Are You Embracing Risk?

by Daria Steigman on January 23, 2012

Why Mistakes Are Good, Business, Entrepreneurship, Independent ThinkingI had a conversation with my mom recently about an apparel retailer that is going out of business. She had attributed their fate to a declining economy. My own take: the clothing was staid–and there’s a limited market for boring. The company never took a risk. It didn’t try to refresh, modernize, reinvent for changing styles.

Successful businesses don’t sit still.

There’s a reason abandon is one of my 3 words for 2012.

There’s a terrific piece on Inc.com about taking risks and making mistakes. Author Paul Schoemaker points out:

If you have ever flown in an airplane, used electricity from a nuclear power plant, or taken an antibiotic, you have benefited from someone’s brilliant mistake. Each of these life-changing innovations was the result of many missteps and an occasional insight that turned a mistake into a surprising portal of discovery.

His point: you have to take risks, and test things, and be willing to fail (i.e., make a mistake). It’s a short article and well worth the read.

Photo by Brett Jordan (Flickr).

 

 

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Why the Small Business Haters Have It All Wrong

by Daria Steigman on January 19, 2012

Small Business Hidden Treasures, Independent ThinkingHave you noticed a trend lately disparaging small businesses (especially solo-owned ones)?

It’s a bit ironic that the people who are taking chances, thinking creatively, and testing out new products and services are getting slammed for not creating  jobs at a time when the economy is mired in inactivity.

The haters have it all wrong.

We’re not too big to fail. But we’re small enough to succeed.

One big thread in this conversation seems to revolve around employment. At one level, the naysayers have it absolutely right: I’m not hiring.

But that’s not my business model. My model is to partner. Which, last time I checked, generates income for other people so that they can pay bills, buy groceries, and shop at the mall–all the same stuff that salaried jobs enable, albeit at a much smaller scale. But I’m just one small business among many.

It’s not just about jobs.

There is a jobs crisis. But don’t blame small businesses for it.

I’m not an economist, but jobs don’t spring from nowhere. We need a reboot, and that’s going to require innovation, creativity, research and development, and risk-taking. (These and a bunch of other things too.)

Ashvini Saxena had a terrific post recently on how Entrepreneurship Benefits the Economy More Than Just Generating Jobs. In it, he talks about four other factors:

  • Entrepreneurs invent.
  • Entrepreneurs optimize.
  • Entrepreneurs find hidden demand (and create plans to exploit it).
  • Entrepreneurs hire people with skills.

Read Saxena’s post as well as the smart conversation in the comments.

Have you noticed an attack on small business? What’s your take?

Photo by Jan Tik (Flickr).

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7 Digital Trends to Watch in 2012

by Daria Steigman on January 17, 2012

Daria Steigman & Dan Horowitz on IABC/Washington's Digital Trends 2012 Panel

From l-r: Steve Radick, Dan Horowitz, Daria Steigman, and Rick Dunham

Integration, mobile, and consolidation were all topics under discussion at the January 12 IABC/Washington panel on trends in digital communications.

Here are my top seven takeaways:

1. Silos will start to fall. According to Steve Radick of Booz Allen Hamilton’s Digital Strategy and Social Media Practice, government agencies will better integrate their social media initiatives. He noted, in particular, that people are starting to understand the disconnects that happen when customer service is not integrated.

2. Government social media will be in “wait and see” mode. Radick said not to expect a lot of big Government 2.0 initiatives. He suggested that most agencies will be in waiting mode during this election year.

3. Companies will start to clean up their act. Dan Horowitz of Fleishman-Hillard’s Digital Group and Social Media Practice pointed to a new Altimeter report that found that large companies have an average of 178 corporate-owned social media accounts. In 2012, he said, they will consolidate and coordinate better–which involves, of course, aggregating efforts via smart tools (e.g., Buddy Press).

4. Social media reaches maturation. Horowitz pointed to Forrester’s just-released research on social media adoption that found that 86 percent of adults who use the Internet use social media.

5. The press release is dead. Okay, Rick Dunham, Washington Bureau Chief of the Houston Chronicle and chief author of the Texas on the Potomac blog, didn’t really say this. But he did say that he’s relying more and more on Twitter search and other social media to discover trending stories and breaking news–and to get ideas for news stories–and not so much on press releases.

Plus two trends from my remarks:

6. Mobile has arrived. eMarketer estimates that there will be 113.9 million mobile Internet users in 2012–an increase of 17.1 percent from 2011. This includes 72.8 million mobile shoppers and 37.5 million mobile buyers. This means that every business–large and small–needs to have a mobile strategy.

7. “Find-ability” will be more important than ever. With Google rolling out “Search Plus Your World,” having a solid content marketing strategy (and quality content) will be more important than ever. Businesses that are still relying on static, corporate-brochure-type Web sites will be left in the dust.

Bonus Trend: Platforms. I just read Phil Simon’s The Age of the Platform (review coming soon), and I haven’t really had a chance to sit down and think through how small businesses will be able to take advantage of what he calls “extremely valuable and powerful ecosystems” (think Amazon or Apple) that allow you to scale, morph, and bring in partners, users, vendors, and so forth. While the business concept may not be new, technology has made doing this very different. I think Simon’s on to something. This is one emerging trend to watch.

Agree with these trends? Disagree? Think something’s being over-hyped? Please weigh in below.

Photo courtesy of Capitol Communicator.

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3 Strategies to Excel in a Tough Market

by Daria Steigman on January 12, 2012

Business strategy is a balancing act. Are you a pioneer, a pouncer, or a hedger?How do you manage uncertainty when, by definition, it involves wrestling with stuff that’s difficult–and sometimes impossible–to predict?

It all starts with understanding (and then leveraging) your competitive advantages, says Keith Bickel, author of Mastering Uncertainty. The book posits three different business models to optimize your competitive edge.

Are you a pioneer, a pouncer, or a hedger?

Read about the three strategies in my book review.

Photo by Steve Snodgrass (Flickr).

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“Just Because” is a Stupid Way to Run a Business

by Daria Steigman on January 10, 2012

Mix Matched Socks are a Brand StatementIt’s a new year, but are you still doing the “same old, same old?”

I wrote recently about knowing when to fold–giving up a product or a service or even a business development strategy that’s run its course. But there’s another thing business owners need to consider: what might be working, but doesn’t make sense.

This can show up in the people you engage with and the processes you follow. For example:

  • Are you loyal to an accountant, a lawyer, or even an insurance agent who does an okay job year after year rather than making the switch to someone who will really shine? (For the record, I have an awesome accountant if you need one.)
  • Do you keep using that cumbersome e-mail marketing system or time-management software rather than switching to something faster and more user-friendly?
  • Are you still faxing documents because you don’t have an electronic signature on file? (Oops, that’s me.)

Make every business action a conscious choice (not “just because”).

A case in point: My condominium association raises the parking fee by $5 every other year. But no one knows why they’re doing it. It’s just what they do. What they’ve done. You know why they’re doing it? Because over 10 years ago when I was condo board president I said I thought it was ridiculous to nickel and dime people with $2 and $3 raises. Somehow that translated into the current “policy.”

It’s a good practice to evaluate your business processes and policies from time to time. Now I’m off to find a scanner.

Photo by Evelyn Giggles (Flickr).

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