Yesterday, CBC’s Marketplace aired an episode called “Canada’s Worst Customer Service: Store Edition.” The episode is geared towards large chains, but we strongly recommend that every entrepreneur brews a cup of coffee and takes some time to watch it. The episode is full of wonderful cautionary tales we can all use about how not to treat customers, and just how hard it is to get them back once they’re upset. I’ve highlighted a few of the main points I took away from the episode.  You can watch the full Marketplace customer service episode here.

• Ensure all customers are at least acknowledged in stores. Your employees don’t have to be experts on every product you sell, but they should be willing to personally make sure the customer is taken care of – even if it is by a different employee. No customer should be told simply, “I don’t know.” They should be given options and advice.
• Don’t fall under the misconception that no complaints = satisfied customers. In the video, we can see customers more willing to just walk out instead of complain. And you can be sure their friends would have heard all about their poor customer service experience if they’d gotten the chance to walk out.
• If something does go awry and a customer is dissatisfied, don’t barrage them with self-promoting marketingspeak (especially if it’s about how important customer service is to your company – oh, the irony!). Just do whatever is necessary to make them feel like they’ve been heard and understood. Make it right for them.
• Give all employees the power to take the right steps if a customer is unhappy. They may not be able to offer discounts or give gift cards, but they can certainly listen, empathize and then take the proper course of action. This could even be as simple as giving the customer contact info for a manager, or you. Simple as that!
• Never forget that low prices aren’t the only factor that draws customers to do business with you. If your prices are great, but customers are given the runaround by employees or ignored, how often do you think they’ll return?
• If your business does use social media, monitor it regularly. You never know who’s counting on your attention.

Did you watch the Marketplace customer service episode? What did you get out of it?

Well, we did it! Another year of the entrepreneurial journey is coming to a close for everyone. To commemorate the end of the year, we thought we’d take a look back at some of our own small business blog posts we especially enjoyed in 2011. We hope that these posts, and others, were of some value to you this year, and we hope you join us for more fun in 2012. May you have a safe, happy and prosperous new year!

• Thinking like both a business owner and a venture capitalist – and how it affects a pitch
• Are you recording your entrepreneurship memories? Will you be ready when Oprah calls?
• Are you a business accelerator?
• Understanding your prime time for small business productivity
• White rabbits: Target marketing
• Do you have to be an expert to start a small business?
• The challenge for young entrepreneurs: proving yourself
• How has your lifestyle changed since becoming an entrepreneur?

It’s the time of year when you’re likely looking forward to cozy nights with a hot drink or fun with family and friends. These are wonderful things, but don’t forget to pay attention to your small business empire before you get too settled in. It won’t be long until we’re ringing in the new year – what kind of shape will you be in?

The holiday season is actually a great time to get organized – to close out this year and to plan, strategically and financially – for what’s around the corner. There are some simple things you can do to wind down your business year properly, and get set for 2012 so you can hit the ground running in January. Nothing feels better than being prepared – not even eggnog!

Get your financial records house in order for 2011

Your accountant or bookkeeper will love you forever if you present well-organized and documented files and records soon after your fiscal year end. Sounds like a headache, but the “shoebox” method of filing receipts just doesn’t cut it – shoe boxes are for shoes, not your financial records. And there are likely other areas you could spruce up too.

Here’s our list of five things to tackle between holiday festivities:

1. Update your payroll records, report all 2011 paycheques on T4 slips, and make sure all your other deductions are in order.

2. Organize your accounting files, records and receipts to get ready for income tax season. This includes completing inventory records and putting expense receipts into categories by month.

3. Streamline your contacts list – remove old contacts and duplicate records, and update current contacts, adding to your professional networks such as LinkedIn.

4. Update your personal productivity and technology tools – download updates and templates and make sure your current apps are still working for you.

5. Create a to-do list for the first week of January and make appointments now with key advisors, especially your bookkeeper and accountant – before they get booked up.

Hit the ground running in 2012

Winter can be a slow time for many businesses, especially at the end of the year. But, by taking this downtime to prepare your business for what lies ahead, you’ll start 2012 refreshed, prepared and ready for anything.

Five more things to keep you busy and out of trouble:

1. Review your 2011 business goals. What worked well and what didn’t? In 2012, do more of what worked in 2011. Simple.

2. Develop a strategic plan – a roadmap for getting from point A to point B. If you don’t have a strategic plan, create one – and follow it. We’ve got a one-page business plan template at our website.

3. Take a close look at your marketing, human resources management, financing and operations. Is there anything you could do better? (The answer is yes – there’s always room for improvement!) Get working on some ideas to become more effective.

4. Confess if you’re in the dark about how social media can help promote your business. And make a decision to learn more about at least one of these tools. Read some business blogs or tweets as a first step – your grandchild can show you how. Or Google for a “how-to” guide.

5. Clean up your act! Delete old files, get rid of spam, back up your business records onto a disc, memory stick, cloud server or hire a company to do it for you on a regular basis. Set up a good online file folder system so you don’t have to scroll through 347 inbox emails to find something your accountant wants.

Have questions about year-end preparation? Ask a GoForth Expert online any time. Not only will your question be answered by one of our experts, we’ll post it on our website. You’ll be helping other entrepreneurs who may be wondering the same thing. How charitable of you – perfect for the holiday season!

“Where do I get the money to start my business?” is perhaps the most common question entrepreneurs ask. Of course, this question assumes that they know how much money they need to start their business in the first place.

Develop a plan that outlines funding sources for your small business

Where you go for funding can be different for every small business. Several factors influence the type, cost and suitability of financing for your small business, including:

• Stage of the venture process. Are you in the start-up phase? Are you growing your small business? Is your business well-established?
• Your small business’ achievements and financial performance to date
• The state of the industry your business is in
• The type of technology your business is based on (if any)
• Potential growth of your venture
• Number of years before an exit strategy is available for investors
• Investors’ required rate of return on their money
• Amount of money you need
• What your company is worth
• Your goals for your company
• Investors’ terms and conditions

There are many other factors that will come into play when it comes to choosing the most appropriate sources of funding for your business.

Generally, a new small business can be funded in one of two ways: equity (ownership) or debt (loan). With equity financing, you exchange a piece of ownership of your business for the investment capital – you’re giving up part of your company to receive money to start or grow. The amount of your company you give up is negotiable, but it’s related to the size of the investment and the value of your company. If you fail, investors lose their money – you’re under no obligation to repay the investment. With debt financing, you borrow money and repay it over time to the lender. If you fail, you’re still obligated to repay the loan in full.

Money is just one factor of a successful small business

Most new entrepreneurs believe that if they have enough money, they can make any business model into a successful business. Sadly, there is nothing further from the truth. A bad idea is a bad idea is a bad idea, no matter how much money you throw at it.

The reality is sufficient start-up capital is only one element of a successful new business. Research shows that the small business owner’s reputation and depth of their social network are important to securing financial help. Not all businesses need start-up capital – but for most, the need for money comes at some point in their business’ life. So, develop a solid financial strategy, but remember that money is but one pillar of a strong small business.

Ah, sales proposals. Some love them, some struggle with them, but they are always crucial to business. A good sales proposal clearly outlines what  you’ll offer your client and what they will get out of it. It also clearly spells out all the terms, conditions and fees of the sale. Sales proposals are important for both your small business and your prospective client’s peace of mind.

Make sure you take the time to discuss the situation with the potential client beforehand, so you’re crystal clear on their specific needs. If having a one-on-one conversation with the client isn’t an option, be sure to conduct plenty of research before getting started. Anything you’ve missed (which shouldn’t be earth-shatteringly large) can be fixed when you go over the proposal with your client. And don’t forget – it’s important to write clearly and concisely if you want your proposal to be taken seriously.

Here are the seven elements that must be included to develop a winning sales proposal.

1. Introduction

The introduction can be either in the form of a short paragraph at the beginning of the proposal, or a cover letter attached. Here, you’ll address the client and outline your reasons for contacting them. Explain how you discovered this opportunity, followed by a brief description of the potential sale. Be sure to show the client that you understand their needs and wants. Recognize the importance of this sale, and show the client that you understand the significance of working for them. Like a résumé’s cover letter, the introduction to a proposal outlines your intent, shows you’ve done your research and gets your prospective client interested.

2. Client’s Background and Situation

Here, you’ll point out the specific areas of the client’s business that will be impacted by this sale. Point out the current status of their company, including any current challenges that this sale will improve. Respectfully list the effects that these issues are having on the company and emphasize why the problem must be fixed. Show that you understand the problem their company is facing and that your goals are aligned with theirs.

3. Desired Results and Objectives

After listing the negative effects of the company’s problem, use this section to help your client envision the changes and improvements that will be made. When reading through piles of proposals, the client doesn’t want to waste time – state the results early on in the proposal and leave the details of how it will happen for later. Include a list of objectives that shows your prospective client what you’re going to do. This can be used as a checklist later on to be sure that all of the requirements are met.

4. Scope of Deliverables

This is your chance to knock your client’s socks off and prove to them that you’ll meet their needs. Clearly explain what will be delivered in your sale and why it will be beneficial. Include implementation plans, available support, and guarantees. If possible, outline your relevant experience as well as reasons why you’re able to offer a better solution than others (remain professional, though!).Give examples of previous success. Identify changes that will be made and use this section to validate and rationalize the sale.

5. Down to Details – Decision Criteria, Time Frame and Budgets

List all of the criteria that your client will use to make their decision. Include the client’s responsibilities and requirements. Also list detailed information on the time frame of this exchange and estimations of fees and budgets. Be sure that your expectations for time and money are consistent with your client’s. Include detailed information on payment terms. Be clear about where the sale ends, in order to avoid an exchange lasting longer than you had expected.

6. Next Steps – The Action Plan

Include information on the steps that will follow, as well as expected time frames, after the proposal has been received. Again, this section will help to ensure consistency between you and the client. Clearly articulate the value the client will get from this sale. Work in facts and figures specific to the client and highlight the return on investment and improvements to their bottom line. Prove to the client that the sale is worth it.

7. Closing

Include a concluding paragraph that summarizes the current situation, how the situation will change, and why this sale will benefit the client. This paragraph should be compelling, powerful, and motivating for the client. Thank them for their attention and end with an action statement of what can be done next in order to move forward with the sale.

Of course, with proposals come sales negotiations. We’ve got you covered there, too! Read what our GoForth Experts have to say about sales negotiations.

Recently, our GoForth Expert Dawn McCooey was asked the question, “How do I handle clients more concerned with my age than my experience?” It’s a question we get asked often by young entrepreneurs – who we consider to be small business owners under the age of 35.

As we’ve discussed before, young entrepreneurs bring a wealth of positives to the table – endless energy, fresh ideas and adaptability to new technologies. However, there will always be a few people who might cast a wary gaze upon you when you enter the boardroom. But fear not! There are several ways you, as a young entrepreneur, can impress even the most skeptical of prospective clients.

Model behaviours you want to receive

As Dawn says in her answer to the question above, “You’re going to be the one to dictate people’s impression of you.” It’s especially true for young entrepreneurs. Be impressive. Be professional. Be well-spoken. Be honest. Be courteous. Be confident. When your clients leave the meeting room, make sure they remember you as a capable and intelligent person they’d be happy to do business with, and your age won’t cross their minds.

Have confidence in your work

No entrepreneur is infallible or completely confident at all times. We all doubt certain aspects of our careers. But for young entrepreneurs, it can be a little easier to let doubt creep in when the very people you want to work with don’t seem to trust what you are. Here’s the upside: These people are few and far between. Most people care about the end result more than how many grey hairs you have (or don’t). So go forth with confidence and stand behind your business, your pricing, your method and your strategy. After all, it’s the result of hours of planning and research – why undermine it?

Get great experience, and show it off

Say you’re exchanging emails with a prospective client who is focusing less on your long list of completed projects and more on the fact that you graduated university last year. Ease his or her concerns – provide testimonials, give samples and show case studies to increase your credibility. If you’re the right person for the job, prove it – as early and as often as possible.

We should mention that experience doesn’t need to be of the paid variety. Of course, we want you to get paid, but look for other avenues to meet people in your industry, make a difference and also prove your credibility: advisory boards, committees and mentorships are great options.

Know when to back away

This last point might seem counterintuitive for an entrepreneur – I mean, you’re in this to feed yourself, right? But consider a scenario where all above options have failed despite your best efforts, and your prospective client is still not able to get past your age. Ask yourself honestly – is this a person you want to enter into a working relationship with and deal with on a regular basis? A healthy work/life state is a critical function of successful entrepreneurship; one not to be ignored. There is absolutely no shame in knowing when to cut your losses, and moving on to a client who will jump at the chance to work with you and respect you while doing so.

Do you have any other ways young entrepreneurs can prove that success isn’t just about age?

We’ve talked before about the importance of creating a solid business plan before you hang your shingle, but creating a marketing plan is almost just as important. Without proper marketing planning and consideration, you could end up selling to the wrong group of people, setting your pricing way off-base, or exposing critical flaws that could hinder your small business.

A good marketing plan is the product of both primary market research and secondary market research. It helps you to understand your marketing objectives, exactly who you want to sell to, what your customers want and need, and what strategy will best help you meet these goals.

Our Marketing and Social Media expert Rob Campbell has prepared an excellent run-down of all you need to do to prepare a strong marketing plan. Let us know if you have any tips or stories to share!

Being an entrepreneur is about more than acting on your great small business idea. Often, you have to hire employees to help you run your small business. And, of course, you also have to be a great manager, inspiring your team to the great things you know they’re capable of.

Managing your small business is a multi-faceted thing, with many variables to consider. With that in mind, we’ve written four quick articles to help you along the way:

• Planting a Seed That Will Grow: How to Find, Choose and Retain Excellent Employees
• Five Tips on Hiring Your First Employee
• Be a Great Leader in Your Small Business
• Inspiring Your Employees in Productivity and Creativity

Want more small business advice from entrepreneurs just like you? Our Entrepreneur Library has loads of small business advice from fellow entrepreneurs. Let us know if you have any suggestions, and we hope you enjoy!

You knit lovely sweaters or create pottery bowls your whole family loves to get as presents. All your friends are urging you to quit your day job and make your mark selling your wares. You’ll be famous! You’ll make a fortune!

Or will you?

Starting any kind of profitable business takes perseverance and hard work. Expecting to make a decent living from a hobby is an especially big challenge. However, a little preparation goes a long way. Spend as much time and effort learning how to set up and run your craft business as you do making your beautiful quilts, and you have a chance at success. Do your homework. Take the time to develop your idea and business skills before you hang your handmade shingle.

Can you make money with a craft-based small business?

It might not be the immediate fun you’re hoping for, but here’s the truth: creating beautiful items is one thing and knowing how to make a profit from your work takes a completely different talent. Something you’ve had fun with as a pastime may soon lose its appeal when you have to churn out item after item to fill orders. All our GoForth free resource downloads can help you determine whether you can make a living or if you’d be better off sticking with your passion as a hobby.

Handcrafted goods are enjoying immense appeal and popularity at the moment. And yes, people do make money.  Check out what others are charging for the same type of product as you’ll be selling to get an idea of what’s going on with similar businesses. Sites like eBay and Etsy are great for a bit of anonymous market research.

At GoForth, we support craftspeople and their quests to fill our homes and lives with beauty. You’ll find answers to handicraft related questions from our experts and help in creating that fabulous online craft business by taking our online training course.

Have you started a small business from your handcrafted work? Tell us your story!

Last week I was doing a little housekeeping of the computer kind – creating folders, organizing or deleting old files, disk defrag (yes I’m a nerd). I had the opportunity to open the original business plan I wrote in early 2009 for GoForth Institute (then called Small Business Innovation Centres, or SBIC). At the time, I was still a professor teaching entrepreneurship and hadn’t committed to leaving my cushy job yet to pursue my grand idea. I was still in dream mode.

Looking at that original business plan two years later, what struck me was how little the company I founded and run today resembles the plan. My plan for SBIC was a series of retail, street-level “innovation centres” across Canada where small business owners would find classroom-based education and small business training, face-to-face counselling, networking opportunities and access to microfinance.

Great in theory. Until you run pro-forma financials and discover your chances of ever being profitable are zero. End of that business model!

Fast-forward two years. Now, we have the leading online education program for entrepreneurs in Canada (no street level storefront for us), our education is delivered in partnership with the federal government and strategic partners (who provide the face-to-face counselling and access to microfinance functions), and because we’re online, our education can reach entrepreneurs in every corner of Canada (something the original SBIC concept couldn’t).

What’s the point of this post, you ask? How come the business I run today isn’t anything like the one I planned? The simple answer: I wasn’t married to the original concept. My original business model sucked, actually. It wouldn’t have worked. But I was willing to start and to accept the very real possibility of failure.

Here’s how to be a business accelerator

1. Be willing to follow your nose to cashflow, wherever it might be.
2. Be flexible and adaptable – don’t stay married to your ideas if they are not producing results.
3. Be willing to admit defeat – move on knowing that the right business model will be discovered eventually; hopefully in your lifetime!
4. Be positive.
5. Be proud – only one idea out of every 2,000 business ideas is ever acted upon – if you’re an entrepreneur you’ve already taken action. And that’s a good thing. The trick now is to continue to accelerate your success, not prevent it.