Find this and other Global Entrepreneurship Week events listed on the official calendar at GenGlobal.

The old way to go into business

Imagine all the work that goes into starting a new business. You need to be a good business manager, a marketing guru, and a financial wizard. You need to have great credit, have plenty of your own money, and you better know the right people. You need to have all your ducks in a row.

It takes a lot of time, money and work just to get into business.

The new way is to start small

Now imagine building some steps in between. If you could buy just a few products and test them by renting a booth at a festival, you’d learn more about what works. You could run a temporary business inside another business for a month or two for more testing. You could outfit a travel trailer as a store and set up a circuit of small towns, building a customer base. If something doesn’t work, you can fix it and try again. Now jumping up to starting a traditional store doesn’t seem as hard. You’ve learned what people want to buy. You’ve established relationships with suppliers. You’ve gained a loyal following. All those smaller steps lift you up closer to jumping over that hurdle of starting a traditional business. And if you miss a jump at a smaller step, it’s easier to recover and try something new.

That’s the purpose of the innovative rural business models. They put you in a much better position to succeed, or to fail in a manageable way. It cuts time and money off the process of getting into business.

You don’t need to have all your ducks in a row, as long as you can find one of your ducks and get started.

The Innovative Rural Business Models

First is TINY

• Rather than expect your business to start full-sized, it’s much easier to start something small.  With tiny retail shops, tiny food kiosks, tiny industrial spaces, tiny offices, and tiny artist studios, starting small takes fewer resources, and puts your fragile new entrepreneur idea at less risk from big failures.

Second is TEMPORARY

• Rather than expect to start with a permanent business, try a pop-up. A temporary business will give you immediate feedback on whether there’s even a market for this idea.

Third is TOGETHER

• Rather than sink or swim on your own, start thinking about how to nurture your new business inside an existing business. This can be retailers splitting a space, or a startup using an extra office desk in a service business, or even nurturing a tiny maker inside of an existing manufacturing business. Small towns have fewer usable buildings, so we have to make the best use of every usable building we have.

Fourth is TRAVELING 

• You’re used to seeing food businesses operating out of trucks and trailers, but this idea has expanded. Rather than depending on the market in one town only, innovative businesses are hitting the road to round up customers. Retail stores and boutiques now commonly operate from a truck or trailer. Service businesses are using this model, too: wedding planners, financial consultants, and dog groomers.

Share your own story

You can add your own story, too. What have you learned about rural small business? What’s working in your own business and your own community? What have you learned to avoid?

Leave a comment or use our contact form to share, and I’ll reach out to follow up.

This is global. Stories from anywhere rural are welcome.

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Do you tend to panic about a lack of business at a certain point during the year?

Do you always feel like you’ll never get enough bookings for the fall?

I know several independent professionals who feel like this:

• a professional photographer who always worries in late summer that there won’t be enough bookings for senior portraits in the fall
• a bed and breakfast owner who gets nervous about seasonal bookings not coming in
• a professional speaker who feels panic when nothing is on the calendar during “dead periods”

You know who deals with this most? Seasonal businesses.

The simple solution: Put a reminder on your calendar for next year.

Around the time when you would normally panic, put a reminder or event on your calendar. Include a measure of where you were at this point during a year when you survived.

Your reminder could include a specific number:
“20 fall sessions booked on August 1 last year.”

Or just give yourself a bit of encouragement:
“Remember that there’s usually nothing booked at this time of year, but you’ll get through this.”

If you have tips for keeping a positive outlook during slack times, add it in the comments.

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Photo credit: josealbafotos on Pixabay

Chris Brogan recently shared a story of a local bookstore in his hometown. He asked them to order a specific book for him that wasn’t in stock. The owner wrote down his name and phone number and told him she’d order it.

The next week, when he walked in the store, she looked up and said, “Hi, Chris!”

That simple act of remembering his name, earned her a customer for life.

Books sign. Photo CC by Joshua Kirby on Flickr

Get ready for a dozen ideas for making a better third place. Pictured is Gathering Grounds coffee shop in Avon, Minnesota. Photo by Deb Brown.

At the Main Street Now conference, I sat in on a session about coffee shops. I wrote down bunches of ideas that the audience shared. I thought you might know a coffee shop person, or you might think of ways to use these with other types of small town businesses.

• Hold trivia nights or allow groups to meet in your space to drive more business
• Start a book club in your place
• Tell your story online. How were you founded? What is your history?
• Leverage your relationships with other businesses to put together a tour of businesses, or an experience that includes more than just your business
• Host readings, where customers can come in and share their writings
• Host adult coloring groups or game nights to bring in more evening customers
• Find out more about the people who work from your space, the people who bring in their laptops and work. What is their business? Is there potential to connect with them?
• Display coffee mugs from all the different businesses in town
• Provide vegetarian and vegan choices on the menu
• Support local causes and share about them
• Promote the chance to make friends, especially for new residents
• Reach out to new residents to make them aware of your place (You can find them through real estate agents.)
• Promote how people can connect with people not necessarily like them, how you play a role in strengthening community ties across groups in town.

Do you have any small town coffee shop ideas to add? When I asked in my newsletter, here are some ideas that readers shared.

“Whenever you get a new coffee, take an air pot around to all the business near you and give samples out.”
George M. Wurtzel

“Invite a well known Barista to run a Barista course at your coffee shop. Funding could be obtained from employment groups etc. Following on from that conduct a series of classes teaching people how to make simple things like vanilla slice and lamingtons. [an Australian cake specialty] This will follow on to your clients asking you to run classes on what they want to learn.”
Graham Reid

“Our trail organization co-hosts a #coffeeoutside gathering in a park each Thursday morning with a local bike shop. It is an opportunity to walk, bike or drive to share a relaxed social hour together. It is a great way to meet neighbors and solve the world’s problems. It could just as easily be set up outside a coffee shop. The point is: get outside, drink coffee, meet neighbors. We always have one type of coffee already made up, but invite roasters, shops and individuals to roast a pot on a camping set-up.”
Beth Nobles

Here’s the Coffee Outside website.

“We are test driving a coffee shop here in downtown Paulding, Ohio as a result of Deb Brown’s visit here a couple of weeks ago. The test is Tuesday and Thursday mornings through the month of May. First two days this week have been phenomenally successful. Using volunteer ‘baristas,’ the community support has been exceptional.
“Thank you Becky & Deb for all the idea sharing and leadership that you provide to our many small communities!
David Burtch

“All these ideas about coffee shops can be modified and apply to wineries. I say ‘modified’ because of the alcohol restrictions. We have been doing many of these practices at our winery in Knoxville, IA. Tonight I am hosting a fashion show with 5 women business owners in my community. It’s the first time doing this and I hope it works well. I reached out to our business owners that had fashions or a tangent business. I know a jewelry designer that will match her product with the clothes from the boutiques. A local photographer will take photos of the models and the event. A fabric designer that makes her own jackets will model her creations. I charged $5 advance tickets (available online or at the shops) and $10 at the door. The first beverage is free, so there is very little ‘risk’ to the guests, but allows me to gauge interest and attendance. You can see our story on our website NearWoodWinery.com. I think I have a pretty good origin story on the About Us page.”

Joann Schissel

Of course, I asked how the fashion show went, and Joann shared more:

“I think the fashion show went well. We had 15 models (includes kids) and friends/relatives were in the audience. I am focused on ‘gathering my tribe’ strategy and catering to established groups of people that have their own tribe. I loved working with the women business owners and promoting their products.
“Thank you for your great advice to help small towns. I think you and Deb fill a real need for our rural communities as mentors, strategists and cheer leaders!”

What other ideas do you have for coffee shops and other community gathering businesses?

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Photo by Becky McCray.

Ask yourself:

1. Who are your regular customers? What do they buy and why do they keep coming back?
2. Who are the customers you no longer see? Why aren’t they returning?

Why is it important that you can answer these two questions? It’s simple. Regular customers form the base of your business. And customers who have left are key informants. Knowing why they left is knowing where you need to focus your efforts.

The loss of regular customers can have a substantial impact on your bottom line. That loss comes in three ways. First, you have the lifetime loss of sales. You may see only a $10 a week loss but that represents over $20,0000 in a lifetime.

The second loss is the cost of obtaining new customers to replace those who leave. It costs maybe $3-5 to keep a customer but at least $20 to obtain a new one.

The last, and greatest, loss though is losing the regular customers who are often your greatest ambassador. Their stories and testimonials are invaluable. And they do it often and are highly trusted within their networks and circles.

So it is to your advantage to be able to answer those first questions I asked. You probably have a great deal of this information already in your head, in your employee resource, and in your business records.

Once you have determined who is in each group, the hard work begins. Take the time to determine why some people stay and why the others have left. Today, social media offers a great resource to get some of this information. But having a conversation still remains key. Meet for coffee. Try some cold calling. Network.

Some of the most common reasons you will get as to why people leave include:

• They found a competitor. If so, find out why they switched and what you need to do to get them back.
• Your product or service was difficult to understand to make work.
• Your product or service didn’t perform. And your customer service did not fix the situation.
• Some may have forgotten about you. In today’s world of unending media and communication channels, your message has gotten lost. Keep your name in front of your customer.

It’s important that you take action; know your customers by staying in contact and listening; and keep your regulars aware of what is going on in your business.

Remember that your base is built on your regulars.

Water pipes break in your computer room. Your freezers break down. The electricity goes out for an extended period. A key player in your business dies. Someone hacks your data.

Big disasters and small disasters. Your business faces them all. Understand that the issue of a disaster happening in your business is not an if, but when.

The question is are you ready?

By their nature, small businesses, with limited resources, are more vulnerable to events that interrupt their routines. Yes, you may have insurance for a fire but what about a coffee spill on your data server. And does that insurance you have cover the loss of income you will have until your business is up and running again?

You can’t protect yourself from every possibility, but, you have take some simple steps that will get you back in business as quickly as possible with the smallest amount of interruption in time and money.

How?

It starts with a disaster plan. You can get templates for such at: the Extension Disaster Education Network at http://bit.ly/EDENReadyBiz or FEMA at www.ready.gov/business

Next, take 3 simple steps:

First, plan to stay in business.

• Know potential disruptions
• Assess how your company functions
• Protect your employees
• Provide for evacuation and sheltering in place
• Prepare for medical emergencies (CPR, first aid, etc.)
• Train on using fire extinguishers and other prevention tools.

Next, talk with your people – staff, employees, key suppliers, key customers, bankers, family, etc.

• Create an emergency planning team
• Practice drills (fire, tornado, etc.)
• Encourage employees to make home emergency supply kits and develop family emergency plans
• Detail how you will be in contact with employees, suppliers, customers and others
• Talk to your employees, and your own family, about the need to balance family and business needs during disasters

Finally, protect your investment.

• Meet with your insurance provider to understand and review current and possible additional coverages, such as lost income or business disruption
• Prepare for utility outages and disruptions
• Secure physical assets
• Protect your data and IT systems (off-site backup, etc.)
• Perhaps even consider options for where you may relocate all or part of your business (i.e., what if you need cold storage or freezer space)

These steps are not inclusive but are provided to get you thinking about “what would you do if.” They show, however, that planning need not take a great deal of time or money but might save you such in the long run.

The Purdue Initiative for Family Firms recently had an article on protecting your firm from a natural disaster. They have done an extensive study of small business survival in the wake of Katrina (https://ag.purdue.edu/agecon/PIFF/Pages/newsletters.aspx).

You can’t protect yourself against all possible disruptions, but by taking a proactive approach, to the extent possible, you can have peace of mind and a quicker recovery if something does happen.

Photo (CC) by One Way Stock, on Flickr

Eureka!! You have found a great business idea and can’t wait to get started.

Enthusiasm is great but you need to do a couple of things before opening the doors. You are about to invest money and time. Taking time up-front will help ensure that your investment pays off. 

One such up-front task is to develop a business outline. It doesn’t have to be a complete business plan. Consider what your crucial elements are such as:

• Who is your market? Is the market growing? How many competitors will you have?
• What makes you unique from your competitors? Can you maintain that advantage or some other advantage?
• What is your pricing strategy and how does that match up against the competition?
• Bottom line: Do people have a need for your product or service? Do you solve a problem for your customer?

Once you have your outline, get as much feedback as you can. Family and friends can be part of this but the best people are those who will ask the hard questions and will not necessarily agree with all of your assumptions and ideas. You want people to challenge you.

Another task is to plan where you will find funding. Business owners often say that getting the doors open and keeping them open requires three times as much money and time as initially planned.  Before you start is the time to consider where you might get a business loan, how much you might need, when you’ll need it, and who, including yourself, has funds to invest immediately and in the future.

And this is the time to consider your market strategy. You have thought about your ideal customer but how do you reach that person? And more importantly, how do you keep them coming back? Don’t assume that the use of online marketing is all you need. Use any and all of the traditional and online tools available.

The final task before opening your business may be to do a test run. This may mean selling your product at fairs or shows before taking the final step. You also might want to keep your full-time job while you test the market to see if you have a viable idea.

These are just a few of the tasks you should undertake before starting your business.

Opening a business is risky. It will eat up your time and your money. The more you can minimize the risk, the better you will feel about your decision. 

Photo (CC) by One Way Stock, on Flickr

For many prospective business owners, finding the business idea is the most difficult task.

Theses individuals may have the desire to “be their own boss” but do not know what business will be successful. Some individual have an area of interest but cannot see how it can be turned into a business.

For example, an interest in public speaking could be translated into a business as a motivational speaker, instructor, speech writer, or even a radio or TV broadcaster. This individual even might turn this passion into becoming someone who portrays historical figures.

But what about a prospective owner who does not have any solid ideas? A step some individuals take is to drive to several towns and look around to see what businesses seem to be doing well. Once you do that, you need to ask these questions: Would this business do well where I live? What makes this business thrive here?

While on this road trip, you might come up with the “accidental idea.” That is seeing a need and thinking of a way to meet that need. The idea can arise at any time, so let your mind wander, then translate those thoughts into possible ideas.

Another idea generation tool is digging into data. For example, the population in North Dakota and across the country is aging. What opportunities does that offer? Also, a generation of young adults who have needs is on the horizon. Would you have imagined a demand for learning skills such as canning and cooking? Finally, think about how technology is creating new global opportunities. Census data, at www.census.gov, is a great place to start.

A simple method of idea generation is reading. Take advantage of every source of news. Focus on the trends discussed. Think how what you are reading is creating needs among others.

Getting the idea though is not the end of this step. Often forgotten about in the idea generation segment is to also consider if the idea will result in a sustainable, profitable business.

To determine that, you must do your homework. Here are some questions to help you with your research:

• Can the idea be translated into an opportunity?
• Does a market exist for my idea, and will that market continue to grow?
• Can I make a profit by meeting the need of the market?
• Is my opportunity ahead of its time?
• Who is my competition and what unique advantages do I have over the competition?
• Will I be able to maintain those advantages?

The ideas are out there. They may not appear over night. Just take your time, look over the landscape, and dig deep and you will find a business opportunity that will achieve both your personal and professional goals.

Photo (CC) by Vee, on Flickr

Does your networking add power to your small business? Does it help set you apart from your competitors? Does it increase your visibility? Does it add to your bottom line?

If you answered yes to each question, congratulations. If not, could it?

Effective networking can:

• let people know you are in business
• keep customers aware of your business and the changes you are making.
• help owners find answers to questions and new resources
• find mentors and guides
• provide an early warning system of upcoming changes that might impact your business.

Research suggests that networking is one of the most effective marketing tools because it has little cost, other than time, and offers one of the best returns on your investment.

Yet research also shows that most of the networking we do is not very effective.

Why?

First and foremost, we don’t have a plan for why we are networking. And our plan does not define who we should network with. We tend to often pick those who are in our circles already. And while these individuals might not know everything about you and your business, they also are not completely unaware that you exist.

When networking we also tend to forget some of the important rules such as: decide what you want to get from each event before you walk into the room; get there early (your best contacts will usually come in the first 30 minutes of an event); be a host (meet people and introduce them to others); and it’s not just a game of who can collect the most business cards.

Then there is the follow-up after the event. If you made promises, keep them. It’s also important that you just get back in contact with the individuals you met who you see as a resource for you and your business.

Also, critique your networking. What worked, what didn’t, and what questions or information do you still need from a contact you made?

Effective networking means you have to give as well as receive. It also means follow-ups and building relationship over time. Networking rarely pays off in the short term.

Photo (CC) by Nikk, on Flickr

And lastly, stand by the food. Food draws people and you want to be in the traffic. Until your company is on the tip of everyone’s tongue, no one will be seeking you out.

This doesn’t mean you can’t talk with friends and people you know at an event. Just train yourself to not get into those conversations immediately. Give yourself those golden 30 to 60 minutes first.

Effective networking is a great marketing tool. It can add tremendous punch to your business growth curve. Take the time, do it right and make it work for you. 

Photo (CC) Mike Cohen, on Flickr

I am sure we all have been asked, “Do you want the meal deal?” 

And it doesn’t stop there. Deals surround us. Go for a simple oil change and you might be presented with a package deal that includes a new air filter, tire rotation, and more. Buy a car and get offered an extended warranty or free oil changes for life as a special deal. Last week I even had the opportunity to get free batteries for the life of an electronic device I bought all for a flat, up-front fee.

A place I frequent often offered me this opportunity:

Photo by Glenn Muske

Every time I have such an opportunity, I question, “Is it a REAL deal?”

What is a deal depends on the buyer? I might argue that chips and a pickle doesn’t make a sandwich a deal. Other places I go offer that as the basic order. Upgrading to fries and a drink are the standard upgrade deal. And this same idea holds true no matter what type of business you run. Something doesn’t make it a deal because you, the owner, tell me that. What makes it a deal is if I, as the customer, see it as one. It is much like the idea discussed when developing an effective rewards program.

So the next time you want to offer a deal, check with your customers to see what they might want.