executive position in a classic manner—by working up through the ranks. “I started off loading the trucks, about 3 o’clock in the morning. Next, they gave me the order processing for the next day. Finally, I was put in charge of a few routes, four or five of them. Jacksonville was growing tremendously fast back in those days, and we had to keep putting on more routes… I was asked to be a sales manager.

He explained how he became a vice president in the company: “The owners often flew around in a company airplane. They were fearful that if they had a wreck and were all killed there would be nobody to run the business. They made me vice president so there would be somebody to run the company.” Retiring from the dairy when he was 65 in 1981, he held that position with the company for 15 years.

Challenges

Advantage: What was your biggest challenge as you ran your business?

Connie: Computers! It took me three years to let go of paper. I just could not figure out how the computer worked; I didn’t trust it. I’m one of those people who have to know why something works. It was tough, but I finally got to where I really liked using computers, but it was the hardest thing.

Louise: Sometimes it was hard to make payroll and pay the bills. When the weather was bad, business was bad. We had to borrow money and work hard to pay it back. Sometimes we just broke even. We had one man [a banker] who was real good about loaning us money. We’d even mortgage our house. It was hard; sometimes we’d do without. If a payroll was hard to make, I would do without my salary so the men could have their money. But we managed and did all right. We even bought enough property to build our home and bought the property on Beach Blvd.

Ellis: One of my problems was that I was a little younger than some of the other people. As the promotions came, I had to go over older people, who didn’t like it. We had to make some “adjustments” [firings]. The boss called me in and said, “If so and so gives you any trouble, we’ll just pay him three months.”

Biggest surprise

Advantage: What was the biggest surprise you had as a small business owner?

Louise: It was hard to balance my time. I worked from daylight to dark at the nursery, then came home and worked. And when I was home with my five children, I was close enough they could get me if they needed me. I was sales lady, bookkeeper, everything. I even propagated the plants. It was hard to manage everything.

Connie: The hard work and long hours. I worked by myself for the first two years, from 9 to 9. I didn’t even have a secretary. My husband had been in sales. I never understood why he didn’t like to take phone calls at night, because I figured that was money calling. But after being in business with rental properties, I found the phone rings at all hours and you have to get up at all hours and do things I never thought I would have to do, especially when the maintenance man wasn’t there.

Ellis: I was surprised I had to get involved in the lives of the men I managed—personnel issues. A call might come in at 5 a.m. One time I got called and the person said, “You better get out here. We have a man with a gun waiting to kill one of your salesmen for dating his daughter.” The problem was that the salesman and the woman he was dating were both married. We had these surprises all the time. During my time, the ladies were invading the workplace, so there was more romancing going on all the time. The very ones you didn’t expect to have these problems were the ones who did. We even had to let people go and it fell on me to do that. I guess that was one of the worst things I remember.

Keeping up

Advantage: Times change. How did you manage to stay on top of trends?

Connie: Real estate became hard because of the regulations and paperwork. I took courses and got a GRI (Graduate Realtor Institute) in property management. Finally I hired an attorney to help me stay on top of everything.

Louise: Continuing to learn was important to our business. We had a state association, and we’d meet every so often to keep up to date. We also had one man who was really good at aerating and propagating and I’d learn a lot from him.

Ellis: You had to be willing to learn new things and do new things. When I drove a milk route, I was the first to switch to all paper cartons. Milk was delivered in glass bottles. It was a lot easier to deliver paper cartons; you didn’t have to bring back the bottles. I used to go up to Cincinnati with my boss where there was a meeting once a year. We’d find out what others were doing. For example, we found out one time they were putting milk in gallon jugs. We weren’t doing that here. So we came back to Jacksonville and starting using the gallon jugs; we were the first to do that in the city. We also put in the drive-through dairy stores. The stores took away from the route sales, but made it easier for consumers, so we sold more.

Motivating employees

Advantage: Each of you had employees. How did you engage them to do their best?

Louise: Our employees knew my husband would not fire them if they did a good job. One of the men worked for us for 40 years and retired when he was 65. My husband was good to employees. He’d go pick them up at their homes and bring them to work. He treated people with respect. They knew they could depend on him, so they would go out of their way to do right for him.

Connie: My employees were real estate associates and were on a commission schedule. When sales went up, their commissions grew. Money was a motivator.

Ellis: It wasn’t easy to engage people. We found older people worked better than young people. Employees made what they earned through commissions. We had meetings and incentives and sales contests. We sometimes brought in motivational speakers to get them to work harder and make more money. Money talked.

Insights

Advantage: What kind of advice would you give to small business owners today, based on what you have learned from your career?

Connie: Always be honest; don’t try to scheme. Find your passion and be happy in your job. It’s not worthwhile working at something you don’t like.

Louise: There is no free lunch. Go out and find the jobs. My husband had to do that when times were tough. We’d get in the car and drive around looking for where people were building houses. He’d talk to the builders about putting in landscaping and get jobs that way. 

Ellis: Don’t lie; what you did might get you into trouble at first, but if you lie, you’ll have more trouble. And be willing to start small. You can’t start out high on the totem pole.

Linda Segall, linda@advantagebizmag.com, is editor of Jacksonville Small Business Advantage. The three retired small business people reside at Taylor Residences, part of Taylor Foundation Services, www.taylor-residences.org.

SIDEBAR 1

What has changed?

When the three retirees were beginning their small business careers, a number of changes have occurred in business:

• Demographics. In 1950, approximately 33% of women over the age of 16 participated in the labor force. Today, that rate is approximately 60%. Among women ages 25 – 34, only about 50% worked in 1975, whereas 75% work today.

• Laws. The first civil rights laws did not go into effect until 1964.

• Technology. Manual typewriters were still used in offices, although the popularity of electric typewriters increased significantly when IBM began producing them in 1958. In 1961 IBM introduced the IBM Selectric typewriter, which permitted faster data input, since it replaced typebars with a “ball” of letters. Eventually 75% of all typewriters used in offices were Selectrics. The Apple I personal computer was first sold in 1976; IBM introduced its first PCs in 1981. Car phones grew in popularity in the 1970s, but were still considered a luxury.

SIDEBAR 2

What has stayed the same?

• Need for continuous learning. All of the retirees said they needed to “stay on top.” The need for continuous learning remains today.

• Credit problems. Small business owners in the past have had to find credit to make it over slow periods.

• Human needs. Workplace surveys indicate that the top employee need is to be treated with respect and dignity.

• Long hours. Hard work with little time off was the norm for our retirees, the same as it is today.

A focus group can give you insights about your products and services

Businesses often declare in their mission statement they will “meet or exceed customer expectations.” But, how do businesses know if they are accomplishing what they have set out to do?

It’s all a matter of understanding your customer, says Nancy Ulrich, owner of Ulrich Research Services, Inc. And that understanding comes from getting in touch with customers.

“There are a number of ways to do that,” she says. One of them is through focus groups.”

A focus group is a small group (usually from eight to 10) of selected individuals that explores potential issues and opportunities or tests concepts before a product or service is fully launched. “Whereas a quantitative study—such as a survey—tells you what people are likely to do or how many feel a particular way,” says Ulrich, “findings from qualitative research often explain why people do what they do. The ‘why’ may include motivating factors such as personal experiences, emotional insights, cultural influences, or even peer pressure.”

Qualitative research includes individual in-depth interviews and small group (two or three individuals) interviews as well as focus groups led by a moderator.

Although findings from a focus group are not considered statistically reliable nor can they be projected to represent the entire market, they are helpful to business owners because they provide insights into customer behavior.

Convening a focus group

Engaging an independent outside consultant to do the research has its benefits (it provides anonymity and encourages people to speak more openly), but a business owner or manager can do the research in-house by using internal resources. The key is proper research structure, including:

• Goals and objectives. This is the most critical step. “We tell our clients, ‘Do not do research just for the sake of doing research.’ Have your goals and objectives clearly defined,” says Ulrich.

• Questions. If you employ a researcher, the two of you will work together to develop questions based on your objectives for the group to discuss.

• Selection criteria. Your goals and objectives help identify who should be in the focus group—for example, current customers, lost or former customers, prospects, or customers of competitors. Other criteria you might consider include gender, age, number of children in the household, income bracket, level of education, type of work or job position, or even marital status. “You don’t want to blend too many criteria into one session,” cautions Ulrich, “or you may lose the ability to segment your audience or findings effectively.”

• Recruitment. If you engage a market research firm, you will work with the consultant to design a questionnaire that will help the recruiter screen potential participants to make sure they are placed in the right group. For example, you would not necessarily want to mix current customers with former customers.

• Compensation. It is not unusual to compensate participants for their time, says Ulrich. Typically, consumers are paid from $60 to $100 for a two-hour session. Small business owners usually received $125 or more; corporate executives, $150+; and specialty groups such as physicians, $250 or more. “Sometimes small business owners offer something in lieu of cash, such as a coupon to their restaurant, a free hour of legal advice, or something else that has a universal appeal to the targeted audience,” explains Ulrich.

• Venue. A research company that specializes in focus groups will have a facility with specially designed room having a one-way mirror and audio and video technology to record the session. However, a focus group can be convened at your place of business or at an outside facility, such as a restaurant or country club. A word of caution: If you convene your own focus group, never try to use it make a sales presentation or solicitation.

• Use of a moderator. Whether you conduct research yourself or hire a research consultant, the moderator should have training in how to facilitate a group without influencing individuals in their discussion. “Impartiality is important if you want to get honest opinions from the group,” says Ulrich. “The moderator has to remain unbiased.”

Format of the group

When the group is convened, the moderator welcomes them, asks for brief introductions, and then outlines the structure and time frame of the meeting. He or she also alerts the group if it is being observed and recorded.

Results

A focus group will give a small business owner a lot of food for thought, but qualitative findings should be considered directional, says Ulrich. “They are not necessarily definitive. They provide insights into the emotional side of the customer. Entrepreneurs often solicit feedback from friends and family. Unfortunately, those are the people most likely to kill a great idea or encourage a bad one! Focus groups conducted by a professional trained consultant bring independent objectivity to the scene.”

Whatever a business owner learns from a focus group should be considered a first step, says Ulrich. “If important issues and opportunities surface, the next step might be to test or measure them quantitatively. Just because a good idea does not play well with a particular audience does not mean it will not work in another geographic market or with another demographic. Keep exploring and be willing to change and modify. Don’t be afraid to try different approaches.”

Nancy Ulrich is president of Ulrich Research Services, Inc., (www.ulrichresearch.com) located in Orange Park, Fla. She can be reached at 904-264-5578.

SIDEBAR 1

Other ways to get customer feedback

Qualitative research, such as convening a focus group or doing individual or small-group in-depth interviews, is one way to get customer feedback, but it is not the only way. Consider:

• Customer comment cards. Put them in easily accessible locations.

• Postpaid comment cards. Mail them to customers after a transaction or service.

• Online surveys. Solicit input and suggestions.

• Telephone calls or short telephone surveys.

But don’t neglect the obvious: Talk to your customers! Ask them about your products or services. Ask your sales reps to conduct a brief survey after giving a presentation. And when you lose a customer, conduct a brief exit interview to find out what you could be doing better.

SIDEBAR 2

The Advantage experience

The value of facilitated focus groups has long been established, so Jacksonville Small Business Advantage decided to experience the process itself.

“We knew focus groups provided great feedback,” said Brian Barquilla, publisher of the magazine and Web site, “so, we decided to find out if we were on the right track with our magazine.”

The process

Before the focus group could be convened and facilitated, Barquilla worked with the facilitator to understand:

• Advantage’s goals in conducting the group—how small business owners perceive the magazine, broken down into specific areas, such as design and content;

• The intended readership of the magazine;

• Who should be included in the focus group—current readers or those who had never seen the magazine before?

Once the information was collected, the facilitator worked with Barquilla to develop questions and activities based on the magazine’s goals. The staff then recruited small business owners for the focus group, which was convened at her company’s location, to take advantage of the facility’s one-way mirror and recording capabilities.

In one of the research activities participants were asked to select from a pile of local and national magazines a business magazine that appealed to them. “Watching them make their selections was more stressful than I thought it would be,” said Barquilla. “I kept thinking, ‘What if they don’t select Jacksonville Small Business Advantage?’ But, a number of them did. I felt like cheering!”

Later, each member of the group was provided copies of the magazine and asked specific questions about the design and content. “That was very telling,” said Barquilla. “The facilitator gave them a minute to look over the magazine before guiding a discussion. We were able to watch facial expressions and body language. It was interesting to see the response of individuals as well as to listen to their suggestions and comments.”

Barquilla considered the overall experience: “Anyone who does this has to be prepared to hear negatives. Not everything said will be good. But it was a good experience. We learned some things and are considering some changes to better meet the needs of our readers. I would definitely recommend the process to anyone in business.”

Mirrored room used for focus groups

Observation room for focus groups

By Robyn A. Friedman    

After 14 years of being in business for himself—and at the age of 56, Charles T. Brackett, P.E., owner of Brackett and Associates, Inc., a structural engineering firm, decided to go back to school to pursue an MBA. After completing the rigorous two-year program at Jacksonville University, he’s glad he did.

“I had been successful because of my natural instincts, but I wanted to get a stronger background in business and have better control over the management of the organization,” Brackett said. “Now I’m more productive, and I’ve learned a lot more about marketing strategies, which will help us get jobs internationally.”

Employers routinely invest in their employees, encouraging them to pursue additional education—and then reap the benefits of that education through increased productivity, reduced turnover and improved employee morale. But advanced education and training are just as vital to small business owners, who need to keep their skills sharp as well as develop new ones.

Today’s workforce is rapidly losing its skills. According to a recent survey by the Society for Human Resource Management, 58% of human resources professionals reported that some workers lack competencies needed to perform their jobs, up from 54% in 2005. Workers—including small business owners—need to keep their skill sets current in order to compete in an ever-changing global economy.

Even if small business owners are technically competent in their own field, they may not have managerial competence. That may prevent them from taking their business to the next level. Lack of human resources skills, for example, may lead to difficulties in attracting or retaining employees.

 “No matter what industry they’re in, small business owners need to be able to make sound strategic business decisions,” said Diana Peaks, director of transfer, adult, and graduate enrollment at Jacksonville University. “By going back to school and taking courses like finance, accounting or communications, they get a better perspective of the business at large.”

But the process of choosing additional education can be daunting. Should you brush up your skills at workshops sponsored by an organization like SCORE or matriculate in a degree program at a major university? Attend classes in person or online? And what course of study is best? Consider the alternatives.

Workshops and seminars

Many local organizations, such as SCORE and the Small Business Development Center at the University of North Florida, offer free or low-cost workshops on topics such as government contracting, accounting or social networking. The Small Business Development Center even offers an online academy called SmallBizU that was created specifically to meet the education and training needs of small business owners and entrepreneurs. Courses range from three to four hours and cost $30 each.

Workshops and seminars are useful and practical, but they may not be the ultimate answer for everyone. “They were not in-depth enough,” said Brackett. “When you take actual classes, you spend more than just a day or half day on a topic so you have more time to absorb it.”

Industry-specific classes

Continuing education is required for many small business owners. Attorneys and medical professionals, for example, are required to keep their skills current. Even if not required, however, classes that lead to certification in a particular field can be beneficial. A real estate agent who gets certified as an Accredited Buyer’s Representative, for example, may gain a competitive edge.

Specialized classes also lend credibility to a business owner. “Certificate programs and courses are extremely important and valuable,” said Joe McCann, dean of the Davis College of Business at Jacksonville University. “Many lenders and insurance companies, for example, increasingly expect and value owners who keep current with the latest business issues and build skills.”

Life-long learning

Options abound for those who want more than a workshop but who have no desire to matriculate in a degree program. The University of North Florida’s Division of Continuing Education, for example, offers non-credit courses for those who want to change careers, advance in their current position, or master new skills. “It’s practical, hands-on stuff, as opposed to the theoretical things you would get in an MBA or other credit program,” said Tim Giles, director of continuing education at UNF. “We offer a lot of programs that deal with marketing and sales that are very beneficial for people who are running their own businesses.”

Giles said that classes range from half-day courses that start at $99, to 12-week certificate programs costing $900. Topics include human resources, project management and communications.

Degree programs

Enrolling in a degree program offers small business owners a concentrated education in what they do in the real world—run a business. In the past, MBA programs were geared toward the needs of large organizations; today, many schools offer programs designed for entrepreneurs. These programs offer the opportunity to network with other business owners and executives as well as to learn from case studies involving other companies. They are more expensive than non-degree programs, and applicants need to go through the college admissions process. Classes are offered at convenient times, such as evenings and weekends, to accommodate the needs of executives. Many offer online classes as well.  

Robyn A. Friedman is a contributing editor to Jacksonville Small Business Advantage. She can be reached at RAFWriter@att.net or through her Web site www.everythingwrite.com

SIDEBAR

Taking the next step

Ready to sign up for some classes to advance your education? Here’s some advice from the experts:

• Make sure the class will benefit you and your customers. “There are so many options available,” said Giles. “You really need to think about what your goals and objectives are and then look for programs that will help you meet those goals and objectives.”

• Do your homework. Look at what the different institutions and organizations in your area have to offer. Visit each one, and talk to current students. Ask what it’s like to be a student there—and what benefits they received from completing the program.

• Make sure you understand accreditation. “If someone says to you, ‘Yes, we’re accredited,’ do your research and find out if the accreditations they have and if your credits will transfer,” said Peaks. “Too often people spend time and money in a program and then want to transfer and find out the institution they’ve been attending is not regionally accredited and that there are few schools that would accept those credits.”

• Just do it. If you decide to invest your time in more education, then dedicate yourself to it. “People get overcome by circumstances,” said Candace Moody, vice president of communications for WorkSource, which provides employment and training assistance for both businesses and job seekers. “Budget your time as carefully as you budget the money for it, and make sure that if you’re going to invest in education that you get something back out of it. Most educational courses—no matter what level, no matter what subject—are only as good as the time and energy that you put into them.”

The year 2009 was not the best year for most people. “Now is the time to refresh your thinking and get ‘unstuck,’ ” GinaMaria Jerome, CEO of The Leadership Guild, told a sold-out crowd in a recent Knowledge Is Power breakfast workshop, presented by Jacksonville Small Business Advantage. Jerome shared seven proven success strategies with the group. She said she has used them with clients, but more important, she knows they work, because she has used them herself as a small business owner.

1. Frame your mind. What you conceive and believe, you can achieve, said Jerome, quoting Napoleon Hill. “If you don’t  believe you can do it, nothing will matter, she said. It all begins with your mindset, where you are coming from because where you are takes you to where you want to be.”

2. Set a bold money goal. You shouldn’t work just for the money, she said, but money is the means to achieve the things you really want in life. Emulate the big companies, she suggested; they set annual financial projections. When you do this, she said, “Be bold; be specific; and be real for you. Go for the gusto this year. Make it really big. You’ll get excited and so will your team.”

When you set a bold money goal she encouraged doing it in two ways: an annual goal, and a 90-day goal. The short-term goal will keep you focused, help you track your progress, and see the rewards of your efforts. These 90-day goals keep you moving by maintaining the momentum to propel you forward throughout the year toward your annual goal.

3. Create a strategic plan. Jerome explained that a strategic plan is not the same as a business plan. A business plan sets out specific results that are to be accomplished by the business. A strategic plan incorporates your vision and your mission, and describes what you are, what you can be, and who benefits from the business.

As you create your strategy plan, give yourself permission to think creatively and find innovative ways to earn revenues. One way to create this plan is with a mind map: In the center of a flip chart, write down your bold money goal. Then surrounding that goal, write down the different ways you can go about achieving your money goal. For each area, list a revenue goal.

When you have finished creating your strategic plan—which might be done in as little as 30 minutes, said Jerome—don’t keep it hidden. Post it in your office where you will see it and be reminded of what you’re achieving this year.

4. Get buy-in. Buy-in happens in three directions: down, up, and across. “You want your team to get on board with you,” she said. “The best way to make this happen is to get them on board from the beginning. Have them help you create your strategic plan. Have your team help you create your mission and your vision. When people are involved in that creative process, they own it and they become committed.”

You also want to get buy-in going up. “If you are the top, then your ‘up’ buy-in needs to come from your lenders or investors or someone close to you, such as your spouse.”

Finally, you also need buy-in across the organization. Large organizations get collaborative buy-in by getting the different departments, such marketing, manufacturing, and finance involved with the plan from the start. In your organization, you may invite your team members to a meeting to collectively, as a group, develop the strategic plan.

“Across” also means including your customers. To get buy-in from them, consider sending out a survey or conducting a contest. Ask them, “We’re getting ready to launch a new product. What do you think about this idea? How will it affect you?”

5. Design the supporting goals. Once you have your strategic plan and the buy-in you need, the next thing to do is to develop goals that will support your plan. When you write your goals, think in terms of outcomes, said Jerome. Then write SMART goals: specific, measureable, achievable, results-driven, and time-sensitive.

Write goals that can be achieved within a 30–90 day time span, she recommended. “People need a reward system. When you have a reward in place—your goal accomplishment—it helps you keep going.” Short-term goals also allow you to adjust your course if necessary.

6. Get into action. “The first five tips,” said Jerome, “are a top-down approach to strategic planning. Small business owners often think in on the level of ‘to do.’ We don’t always think strategically. So sometimes it is more effective for us to use a bottom-up approach to strategic planning.” 

In this approach, she explained, write down all of the things you have to do, then look at similar activities and roll them up together into big areas. Then set your goals—including a money goal—around those activities.

Strategic planning works either way—top down or bottom up, she said. The important thing is to think creatively to break out of the box you may find holding you in.

7. Get a support system. Accountability is key to turning a plan into results. Use a support system to make yourself accountable. Your support system might be a mentor, a buddy, or a coach. When you use this person, make sure you follow up with that person, said Jerome. “Find someone to be accountable to,” she said. “Making yourself accountable increases your chance of success tremendously.”