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Sweet marketing music

Tanner Montague came to town from Seattle having never owned his own music venue before. He’s a musician himself, so he has a pretty good sense of good music, but he also wandered into a crowded music scene filled with concert venues large and small.But the owner of Green Room thinks he found a void in the market. It’s lacking, he says, in places serving between 200 and 500 people, a sweet spot he thinks could be a draw for both some national acts not quite big enough yet for arena gigs and local acts looking for a launching pad.“I felt that size would do well in the city to offer more options,” he says. “My goal was to A, bring another option for national acts but then, B, have a great spot for local bands to start.”Right or wrong, something seems to be working, he says. He’s got a full calendar of concerts booked out several months. How did he, as a newcomer to the market in an industry filled with competition, get the attention of the local concertgoer?

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by Mary Riebe
November 2002

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To be successful, attack common “big five” fears

RECENTLY I PARTICIPATED in a Minneapolis venture capital group analysis of a prospective business owner. The owner had prepared an extensive business plan for a proposed manufacturing business.

After the presentation and a review of the plan, funding was denied. Why? Because the venture group felt the owner would only do what he wanted to do rather than what was necessary to start and grow a business.

The owner was uncomfortable with sales and was planning on hiring a salesperson as soon as the business started. The owner was playing solely to his strengths and ignoring how to deal with his fear of sales.

This topic of fear was addressed by a successful retail business owner giving a lecture at my St. Paul graduate class on entrepreneurship. She had just one message for business owners: “Attack what you fear.”

Owners tend to buy solutions for areas that give them trepidation rather than challenging themselves to tackle what is personally uncomfortable for them. I think there are five common areas of fear for business owners to attack.

1. Fear of sales

Many owners have a great product and think if you provide it, the customers will come. As noted with the unsuccessful owner seeking venture capital, if you have a high discomfort with sales, it must be addressed. Fear of sales is a common problem, although we are all in sales every day.

I often ask my graduate students at a start of a new class, “How many of you are in sales?” A few raise their hands. At the end of the semester, I ask the same question and all raise their hands. They learn we are in sales every day whether we are selling a new concept within our company or seeking a loan.

Selling is helping people achieve what they need. It is not pushing something on someone. It is a skill. It can be learned. It is a necessary tool for a business owner

2. Fear of networking

Historically, women have been slow to network even though they know the value of making new contacts. Building relationships is the key to building a business. Word of mouth through friends and contacts is the most effective way to increase sales, but often the slowest.

People respond that they are introverts and uncomfortable with meeting people for the first time. Julie, one of the successful business owners I interviewed in my dissertation research on women, described herself as an introvert terrified to give a speech or walk into a room where she knew no one. Last year her sales were over $10 million.

She knew networking was important for her distribution business. She forced herself to go to functions with a goal to meet two new people. At the next event she tried to meet three new people and continued to up her personal quota at each function. She is still uncomfortable at such functions, but she knows her contacts help grow her business.

3. Fear of seeking advice

Many owners try to reinvent the wheel and do it their way. Often, with the proper advice from a banker, attorney or accountant, owners could be more successful sooner.

A business owner that has an independent nature needs to know when to rely on others. Upon reflection, business owners have lamented the financial and emotional ramifications of not seeking professional advice, fearing it would cost too much. A restaurant owner I know did not protect his company name with a trademark and eventually had to change the name at an enormous expense while losing valuable brand equity.

Bankers are another resource used often late in the process when money is tight. Get to know a banker now and let the banker know your business. Then when funding is needed, the banker knows your company, and more importantly, you.

4. Fear of technology

With computers changing every two years due to technological advancements, it is difficult to keep current. What works one day has changed the next day.

Consider your business as a spaceship that has to be rebuilt while still in flight and navigating. Use outside resources. Minnesota Technology Inc. offers trend searches, patent searches and competitor reports at a reasonable rate. INFORM through the Minneapolis Public Library offers excellent programs for understanding the Internet. If you can”t or don”t want to search for yourself, numerous organizations are available to help you.

Consider hiring a computer consultant once a year to update you on software programs. If you have children or other relatives under the age of 20, ask them for assistance. They are the most computer savvy.

5. Fear of thinking big

Analyze how global you are in your thinking. Fear can drive us to operate efficiently in the old ways of doing business in order to create an illusion of maintaining or capturing control.

Are you considering having your product manufactured outside the United States? How many of your customers are outside the country? Have you conducted a trend analysis to consider where your future customers may be located? Are you a member of an international organization?

Many owners are fearful of language issues and the challenges of working with another country. The Minnesota Trade Office offers specialized programs for new-to-export businesses. The Internet has opened the door to the world. Take advantage of it before your competitor does.

Make some time to reflect upon where you want to take your business, where you need to improve your business, and commit to setting a meeting with someone who will offer you good advice. Then, listen to that advice. Being a business owner is challenging, draining, exhilarating and sometimes downright frightening. Attack what you fear but remember that you don”t have to go it alone. There are numerous people along your journey willing to help you achieve the level of success you desire. Take advantage of it. It will make your business and personal growth a lot more fun. Guaranteed.

contact Mary Riebe is director of the Center for Women Entrepreneurs at Metropolitan State University in Minneapolis: 612.373.2718; mary.riebe@metrostate.edu