Who would buy a complicated machine
without an owner’s manual? Awho would push buttons and pull levers on a sophisticated new instrument until
something good happened? An owner’s manual saves time—and lots of money—
by describing how to operate a machine and get the best results. Your small
business is like a very complex machine. Accordingly, in the following pages we
discuss how to quickly and effectively push buttons and pull levers so that this
machine will make a lot of money and save a good deal of time.
You’ve heard the saying, “Success is 90 percent perspiration and 10 percent
inspiration.” These days we might say, “Success is 90 percent information and 10
percent perspiration.” This book will save lots of perspiration, and the time and
money gained may well take care of the inspiration part, too. Becoming an ex-
pert in running a small business takes a substantial amount of time and perspira-
tion. The objective here is to cut through the chaff and deliver information to
small business owners in the most meaningful way, so that they may quickly
choose the right direction and get back to business.
The book may be read from cover to cover, or those facing a big decision can
rip it open and read any chapter or section.
This book doesn’t puff out to over 125,000 words by offering lame advice
such as “Liability insurance is complex, so ask your agent.” It goes far beyond
such platitudes to offer important information specifically for small business
owners. In many cases, the counsel given here will help the small business owner
make a decision without going any further; in other cases, entrepreneurs will be
able to select one or two options from among many choices. For example, there
are many forms of business ownership, and attorneys will gladly discuss the char-
acteristics of each for about $150 per hour. Reading this book will permit the
small business owner to narrow the conversation. If this book saves only eight
minutes of discussion time with an attorney, it has already paid for itself.
The book indicates when material is available for review or can be down-
loaded from www.TheSmallBusinessOwnersManual.com and other sites, but it
does not tell readers to go to other books or simply to look on the Internet. The
essentials are right here.
This is a serious book, because running your small business is serious. Still,
readers should try to have fun with it. Do the best you can; but whatever the
outcome, you’ll live longer and enjoy it more by looking at the lighter side of
even the most serious problems. This can be seen in many of the “Learn With
Joe” stories sprinkled throughout the book. Most of these offer a lesson or
reinforce the text, but they are related in an interesting and entertaining way.
Speaking of Joe—that’s me, the author. I am not a spectator but have learned
most of this through 20 years of opening, owning, and operating small businesses.
Along the way, I’ve worked for and against some of the biggest, and smallest,
companies around, including businesses specializing in everything from e-com-
merce to aircraft leasing to mining equipment. I also earned a B.S. in finance
and an M.B.A. in marketing from a great university. I’ve had some big successes
and some tragic failures, and I know what small business owners want. They
need to make quick and informed decisions, they don’t have time to read a text-
book or a dumbed-down version of anything, and they don’t want to read mate-
rial that can be picked up just as quickly on the Internet. In most situations,
entrepreneurs want to cut to the chase and move on. The Small Business Owner’s
Manual is designed with all this in mind.
The book assumes that:
Readers already operate a small business or are planning to start
one. There is no need to waste time by asking readers to search
their souls and discern what they want.
Small business is nice, but big business is better. I assume you’re
aiming for the big leagues and not content to stay small.
Readers know how to use the Internet.
I’m in business to make lots of money, and I assume the same for
you; so this book is about selling as much as possible, controlling
expenses, and minimizing both personal and business taxes.
Reviewing the chapter titles provides a quick summary of the book. Of course,
there are entire books written on many of the topics listed. It doesn’t make sense
for most small business owners to develop “paralysis of analysis” and read that
much detail, so here you get the condensed version.
I know you’re in a hurry. This is not a textbook, and there are no wasted
words that patronize the reader. If you’re looking at this book, chances are the
information is needed right now, so we get right to it on every subject.
At first I thought it might be hard to write a book that could be relevant to so
many different kinds of businesses. As it happened, it was not that difficult. The
common denominator is that all small business owners encounter the same issues,
need information on the same subject areas, and want to know quickly which
path to take. After that, it’s up to them. This book gets things moving in the right
direction and saves both time and money—and if there are any resources that
will solve just about any small business challenge, they are more time and money.
So let’s get going.
If You Need an Idea, You’re in Trouble!
This chapter is about developing a unique selling proposal and business plan
for managing your new or existing small business and deciding upon the best
form of business ownership. The book assumes that you, the small business owner
or aspiring entrepreneur, are already passionately excited about a particular busi-
ness venture and have an extraordinary amount of energy. If your situation falls
short of this, then trouble lies ahead, and it’s best to get this resolved before
proceeding.
Starting or expanding a small business takes an immense amount of energy,
passion, and savvy—all centered on a specific idea that gets you excited. It’s
unlikely you’ll find this in a book. The first order of business is to think hard
about an idea that can bring the wealth and fulfillment that you desire. Then
we’ll see if this can be turned into a successful small business.
Your small business needs to completely understand its Unique Selling Propo-
sition (USP). If the USP is unknown, there is no reason for anyone to buy your
products and services, and sales and marketing efforts cannot be focused.
Rosser Reeves (1910–1984), who remains an icon in the advertising industry,
laid out his ideas about USPs in the seminal 1961 book, The Reality of Advertising.
The USP is the package of features and benefits that distinguishes your prod-
ucts and services from those of the rest of the world: your raison d’etre. A well-
defined USP sets your small business apart from the rest of the crowd. Customers
need to know that when they have a particular set of needs, your small business
is the best choice.
The USP is the nothing less than the epicenter of your small business. Once
this is agreed upon, every sales, marketing, and communications effort of your
company should flow from this. Employees should be informed and reinformed
of your USP, and they in turn should communicate this to customers, potential
customers, vendors, agents, contractors, and everyone else in the world. Of course,
if a USP is chosen that is not accurate (“We can repair any computer in the city
within 60 minutes of your call”), marketing and sales efforts are misdirected,
customers are unhappy, and your small business is likely to get even smaller.
As a small business, it is especially important to focus on the special niche
where you have the assets and capabilities to succeed.
Most business owners have never developed a USP. They turn out their prod-
ucts and sell them because that’s what they do. This is dangerous. Such busi-
nesses are implicitly communicating that there is nothing unique or special about
their product or service—it’s just there in case you want it. If competition arises,
complacent companies will respond in an unfocused manner.
But some companies do get it right.
Domino’s Pizza, for example, uses this frequently cited USP:
Fresh hot pizza delivered to your door in 30 minutes or less,
guaranteed.
Notice that Domino’s does not mention the words cheap, good, nutritious,
quality cheeses, or secret recipes. Domino’s understands it cannot be all things to
all people all of the time, and it understands its USP.
The following are also good examples.
Notice that the lighting-fixture manufacturing company whose USP appears
below is offering the assurance of a deep inventory (no drop-ship model here) of
residential lighting fixtures for consumers (as opposed to commercial prod-
ucts). They are not focusing on price, and efforts are directed at distributors
and retailers.
Every season, we will provide the widest selection and inventory of
residential lighting fixtures, custom designed, satisfying current trends,
and available for shipment within 24 hours, to our customer base of
distributors and retailers.
This importer does not fool itself about providing quality products or selec-
tion. There is a large market for cheap, common tools that are used in homes
and apartments for light projects such as hanging pictures or fixing bicycles.
This company sells to anyone—hardware stores, retailers, and direct to consum-
ers through its Website. Their proposition is simple.
We are the low cost leader in tools for the home.
And finally, in the ultracompetitive market for printer and copier toner prod-
ucts, one firm understands that its customers, mostly businesses, do not want to
shop around and take chances when a printer is off-line and workflow is slowed
due to a faulty toner cartridge.
Any cartridge, anywhere, within 24 hours, or your money back.
A USP is not the same as an advertising slogan. Company insiders under-
stand this best, so first develop your USP and then let your marketing people
translate this into advertisements.
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