Among the most stellar coverage of small business finance resources is Spank the Bank: The Guide to Alternative Business Financing.  Karlene Sinclair-Robinson (@KarleneSinRob), founding member of finance consultation firm KsR Solution LLC, wrote the book to deter small business owners from pursuing poor business models that never get proper capital.

Her expertise in handling millions in non-traditional financing and research on the subject has crafted a sensational finance guide. I discovered the author through a Twitter chat and asked for a review copy.

A Signpost on the Many Highways of Finance

Spank The Bank covers the latest finance instruments such as peer-to-peer lending and crowdsourcing, as well as traditional financing services such as business credit lines, asset-backed loans and factoring.  What makes the book a unique guide is how it outlines these resources.   With each financing option, Sinclair-Robinson explains the pros and cons, along with what to do in your business prior to selecting a choice.

Using asides called Biztips, Sinclair-Robinson highlights the “so-what” of the information provided. For example, the first chapter details the business structures available, with a reminder as to what is at stake when selecting a structure:

“Many funding sources will not work unless you are formally registered your company. They prefer that you do not operate as a sole proprietor.”

One great aspect of the book is that each option is fit against the kind of businesses that would pursue an examined option. Cost is considered, as well as term definitions associated for each subject.   In fact, a terrific aspect is that the definitions are lengthy enough to appreciate what to expect with a choice.  Take the explanation about Purchase Order Financing (POF); there’s a context about the type of risk being considered with POF:

“When you consider Purchase Order Financing and Factoring, always keep in mind the ‘number line.’ You have a positive and negative side… Purchase Order Financing is on the negative side or high risk, for the main reason that the lender is providing funding for you prior to any work being done or any tangible product delivered.”

Sinclair-Robinson then follows up with key takeaway of what to expect with POF:

“The fee for using this financing service will be much higher than most but the key will be for you to price your product correctly, deliver it in a timely fashion and keep your customers happy. It’s important that we not just look at how much things cost but also at how they can help enhance what we are doing.”

Learn Finance Facts Instead of Myths

Sinclair-Robinson also dispels widely cited myths, such as free business grants or that the SBA issues business loans.  You’ll understand what resources matches to your business.

The chapters are brief, so you may weigh the information value against the nature of the topic. The chapter on venture capital is nowhere near as detailed as David Gladstone’s Venture Capital Investing, for example. But the information would give your business the right starting point for appreciating the difference of VC investment against another financing choice.  Plus, if you are using an accounting system, the topics in Spank The Bank will help you frame what accounting metrics and concepts need scrutiny and potential improvement.  You’ll get an idea of what to work in on. Cases, recommended reading and sample forms round out the guide.

Such comparisons are what Sinclair-Robinson intended.  She succeeds at every effort to make information accessible to all small business owners.  In reviewing each chapter, I felt that the explanations were as straight-forward for the electrician contractor as it would be for a professional looking for a few pointers.  Both business people would make confident decisions after reading this book.

I also liked how Sinclair-Robinson ties other business aspects into the financing decision.  My personal favorite is the reference to an online presence – bet you had not considered how much your website is a factor in finance. Read this 9th myth from the Business Financing Myths and Misconceptions chapter:

“The thought that you do not need a website in today’s technologically and internet savvy market must be reconsidered. If you have operated without one, you could lose potential business, credibility, and more….Bankers might not care too much one way or the other, but unfortunately it is a problem for alternative financing sources.”

We’ve seen a few good books on specific details, such as local investment options in Locavesting or wealth creation in Wealth Creation for Small Business Owners. Few books covers finance details with the scope Sinclair-Robinson has provided.

Spank The Bank is a winning addition to the business library. It will help many small business owners craft one of the most important, sought-after resources and deploy it effectively.

The post Read “Spank The Bank” to Choose the Right Financing for Your Business appeared first on Small Business Trends.

At least that was the thesis for the music business of yore. Without a doubt, the Internet and digitizing the music format has reshaped how music artists garner fans. Witness how YouTube expanded the careers of Justin Bieber or Psy.

Lady Gaga’s success has been outstanding, and she has been named to the Forbes top celebrities list.   A viable business model underscores her fame, a model with tactics that small businesses could adopt on a smaller scale.

Author Jackie Huba (@jackiehuba) examines Gaga’s model in her book Monster Loyalty: How Lady Gaga Turns Followers Into Fanatics.  I was intrigued by how the book came about – a blog post on Lady Gaga garnered the most replies on the author’s blog.  So I downloaded a NetGalley copy for review.

Lady Gaga’s career history is as extensive as a 27 year old singer’s can be. Despite her first singles having achieved 6 number one hits – a record – Lady Gaga does not have a storied musicianship like, say, the Rolling Stones, Michael Jackson or Madonna, an artist she is regularly compared to.  So those artists may have more material for an author to research and draw business concepts from.

But the context Huba sets for Monster Loyalty is worth the study. Lady Gaga’s success is examined against a social media and digital marketing landscape in which the target audience must be constantly engaged and immersed in an experience.  It is a different audience landscape from the one in the heydays of Madonna, Michael Jackson, the Rolling Stones and others.   Small business owners are more likely to identify with Madonna than Lady Gaga, but reading Monster Loyalty teaches a different spin on the value of social media – one that does not require a discussion about a tweet or like.

Take the first chapter of the book, for example. It examines the value of the “one percenters” – that core audience that responds to your product.  The one percenters are your superfans – the “Little Monsters” as she calls them. Lady Gaga spends nearly all of her effort on this highly engaged fan base.

In other words, your marketing should be on those who are responding the most to your product or service. Huba notes this philosophy against 2011 research by Forrester showing most marketers are focused on new customers, not existing ones, and certainly not on such a tiny group as the one percenters:

“Fifty nice percent of CMOs say acquiring new customers is one of their top priorities…Only 30 percent of CMO respondents say they are focused on retaining customers as a top priority.”

With such a deliberate focus on addressing her fan base, you might conclude that Lady Gaga is a manipulator. But she doesn’t come across that way in the book. Instead she just comes across as someone who knows on which side her bread is buttered. When it comes to her fans, Lady Gaga believes:

“I’m not the beginning anymore. I don’t see myself as the center. They’re at the center. I’m the atmosphere around it…I will continue to become whatever it is [the fans] would like for me to be.”

Lady Gaga’s viewpoint could fit into Gary Vaynerchuk’s The Thank You Economy quite easily.  That is the point of business books written about famous people –  to learn more than leadership from sources seemingly disparate from your own past experiences.

Huba deftly enhances her points with a mix of business data and highlights from Gaga’s career.  For example Lady Gaga understands her one percenters – her devoted fans. The book reveals how Gaga developed her own community network.

“In late 2010 Gaga and her team realized they could create their own private place for the superfans, the Little Monsters. Gaga herself dreamed up the idea after seeing an advanced screening of The Social Network….[her manager Carter] partnered with some of the best in Silicon Valley, and created a firm called Backplane, which would build a niche social-network platform that could be used by other artists and even brands. Gaga invested her own money into the venture.”

The suggestions may seem out of reach for the small business owner.  Yet a small business owner can learn the value of Lady Gaga’s choices.  In Thank You, Vaynerchuk refers to the context of relationship and how your brand “must improvise and be willing to go where the consumer leads you.”  In Monster Gaga demonstrates that improvisation, built on the context before her.  She may have certainly had the money to build a social networking platform of her own, but the structure of the idea can be emulated through similar, affordable platforms that you learn about everyday on Small Business Trends.

Business tools alone do not guarantee success.  It’s how those tools are applied to make a sustainable business model.  If you read Monster Loyalty you will learn the right attitude to apply to the numerous digital marketing strategies touted every day.  It will be the winning attitude that will take your business to the next level.

The post Monster Loyalty: Savvy Engagement Tips From Lady Gaga appeared first on Small Business Trends.

The author of Black Still Matters in Marketing starts off the book by examining the changes in the past five years, and asks two questions: Is Black consumer behavior much different from Whites? Is it now time to stop labeling, and perhaps limiting ourselves with race?

After acknowledging the many changes, she concludes:  Black still matters in marketing. And then she goes on to explain that the book is not about “targeting” blacks in marketing, but rather about offering solutions to  help marketers understand African Americans and comfortably frame messages to Black America.

Pepper Miller is the author of “Black Still Matters In Marketing: Why Increasing Your Cultural IQ about Black America is Critical to Your Company and Your Brand.” The author’s background lists several significant accolades. She is a regular Advertising Age contributor.  She is Founder of the Ruth C. Hunter Market Research Scholarship Fund, a program to increase market research awareness among Black American Students.  And she heads up her own marketing research group, The Hunter-Miller Group.

Her experiences infuse a terrific sensibility into this book, one that can help businesses frame insightful personas associated with today’s African American consumer segments.

The topic of marketing nuances among African American consumers has been raised over the last few years, such as its treatment in the book “Black Is The New Green.” Miller builds on the topic by examining urban segments that have “come-of-age” economically, such as the multiracial demographic and the LGBT (Lesbian, Gay, Bi-sexual, Transgender) community.

This examination is a powerful suggestion, given the geographic shifts in where the Black middle class lives. Such significance is highlighted in the book “Our Black Year“and in the post-civil rights generation now mobilized in the U.S. workforce, also featured in the professional development books “Black Faces White Places“and “Black Business Secrets.”

I found the thesis of Black Still Matters to be well supported and explained. The book unquestionably extends the cultural dialog into the topics businesses need to focus upon. It first outlines what marketers must understand about the changing preferences and responses of Black men and women.  Businesses should:

• Understand the importance and impact of portraying Black men in a positive light, and the power of showing Black men as role models in the Black community.
• Recognize the growing power and influence of Black social networks and the Black blogosphere, and how and why engaging Blacks in cyberspace can have a profound positive impact on marketers’ bottom lines.
• Realize how young, single and accomplished childless Black women break the stereotypes about young Black women, and the benefit of looking beyond these stereotypes.

Add to these points an examination of LGBT and multiracial consumers. Both groups appreciate the historic treatment of Black consumers, but bring unique needs that businesses must acknowledge.  Check out this quote as an example of attitudes towards multiracial consumers of personal care products:

Some companies and products target multiracial people directly or with appropriate cultural cues.  New hair-care products, Miss Lessies’s and Mixed Chicks, launched within the past few years, were specifically targeted to Black biracial women to help tame their naturally curly locks. The products attracted many African Americans who also choose to wear their hair naturally.  Today, these multi-million dollar brands have inspired the launch of other “me too” brands and collectively, these products have become one of the new standards of hair care products within the $9 million Black hair-care industry. At the same time, expanded racial classifications like Black biracials also present challenges with respect to policies, social programs and marketing. Therefore distinct values and experience must be understood to develop appropriate appeals.

Another wonderful highlight is the examination Miller offers on Black immigrant consumers.  Economic statistics are punctuated with the successful marketing engagements, such as Publix’s plan in connecting to West Indian consumers.  African American-centric marketing in relationship to the ecological/green movement is also a savvy topic addition.

Black Still Matters In Marketing details some of the issues advertising agencies can face.  Businesses may not be agencies, but they can learn when some actions are too patronizing and can turn off consumers.  The following quote notes how partnerships meant to address strategy can be mismanaged:

Another practice…is the inclusion of ethnic advertising agency partners in the marketing strategy discussions early and often, recognizing the agencies as full partners during the process. “Partner” is the key word here….Few ethnic agencies have the opportunity to sit down and collectively work on the multicultural strategy. They are not even given the opportunity to work on or share their thoughts on the mainstream advertising. Instead, ethnic marketers are given “assignments”—not “the account”—and are often asked to adapt the general-market strategy to ethnic audiences.

Miller writes clear recommendations for successful campaigns. The takeaways are meant to be easily imagined, an augment to the wealth of stats Miller provides. Take Miller’s point about connection, using a scene from the movie The Break Up to illustrate the point about recognizing culture and the nuances that can come with it (which is a favorite move of mine, I’ll admit):

There is a scene in the 2006 movie The Break Up starring Vince Vaughn as Gary and Jennifer Aniston as Brooke, where we see the couple arguing. Gary won’t help Brooke with the dishes following a dinner party in which Brooke did all of the work. After several selfish reasons and snarky comments as to why he shouldn’t do the dishes, Gary reluctantly gives in. But Brooke backs up and declines his help and tells him, “I want you to want to do the dishes.” I love that line and totally get it! It’s the same with connecting with Black America. No group wants to force another group to appreciate their culture and who they are—they simply want that group to want to appreciate it. Just like Brooke in the movie, it is a matter of respect more than actually doing.

Read Black Still Matters In Marketing and begin a journey to understand diversity and the nuances that come along with acknowledging ethnic consumer perspective.

The post “Black Still Matters In Marketing” is a Journey to Understand Diversity appeared first on Small Business Trends.

Sonja Jefferson and Sharon Tanton note the ins and outs of content marketing with their book “Valuable Content Marketing; How to Make Quality Content the Key to Your Business Success.” Jefferson is the founder of UK marketing communication firm, Valuable Content. Tanton is a successful content creator. Both ladies gathered the best ideas that speak not only to the United Kingdom market, but to American small businesses as well.

I discovered the book on NetGalley and felt that its specific treatment of content marketing can teach businesses how to improve their effectiveness using that medium.

The data represented in Valuable Content Marketing supports many social media trends occurring in the UK. Jefferson and Tanton confirm industry sentiment: Many people are responding to the sharing aspects of digital marketing rather than to solely traditional methodologies.

“People are far happier to pass on something useful or compelling they’ve read or seen (it makes them look and feel good) than to hand over a business card you gave them (in fact, they’ve probably lost that already).”

To show how marketing has changed, as asserted in the opening chapter, Valuable Content Marketing offers an overview for each content marketing perspective.

The authors do not spend a lot of time comparing content marketing against the different channels within social media. Yet they do successfully explain how to get past the “what do I say” question that arises from social media. That makes the book a value to those who have just set up their Twitter profile, but are not sure what they should say online.  For example, check out a thought starter on extending the shelf life of a white paper:

“Once you’ve put the time and resources in longer pieces of content there is a lot you can do with them…One white paper or ebook can become 10 blogs, 50 short tips on Twitter, a short series of guides…”

Chapters 9 and 10 get into media formats, detailing the right content to create an ebook or white paper. You’ll also read the pros and cons on content management decisions such as gating or not gating content.

I also found chapter 12 to be helpful. It focuses on sales, adjusting tactics to get to “the ask” instead of creating brochures for the sake of sales only. The book notes,

“Brochures are still useful, but for professional firms they are purely a credibility tool not a door opener.”

You’ll learn the right mix of tools to use, such as incorporating a content calendar to maintain the effort. A chapter on search engine optimization (SEO) is short, but chapter 7 offers an outstanding explanation of the differences between a “brochure-style” website and a “valuable lead-generating website.” The terms may not be universal language among Web designers, but the diagrams will help business owners to know what site improvements to seek without having to understand HTML code. The book ends with a content checklist and questions for a case study.

The arrangement of material reminded me of Digital Impact, with quotes from additional sources. U.K. businesses are highlighted, such as Scottish firms Inkster and SwimTrek, and global names such as Intel are mentioned. But this book introduces American readers to excellent global campaigns to study, such as the highlight of Coke’s Global 2020 campaign that emphasizes “content excellence.” U.S. small businesses will also want to pay attention to the independent firms highlighted.

One detail that left me a bit wanting was the “value tips” sprinkled throughout the book. Some were just too general to provide meaningful guidance. But I found the further reading suggestions helpful, as well as the “take action” questions. Both appear at the end of the chapters.

When well executed, content marketing provides solid branding, augments search engine optimization when paired with a blog and enhances a business presence across numerous social media platforms. The book Valuable Content Marketing will work wonders to help your business achieve those benefits.

The post “Valuable Content Marketing” Offers Digital Marketing Insights appeared first on Small Business Trends.

No matter your role in business, your daily schedule can be filled with decisions faster than seats to a Justin Bieber concert.  But if you want to prevent yourself from becoming a zombie numbed by decision after decision, you should read Chip and Dan Heath’s new book, Decisive: How to Make Better Choices In Life and Work.

The Heath brothers (@heathbrothers) contacted me when their follow-up to their last book Switch, which I also reviewed, was close to release. Decisive is certainly an easy read to make hard decisions easy.

Decisive explores the topic of decision making without deeply rehashing Switch’s thesis about change. In Switch, the Heath brothers share the elephant-and-rider metaphor for managing rational thought.  They use it to explain one instance of an emotional short-circuit – “Chances are you know the people with Rider problems … your colleague who can brainstorm for hours but can’t ever seem to make a decision.”

Decisive expands that vision by explaining a set of biases that hinder decision making.  These biases are:

• Narrow framing your selection, eliminating other viable choices.
• Confirmation bias: Seeking support for your own beliefs in a decision rather than question.
• High level of emotional investment in the decision.
• Overconfidence in the answer derived.

The book is divided into four overall segments, meant to explore the solutions to each decision bias. The solutions are, respectively:

• Widen Your Options
• Reality-Test Your Assumptions
• Attain Distance Before Deciding
• Prepare to Be Wrong

Like Switch, the psychology behind Decisive is understandable. Reference ranges from business narratives, like Andy Grove’s decision to change Intel’s memory chip strategy, to more pop-oriented factoids, such as how an Ultimate Red Velvet Cheesecake from The Cheesecake Factory has more calories than 3 McDonald’s cheeseburgers and a pack of Skittles candy.

Fast food fights aside, the Heaths assert that “process matters more than analysis” and that “guts can have questionable advice.”  This neutrality towards analysis and guesstimating makes the book an accessible guide for business owners who need to make heavy decisions in life, let alone business.  If you are in business for yourself and striving for life balance, this book will guide without being so touchy-feely that examples won’t impact business decisions.

The introduction alone has conclusive support for why and how we make decisions.  That support carries through the segments, such as multi-tracking, the consideration of many options to prevent narrow framing:

Many executives are worried that exploring multiple options will take too long. It’s a reasonable fear, but researcher Kathleen Eisenhardt…found that executives who weigh more options actually make faster decisions.

Eisenhardt offers three explanations. First comparing alternatives help executives to understand the landscape: What’s possible and what’s not….Second, considering multiple alternatives seems to undercut politics… Third, when leaders weigh multiple options, they’ve given themselves a built-in fallback plan.

For those analytic practitioners concerned about managing analysis, the Heaths wisely footnote a resource that explores the balance between analysis paralysis and being narrowly focused.  (The Heaths have definitely “widened their options” in choosing how to present new ideas.)

Another strategy, called bookending, encourages the reader to imagine two scenarios – dire and rosy. To “spotlight” the scenarios helps to prevent overconfidence in a decision. I felt the approach helps small business owners understand what managing risk really means. An investment analyst’s view of Coinbox, the parent company of Redbox, illustrated how “the future is not a point; it is a range.”  More on that range comment:

In the absence of bookending, our spotlights will lock into out best guess for how the future will unfold…even if we have a good guess about the future, the research on overconfidence suggests that we’ll be wrong more often than we think.

The authors simplify examples, such as noting how pervasive safety factors are. Yet they don’t talk down to anyone or stick with a dictionary-dry explanation.

Decisive narratives are meant to translate suggestions into actionable ideas.  One example of an actionable suggestion is psychologist Gary Klein’s premortem strategy:

A post-mortem analysis begins after a death and asks, “What caused it?” A premortem, by contrast, imagines the future “death” of a project and asks, “What killed it?”…. Everyone on the team takes a few minutes to write down every conceivable reason for the projects failure. Then the leader goes around the table, asking each person to share a single reason, until all the ideas have been shared. Once the threats have been surfaced, the project team can prepare to be wrong by adapting its plans to forestall as many of the negative scenarios as possible. The premortem is a way of charting out the lower bookend of future possibilities and plotting ways to avoid ending up there.

At the end, you’ll find notes and references to a complementary website with exercises.  But even if you choose to read Decisive without the extra material, you’ll find that you’ve made a great reading choice to make your business great.

The post “Decisive” is the Right Choice for Making Business and Life Decisions appeared first on Small Business Trends.

When you start a business, you make choices. But how do you know you’re acting as an entrepreneur and developing the unique values of a sustainable business?

Johnson should know. He founded Johnson Media during his sophomore year in Morehouse College in Atlanta. Now, 13 years later, Johnson Media has grown to manage multi-million dollar marketing and communication contracts for many Fortune 100 firms.

I learned about the book after following Johnson’s tips and ideas shared on Twitter. Knowing the value he has brought to the social media world with his observations, I was too happy to finally have those observations in a book format for review.

The book is based from Kevin’s blog yet incorporates new insights. The text is organized into seven subjects:

• Strategy
• Education
• People
• Finance
• Marketing and Sales
• Leadership
• Motivation

The thesis behind the text is meant to guide young entrepreneurs away from major mistakes and miscues. Take this perspective of what creates a business failure.

A business can fail in two ways: not surviving beyond its start and not reaching its full potential…. Many entrepreneurs lack the motivation to pursue big ideas. I find this mentality prevalent among entrepreneurs who have had some level of monetary success in business that diminishes their willingness to pursue bigger ideas. These entrepreneurs strive to maintain their comfort or have become accustomed to going for low-hanging fruit. As business author Michael Gerber says, Comfort makes cowards of us all.

There are other nuggets, such as reflections on managing ego in business:

When you start your business lose the ego immediately. It’s the main reason that entrepreneurs don’t seek help. An over inflated ego prevents those who ask for help from receiving it.

Another perspective gives a starting point for vetting clients:

1. Be skeptical of a client who seems not to know what is needed or who constantly makes changes. For example, if you have a web or graphic design company, explain clearly your creative process and the time needed for the project.
2. Be careful if a client is not willing to pay an hourly rate or a piece rate of some kind.
3. Avoid any client who hesitates to sign a well-written agreement. This is a true test of whether a client is worth your time and effort.

Johnson also tempers some misconceptions about starting a business, such as the falsehoods that arise from being your own boss:

The phrase “being your own boss” appeals to those who believe that a domineering boss is a bad thing. They crave the freedom to do what they want when they want. People with this attitude generally make terrible entrepreneurs. As many entrepreneurs will tell you, unless you have strong self-discipline, a demanding boss figure that keeps you on track to success is a great thing. . .In order to be a successful entrepreneur, discipline is a must. There is no escaping it. . . There is no escaping it.

This book complements business books marketed towards African American business owners, like Dante Lee’s Black Business Secrets, as well as books examining a broad workplace influence such as The Experience Effect.

Some situations may read as too specific for general advice, but no suggestion comes across as entirely alien to a budding business. Johnson’s dealing with a bounced check is an example. A mentor taught him how to properly verify if a customer’s check really had sufficient funds behind it. This is a solid note about selecting the right mentor.

Examples like the check incident will raise a “been-there” thought from readers who know how to sustain a business.

The point of books like this is to accelerate the experiences that instruct one’s judgment. Your extrapolation from Johnson’s tips will be as useful as your imagination.

To get the best from it, imagine this book as a fine wine list of what business operations should be like.

The post Learn Vital Lessons by Entering The Mind of Elite Entrepreneurs appeared first on Small Business Trends.

In this highly competitive economy, small businesses need a strategy to flourish and grow. The question to ask yourself is:  are you playing to win, not just trying to stay in the game?

With their book Playing to Win: How Strategy Really Works authors Roger Martin and A.G. Lafley make the argument that delaying decisions on your strategy can have enormous consequences for your business.  Martin and Lafley are both Procter and Gamble executives.

I learned about the book through a mention at Harvard Business Review and asked for a review copy. It turned out to be a thought-provoking strategy book designed for large companies. But it’s one that small business leaders interested in strategy can learn from.

Martin and Lafley assert that strategy is a young discipline — it’s “about making specific choices” in your business.  Company leaders, they say, commit five kinds of mistakes when laying out their strategies:

• Leaders define strategy solely as a vision. Mission and vision statements are elements of strategy, but they aren’t enough.  They offer no guide to productive action and no explicit road map to the desired future.
• Leaders define strategy simply as a plan.
• Leaders deny that long-term (or even medium-term) strategy is possible because of a rapidly changing world.
• Leaders define strategy as the optimization of what they are already doing in their current business.
• Leaders define strategy as following best practices, such as benchmarking against competition, and then doing the same set of activities.

The authors explain why strategy often goes wrong.  They note that making choices is hard work, and it doesn’t always fit into all the other work to be done in a business.

See if this sounds like you.  You are in a rapidly evolving marketplace.  Things are moving so fast that you ditch long-term strategies, believing it’s futile to decide what you will do 3 or 5 years in the future.  That’s a mistake, say the authors:

“Some leaders argue that it’s impossible to think about strategy in advance and that instead a firm should respond to new threats and opportunities as they emerge….  Unfortunately, such an approach places a company in a reactive mode, making it easy prey for more-strategic rivals…. Not only is strategy possible in times of tumultuous change, but it can be a competitive advantage and a source of significant value creation. Is Apple disinclined to think about strategy? Is Google? Is Microsoft?”

Small business owners may dismiss the points made by the book as academic and not for them. But small businesses need strategy, too. A delayed or non-existent strategy can lead to mediocre positioning in the marketplace, inability to compete and ultimately failure.

Oh, but you have marketing plans and other kinds of plans. Martin and Lafley say plans are not enough:

“Plans and tactics are also elements of strategy, but they aren’t enough either. A detailed plan that specifies what the firm will do (and when) does not imply that the things it will do add up to sustainable competitive advantage.”

A Strategy Book With Five Steps

The authors suggest a playbook of five steps to a strategy:

• Decide on a winning aspiration.
• Choose “where to play” – the market for your offering.
• Decide “how to win” – executing strategy.
• Develop core capabilities.
• Create a management system.

The first several chapters of Martin and Lafley’s book address the implications of these choices. For example, in the first few pages we are shown how deciding on a winning aspiration can address the problem of relying upon a vision alone.  Winning aspirations offer a guiding purpose for your business:

“There are many ways the higher-order aspiration of a company can be expressed. As a rule of thumb, start with people rather than money. Peter Drucker argued that the purpose of an organization is to create a customer, and it’s still true today…. Starbucks, Nike, and McDonald’s, each massively successful in its own way, frame their ambitions around their customers.”

We then see how Nike’s, Starbucks’, and McDonald’s aspirations are similar, and how we can apply this same principle in our own businesses:

“Each company does not want to serve each customer. They want to win with them. . .And that is the single most crucial dimension of a company’s aspiration: a company must play to win. To play merely to participate is self-defeating….  Why is it so important? Winning is worthwhile.”

These observations help explain how strategy mistakes can muddle business decisions. Aspirations can lead teams to develop new methodologies instead of just optimizing old ones.

I liked that the authors created a way to stay on track, and with a do-it-yourself approach. The book avoids issues that are probably best addressed in books about project management or team dynamics.  But those who have read such books already won’t be disappointed with Playing to Win, particularly after reading Chapter 8.

Martin and Lafley use examples to illustrate the value of strategic thinking through their Procter and Gamble experience.  Chapter 1 sets the scene for revitalizing Oil of Olay, a high profile product stagnating in a profitable and growing marketplace.  Other large corporations are mentioned, so small business readers will need to imagine how these experiences also apply to them.

Yet the authors’ writing is clear enough to spark the reader’s imagination. You will have a clear means to improve your business strategy and make better choices, regardless of whether you are working with multiple employees and contacts or just with an army of one.

If you need to establish a clear strategy while dealing with personnel concerns, Playing to Win is certainly made to order. Martin and Lafley have unlocked valuable thoughts about what strategy should be, how it should be managed, and how businesses can win the day.  This is a strategy book worth reading.

The post “Playing to Win” Explains the 5 Strategy Mistakes Businesses Make appeared first on Small Business Trends.

Without further adieu, I present my favorite small business books from 2012. I hope these inspire your thoughts for nominating your favorite small business books in this year’s awards.

No You Can’t Pick My Brain by Adrienne Graham

This book should be every consultant’s first book to read before going into business.   It gives the best reminders of why you are in business – to make money.

Her quote, “There are no amount of pleasantries, well meaning deeds, gestures or sandwiches that will pay your bills” remains etched in my mind as a favorite.

Yet the writing goes beyond quips to valid arguments and solid analysis  – a lesson for authors who think they can write any old article and attract a solid audience.

Data Driven Marketing by Mark Jeffery

This textbook-in-disguise gets it right when it comes to envisioning metrics worth exploring.

Its value is in transforming surveyed responses into the top marketing metrics that can influence operations and ultimately make analytics everyone’s business.

You will want to keep data driven marketing at your side. It is a solid book that sets a marketing context against other operations in your business. Business owners who like to learn will be in for a treat.

Our Black Year by Maggie Anderson with Ted Gregory

I loved that the authors personalize the challenges facing black communities.

The concerns of racism and economic struggle have changed over time into critical questions on class and where meaningful dollars are being spent.

The text speaks sharply to the post civil-rights African American middle class. The resources offered are really good and the book will fascinate people who have an interest in community development.

Small Town Rules by Becky McCray and Barry Moltz

Both authors Becky McCray and Barry Moltz have had plenty of success on their own, but this book should be considered a masterwork from them both.

Big and small companies are returning to the values of small towns and the 7 small town rules that they outline come from their real world experiences with large corporations and small business.

It’s an excellent blended overview of the impact of technology as well as the impact on community as Our Black Year also outlines.

The Start Up of You co-authored by LinkedIn Co-founder/Chairman, Reid Hoffman, and Entrepreneur Ben Casnocha

I liked how Reid Hoffman balanced the importance of team and individualism in his view on networking and the book offers actionable concepts to go along with the philosophical notions.

It is this kind of thinking that I easily imagine as an influence to LinkedIn’s success.

Before you develop that earth-shattering app, read this book to gain a sense of proper value your startup should be bringing to the world.

What are some of your favorite small business books from 2012? Feel free to share them here in the comments. Or even better, consider nominating them for the 2013 Small Business Book Awards:

Nomination FAQs

(1) There is no nomination fee. That’s right, it costs nothing to nominate a book – zero.

(2) How can Small Business Trends afford to run awards without fees, you ask? It’s thanks to the generous support of Namecheap, an ICANN-accredited domain registrar. Presenting this year’s awards is yet one more way that Namecheap is supporting the small business community. So if you want to thank anyone for this awesome opportunity to discover new books and share your favorites, be sure to thank Namecheap.

(3) Can I nominate my own book or book app?  (Remember, there’s a “resources” category this year, too.)  Yes, anyone can nominate a book – it doesn’t matter who submits the nomination. The idea behind community awards is that the entire community receives an opportunity to participate.

Book lovers, authors, publishers, book app developers, fans — head over to the 2013 Small Business Book Awards site, and — nominate away!

The post Don’t Miss These Favorite Small Business Books From 2012 appeared first on Small Business Trends.

Businesses large and small have jumped on the Facebook marketing bandwagon.

But the question remains: can small businesses profit from Facebook?  If you use Facebook for your small business marketing, will it pay off? And the answer, according to one author is “yes it can” — if you know what you’re doing.

To put forth your best Facebook effort, turn to The Facebook Guide to Small Business Marketing.  Ramon Ray (@RamonRay) of Small Business Technology wrote this Wiley-published book.

Ramon Ray has been on the small business scene for over a decade, and he is a well-known figure in this space. You may have seen him in a webinar or moderating a panel.  If so, you’ve witnessed firsthand his crisp overview of technical issues. He has a gift for presenting complex material in an understandable fashion.

I am proud to say I and Carolyn Crummey of VirTasktic helped research material for this book.  So instead of burdening you with a biased review of an exceptional book (including – ahem – a super-awesome analytics segment) I’ll highlight what the book offers to your business plans to conquer Facebook.

Making Facebook Easy To Understand 

Ray’s approach to technology supplements this book well. The length of the book is similar to Chris Brogan’s Google Plus for Business.  To me, the reader benefits from the structure because it highlights Ray’s ability to cover details without being overwhelming.  Thus  your business team or marketer can easily understand the Facebook details within the context of your business.

In the chapter on Facebook apps, for example, Ray explains the choice of offering a Facebook app in understandable wording.   You will find interviews from small business owners with their experiences with apps and other Facebook features.  For example, when explaining the value of Facebook Places, Ray notes how Wood’s Coffee, a 100 employee coffee shop in Whatcom County, Washington, uses it to connect to customers.

Small businesses of varying sizes are interviewed or case studies from them included. So no matter what size your small business — one person to 100 people — you are bound to find relevant examples.

The first few chapters cover how to build a Facebook page for your business. You will get straight-to-the-point instructions for setup, as well as how to choose additional applications  to customize your page and attract more engagement from fans once you have them.  For example, Ray’s instruction on creating a timeline post includes simple points such as:

1. Below the cover photo of your Business page, there is a box on the left side that says Status, Photo/Video, and Event, Milestone. This is called the composer. From this box, share or post.

2. Once you finish adding the information you want to post on your Timeline in the appropriate box, you can choose if you want to share this with everyone by keeping it public or define exactly who you want your audience to be.

3. Click share to add you post to your Timeline.

If you run a brick-and-mortar business, then I am willing to bet you’ll mostly use the chapters that explore the activity small businesses pursue offline.  Chapter 6 reviews how to announce events such as trade shows and presentations on your Facebook page.  Chapter 7 examines Facebook Places Check-In Deals, which are designed to draw foot traffic into your retail store.  Ray offers solid tips.  For example, he notes that when beginning a check-in program, a business should evaluate staffing:

“Before you market your Check In Deal, familiarize your staff with mobile phones and Facebook…. Anticipate the customer demand for your Check-In Deal. If you have a well-trafficked store on normal days, you can bet that you’ll have even more traffic with your Check-In Deal.”

The book goes on to offer tips for how to set the proper value of a Deal offer.  It takes you for a walk in the customer’s shoes. Take this example about Facebook Offers:

“If you are taking the time to make a Facebook Offer, don’t make it for 1 percent off or an offer that people can get easily somewhere else. Make it big enough so people care and can take advantage of it.”

When it comes to marketing your business, Facebook can feel like a complicated platform to follow.   The number of books on the market about Facebook makes understanding where to start even tougher.  I recall three variations of Facebook for Dummies books, each old-school phone-book thick.

But thanks to Ramon Ray, this book simplifies and demystifies what is otherwise a sometimes complex tool.  As a result, you’ll grasp the Facebook basics much faster.  And it lets you cut to the heart of how to use Facebook to market your business, engage the public, and build loyal customers.

Whether your business is just getting started with Facebook, or you are already using the platform but you and your team have a desire to use it more effectively to grow your business’s bottom line, The Facebook Guide to Small Business Marketing is ideal.

UPDATE:   The Facebook Guide to Small Business Marketing is available this week. If you purchase it on February 19, 2013 you can also get a FREE Digital Goody Bag for buying the book:  Digital Goody Bag

The post Why You Should Read “The Facebook Guide to Small Business Marketing” appeared first on Small Business Trends.

Well, when you are a small business owner, you may not feel as though you and your business needs fit entirely into Zappo’s shoes.  But many businesses will face a daunting task to select that crucial first hire.

A book by human resources strategist William E. Miller covers the basics to make that task a bit easier.  Called The Art of Strategic Interviewing, Miller’s book caught my eye online while browsing publications from  Paramount, a small publisher in New York. So I asked for a review copy. 

The book’s topic sticks in my mind because of what is happening within digital measurement  – and in a number of industries in general. Many companies complain about the lack of qualified employees. But some of the lack in finding employees may lie in how the search is framed – such as the ideas suggested in Jamiliah Warner’s post, “Write Better Job Descriptions and Build A Stronger Team.”

A Different Interview Framework

Moreover if the skills in many industries are being upended, shouldn’t the strategy to interview shift as well?  Miller notes that a too narrow search is problematic:

“Companies that confine their job searches to their industry are limiting their selection to the prevailing standards of the industry—for better or worse. It’s far better to understand what it takes to succeed in the job than where the candidate worked.”

Fortunately Miller notes what business should do to attract and retain happy, skilled employees. Miller explains what human resource managers should be looking for in candidates within an interview framework.  A small startup that has funding is a great audience for this book, but some of the ideas can help a small business that is not VC-funded as well.  For interviews it means getting deeper about why a hire is needed:

“Interviews must be based on a plan and preparation. Interviewers should have a specific assignment: What standards should they be assessing and what questions should they be asking to engage the candidate in discussion?”

Know when a Behavioral Event Makes Sense

Interviewees may want to read this book to evaluate their own expectations as well. When Miller notes behaviorioral events, he summarizes a description that people should convey when interviewing or even seeing recommendations in LinkedIn. It’s about stating what outcomes within your background occur. Read the following to learn more about those outcomes, which Miller calls a behavior event:

A behavioral event is something that actually took place in real space and time. It is something that the candidate actu­ally did. It is not an opinion or vague answer. For example, here’s a question I frequently use when interviewing candidates for sales, “Would you give me an example of a difficult sale you’ve made?

Miller goes on to give an interview framework to access the honesty of a given answer:

A “behavioral event” is a complete picture of what actually happened. A complete behavioral event has three elements. I use a model to describe them to make it easy to remember – “CAR.” It’s an acronym for: Cause – Action – Result.

Miller also shares red flags, such as when a potential hire accepts lower pay:

If you’re thinking about hiring a candidate who will be taking a significant cut in pay, stop! Find out why he would accept lower income. You may not be getting the “bargain” you think. Sometimes, candidates accept positions for lower pay believing it’s only temporary because they plan to continue their job search after they’re hired. Sometimes they accept a lower-paying job, fantasizing substantial salary incentives or increases from you when given the opportunity to demonstrate their true abilities.

The book is small and can compliment other human resource books such as Dive In and Your Career Game.  These books contain slightly different topics, but combined they can offer some human resources perspective on each other.

For the best perspective to prevent hiring churn, I am sure The Art of Strategic Interviewing will get you and your team talking about the best ways to hire new talent.  For businesses regardless of industry, hiring is an art that will truly appreciate over time.

The post The Art of Strategic Interviewing Raises Human Resources to a Great Art appeared first on Small Business Trends.